Texas awards semiconductor grant to Dongjin Semichem for Killeen facility expansion
Killeen, Texas – Governor Greg Abbott announced that Dongjin Semichem Texas, Inc. has been awarded a $2.4 million grant from the Texas Semiconductor Innovation Fund. The investment supports the expansion of the company’s specialty chemicals and materials facility in Killeen, creating 24 new jobs and generating more than $110 million in capital investment. The grant is part of the Texas CHIPS Act, which Governor Abbott signed into law in 2023 to establish funding initiatives aimed at strengthening semiconductor manufacturing in the state.
Strengthening the Semiconductor Supply Chain
Governor Abbott emphasized the importance of this expansion in securing the U.S. semiconductor supply chain. The DST facility will produce ultra-high-purity photoresist thinners, a key material in semiconductor chip manufacturing, within Texas for the first time.
“Texas is where the chip was born and where the future of the semiconductor industry is building,” said Governor Abbott. “Dongjin Semichem Texas’ $110 million investment will ensure that a crucial component in semiconductor manufacturing is produced domestically, reducing reliance on foreign suppliers.”
Dr. David Daniel, Chair of the Texas Semiconductor Innovation Consortium, highlighted the importance of the grant in keeping Texas at the forefront of semiconductor manufacturing. “DST’s growing presence in Killeen is furthering Texas’ leadership and creating good-paying jobs while securing a critical domestic supply chain,” he said.
Advanced Technology for Semiconductor Manufacturing
Dongjin Semichem Texas specializes in manufacturing photoresist thinners, a necessary material for semiconductor fabrication used in advanced technologies such as high-performance computing, 5G, artificial intelligence, automotive, aerospace, and defense applications.
The company’s expansion will include six new buildings dedicated to raw material storage, production, analysis, waste treatment, and administrative operations. The facility will house state-of-the-art manufacturing systems that will help replace foreign sources of specialty thinners with domestically produced materials, strengthening U.S. semiconductor production.
Vice-Chairman and CEO of Dongjin Semichem Co., Ltd., Dr. Chun Hyuk Lee, expressed appreciation for the grant, stating, “This funding will help incentivize DST to move forward with the expansion of our Killeen facility, where we will manufacture ultra-high-purity photoresist thinner. With over three decades of leadership in semiconductor material manufacturing, Dongjin is committed to supporting the growth and innovation of the semiconductor industry in Central Texas.”
Texas Commitment to Semiconductor Leadership
Texas lawmakers and industry leaders have praised the investment as a significant step in securing the state’s leadership in semiconductor research and production.
Senator Pete Flores underscored the importance of semiconductor manufacturing in Texas, saying, “The semiconductor industry is the backbone of innovation in our modern economy. With this grant, we are further solidifying our reputation as a hub for research, development, and manufacturing in the semiconductor space.”
Representative Brad Buckley also acknowledged the economic benefits of the investment, stating, “Dongjin Semichem Texas is an important and well-respected member of the Killeen community. This expansion means great things for businesses in the Lone Star State.”
Texas Semiconductor Innovation Fund
The Texas Semiconductor Innovation Fund was established to encourage continued investment in semiconductor research, design, and manufacturing. Created through the Texas CHIPS Act, the fund is administered by the Texas CHIPS Office within the Governor’s Economic Development & Tourism Office. The program is designed to strengthen the state’s position as the nation’s leader in semiconductor production by supporting companies that advance chip manufacturing capabilities in Texas.
The latest grant to Dongjin Semichem Texas is part of an ongoing effort to expand Texas’ semiconductor industry, attract high-tech jobs, and drive innovation in the state’s economy.
