Hochul: $50 million investment from Irish manufacturer Niacet Specialty Chemicals to strengthen semiconductor supply chain in Niagara Falls

Fri, May 17th 2024 02:25 pm

County Kerry, Ireland-based chemical manufacturer, will invest $50 million in Niagara Falls facility to create 36 new, high-paying jobs

Gov. Kathy Hochul announced Irish manufacturer Niacet Specialty Chemicals, owned by the Kerry Group, will invest $50 million in its Niagara Falls facility to strengthen the semiconductor manufacturing supply chain in New York. The company, whose products are used in food preservation as well as in the semiconductor manufacturing process, will make an investment at its existing facility in Niagara Falls, increasing its production and creating 36 new, high-paying jobs.

“Niacet’s $50 million investment in Niagara Falls is the next step toward growing our chipmaking potential in Western New York and across New York state,” Hochul said. “As far away as Ireland, businesses are taking note of New York’s thriving semiconductor ecosystem, and I am committed to helping them build and grow a presence here to strengthen our supply chain, drive our economy into the 21st century, and create good-paying jobs for New Yorkers.”

Hochul’s team said, “Niacet is a chemical manufacturer providing food preservation products and a compound used in the semiconductor chip manufacturing process. The company, which has a manufacturing plant in Niagara Falls, has operated in Western New York since 1924 and was acquired by Irish-based Kerry Group in fall 2021. The Kerry Group currently operates in 50 countries and employs more than 21,000 people globally, including at its headquarters in County Kerry. The company’s Niagara Falls facility produces ultra‐high purity anhydrous hydrogen chloride (aHCL) that is necessary to create epitaxial semiconductor wafers and is used to etch semiconductor crystals. It is a critical component in the semiconductor supply chain.”

This project is estimated to create 36 new, high-paying jobs and $50 million of new investment at the Niagara Falls facility, which currently employs around 100 people. Empire State Development is providing $3 million in performance-based Excelsior Jobs tax credits to support the project. The company has also applied for funding through the CHIPS and Science Act.

The New York Power Authority is providing Niacet with more than 7.5 megawatts of low-cost Niagara hydropower, which is made available to companies within a 30-mile radius of the Power Authority’s Niagara Power Project or businesses in Chautauqua County.

Empire State Development President, CEO and Commissioner Hope Knight said, “Investing in New York’s semiconductor supply chain companies will further the success of our efforts to establish and grow semiconductor manufacturing throughout the state. Niacet Specialty Chemicals is already an industry leader in this space, and the company’s decision to expand and create even more jobs in Niagara Falls is a testament to our strategy and progress in establishing New York state as a global hub for chip fabrication.”

New York Power Authority President and CEO Justin E. Driscoll said, “Niacet has been a Power Authority customer for decades and we are pleased to support its expansion in Niagara Falls with low-cost Niagara hydropower. NYPA strives to be a good neighbor in its host communities with our hydropower stimulating billions of dollars in capital investments and supporting tens of thousands of Western New York jobs, acting as a cornerstone for economic development in the region.”

Niagara Falls Mayor Robert Restaino said, “With this investment, the Kerry Group will continue the 100-year tradition of Niacet in Niagara Falls, as a leader in the specialty chemicals industry, thank you to the Kerry Group for the commitment to Niagara Falls. The expected job growth resulting from this investment continues our city’s efforts to provide diversified employment opportunities in our economy, and we are proud to be a part of the goal of Gov. Hochul to make NYS a semiconductor manufacturing center, and thank Gov. Hochul for her confidence in Niacet and in Niagara Falls.”

Establishing a global semiconductor hub in New York

The press release added, “Hochul has maintained a strong commitment to building a modern economy in New York state by growing the semiconductor industry and attracting innovative businesses that create good-paying, 21st century jobs. As part of the FY 2025 enacted budget, the governor secured a $500 million capital investment to unlock a $10 billion partnership that will bring the next generation of semiconductor research – high NA EUV lithography – to New York’s Albany Nanotech Complex. The governor also signed New York’s first-in-the-nation Green CHIPS legislation to build a thriving, sustainable chips industry in New York state, paving the way for historic investments from semiconductor manufacturers and supply chain companies like Micron, AMD, Edwards Vacuum, and TTM Technologies. In her 2023 State of the State address, Gov. Hochul announced the creation of the $45 million Governor’s Office of Semiconductor Expansion, Manufacturing, and Integration, known as GO-SEMI, to oversee the state’s efforts to continue to grow the industry.”