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Governor Greg Abbott announced a $5.3 million Texas Semiconductor Innovation Fund (TSIF) grant to MGC Pure Chemicals America, Inc. (MPCA) for expanding its production facility in Killeen. This expansion is projected to result in over $150 million in capital investment.
“Texas invests in critical supply chain resilience to ensure the semiconductor chips we rely on to drive innovation and fuel our economy are made in Texas,” said Governor Abbott. “MPCA’s $150 million expansion of their production facility in Killeen will help meet the growing demand for specialty chemicals that are essential for the manufacturing of high-quality semiconductor chips. Working with industry leaders, Texas will continue to lead America’s resurgence in semiconductor manufacturing.”
MPCA, a subsidiary of Tokyo-based Mitsubishi Gas Chemical Company, Inc., manufactures various chemicals and materials including super pure hydrogen peroxide and ammonium hydroxide, used as cleaning agents for semiconductor chips. The project will add approximately 130,000 square feet of production space.
“MGC Pure Chemicals America, Inc., nearly 30 years in the USA, is honored to receive a $5.3 million grant from the Texas Semiconductor Innovation Fund,” said MPCA General Manager Lee Bauer. “These funds will advance the expansion of our existing plant in Killeen. MPCA is committed to accelerating the growth of Central Texas as a semiconductor production cluster and strengthen the overall stability and continuity of the U.S. semiconductor supply chain.”
Senator Pete Flores remarked on Central Texas's role as a hub for innovation: “The expansion of MGC Pure Chemicals America in Killeen underscores our commitment to fostering a robust semiconductor industry in our region.”
Representative Hillary Hickland added: “The $5.3 million Texas Semiconductor Innovation Fund grant awarded to MGC Pure Chemicals America, Inc. is a strategic investment in both our regional economy and our national security.”
The Texas CHIPS Act was signed into law by Governor Abbott in 2023 to establish TSIF and encourage leadership within Texas's semiconductor sector through incentives and consortiums managed by the Governor’s Texas Economic Development & Tourism Office.