Portland, Oregon Evolution of our Silicon Forest...

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Portland, OregonEvolution of ourSilicon
Forest...
Presented by the Regional Economic Development
PartnersPortland Metropolitan Area, March 2003
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Unique IndustryEvolution
H I G H - T E C H
Heike Mayer, Portland State University, Institute
for Portland Metropolitan Studies
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History of ourSilicon Forest A rich history
in electronics
H I G H - T E C H

• 1940s Tektronix takes root in 1946
• 1950s/60s High tech industry expands on Westside
  of Region
• 1970s Intel opens first branch plant outside of
  Californiain 1976
• 1980s Foreign-based (mainly Japanese) companies
  establish presence in Forest Tektronix and Intel
  startups take root
• 1990s Semiconductor industry invests more
  than750 million
• 2000 More high tech startups and world leaders in
  microelectronics take root in Forest

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High TechnologyEmployment Trends Total high
tech employment 64,500 as of Dec 2002
H I G H - T E C H
Dec 0264,500
Historical High Tech Employment
Oregon and Washington Employment Departments,
Company Reports
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Labor Force The image may be in timber, but
the jobs are in electronics.
? New York Times, Nov 2002
H I G H - T E C H

• The areas biggest sourceof economic growthis
  electronicsmanufacturing
• Almost 1,700high-technology firms employing over
  66,000
• Intel, the states largest manufacturer, employs
  15,000
• Excellent market access

Oregons economy is well diversified, having
moved away from the wood products industry in the
early 80s.
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Growth ofStartup Companies
H I G H - T E C H
Source Silicon Forest Family Tree Project,
Institute of Portland Metropolitan Studies
dot.com boom
Number of Startups
(136 startups)
1st VC boom
(57 startups)
(90 startups)
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Portland Regions Patent Growth
H I G H - T E C H
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High TechStrengths A rich history in
electronics
H I G H - T E C H

• Semiconductors
• Semiconductor Manufacturing
• Equipment/Electronic Design Automation
• Silicon Wafers
• Printers
• Computers
• Display and Imaging Technology

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TechnologicalStrengths Emerging technologies
H I G H - T E C H

• Security-related Information Technology
• Health Information Technology
• Medical Devices
• Bioinformatics

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Portland RegionalOverview Regional strengths
H I G H - T E C H

• Metropolitan area of 1.9 million residents
• Economy based on technology manufacturing,
  retail/service/finance, logistics and
  distribution, metals and transportation
  manufacturing
• 90 of states tech employment in Portland region
• 34 of manufacturing employment is electronics
• 11th best New Economy state (Progressive Policy
  Institute)

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Silicon Forest of thePacific Northwest Vertical
Integration in the Semiconductor
Industry
H I G H - T E C H
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Portland RegionHigh Tech Cluster Why is our
high tech cluster unique?
H I G H - T E C H

• Spin-offs were nurtured in private
  companiesrather than universities
• Strong support for entrepreneurial developmentby
  local government
• Third highest state concentration in high tech
  manufacturing
• Mature cluster with RD, manufacturing,suppliers,
  software

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Portland RegionAdvantages Our advantages for
high tech companies
H I G H - T E C H

• Trained, culturally-rich, available Labor Force
• Competitive Cost Structure
• Supportive Business Environment
• Access to Global Markets and Strategic Partners
• Access to Knowledge Networks Institutions
• Unique Communities and Sites

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Portland RegionAdvantages Labor Force
H I G H - T E C H

• Available, qualified labor force 6.8
  unemployment rate
• Over 5,000 technology manufacturing workers laid
  off in the past 12 months
• Strong manufacturing history, culture and
  workforce
• Highly educated workforce
• 2nd highest manufacturing education level in U.S.
• Customized training programs in community
  colleges
• Strong engineering programs at OSU, PSU, OGI
• Quality of life leads to easy recruitment, high
  retention

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Portland RegionAdvantages Cost Structure
H I G H - T E C H

• Competitive industrial land costs (4 - 7.50 sf)
• Plentiful supply of industrial buildings
• Reasonable power costs
• Exceptional power reliability and reliability
  zones
• Less traffic congestionaverage 21 minutecommute
  throughout the region
• Workers compensation costs are 43 of costsin
  California

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Portland RegionAdvantages Business Environment
H I G H - T E C H

• No sales tax (including intermediate goods or
  services)
• No gross receipts, occupations or inventory tax
• Corporate excise tax 6.6 (calculated on 80
  sales basis)
• Predictable land use process inside urban areas
• Advanced telecommunications investmentsPortland
  region is a leader in connectivity

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Portland RegionAdvantages
H I G H - T E C H
Easy Access to National and International
Markets

• Portland International Airport, supported by
  Hillsboro and Troutdale regional airports
• Air and marine cargo services
• 15 airlines provide direct service to 100 cities
• International freighter, belly service
• Korean Airlines Cargolux
• Air China Lufthansa
• 30 million tons of cargo move through Portland
  harbor annually
• Weekly transpacific container service ? 7
  carriers

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Portland RegionAdvantages
H I G H - T E C H
Access to Leading Universities and Community
Colleges

