Semiconductors and Electronic Components

Jump ahead to:
Industry Overview
Cluster Strengths
Cluster Challenges
Semiconductors and Computer Hardware by the Numbers
Initiatives and Priorities
Notable Companies
Industry Associations

Note:  The content on this page was generated with the help of Tech America, Oregon.  

Industry Overview

Home to the Silicon Forest, the local concentration of high-tech and semiconductor companies have made a name for Oregon across the globe. Four companies sparked the evolution of high-tech in Oregon: Tektronix in the 1950s and 1960s, Intel and Hewlett Packard in the ‘70s and Mentor Graphics in the ‘80s. These companies have each spun-off hundreds of other startups, and evolved into a robust supply chain.  Some notable companies with operations in Oregon include Xerox, ESI, RadiSys, FLIR, FEI, and TriQuint.  Computers and electronic products lead Oregon exports, accounting for about $8 billion in annual export sales, about 40 percent of the state’s total exports. The largest cluster of Oregon technology companies is located around the city of Hillsboro, anchored by Intel’s largest facility in the world and supported by a highly skilled and experienced workforce. The prowess Oregon has gained with its semiconductor industry has helped spawn other sectors such as bioscience, solar devices, digital displays and software development. 

Cluster Strengths

• Oregon lifestyle and quality of life are helpful in recruiting talented people.
• Oregon's land availability and regulatory infrastructure are conducive to growth.
• There is little inter-company disagreement on public policy issues.
• The state has ample professional services expertise in areas such as law and accounting.
• Business tax structure and targeted tax incentives are coherent and accessible.

Cluster Challenges

• An increasingly globalized economy means outsourcing software development, and means that more foreign students are being educated in the U.S. and returning to their home countries to set up businesses. 
• Dispersed higher education funding is lacking. Out of Oregon's eight public universities, none are considered truly world-class.
• K-12 education system is declining nationally and there is a lower quality of science education.
• Transportation infrastructure with growing traffic congestion detracts from quality of life.
• Recruiting top talent and companies is hampered by a short suply of math and science educators at the K-12 level and lack of a world class engineering school in higher education.

Semiconductors and Computer Hardware by the Numbers

Source: Cyberstates 2010 and Trade in the CyberStates 2009 TechAmerica

Initiatives and Priorities

• Continue public-private partnership to invest in STEM education (Science, Technology, Engineering and Mathematics) at the K-12 level and in building public university engineering and computer science programs through the existing Engineering and Technology Industry Council (ETIC).  Major investments have been made over the past 10 years in ETIC.  Oregon needs to continue this momentum to ensure it can meet the needs of employers in the future.
• Continue existing state tax policies that support innovation and trader-sector companies. The state should maintain its “single sales factor” formula for multi-state tax apportionment, and it should extend the state Research and Development tax credit, which is set to expire at the end of 2011.
• Foster an environment that is conducive to start-ups:  Improve Oregon’s access to capital, including venture capital and stage two funding, by demonstrating that the intellectual capital for success exists in Oregon.
• Continue to educate policymakers about the importance of the technology sector to Oregon’s economy.  Support efforts to encourage business attraction by articulating Oregon’s high-tech strengths.
• Continue to educate policymakers about the importance of global trade to the health of Oregon’s export-based economy.  Avoid state-level policies that work against a healthy trade environment.
• Invest in and market Oregon’s “lifestyle” advantage. Recognize the importance of low commute times (at least lower than in other major tech markets), quality schools, and environmental stewardship to Oregon’s quality of life.

  Notable Companies

  Intel, Hewlett Packard, Xerox, ESI, RadiSys, FLIR, FEI, TriQuint

  Industry Associations

  Many organizations serve the needs of Oregon’s high tech industry and its various sub-sectors. The largest organization that represents many of these sectors collectively is Tech America. Tech America  is comprised of the former members of ITAA, GEIA, CSIA, and AeA,  a national trade association founded more than 60 years ago in the Bay Area by David Packard. Tech America has built on AeA's 40 year history of supporting the high tech industry in Oregon. Tech America sponsors industry education workshops, hosts networking events, and engages in public advocacy. Its tagline is "Advancing the Business of Technology." Other key organizations include the Software Association of Oregon and various groups that represent the interests of manufacturers.