HP Inc. (Oregon)

Project Summary

The U.S. Department of Commerce awarded up to $53 million in direct funding to HPI Federal LLC under the CHIPS and Science Act to support the expansion and modernization of the existing facility of HP Inc. (“HP”) in Corvallis, Oregon, which is part of HP’s “lab-to-fab” ecosystem in the region that spans from research and development (“R&D”) activities to commercial manufacturing operations. Through this investment, the Department will help enhance U.S. technological leadership by driving innovation of groundbreaking semiconductor technologies that serve important end markets, notably including life sciences.

Economic and National Security Impact

Rooted in HP’s expertise in microfluidics and microelectromechanical systems (“MEMS”), the company’s innovative technology provides a unique pathway to drive improved performance and efficiency of semiconductor-based hardware. Among other products, the CHIPS 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. By leveraging HP’s expertise in microfluidics and MEMS, these devices allow for increased speed and precision during life sciences R&D. The company’s devices serve important focus areas for public health initiatives and enable performance efficiencies for partner institutions across academia, government, and the private sector including Harvard Medical School, the Centers for Disease Control and Prevention, and Merck.  

The development and expansion facilitated by the CHIPS funding would bolster the lab-to-fab ecosystem that HP has established in Oregon, which also serves as one of three R&D Centers for Excellence within the company’s global footprint. In addition to continued domestic investment in the company’s internal research and development, HP has opened its Corvallis campus to collaborative R&D efforts with academic institutions and startups. Of note, HP donated a 25-year lease of a portion of its Corvallis campus to Oregon State University (OSU) – this 80,000 sq. ft. manufacturing and R&D facility has incubated 39 different companies, including 20 that spun out from OSU faculty and students. The Corvallis campus provides resources and tools for startups and entrepreneurs to build innovative products locally in Oregon and provides an opportunity for these companies to grow and reinvest in the domestic ecosystem.

Workforce and Community Impact

The project would build on HP's 48-year presence in Corvallis and commitment to the local workforce – specifically, the project is estimated to create and sustain nearly 150 construction jobs and over 100 manufacturing jobs.

To recruit, train, and retain the workforce needed for these projects, HP will implement a robust workforce strategy informed by the Biden-Harris Administration’s Good Jobs Principles and will receive up to $3 million in dedicated CHIPS funding to implement workforce initiatives including worker recruitment and training.

To advance its manufacturing and construction workforce efforts:

• HP will continue playing a pivotal role in the National Science Foundation Engines Development Program–Advancing Semiconductor Technologies in the Northwest to grow the semiconductor industry through strategic opportunities in innovation, entrepreneurship, research, manufacturing, workforce training, and more.
• HP will continue working with Community Colleges on training and recruitment programs and has representatives currently serving on a technical advisory council for Linn-Benton Community College.
• HP will, consistent with the statutory requirements of the CHIPS Act, include terms in its construction contracts requiring all construction contractors and subcontractors to comply with the Davis Bacon Act. In addition, the Department of Commerce is building a robust Davis Bacon compliance program to ensure that recipients of CHIPS funding comply with the law.
• HP has voluntarily adopted the CHIPS Women in Construction Framework and will work with contractors, trade unions, and other community and workforce partners to implement best practices aimed at expanding the construction workforce by increasing the participation of women and economically disadvantaged individuals.
• HP is committed to providing good, construction union jobs, including through continued partnerships with signatory contractors.

Environmental and Worker Safety Commitments

As is required for all CHIPS projects, the HP project will comply with all applicable environmental laws, including the Clean Air Act, Clean Water Act, Endangered Species Act, and Resource Conservation and Recovery Act.  

In connection with the CHIPS award, HP is making the following environmental commitments:

• Carbon-Free Electricity: HP will undertake efforts to operate the project with carbon-free electricity to the maximum extent possible and with the goal of operating with 100% carbon-free electricity by the end of 2030.
• Water: HP will undertake efforts to conserve and reuse water onsite, with the goal of reducing over 12 million gallons per year through increasing efficiency of reverse osmosis systems, and replumbing sand filter backflush to use cooling tower water instead of using industrial cold water by the end of 2027.
• Public Reporting: HP will report the environmental responsibility goals it has adopted and disclose annual progress toward those environmental goals, including:
  • electricity (kWh) used, saved through conservation programs, and produced from clean electricity sources; 
  • water used, conserved, and recycled; and 
  • total waste generated and percentage total hazardous and nonhazardous waste destined for a landfill, incinerator, recycling facility, or treatment facility.

HP has also committed to the following worker safety measures:

• Worker Safety Committee: HP will maintain a workplace safety committee comprised of workers and management that meets regularly and is authorized to address any worker health and safety concerns.
• Adoption of Most Protective Occupational Exposure Limits: HP will apply the lowest (i.e., most protective) occupational exposure limit (OEL) among all applicable published health and safety standards (including National Institute for Occupational Safety and Health and American Conference of Governmental Industrial Hygienists standards), for each chemical used in the project’s construction, installation, and operation.

Financial and Commercial Terms

As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions. All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property.