• Oregon Health and Sciences Universitya merger
  with Oregon Graduate Institute
• Connects engineering/info technology with medical
  research
• Strengthens, diversifies tech-driven economy
• Portland State University
• Expansion of engineering school
• Discoveries in polymer coatings used in
  semiconductors chips and localizing manufacture
  of carbon nanotubes
• 18 Higher Ed Institutions in Region
• Mt. Hood, Clackamas and Portland Community
  College Customized Training Programs

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Portland RegionAdvantages
H I G H - T E C H
Available Incentives dependent
on location in region state

• Various tax credit programs
• Pollution control
• Energy efficiency
• Construction-in-Progress property tax exemption
• Workforce incentives
• Strategic Investment Program (SIP)
• Urban Renewal Programs
• Enterprise Zone tax abatements
• Industrial Development Revenue Bonds (IDRBs)

• Research and development
• Dependent care

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Westside Communitiesand Locations Unique
Community Character
H I G H - T E C H

• Beaverton/Hillsboro/Tualatin form theSilicon
  Crescent
• Heart of the Silicon Forest-largest
  concentrationof companies and employees
• An industry cluster with suppliers, competitors,
  partners, and innovationfueled by smart people!
• A diverse technology environment
• Intel Oregon is companys largest site worldwide

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Westside Communitiesand Locations Home
to OHSUS West Campus
H I G H - T E C H
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Westside Communitiesand Locations
H I G H - T E C H
Hillsboro Close to Intel Ronler Acres
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TualatinsAdvantages
H I G H - T E C H
Existing High Tech Presence

• Hardware Support Companies Novellus Systems
  Inc., Fujimi America, Ultra Clean Technology,
  Celerity,Cal Max Technologies, Cal-Weld, GE
  Interlogix, JAE Oregon, Hunt Air, Pixelworks
  more
• Software Tech Support Companies Digimarc,
  Autodesk, Epicore, CompuPlants Software,
  CyberRep.com, Sterling Communications, Celstream
  Technologies, more
• Wide range of sites available

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TualatinOpportunities
H I G H - T E C H
Prime locations available

• Part of Westside High-Tech Crescent
• Tualatin Business Campus location of a number of
  high tech industries

• 400 acres of vacant land, additional 320 acres
  withUGB expansion

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East Metro Communitiesand Locations
Unique community character
H I G H - T E C H

• East Metro offers 10 new individual parks and
  1,000 new proposed acres within Urban Growth
  Boundary
• Gresham Home to two of the worlds largest
  microelectronics firms LSI Logic and Microchip
  Technologies
• Home to one of the worlds leaders in robotics
  and air flow management Synetics Solutions

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East Metro Science Tech
B I O S C I E N C E S
Significant Opportunities in Gresham

• Immediate site DuPont Facility (Vacant eastern
  LSI Campus)
• Recruitment oflife sciences company focusedon
  contract manufacturing

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Clackamas Opportunites
Flexible space and
developable land
H I G H - T E C H
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Portland and its Port
Gateway to Marine, Rail and Highway
Systems
H I G H - T E C H

• Rivergate
• Marine container terminal (Terminal 6) within
  park
• 2,800 acre industrial park
• Over 9.6 million sf in place.
• 270 acres available ? parcels ranging from 2 to
  100 acres
• Within Enterprise Zone, E-commerce Zone and FTZ
• Northwest Industrial Area Manufacturing Sites
  on the Willamette River

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Portland and its Port
Gateway to Marine, Rail and Highway
Systems
H I G H - T E C H

• Cascade Station
• 120-acres on light rail alignment at Portland
  International Center
• Bechtel and Trammell Crow Company, formed Cascade
  Station Development Co. to develop this
  innovative, urban, commercial mixed-use site.
• Portland International Center
• 450-acre business park located at Portland
  International Airport
• 64-acres of industrial property
• Within Enterprise Zone, E-Commerce Zone and FTZ

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Our Goals Building on our
Strengths Over the Next Two
Years
H I G H - T E C H

• One wafer fabrication facility
• A dozen semiconductor equipment manufacturers
  that support our existing industry
• One contract manufacturing facility
• Precision machining to support existing industry
• More companies representing the intersection of
  medicine and technology

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Advantages What Sets Us Apart?
H I G H - T E C H

• Labor force educated, culturally-rich, available
• Cost structure low land and power costs, minimal
  traffic congestion
• Supportive Business environment no taxes for
  sales, gross receipts, occupations/inventory
• Proximity San Francisco, San Jose, Seattle and
  Los Angeles, Pacific Rim
• Commitment public assistance to site facilities,
  finance and expedite process

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Support FromOur Team How We Can Help
H I G H - T E C H

• The Portland region is focused on YOU
• Cities and counties form a regional team
• We show you what you want, where you want it
• Teams focus is on meeting your needs

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You are invited to visit thePortland Region to
explore these opportunities.
Economic Development Department 1900 SW 4th Ave.,
Suite 7000, Portland, OR 97201 503-823-3342 or
email boussil_at_pdc.us www.pdc.us