Lite-On Technology USA Seeks Incentives For Proposed $300M HQ Expansion To McKinney
A Taiwanese technology company is considering a $300M advanced manufacturing and headquarters expansion in North Texas.
Lite-On Technology USA Inc. is seeking more than $13M in tax incentives for its proposed expansion into the Core5 Logistics Center in McKinney, the Dallas Business Journal reported. The $300M project would include the purchase and renovation of two buildings totaling more than 652K SF to be used as the company’s North American headquarters and for advanced electronics manufacturing, research and development.
Lite-On Technology produces semiconductor components and power management modules, according to its LinkedIn page. The Taipei-based company has a nearly 80K SF facility in Plano.
The facilities the company is considering purchasing at the Core5 Logistics Center are the nearly 160K SF Building D at 300 Cypress Hill Drive and the 492K SF Building E at 310 Cypress Hill Drive. Both buildings are “unimproved shell structures,” according to an application for the state’s Jobs, Energy, Technology and Innovation, or JETI, program.
Lite-On Technology could receive a 50% reduction on a portion of its property tax bill from the McKinney Independent School District for 10 years. It could save the technology company around $4.7M in taxes over the decade.
The McKinney Economic Development Corp. is also working on an $8.7M economic incentive package for the company. That proposed agreement includes a Chapter 380 property tax rebate of approximately $3.1M over seven years and a $2.9M capital investment grant to support the company’s planned $165M investment. It would also include a research and development incentive of more than $1.7M for Lite-On Technology’s proposed $50M research investment and as much as $1M in job creation incentives for 251 new positions.
McKinney officials also nominated the technology company for a $3.5M Texas Enterprise Zone grant, which offers refunds on state taxes paid on qualified expenditures.
The JETI application shows the expansion project could have an economic impact of more than $16B for Collin County over the next 38 years.
Lite-On Technologies didn’t immediately respond to a request for comment on the proposed expansion.
Jacey Jetton, a consultant for the company, told the Dallas Business Journal that the expansion plan hasn’t been finalized.
“The current position of Light-On, per their last board meeting April 29, was that they are considering the McKinney site pending the incentive negotiations and other due diligence,” Jetton said. “It's still an ongoing endeavor, and it's not definite.”
North Texas has become a global powerhouse in the semiconductor industry, with more than $50B in investments on the way.
Much of that investment is centered in Sherman, a city around 30 miles north of McKinney that has added multibillion-dollar semiconductor manufacturing facilities from Texas Instruments, GlobalWafers and Coherent in recent years.
