City approves economic development agreement for Toppan expansion
Round Rock City Council approved an economic incentive agreement on Thursday, April 27, with Toppan Photomasks Round Rock, Inc. that will result in a minimum of $185,496,525 in new investment and at least 50 new jobs created.
The Round Rock Transportation and Economic Development Corporation and the City Council approved the with the company at their respective regularly scheduled meetings Thursday evening.
Toppan first established its U.S. presence in Round Rock in 1986 and is an advanced manufacturer of photomasks, which is a key component in the process of creating a semiconductor chip that is used by global companies such as Samsung, Texas Instruments and others.
Due to new funding opportunities through the U.S. CHIPS & Science Act, Toppan has been evaluating opportunities to modernize and expand to meet the demands of the rapidly advancing global semiconductor industry while also competing with China. After evaluating investment opportunities worldwide and in the U.S., Toppan selected its existing Round Rock location to move forward with a near $200 million expansion and modernization project.
“We’re pleased with Toppan’s decision to expand its footprint in Round Rock,” said Mayor Craig Morgan. “This economic development agreement represents a significant investment in our community including new job opportunities, while also reinforcing Round Rock’s reputation as a hub for cutting-edge technology.”
The economic incentive agreement, totaling $1,250,000 through the City’s Type B sales tax fund, requires Toppan to invest at least $157,481,975 in real property improvements and $28,014,550 in business personal property at its existing location at 400 Texas Ave.
“Toppan is an established global leader and critical supply chain element to the region’s expanding semiconductor industry,” said Jordan Robinson, President & CEO of the Round Rock Chamber. “We are proud of the investments Toppan has made at its U.S. headquarters in Round Rock over the past three decades, and we look forward to continuing to support their future growth in our community.”
Toppan must meet certain investment and job creation thresholds broken into three different phases to receive incentive payments. In addition, Toppan is required to add 50 new employees to its existing 231-person workforce as a result of the proposed expansion and improvements.
In consideration for Toppan meeting its obligations, economic incentive payments (EIPs) totaling $1.25 million will be issued through the City’s Type B sales tax fund, divided into three payments that will be made after Toppan meets the milestones outlined in the agreement. The agreement is performance-based and includes clawback provisions should Toppan not fulfill its obligations.
“I want to thank the city of Round Rock and the Chamber of Commerce for their support of Toppan Photomasks Round Rock. Over the 35 years we have operated in Round Rock, the City, Chamber and Community have been vital partners to our growth,” said Toppan’s President John Nykaza. “That support allows Toppan Photomasks to add much needed capacity to meet the needs of consumers and enhance our capabilities to advance the growing U.S. Semiconductor industry and bring manufacturing back to the US. I’m excited by the role our Round Rock employees play in the needed growth of US based semiconductors. We look forward to that growth continuing as we service the growing US semiconductor industry.”
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Source: City of Round Rock