Texas Border Business
AUSTIN – Governor Greg Abbott announced that the second Texas Semiconductor Innovation Fund (TSIF) grant of $2,400,000 has been extended to Dongjin Semichem Texas, Inc. (“DST”) for their specialty chemicals and materials facility in Killeen, which is expected to create 24 new jobs and more than $110 million in capital investment. Governor Abbott signed into law the Texas CHIPS Act in 2023 to establish the TSIF as well as the Texas Semiconductor Innovation Consortium (TSIC).
“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 in the expansion of their specialty chemicals and materials facility in Killeen will further secure the U.S. semiconductor supply chain with ultra-high-purity photoresist thinners to be produced in Texas for the first time. Thanks to companies like DST, Texas will continue to be No. 1 for semiconductors as we partner with businesses and entrepreneurs to develop innovative new technologies to build a stronger, more prosperous Texas than ever before.”
“TSIC is proud to award this grant to a strong semiconductor company with an established presence in Texas that is helping to advance Texas’ position as a leader in the semiconductor industry,” said TSIC Executive Committee Chair Dr. David Daniel. “DST’s growing presence in Killeen is furthering Texas’ leadership and creating good-paying jobs while securing a critical domestic supply chain.”
DST, a subsidiary of Dongjin USA Inc., specializes in photoresist thinner formulas that are crucial for the photolithography process within semiconductor chip fabrication. Dongjin’s thinners are necessary for producing leading-edge chips in high-performance computing, 5G, AI, automotive, aerospace, and defense applications. The DST facility will replace foreign sources with domestically produced specialty thinners in Texas for the first time, bolstering the U.S. supply of this critical material for leading edge semiconductors. The facility will encompass six buildings housing key functions such as raw material and product storage, manufacturing, production and analysis, utilities, raw material tanks, waste treatment, office space, and a dedicated security building.
“Dongjin Semichem Texas, Inc. expresses its sincere gratitude to Governor Abbott, the staff at the Office of the Governor, and the Executive Committee of the Texas Semiconductor Innovation Consortium for awarding DST a $2.4 million grant from the Texas Semiconductor Innovation Fund,” said Vice-Chairman and CEO of Dongjin Semichem Co., Ltd. and Director of Dongjin Semichem Texas, Inc. Dr. Chun Hyuk Lee. “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, a crucial material for advanced semiconductor photolithography processes. 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. This grant represents a critical step in strengthening the region’s position as a hub for semiconductor excellence.”
“The semiconductor industry is the backbone of innovation in our modern economy, and we are committed to ensuring that Texas remains the top destination for companies seeking to invest in cutting-edge technologies,” said Senator Pete Flores. “With this grant, we are further solidifying our reputation as a hub for research, development, and manufacturing in the semiconductor space, while also providing families with opportunities for good-paying jobs and a better quality of life. I would like to extend my sincere congratulations to Dongjin Semichem Texas, Inc. on this achievement and thank them for their continued commitment to our state. I look forward to seeing the positive impact this facility will have on the Killeen community and beyond.”
“Dongjin Semichem Texas is an important and well-respected member of the Killeen community, and I am grateful to Governor Abbott and the Texas Semiconductor Innovation Consortium for awarding this grant,” said Representative Brad Buckley. “This investment will fuel the economic engine of West Bell County and support the important work of DST and its impact on the Texas economy. This expansion means great things for businesses in the Lone Star State.”
View more information about Dongjin Semichem.
The Texas Semiconductor Innovation Fund (TSIF) is a new incentive program to encourage the continued leadership of Texas in semiconductor research, design, and manufacturing. The TSIF was established in June 2023 when Governor Abbott signed into law the Texas CHIPS Act, establishing the TSIF as well as the Texas Semiconductor Innovation Consortium. These programs, administered by the Texas CHIPS Office, are designed to leverage Texas’ investments in the semiconductor industry, encourage semiconductor-related companies to expand in the state, further develop the expertise and capacity of Texas institutions of higher education, and maintain the state’s position as the nation’s leader in semiconductor manufacturing.
