06/27/2025

Chem Plant Upgrade: Business Receives $5M Grant for Expansion in Killeen

Killeen Daily Herald | Joseph Bahr | June 25, 2025

Chem Plant Upgrade: Business Receives $5M Grant for Expansion in Killeen

Texas Gov. Greg Abbott announced a $5.3 million grant for a project to expand a chemical plan in Killeen Tuesday.

MGC Pure Chemicals America received the grant from the Texas Semiconductor Innovation Fund, which is an incentive program designed to promote semiconductors.

The grant will be used to expand MCG Pure Chemicals manufacturing facility in the Killeen Business Park. It is expected to add about 130,000 square feet for production and 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,” Abbott said in a news release. “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.”

MGC Pure Chemicals is a subsidiary of Mitsubishi Gas Chemical Company, which is based on Tokyo. The company manufacturers a variety of chemicals and materials such as super pure hydrogen peroxide and ammonium hydroxide. Those products are used to remove dust and organic matter from semiconductor chips.

Semiconductor chips are a component designed to conduct electricity. They are a crucial component in many technological devices such as cars, computers and phones.

“MGC Pure Chemicals America ... is honored to receive a $5.3 million grant from the Texas Semiconductor Innovation Fund,” Lee Bauer, MGC Pure Chemicals general manager, said. “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.”

The business has been operating in America since 1984. It first opened its plant at 4500 Roy J. Smith Drive in the Killeen Business Park in 2019.

“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,” state Rep. Hillary Hickland, R-Belton, said. “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.”

State Sen. Pete Flores, R-Pleasanton, said, “Central Texas continues to shine as a beacon of innovation and economic growth. 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.”

MGC Pure Chemicals America is not the first company to receive a grant from the Texas Semiconductor Innovation Fund for a plant in Killeen. In February another chemical plant, Dongjin Semichem Texas, which is also located in the Killeen Business Park, received a $2.4 million grant. That grant was to expand its facilities and add staff. It was part of a $110 million investment in Killeen.

The Texas Semiconductor Innovation Fund was created in 2023 by House Bill 5174, which is known as the Texas CHIPS Act. It is designed to encourage semiconductor promotion and innovation within the state.