City approves economic development agreement for KoMiCo expansion
Round Rock City Council approved an economic incentive agreement on Thursday, Nov. 17, with KoMiCo Technology that will result in a minimum of $30 million in new investment and at least 70 new jobs created.
The Round Rock Transportation and Economic Development Corporation and the City Council approved a Chapter 380 agreement with the company, which has operated in Round Rock since 2007, at their respective regularly scheduled meetings Thursday evening.
KoMiCo is a semiconductor equipment parts cleaning, coating and repair company that provides services to the largest and most advanced semiconductor companies across the globe.
“We are pleased that KoMiCo is making a renewed investment here in Round Rock, and we’re proud to be home to an essential part of the supplier ecosystem that supports semiconductor manufacturing in our region and around the world,” said Round Rock Mayor Craig Morgan.
The agreement requires KoMiCo to invest at least $30 million in real property improvements and business personal property at its existing location at 201 Michael Angelo Way, with $15 million completed by Dec. 31, 2023, and the remaining $15 million by Dec. 31, 2024. The company expects to add 40,000 sq. ft. to its currently 62,000-square-foot facility. In addition, KoMiCo must add 70 employees to its existing 180-person work force as a result of the proposed expansion and improvements by Dec. 31, 2025.
“KoMiCo’s expansion contributes significant value to the overall growth and economic generation of Round Rock,” said Jordan Robinson, President and CEO of the Round Rock Chamber. “As the Central Texas region continues to become a hub for the U.S. semiconductor industry, KoMico is an established global leader and industry supplier who brings cutting-edge capabilities, diversification and talent to our innovation ecosystem. We look forward to continuing our partnership with KoMiCo as it continues to make strategic investments in our community.”
In consideration for KoMiCo meeting its obligations, economic incentive payments (EIPs) totaling $750,000 will be issued through the City’s Type B sales tax fund, divided into three payments that will be made after KoMiCo meets the milestones outlined in the agreement. The agreement is performance-based and includes clawback provisions should KoMiCo not fulfill its obligations.
“KoMiCo is proud to partner with the City of Round Rock in further establishing the Silicon Hills as the most technologically advanced semiconductor manufacturing region in the United States,” said KoMiCo U.S. President James Jin.
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Source: City of Round Rock