AUSTIN, Texas — NXP, a Netherlands-based semiconductor manufacturer that already operates two facilities in the Austin area, is considering further expansion in Central Texas.
On Friday, the City of Austin began taking feedback on a potential NXP expansion, highlighting the potential property tax reimbursement an expansion could provide for the city.
City officials said NXP's investment has the potential to generate an estimated annual economic impact of $560 million for Austin.
If the company opts to expand in Austin, the facilities will undergo a retooling to optimize production lines, aligning them more effectively with the what the company calls "market demands." A projected $290.8 million investment would facilitate the expansion of NXP's operation for its Austin facilities.
The company also estimates that an expansion would create 53 jobs over five years, as well as significantly bolster semiconductor manufacturing in the city.
"Empowering economic growth requires strategic collaboration and bold investments,” said Sylnovia Holt-Rabb, director of Austin's Economic Development Department. “In our pursuit of cultivating a thriving community, we are dedicated to forging partnerships that not only strengthen our local industries but also resonate on a global scale. By fostering innovation and embracing opportunities like this, we are shaping a resilient future for Austin and beyond."
Austin Mayor Kirk Watson said at a city council meeting Tuesday that while he appreciates the company's desire to expand in Austin, he believes the semiconductor manufacturer should provide more access to child care in exchange for increased incentives from the City.
"We want Austin to be seen as somebody that's willing to work with industries like yours. At the same time, we have some specific needs in Austin. There's a very real interest in child care. I have expressed that to the NXP people," Watson said at Tuesday's meeting.
NXP is coordinating efforts on the project with Austin's Office of Sustainability, Small and Minority Business Resources (SMBR), Financial Services Department, Austin Energy and Austin Water.
The community can provide feedback on the potential expansion through Sept. 15 at 5 p.m.
Austin's Economic Development Department is leading the expansion initiative.
Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.