Governor Abbott Announces Texas Semiconductor Innovation Grant To MGC Pure Chemicals America, Inc.

TEXAS, June 25 - June 25, 2025 | Austin, Texas | Press Release

Governor Greg Abbott today announced that a Texas Semiconductor Innovation Fund (TSIF) grant of $5.3 million has been extended to MGC Pure Chemicals America, Inc. (MPCA) for an expansion of their production facility in Killeen, which is expected to create more than $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 is a consolidated subsidiary of Tokyo-based Mitsubishi Gas Chemical Company, Inc. The company produces a wide variety of chemicals and materials, including super pure hydrogen peroxide and ammonium hydroxide used as cleaning agents to remove micro-dust particles and organic matter from semiconductor chips. This project involves an expansion of the existing manufacturing facility and will add about 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. MPCA will continue our endeavor to be a vital member of the U.S. semiconductor ecosystem.”
 
“Central Texas continues to shine as a beacon of innovation and economic growth,” said Senator Pete Flores. “The expansion of MGC Pure Chemicals America in Killeen underscores our commitment to fostering a robust semiconductor industry in our region. This investment not only bolsters our local economy but also reinforces Texas’ position as a leader in cutting-edge technology and manufacturing. Together, we are building a future where Texas remains at the forefront of technological advancement and economic opportunity.”  
 
“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,” said Representative Hillary Hickland. “MPCA’s expansion in Killeen will not only create job opportunities across Central Texas, but it also underscores the vital need to continually advance our state’s global dominance and leadership in America’s semiconductor industry.” 
 
View more information about MGC Pure.
 
Governor Abbott signed into law the Texas CHIPS Act in 2023 to establish the Texas Semiconductor Innovation Fund, an incentive program to encourage the continued leadership of Texas in semiconductor research, design, and manufacturing, as well as the Texas Semiconductor Innovation Consortium. These programs, administered by the Texas CHIPS Office, a division within the Governor’s Texas Economic Development & Tourism Office, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.