Quick Overview

  • Taiwan's Lite-On Technology will invest up to $919 million to build a manufacturing and R&D campus in McKinney, Texas, Governor Greg Abbott announced on Monday.
  • According to a press release, the campus will produce electronic components such as power management systems to supply Lite-On's customers in the AI infrastructure and energy markets.
  • The campus is expected to create more than 600 jobs, and Lite-On anticipates the site will be fully operational by 2030, according to its application filed with the Texas Comptroller of Public Accounts.

In-Depth Analysis

The investment includes the purchase of two existing buildings in McKinney's Core5 Logistics Center, a newly developed local industrial park, for $108.5 million. According to real estate investment firm Colliers, the two buildings total more than 650,000 square feet and were completed in the first quarter of 2023.

The industrial site is located near Interstate 75 and Highway 380, close to Dallas Love Field, Dallas-Fort Worth International Airports, and the Port of Shreveport, according to LoopNet.

According to the comptroller application, this location will enable Lite-On to receive raw materials by air or land and ship finished products to its OEM customers, cloud service providers, and other customers across the United States.

The site will also allow Lite-On to receive electronic subassemblies, power conversion components, printed circuit assemblies, chassis, thermal management materials, and firmware-integrated systems from its global manufacturing network and suppliers. Final assembly, testing, quality validation, and packaging of Lite-On electronic components will be completed at the McKinney campus.

"As AI infrastructure development and the global energy transition continue to reshape the industry, this investment will further enhance Lite-On's global competitiveness and support the company's long-term growth," Chairman Tom Soong said in a statement.

Texas officials have awarded Lite-On a $3.5 million grant through its performance incentive program, the Texas Enterprise Fund, and $100,000 through its veteran employment incentive program, according to a press release from the McKinney Economic Development Corp. MEDC and McKinney city officials are expected to finalize an incentive package in July.

In addition to manufacturing and R&D, the McKinney campus will also serve as the North American headquarters for Lite-On Inc., the U.S. subsidiary of the electronics manufacturer, the Taiwanese manufacturer stated in its comptroller application.

The campus will expand Lite-On's footprint in Texas and the U.S. The company has sales centers in nearby Plano and in Milpitas, California. Lite-On also has a subsidiary, Power Innovations International, in East American Fork, Utah.