ROUND ROCK, Texas (KXAN) - - Toppan Photomasks Inc., a global company headquartered in Round Rock that concentrates on producing a crucial element in the semiconductor chip process, signed an agreement with the city to buy improving its center.

Round Rock City Council all authorized to pay the business a $1.25 million reward if Toppan satisfies the requirements of investing at least $185 million into its facility and developing 50 new high-paying jobs. The business has areas in Dresden, Germany, Shanghai, China and Icheon, South Korea.

"We selected Round Rock as our headquarters and pride ourselves on being a good community partner by investing in constant growth throughout the years, which in turn has actually permitted us to broaden the number of high-paying manufacturing tasks in the Round Rock area," John Nykaza, the president of Toppan Photomasks Round Rock, said to council throughout the meeting recently.

The business is an innovative manufacturer of photomasks, which are utilized to develop semiconductor chips. Semiconductor chips are compared to the "brain" behind everyday innovation varying from vehicles to phones.

Congress passed the CHIPS Act in 2015, which supplied financing to enhance semiconductor manufacturing in the United States. And the increase is seen locally, as a Samsung semiconductor plant is currently being integrated in Taylor.

After a worldwide shortage of semiconductor chips, the need for the item is high. Toppan Photomasks is aiming to capitalize off funding opportunities from the federal government and has chosen to update its center.

Just how much will be invested?

In order for Toppan Photomasks to receive the reward from the City of Round Rock, it needs to follow its organized financial investments. The company will invest $157.4 million dollars in brand-new equipment and about $28 million on building enhancements, according to the contract. The almost 100,000-square-foot building will grow as the business makes more office space and additional space for brand-new equipment.

The company will likewise add 50 brand-new positions for its growing center. The average spend for the staff member will be $70,000 each year, according to a discussion from the city.

Per the agreement, the city is arranged to pay $600,000 in December 2025 (Phase 1); $150,000 in December 2028 (Phase 2); and $500,000 in December 2029 (Phase 3).

What if the business stops working to invest whatever in the contract?

The deal signed by the city and the business does provide a method for the city to get its incentive refund if the business does not fulfill all its requirements.

Since the money is paid out in stages, Toppan can keep a few of the payments. If Toppan satisfies its requirements by the first payment in December 2025, it will keep that cash, even if it fails to satisfy the requirements in stages two and three.

"It's simply crucial to have companies like you that are partners in this community," Round Rock Mayor Craig Morgan stated during the city council conference.