Oregon high-tech companies — 15 of them —  will share up to $240 million in state grants aimed at creating jobs and capturing some of the federal money available for domestic semiconductor and related manufacturing.

A total of 16 applications were filed for the money, which was awarded by the Oregon Business Development Department and the governor’s office. Requests totaled $504 million, more than twice the amount available from the state fund.

Although most of the money went to metro area companies, grants also went to businesses in the Willamette Valley, Southern and Central Oregon.

Vince Porter, economic and workforce policy adviser to Gov. Tina Kotek, disclosed the grantees during a Thursday presentation to the House Economic Development and Small Business Committee. He said the money is projected to create 6,300 high-paying jobs and generate $43.8 billion in economic activity.

Though he did not disclose details of how the money will be spent – business confidentiality is a factor – Porter said state contracts with the awardees will be negotiated in the final two months of this year.

Kotek requested $200 million in her initial two-year budget request, but left it to the Legislature to decide details of the aid plan. Two key lawmakers – House Speaker Dan Rayfield, D-Corvallis, and Senate Republican Leader Tim Knopp of Bend – were on a 2022 task force whose recommendations were the basis for the eventual plan.

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As one of its earliest actions during the 2023 session, the Legislature set aside $190 million for competitive grants in Senate Bill 4. Lawmakers added $50 million in the close-of-session budget reconciliation measure, but that amount is subject to action in the 2024 session that starts Feb. 5.

The legislation specifies some requirements of companies.

For each $1 million of state investment, a company must generate either $1.25 million or $1.5 million in state and local revenues. The dividing line is five years.

In addition, 65% of the newly created jobs must be permanent full-time positions, and they must pay the median income for their area.

The state legislation included $10 million for university research.

Separate legislation passed in 2023 provides for a research and development tax credit, directly subtracted from business income taxes owed, starting with the 2024 tax year. This money is excluded from the totals. Rulemaking is still in process.

Congress included $52 billion for federal incentives for domestic semiconductor manufacturing, plus $10 billion for regional technology hubs, within the CHIPS and Science Act of 2022. (CHIPS is an acronym for Creating Helpful Incentives for Producing Semiconductors; the state money comes from the Oregon CHIPS fund.)

Oregon State University is leading a consortium seeking money for a regional tech hub. The federal legislation excludes areas such as California’s Silicon Valley and other already-developed concentrations. The federal money will be decided by the Economic Development Administration, part of the Commerce Department, whose secretary – former Rhode Island Gov. Gina Raimondo – visited Hillsboro on April 5.

Where funds are going

The largest share of the state fund went to Intel, the California company that is already Oregon’s largest private employer with 22,000 employees at four plants in Hillsboro and Aloha. Intel will get $90 million, and if the Legislature approves additional money next year, it will get $25 million more.

The other awardees, with the initial amount listed first and the potential supplemental amount in 2024 second (a couple of them get only one grant):

• Jireh Semiconductor, Hillsboro: $35.5 million plus $3.5 million.

• Lam Research, Tualatin: $19 million plus $3 million.

• Analog Devices, Beaverton: $10.5 million plus $1.5 million.

• Microchip Technology, Gresham: $9.5 million plus $1.5 million.

• Siltronic Corporation, Portland: $1.5 million plus $700,000.

• Tektronix Component Solutions, part of Maxtex Component Corporation, Beaverton: $1 million plus $1 million.

• Qorvo US, Hillsboro: $500,000 plus $500,000.

• Tosoh Quartz, Beaverton: $500,00 plus $500,000.

The non-metro companies that got awards:

• Arkham Industries LLC, Eugene: $9.5 million plus $9.5 million.

• HP, Corvallis: $8.5 million plus $1 million.

• MGP Engineering LLC, Redmond: $1.5 million plus $150,000.

• ATI Specialty Alloys and Components, Albany: $1 million plus $600,000.

• Rogue Valley Microdevices, Medford: $250,000.

• Amorphyx, Corvallis: $250,000.