Intel lobbyists warned Oregon legislators that their state was in danger of losing one of its main sectors to rival states that were offering huge incentive packages to entice businesses.
The federal government’s threat to dangle billions of dollars exclusively for the production of semiconductors and microchips has increased the pressure on the state to take action.
The Intel lobbyists warned that Oregon would completely lose out if it decides not to compete with other states or if we do not give competitive incentive packages in a letter to Governor Brown and a number of state Republican and Democratic politicians.
The letter also emphasized Intel’s economic contribution to the state, stating that “according to a recent analysis, Intel’s total employment effect in Oregon is over 105,000 jobs, or 4.0 percent of the state’s total employment, with $10.0 billion in labor income. Additionally, Oregon receives a value addition (GDP) of nearly $19 billion from Intel.
This warning follows Intel’s announcement over the summer that it will be constructing a $100 billion facility in Ohio. Intel is one of Oregon’s major employees. In addition, Micron, a company with roots in the Pacific Northwest, revealed plans to build a $100 billion facility in New York.
Those statements serve as alarm clocks for Oregon.
“The lesson we’ve been learning from other states is that they really invested in getting the land ready, they invested in tax incentives, and they invested in colleges to develop the labor force. According to Andy Shaw, interim development director for Metro, “there is a comprehensive program of work that we believe our state needs to undertake.
The letter continued by stating that despite these recent setbacks, Oregon is well-positioned to prosper and benefit from federal investments.
Metro, according to Shaw, has asked the government to take tax breaks into account, arguing that “Oregon has an opportunity as an existing leader in the semiconductor business.”
Republican candidate for governor Christine Drazan said in a statement to KOIN 6 News that “Governor Brown canceled Oregon’s R&D tax credit. She now demands its return. Instead of concentrating on expanding Oregon industries, such as the semiconductor industry, during her two administrations, she has done all in her power to discourage investment through greater taxes and overbearing regulations.
The governor had a chance to take the initiative on this matter. Instead, she opted to do nothing as Intel made hundreds of billions of dollars in other investments. She changed her strategy only when it became a political embarrassment.
In order to engage with companies who are prepared to make significant, long-term investments in Oregon, Drazan continued, “I am ready to work with community leaders and lawmakers. The recent investment of $1 million in quicker permits is a pittance in comparison to what is required to remove the administrative roadblocks that have limited further expansion and investment.
We require executive leadership that is ready to support measures that will lead to genuine, long-lasting transformation while also safeguarding other crucial industries. The governor’s plans noticeably fail to address the remaining issues mentioned by the semiconductor competitiveness task committee, such as regulatory certainty and business taxes. These issues must be addressed as well.
For Oregon to compete for federal funding and support the jobs and economic expansion that will ensure our success for the foreseeable future, a new strategy is required.
The campaign for independent candidate Betsy Johnson said KOIN 6 News that Johnson couldn’t believe Intel couldn’t get the governor’s office to answer the phone. We don’t need any more pointless letters, reports, or studies. Now is the time for leadership and action. She will personally find the land, find these jobs, and slash taxes as governor.
Democrat Tina Kotek said, “I am committed to supporting the growth of the semiconductor sector in Oregon.
In order to keep up with technological advancements, Kotek continued, “many industries, particularly sophisticated manufacturing, have identified a need for “upskilling. In order to create pathways to new skills and new opportunities, I will support direct and continuous funding for workforce development as well as collaboration with community colleges and registered apprenticeship programs.
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