Lam Research started construction on Aug. 26 with a $620 million research lab in Tualatin, the first concrete step in a $1.5 billion expansion that will add more than 400 jobs to a semiconductor sector at a 30-year employment low.
The 120,000-square-foot building will boost cleanroom space at Lam's 52-acre campus by more than 50% and connect to existing facilities via two skybridges, one linking cleanrooms in each building, The Oregonian reported.
The lab is scheduled to open in 2028.
Lam makes the manufacturing tools that leading-edge chipmakers use to produce semiconductors. The company employs about 3,000 people in Oregon, primarily at its Tualatin campus, with additional facilities in Sherwood and a sales office in Hillsboro.
Its annual sales grew 26% in the past year to $23.2 billion. Annual profits topped $7 billion.
CEO Tim Archer said at the ceremony that AI-driven demand for advanced chips has accelerated the company's need for new lab capacity.
COO Sesha Varadarajan described the Oregon lab as giving Lam space to develop tools for chips that are stacked taller, with smaller features and more advanced materials.
The groundbreaking arrives as Oregon lost nearly 8,500 manufacturing jobs over the past year, including roughly 2,500 at Intel in the summer of 2025, according to OPB.
The expansion is a significant counterweight for Washington County's tech corridor, which stretches from Hillsboro through Beaverton and into Tualatin.
The Tualatin lab is the first project in Lam's planned $3 billion-plus investment in its global lab network over the next five years, according to the company's press release. During the three-year construction period, the project is expected to create about 900 jobs and generate $500 million in economic output.
Tax deal and public investment
Washington County approved a tax-incentive agreement with Lam on Aug. 4; the Tualatin City Council followed on Aug. 11. Under the deal, structured through Oregon's Strategic Investment Program, Lam will pay an estimated $111 million in taxes and fees to local taxing districts over 15 years, starting at $400,000 in 2028 or 2029 and increasing by $200,000 annually. The state of Oregon is also contributing $22 million.
Local governments have declined to release their estimates of the total incentive value, citing exemptions to Oregon public records law. The deal still requires approval by the Oregon Business Development Council.
Who attended
The ceremony drew U.S. Sen. Jeff Merkley, U.S. Rep. Suzanne Bonamici, Oregon Secretary of State Tobias Read, Washington County Board Chair Katheryn Harrington, Tualatin City Council President Valerie Pratt, and Oregon State University President Jayathi Murthy.
Intel Foundry Executive Vice President Naga Chandrasekaran and Micron Executive Vice President Manish Bhatia both spoke. Intel and Micron are two of Lam's largest customers.
Room to grow
Varadarajan signaled the company is not done expanding in Washington County. "We have more room. And we also purchased additional space in and around here as well," he said. "We are not landlocked."
The full campus expansion is expected to include 210,000 square feet of offices, labs and industrial space. A study by Optimal Solutions Group projected it would support up to 445 permanent jobs at an average annual wage of $173,000. The Oregon Business Development Council has not yet scheduled its vote on the tax agreement.
