Silicon Valley-based EcoMicron to get up to $1.3M in incentives to move HQ to Cedar Park

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Apr 30th, 2024

The semiconductor suppliers keep coming

By Justin Sayers – Senior Staff Writer, Austin Business Journal

Apr 26, 2024

A San Jose-based company that supports the semiconductor industry and others in the tech sector will receive an incentive package worth a maximum of about $1.3 million to relocate its headquarters to Cedar Park.

The Cedar Park City Council approved the performance-based deal with EcoMicron Inc. on April 25 to help it move into the roughly 25,500-square-foot Building 12 at the La Jaita Business Park at 1500 Arrow Point Drive. To get the full amount, the company is required to buy the building by the end of this year, make additional investments in it and employ 48 people by 2028.

EcoMicron, which was founded in 2008, specializes in the semiconductor and components business but also works in the photovoltaic and hybrid industries. While the company isn’t involved in fabrication, it does help with manufacturing lines — such as refurbishing and retooling systems to improve efficiency, as well as procurement, product development and sales.

EcoMicron managers didn’t respond to requests for comment.

The performance-based incentives agreement — codenamed “Project San Jose” in economic development discussions — would provide $250,000 to EcoMicron if it purchases the building by the end of the year. The building, constructed in 2018, has been on the market since October and previously housed Innovative Funding Services Corp.

Under the deal, the company will receive another $250,000 if it has 24 full-time equivalent positions at the site, with a total annual payroll of at least $2.7 million, by the end of 2026; and another $250,000 for having 48 full-time equivalent positions at the site, with a total annual payroll of at least $5.7 million, by the end of 2026. The positions include engineers and research-and-development specialists.

The company also is eligible for employee relocation bonuses of $10,000 for each employee that buys a home or residential lot in Cedar Park, or up to $500,000, according to the city documents. It’s also receiving a membership to the Cedar Park Chamber of Commerce at the Chairman’s Member Level, valued at roughly $5,000.

The deal requires EcoMicron to invest $11.5 million in the facility, which includes the purchase price of the building along with $6 million in new equipment, officials said. The city estimates that the project will have a $1.4 million net benefit to Cedar Park, based on expectations that the company will generate well over $3 million in taxable sales annually. That’s means the city would recoup the value of the $750,000 grant in about six years, Scott Smith, Cedar Park’s assistant director of economic development, has said.

EcoMicron’s potential move to Cedar Park marks the continued migration of companies within the semiconductor industry to the region, spurred by the construction of the massive Samsung Electronics Co. Ltd. factory in Taylor. It was recently announced that the South Korea-based electronics giant will receive $6.4 billion through the federal CHIPS and Science Act, which supports the company’s plan to to widen its investment in Central Texas to $45 billion.

Companies known to be expanding in the area include Wonik Materials North America LLC in Manor; Soulbrain Holdings Co. Ltd., HTNS America Inc. and ENC Inc. in Taylor; MSS International and KoMiCo Technology Inc. in Round Rock; iMarket Kora Inc. in both Taylor and Round RockHanyang Eng USA Inc. in Cedar Park; LS Electric Co. Ltd. in Bastrop; and MGC Pure Chemicals America Inc. in Killeen.

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