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 state, according to the governor’s office.

Niacet Specialty Chemicals, whose products are used in food preservation as well as in the semiconductor manufacturing process, says the investment at its existing facility in the city will increase 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,” Gov. Kathy 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.”

Niacet 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 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, state officials said. It currently employs about 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.

“Niacet has been a Power Authority customer for decades and we are pleased to support its expansion,” New York Power Authority President and CEO Justin E. Driscoll said. “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.”