Lam Research expands in Oregon as AI chip demand grows
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The expansion includes adding up to 400 new jobs in the region. Photo: Courtesy of Lam Research
Lam Research, the global semiconductor equipment maker with a large Portland-area presence, broke ground Wednesday on a multimillion-dollar research and development lab aimed at meeting growing demand for advanced AI chips.
Why it matters: The lab is part of a $1.5 billion investment in the company's Oregon footprint over the next 15 years — a major win for the state as recent manufacturing job losses compound and other businesses consider moving their growth elsewhere.
By the numbers: Lam employs roughly 3,000 people, mostly in Washington County, and expects the expansion could add more than 400 jobs. Just three years ago, Lam laid off 7% of its workforce due to cooling market demand.
- The new 120,000-square-foot Tualatin facility will increase the cleanroom space — sealed laboratories where engineers build and test sensitive machinery — on Lam's campus by more than 50% when it opens in 2028.
- The company said in a press release that construction over the next three years will support about 900 jobs and generate roughly $500 million in economic output.
- Once the broader expansion is complete, its annual economic contribution in Oregon will exceed $1.8 billion, the company projected.
What they're saying: Lam COO Sesha Varadarajan told Axios one reason the company continues to invest in Tualatin is its proximity to customers.
- That includes Hillsboro's Intel and Boise-based Micron — both of which rely on Lam's equipment to make increasingly advanced semiconductors.
- "To sustain the pace of the AI revolution, we need velocity in innovation," Varadarajan said. "It's that collaboration with customers that lets us accelerate our innovation cycle."
Between the lines: Varadarajan described the AI boom as a "compute revolution."
- Current demand for semiconductors is increasing because AI data centers rely on a huge amount of high-performance processors and memory chips to power models and move data quickly.
- Therefore, advances in the equipment used to manufacture those chips needs to happen fast, too.
- Varadarajan said he hopes the new lab will drive advances in manufacturing chips that are smaller, taller and more complex.
What we're watching: Lam's expansion signals that the company expects Tualatin to be a major part of its business in the decades to come. Whether the state can continue to produce and recruit the highly specialized workforce it needs to meet demand is a recurring concern among business leaders.
- Varadarajan said he remains confident in Lam's partnerships — with universities including OSU and PSU as well as Gov. Kotek's Prosperity Council — to build the pipeline of researchers, technicians and engineers the company needs for its expansion.
- "This region has been a home for a lot of us for nearly three decades," he said. "It's been a wonderful place to be able to innovate and build new products."