Oregon Governor Tina Kotek is utilizing a new land use law to suggest designating a rural area for a semiconductor facility with the aim of attracting more of the multibillion-dollar semiconductor industry to the state. The proposal involves expanding the city boundaries of Hillsboro, a suburb west of Portland where chip giant Intel is located, to include half a square mile of new land for industrial development, according to Oregon Public Broadcasting. This land would accommodate a significant new research center.
Oregon, known for its longstanding involvement in semiconductor research and manufacturing, is in competition with other states to become home to multibillion-dollar microchip factories. The CHIPS and Science Act passed by Congress in 2022 allocated $39 billion for companies constructing or expanding facilities for semiconductor manufacture and assembly, testing, and packaging of chips.
Last year, a state law was passed enabling the governor to identify up to eight sites where city boundaries could be expanded to provide land for microchip companies. This law established an exception to the state’s prominent land use policy, enacted in the 1970s to prevent urban sprawl and safeguard natural areas and agriculture.
A group supportive of Oregon’s renowned land use policy, Friends of Smart Growth, announced they would oppose Kotek’s proposal, as reported by OPB. According to the group, the governor’s initiative aims to bypass the traditional planning and community engagement process that Oregon’s land use system is known for, and they plan to engage in a challenging battle to uphold the zoning protections that have contributed to walkable cities, preservation of farmland near urban areas, and the outdoor recreational opportunities Oregon is famed for.
As per the 2023 state law, Kotek is required to conduct a public hearing on proposed expansions of “urban growth boundaries” and allow a 20-day window for public feedback before issuing an executive order to officially expand such boundaries. This executive authority is set to expire at the year’s end. The public hearing regarding the proposed expansion is scheduled in three weeks at the Hillsboro Civic Center, confirmed by Business Oregon, the state’s economic development agency.
Earlier this year, the Oregon Legislature made adjustments to the state’s land use policy to address a severe housing shortage. Among other provisions, this law granted a one-time exemption to cities seeking to acquire new land specifically for housing development.