Work On Oregon Computer Chip Factory Delayed

Hyundai Electronics of America has the first of two critical state permits needed for a $1.3 billion computer chip factory but groundbreaking may be delayed until spring to meet environmental rules.

The state Department of Environmental Quality on Thursday approved a portion of Hyundai’s proposal to fill in 23-1/2 acres of wetlands at the Willow Creek Industrial Park.

However, the DEQ spelled out numerous requirements before Hyundai can proceed - including completion of surveys for rare plants that will delay groundbreaking plans by nearly a year.

Surveys last summer found 30 lupine plants - a species being studied for protection under the Endangered Species Act - in an area not planned for development.

Hyundai opponents claim the surveys were flawed because they were conducted too long after blooming season to recognize lomatium, an endangered plant.

The DEQ agreed in its ruling Thursday, saying the agency will ban construction at the site until the spring surveys provide a better assessment.

The DEQ restrictions could push the South Korean company’s initial factory production to 1998, when analysts expect the current shortage of computer chips to ease.

“That’s the worst kind of delay that could happen,” said John Chen, an analyst at VLSI Research Inc.

“At the moment, there’s a shortage in the market,” Chen said. “But this isn’t going to last forever. If you’re late, you’re going to miss out on a lot.”