Lam Research, a semiconductor equipment manufacturer, is embarking on a substantial expansion of its Tualatin, Oregon campus, known as the TuX project. This expansion represents an investment of up to $1.7 billion through 2041, with plans for 210,000 square feet of new office, laboratory, and industrial space dedicated to research and development. This move aims to strengthen Oregon's semiconductor industry, which has faced challenges in recent years.
To facilitate this investment, Lam Research has secured significant tax breaks through Oregon's Strategic Investment Program, similar to those received by Intel. While the exact value of the tax incentives will depend on Lam's spending, it is expected to be in the tens of millions of dollars. In return for these tax abatements, Lam will make payments in lieu of property taxes, totaling an estimated $111 million over a 15-year agreement. Washington County and the Tualatin City Council have already approved the agreement, which now awaits final approval from the Business Oregon Commission.
The project is anticipated to create a substantial number of jobs, including 1,400 construction jobs, 670 indirect jobs related to equipment installation and support, and nearly 450 new direct research and development positions. These R&D roles are projected to pay an average annual salary of $173,000, which is roughly triple Oregon's average wage across all industries. This expansion is a strategic move for Lam, whose sales have surged 26% over the past year to $23.2 billion, with annual profits reaching $7.3 billion, driven by increasing demand for computer chips in the AI sector.
