Governor Greg Abbott announced a $5.3 million grant from the Texas Semiconductor Innovation Fund (TSIF) to MGC Pure Chemicals America, Inc. (MPCA) on June 25, 2025, to support an expansion of the company’s production facility in Killeen, Texas. MPCA, a consolidated subsidiary of Mitsubishi Gas Chemical Company, Inc. of Tokyo, produces super pure hydrogen peroxide and ammonium hydroxide used as cleaning agents in semiconductor chip manufacturing. The expansion is expected to generate more than $150 million in capital investment and add approximately 130,000 square feet of production space to the existing Killeen facility.
What it means
The grant, drawn from the TSIF established under the Texas CHIPS Act that Governor Abbott signed into law in 2023, directs state funds toward the specialty chemicals supply chain that semiconductor fabricators depend on for chip cleaning processes. MPCA’s general manager Lee Bauer said the funds “will advance the expansion of our existing plant in Killeen.” The Texas CHIPS Office, a division within the Governor’s Texas Economic Development & Tourism Office, administers the fund and the associated Texas Semiconductor Innovation Consortium.
Governor Abbott said the Killeen expansion “will help meet the growing demand for specialty chemicals that are essential for the manufacturing of high-quality semiconductor chips.” MPCA has operated in the United States for nearly 30 years, according to the company.
Key facts
- Grant amount: $5.3 million from the Texas Semiconductor Innovation Fund
- Recipient: MGC Pure Chemicals America, Inc. (MPCA), Killeen, Texas
- Expected capital investment: more than $150 million (according to the company)
- Production space added: approximately 130,000 square feet at the existing Killeen facility
- Products: super pure hydrogen peroxide and ammonium hydroxide for semiconductor chip cleaning
- Parent company: Mitsubishi Gas Chemical Company, Inc., headquartered in Tokyo
- Texas CHIPS Act signed into law: 2023
- Administering body: Texas CHIPS Office, Texas Economic Development & Tourism Office
Source: Office of Governor Greg Abbott news release (gov.texas.gov)