HP Secures Up to $50 Million in CHIPS Act Funding: A Leap Towards Technological Advancement

In a groundbreaking move, HP has secured preliminary terms with the Department of Commerce to receive up to $50 million in funding from the CHIPS and Science Act. This funding will support the expansion and modernization of HP's Oregon-based plant, a 'lab-to-fab' facility that combines research and development (R&D) with chip manufacturing. The expansion is expected to generate over 250 jobs, contributing significantly to the local economy. The primary focus of this expansion is the development of chips for life sciences lab equipment, including devices used for drug discovery, single-cell research, and cell line development. This aligns with HP's commitment to advancing technology in the field of microfluidics, the study of fluid behavior and control on a microscopic scale. With the potential to revolutionize various industries, microfluidics promises to deliver speed, efficiency, and precision, paving the way for the next generation of innovation in life sciences and technology.

The proposed $50 million will be used to enhance HP's existing plant in Corvallis, OR, which not only manufactures silicon but also serves as one of the company's three global R&D centers. This 80,000-square-foot facility has a proven track record of fostering innovation, having incubated 39 startups, including 20 spun off from Oregon State University faculty and students. HP's academic partnerships with Portland Community College further strengthen its commitment to training and recruitment programs. The preliminary memorandum of terms (PMT) is non-binding and conditional on the achievement of certain milestones. Following a merit review of HP's application, the Department of Commerce will conduct due diligence on the proposed projects before negotiating or refining the final funding terms. The CHIPS and Science Act, signed by President Biden in 2022, directs $280 billion towards incentivizing semiconductor companies to manufacture in America. This initiative aims to bolster America's competitiveness with China and generate job growth, with $39 billion allocated for domestic chip manufacturing subsidies and $13 billion for workforce training.

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