How Intel's turbulence could shake out for Hillsboro
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The federal government's stake in Intel is worrying some economists, but it also has some elected officials in Hillsboro optimistic. Photo: Courtesy of Intel Corp.
Mass layoffs at Intel — one of Oregon's largest employers — are not new, but a significant loss of high-wage workers in the company's Washington County campus, coupled with a semiconductor slowdown and U.S. policy changes, could signal economic uncertainty ahead.
The big picture: The federal government's unusual $8.9 billion, 10% stake in Intel in exchange for public funding breaks with decades of hands-off business policy, announced last month, is worrying some economists but giving Hillsboro elected officials hope.
Catch up quick: It's been a tumultuous 2025 for Hillsboro-based Intel, the state economy and Oregon's tech sector.
- Intel cut 2,400 Oregon jobs in July, about 1 in 12 of its workers in the state, making it one of the largest layoffs in state history as the company trims spending and consolidates operations.
- Oregon's semiconductor industry has been faltering for months as well, and Intel has been slow to take advantage of the artificial intelligence boom, which has resulted in shrinking revenue as fast-moving competitors have gained market share.
Plus: The state's unemployment rate jumped from 4.5% to 5% over the last six months, driven largely by manufacturing cuts.
The latest: The Trump administration's investment in Intel could be seen as a vote of confidence to ensure chipmaking stays in Hillsboro, or it could signal the start of unprecedented federal intervention into the private sector, according to Rajiv Sharma, an economics professor at Portland State University.
- "The uncertainty itself is costly to economic decision-making, to business decision-making," he told Axios. "If you say, 'We're not going to intervene,' then you do intervene, it becomes difficult to convince people credibly that you will not intervene again."
What they're saying: Hillsboro Mayor Beach Pace said the government's Intel stake and "new semiconductor investments still underway" mean the suburb, and Intel, could play a critical role in the industry once again.
- "Our job is to make sure we don't take that for granted," Pace told Axios via an email statement.
- Intel did not respond to Axios' requests for comment.
Yes, but: Intel's July layoffs will not only impact workers.
- If highly paid, highly skilled workers (who make an average annual income of $110,000) leave the Hillsboro and Aloha area for other jobs, Oregon's economy and tax revenue could take a big hit.
The bottom line: For Sharma, Intel's recent turbulence reflects the U.S. economy: The job market is stalling as companies wait to see how policy decisions play out.
- Companies are "working in an environment that is much more uncertain than they are used to operating in," he said. "Hillsboro is part of this integrated global economy that is probably the most unsettled it has been since the end of the Second World War."