Lam Research broke ground Aug. 26 on a $1.5 billion expansion of its Tualatin campus, launching what CEO Tim Archer called "the largest investment we've ever made in Oregon."
The ceremony at 11363 S.W. Leveton Drive drew a lineup of state and local officials, including Oregon Secretary of State Tobias Read, Washington County Chair Kathryn Harrington, U.S. Rep. Suzanne Bonamici and U.S. Sen. Jeff Merkley. Oregon Gov. Tina Kotek sent a recorded message. Delegations from Intel and Micron Technology, two of Lam's major customers, also attended, The Oregonian reported.
The centerpiece is a $620 million, 120,000-square-foot cleanroom lab called the Tualatin Expansion, or TUX Project. It will increase Lam's cleanroom space in Tualatin by 50% and connect to existing buildings through a pair of skybridges, one linking the cleanrooms directly. The lab is expected to open in 2028.
Lam makes the tools that Intel and other major chipmakers use to manufacture semiconductors. The company said in a press release that the Tualatin lab is part of more than $3 billion in planned global lab investment over the next five years, aimed at accelerating development of advanced AI chips.
The expansion is projected to create 445 permanent jobs averaging $173,000 a year, with total annual employee compensation exceeding $530 million, according to Tualatin Life. The three-year construction phase is expected to support 930 jobs and generate $500 million in economic output.
The project comes as Oregon semiconductor employment sits at a 30-year low following thousands of job cuts at Intel and other manufacturers. Tualatin Director of Urban Renewal Sidaro Sin noted at the Aug. 10 council meeting that Oregon had lost jobs at both Nike and Intel over the prior year.
Lam currently employs about 3,000 people in Washington County and 3,300 statewide, according to the Valley Times.
A Strategic Investment Program (SIP) agreement among Lam, Washington County and the City of Tualatin made the expansion possible. The deal provides Lam a partial property tax abatement over 15 years.
In exchange, Lam is estimated to pay $38 million in ad valorem taxes, a $45 million community service fee and $27 million in payment-in-lieu-of-taxes. Tualatin expects to receive about $33 million of those combined payments over the agreement's life. The exact amount Lam is abated from paying was not disclosed during public discussions.
The Tualatin City Council approved the SIP in a 5-0 vote on Aug. 10. The Washington County Board of Commissioners approved it Aug. 4. The deal still requires final approval from the Oregon Business Development Commission before it takes effect, according to a Washington County press release.
Not everyone celebrated. At the Aug. 10 council meeting, residents including Brett Hamilton of the Save Tualatin Road advocacy group challenged the deal. Hamilton told councilors that Lam was "offering what they're already doing in exchange for this massive tax break of unspecified millions of dollars."
Resident Deborah Anderson, who lives across the street from the campus, said noise from the facility is audible through open windows. Lam representatives said the company operates within the county's noise ordinance.
A small-scale replica of the new campus was on display at the groundbreaking. Construction vehicles were already working at the site of what is expected to be the new parking lot.
The broader SIP agreement covers up to $1.7 billion in total investment through 2041. The TUX Project was first approved by the council in 2025 and received a $22 million Oregon CHIPS Act grant.
