Lam Research's planned $1.7 billion expansion in Tualatin cleared its final local hurdle after both Washington County and the City of Tualatin formally approved a tax-break deal that could reshape the company's Leveton Drive campus over the next 15 years.
The Washington County Board of Commissioners voted Aug. 4 and the Tualatin City Council followed on Aug. 10, according to a joint announcement issued Aug. 11. The agreement now moves to the Oregon Business Development Commission for a final state-level vote at a meeting not yet scheduled.
Under the Strategic Investment Program agreement, Lam intends to invest up to $1.7 billion in Tualatin through 2041 to build out a research and development campus called TuX. The project is expected to include 210,000 square feet of offices, labs and industrial space, The Oregonian reported.
In exchange, Lam will receive a partial property tax abatement beginning in 2028 or 2029. The company will make payments in lieu of taxes starting at $400,000 and rising by $200,000 each year, reaching $3.2 million in year 15. Over the life of the deal, local taxing districts will still collect an estimated $111 million in combined property tax and fee revenue, according to the county.
An independent analysis by Optimal Solutions Group projects the expansion will support more than 1,400 construction jobs, roughly 670 indirect jobs tied to equipment installation and technical services, and nearly 450 permanent R&D positions. Those R&D jobs are expected to pay an average of $173,000 a year, roughly triple Oregon's average wage, though the agreement does not legally require Lam to add any positions.
The TuX campus is also backed by $22 million in state funding.
Washington County Board Chair Kathryn Harrington said in the Aug. 11 announcement that the investment strengthens the county's leadership in Oregon's semiconductor sector and will generate tax resources to fund schools and public services. Tualatin Mayor Frank Bubenik called the deal "a win for our region, bringing new jobs and advancing innovative technology" in the same announcement.
Sesha Varadarajan, executive vice president and chief operating officer at Lam Research, said in the announcement that the agreement represents the next chapter of a partnership spanning more than 20 years in Washington County.
Lam already employs about 3,000 workers at its 52-acre Tualatin site and a factory in Sherwood. In November 2025, the company opened a $65 million, 120,000-square-foot office building in Tualatin with space for 700 employees.
The deal is Washington County's seventh SIP agreement. Past partnerships, including multiple deals with Intel dating to 1994, have brought more than $50 billion in investment and helped create or retain over 19,000 local jobs since 1993.
The state still has to sign off. The Oregon Business Development Commission must approve the agreement at a future meeting before it takes effect.
