The Department of Commerce (DoC) announced today it has reached a preliminary agreement with HP Inc. for up to $50 million in proposed direct funding under the CHIPS and Science Act to support the expansion of HP’s existing semiconductor facility in Corvallis, Ore.

The facility is part of the company’s “lab-to-fab” ecosystem in the region, which includes research and development (R&D) activities and commercial manufacturing operations.

President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.

“The Biden-Harris administration’s proposed investment in HP shows how we are investing in every part of the semiconductor supply chain and how important semiconductor technology is to innovation in drug discovery and critical life science equipment,” Secretary of Commerce Gina Raimondo said in a press release.

“The Biden-Harris administration continues to deliver on our promise to bring a strong semiconductor ecosystem back to the United States and create good-paying jobs as seen by today’s investment. America invented the chip, and our nation’s ingenuity has always driven us forward,” added Natalie Quillian, White House deputy chief of staff. “HP has long been a part of this great history of American innovation, and thanks to President Biden’s CHIPS and Science Act, we are ensuring that America continues to lead the next generation of technologies.”

The Commerce Department said the proposed project would create about 150 construction jobs and over 100 manufacturing jobs.

The facility in Corvallis serves as one of three of the company’s R&D Centers for Excellence. According to the release, HP’s expertise in microfluidics and microelectromechanical systems (MEMS) offers a unique opportunity to drive improvements in semiconductor-based hardware.

The proposed funding would support the manufacturing of “silicon devices that are key components of life sciences lab equipment which are used in drug discovery, single-cell research, and cell line development,” the Commerce Department said.

The company’s devices help to serve public health initiatives, as well as partner institutions across academia, government, and the private sector including Harvard Medical School, the Centers for Disease Control and Prevention, and Merck.

Notably, HP also donated a 25-year lease of a portion of its Corvallis campus to Oregon State University – an 80,000 sq. ft. manufacturing and R&D facility that has incubated 39 different companies.

“We would like to thank the Biden-Harris administration and Secretary Raimondo for this proposed investment, as well as the Oregon congressional delegation and state leader for their support and advocacy throughout this process,” said Enrique Lores, president and CEO of HP. “We look forward to continuing to work to accelerate our innovation in microfluidics and MEMS technology while expanding our manufacturing and R&D capabilities in Corvallis, all made possible by President Biden and Vice President Harris’s CHIPS and Science Act.”

The next step for the Commerce Department after signing the preliminary agreement is to conduct due diligence on HP’s proposed project, followed by negotiation of a final award agreement.

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Grace Dille
Grace Dille
Grace Dille is MeriTalk's Assistant Managing Editor covering the intersection of government and technology.
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