City approves economic development agreement for local semiconductor supplier
Round Rock, Tx. (April 27, 2023) – Round Rock City Council approved an economic incentive agreement on Thursday, April 27, with Toppan Photomasks Round Rock, Inc. (Toppan) that will result in a minimum of $185,496,525 in new investment and at least 50 new jobs created.
Toppan first established its U.S. presence in Round Rock in 1986 and is an advanced manufacturer of photomasks, which is a key component in the process of creating a semiconductor chip that is used by global companies such as Samsung, Texas Instruments and others.
Due to new funding opportunities through the U.S. CHIPS & Science Act, Toppan has been evaluating opportunities to modernize and expand to meet the demands of the rapidly advancing global semiconductor industry while also competing with China. After evaluating investment opportunities worldwide and in the U.S., Toppan selected its existing Round Rock location to move forward with a near $200 million expansion and modernization project.
“I want to thank the city of Round Rock and the Chamber of Commerce for their support of Toppan Photomasks Round Rock. Over the 35 years we have operated in Round Rock, the City, Chamber and Community have been vital partners to our growth. That support allows Toppan Photomasks to add much needed capacity to meet the needs of consumers and enhance our capabilities to advance the growing US Semiconductor industry and bring manufacturing back to the U.S. I’m excited by the role our Round Rock employees play in the needed growth of U.S. based semiconductors. We look forward to that growth continuing as we service the growing U.S. semiconductor industry,” said Toppan’s President, John Nykaza.
Central Texas continues to be a fast-growing hub for the U.S. semiconductor industry, and Round Rock is prime positioned for additional opportunities in chip manufacturing, design and innovation thanks to its proactive and business-friendly environment.
“Toppan is an established global leader and critical supply chain element to the region’s expanding semiconductor industry,” said Jordan Robinson, President & CEO of the Round Rock Chamber. “We are proud of the investments Toppan has made at its U.S. headquarters in Round Rock over the past three decades, and we look forward to continuing to support their future growth in our community.”
The economic incentive agreement, totaling $1,250,000 through the City’s Type B sales tax fund, requires Toppan to invest at least $157,481,975 in real property improvements and $28,014,550 in business personal property at its existing location at 400 Texas Ave. In addition, Toppan is required to add 50 new employees to its existing 231-person workforce as a result of the proposed expansion and improvements.
Toppan must meet certain investment and job creation thresholds broken into three different phases to receive incentive payments. The incentive helps Toppan continue operations through new investment at their current facility and may lead to future investment and expansion opportunities.
About Toppan Photomasks, Inc.
Toppan Photomasks, Inc. provides micro imaging solutions worldwide. It develops and produces photomasks, a technology used in the manufacture of semiconductor and other microelectronic devices. Utilizing operations within the industry’s most advanced and largest network of manufacturing facilities, Toppan Photomasks offers a comprehensive range of photomask technologies and research and development capabilities to meet the increasingly sophisticated and divergent product-and-service requirements of the global semiconductor industry.
About Momentum
Momentum is a five-year, public-private partnership between the Round Rock Chamber, City of Round Rock and private-sector investors from the Austin-Round Rock metropolitan area who play a critical role in funding the execution of the chamber’s economic development strategy, which directly contributes to the overall economic vitality of the region. For more information visit, https://roundrockchamber.org/about/invest-in-momentum/.
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