Washington County and City of Tualatin announce a proposed agreement with Lam Research for an up to $1.7 billion investment

Posted July 31, 2026

Hillsboro, Ore. -- Representatives of Washington County and the City of Tualatin announced today a proposed agreement with Lam Research Corp. to invest up to $1.7 billion in Tualatin through 2041, with an economic impact that would stretch across Washington County and the surrounding communities. The announcement culminates negotiations under Oregon's Strategic Investment Program (SIP), a private-public partnership that has driven billions of dollars of investment in Oregon over the last three decades.

"This proposed agreement reflects Lam's investments in growing its R&D capacity here in Oregon. We're pleased with the thoughtful strategic phasing approach outlined in this agreement that is expected to expand the work and workforce in Tualatin," said Assistant County Administrator Marni Kuyl. "Agreements like this provide clarity and confidence for the county, the city and the company alike, while ensuring stable revenues that support local services and help our community thrive."

The proposed agreement supports the company's significant expansion of its operations in Tualatin. This unique investment includes plans to create a large, state-of-the-art research and development (R&D) facility spread over multiple buildings and equipped with multi-million-dollar technology. The property tax abatement would help support the company's investment in the community while contributing to regional job creation. As with previous SIP agreements, property taxes would be partially abated for investments in this advanced facility, consistent with Oregon's SIP law.

"For more than 20 years, Lam Research has partnered with Washington County to shape the semiconductor ecosystem in the Silicon Forest, create high-quality jobs, and invest in our communities. This proposed agreement represents the next chapter of that partnership, helping Lam to expand one of our world-class hubs for breakthrough semiconductor manufacturing equipment innovation while creating lasting economic opportunities for Washington County," said Sesha Varadarajan, executive vice president and chief operating officer at Lam Research.

The proposed 2026 SIP agreement requires Lam to make payments under two categories, those required by state law and those negotiated locally. Based on current models, the statutorily required payments would total to an estimated ~$84 million in property taxes and fees over the life of the agreement. Actual amounts would vary based on finalized assessed values, timing of the company investments and inflation. Additional fees are expected to total to $27 million over the same period.

The announcement and its significance come as the Oregon economy continues to experience uncertainty. A recent analysis by Optimal Solutions Group, a private consulting firm, projected that Lam's investment would create a significant number of high-quality jobs over multiple phases, including:

• Over 1,400 estimated jobs associated with the construction of the expanded facility,
• Approximately 670 estimated jobs supporting equipment installation, transportation and technical support, and
• Nearly 450 estimated jobs devoted to research and development operations, including laboratory work, engineering and testing.

In its economic impact analysis, Optimal Solutions Group observed: "Overall, the Lam project represents a substantial investment in advanced manufacturing and R&D that is expected to generate meaningful economic activity, support high-quality employment, and reinforce Washington County's role in the regional and national semiconductor economy."

If approved, the Lam SIP proposal would be the seventh SIP agreement implemented in Washington County. In 2014, Washington County and the City of Hillsboro negotiated an agreement with Intel that set the stage for up to $100 billion of investment that began in 2017. Washington County and the City of Hillsboro also negotiated SIP agreements with Intel in 2005, 1994 and 1999 as well as with Genentech in 2006.

The Washington County Board and the Tualatin City Council plan to gather public comments on the SIP proposal, leading to a scheduled meeting and public hearing convened by the Board of County Commissioners at the August 4th Board of County Commissioners Business Meeting, which begins at 10 a.m. in the Public Services Building at 155 N. First Ave, Hillsboro, OR 97124. After hearing public testimony, the board is scheduled to consider approving the agreement. The Tualatin City Council will consider the agreement at its regularly scheduled meeting at 7 p.m. on August 10th. State law would then require the Oregon Business Development Commission to approve the agreement before it could take effect.

The Strategic Investment Program was authorized by the 1993 Legislature to increase Oregon's ability to attract and retain capital-intensive industry and high-wage jobs. Projects approved for the SIP must pay full property taxes on the first $100 million invested in an urban area, or $40 million in a rural area, adjusted annually for inflation since 2024. Under law, this investment amount is allowed to increase by three percent each year. An annual Community Service Fee equal to 25 percent of abated taxes, up to a $3 million cap adjusted annually for inflation, must also be paid.

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Washington County is a leading-edge, mission-focused organization that successfully serves the community now and in the years ahead. We are a human-centered organization that integrates equity into decision-making and supports the health, effectiveness, creativity and talents of our employees as public servants and the residents whom we serve. The organization is supported by a budget of $2.1 billion and is staffed by 2,442 full-time equivalent employees serving a diverse and growing population of 618,737 on the western side of the Portland metropolitan area. More information about Washington County can be found at washingtoncountyor.gov.

The City of Tualatin is a dynamic community of 28,000 on the southern edge of Washington County. It serves as a regional employment hub, employing more than 30,000 non-residents, mostly in the advanced manufacturing, construction, goods & materials manufacturing, and healthcare sectors. Residents and visitors enjoy regionally renowned parks, premier shopping destinations, and signature community events like the West Coast Giant Pumpkin Regatta. More information about the City of Tualatin can be found at tualatinoregon.gov.

Contacts:

Philip Bransford, Communications Officer, Washington County Administrative Office, [email protected]

Sid Sin, Economic Development and Urban Renewal Manager, City of Tualatin Community Development Office, [email protected]

Laura Bakken, Director of Public Relations, Lam Research, [email protected]

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