When Stratacache announced the purchase of a decommissioned chip factory in Oregon during the pandemic, many in the industry initially didn't take the news seriously. Five years on, the first Scala MicroLED solutions have yet to materialize. Meanwhile, Stratacache has been quietly preparing the site, outfitting the factory, and ramping up production—a process that has taken longer than anticipated.
Stratacache: Update on the MicroLED Factory
In the midst of the pandemic, when most of the digital signage industry was busy cutting costs and reducing staff, Stratacache surprised everyone with an unexpected announcement. The company, led by Chris Riegel, had acquired a decommissioned microchip factory at auction for $6.3 million. What could a digital signage integrator want with a semiconductor fab, and what products might it produce? Riegel recently provided an update on the project to public radio station KLCC at its Eugene, Oregon facility. (Listen to the the full interview here).
Stratacache is in the process of converting the semiconductor factory that closed 12 years ago into a MicroLED manufacturing hub – in the USA, not in Asia. The digital signage company acquired the 111,000-square-meter facility—originally built by SK Hynix in 1998 and shuttered in 2008—in 2020 for a bargain. After years of planning, the site is now being retrofitted for MicroLED production.
Investment of two billion USD required
According to Chris Riegel, constructing a new factory today would cost around $5 billion. Stratacache estimates that converting the existing facility and outfitting it with the necessary tools and machinery will require an investment of about $2 billion. Such a project would be unfeasible without subsidies. Riegel highlights the billions in support the chip industry receives from Asian governments and emphasizes the strategic importance of this initiative.
Currently, around 95 percent of global display production takes place in China, making the US heavily dependent on foreign supply chains. By building domestic production capacity, Stratacache aims to strengthen American resilience and support key industries, including defense.
Stratacache plans to commission a pilot production line in 2026. Full operation is scheduled to begin in 2027 or 2028. The investment is significant, and the company is exploring opportunities for government funding through initiatives such as the CHIPS Act to accelerate development. Once operational, the plant is expected to create around 400 direct and the same number of indirect jobs, breathing new life into a site that once employed 1,400 people.
Chris Riegel did not reveal which MicroLED solutions will eventually roll off Stratacache’s production line in Eugene. In earlier discussions with invidis, the emphasis appeared to be on specialized applications—such as AR/MR glasses, automotive, and defense—rather than on digital signage products like “Scala The Wall.”
