Merck Further Expands its Semiconductor Solutions Capacities Globally

Groundbreaking in Taiwan for a new integrated production facility for specialty gases and semiconductor materials for thin-film and patterning solutions

09-Feb-2023 - Taiwan

Merck is breaking ground in Kaohsiung, Taiwan, for a new production facility in its Semiconductor Solutions business. The site, which covers an area of 150,000 m2, is to produce specialty gases and semiconductor materials for thin film and patterning solutions as of 2025. The site is to be expanded in multiple stages. This investment is part of the “Level Up” growth program initiated by the Electronics business sector at the end of 2021. By 2025, Electronics intends to invest significantly more than € 3 billion in innovations and capacity expansion projects, thereby supporting the future success of Semiconductor Solutions, one of Merck’s “Big 3” growth drivers.

Merck KGaA

“Irrespective of the current turbulent macroeconomic situation, the medium- and long-term, very positive growth prospects of our markets remain unchanged. The further advance of digitalization and the exponential growth of data will continue to lead to sharply increasing demand for electronics. That is why we are investing in our highly attractive growth markets and purposefully expanding production capacities and innovative power in the immediate vicinity of our customers,” said Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics.

Level Up investments globally

As a key innovation partner close to customers, Electronics operates R&D centers and production facilities for materials and solutions for the electronics industry at sites in Asia, the United States and Germany. Last year, Electronics already successfully launched various investments as part of the Level Up program.

In October 2022, a new facility was also completed in Kaohsiung, Taiwan, for the production of delivery equipment for the safe handling of gases and chemicals in the semiconductor industry. Delivery Systems & Services, the business unit in charge of this facility, is also expanding its capacities in the United States and plans to open a new production facility in Chandler, Arizona in the first half of 2023.

Apart from Kaohsiung in Taiwan, Electronics is currently also expanding its semiconductor materials production capacities at further sites in Asia, the United States and Germany. To this end, an entire series of investment projects is being prepared or already in implementation. In addition, Merck recently acquired the chemical business of the Korean company Mecaro. With this, Electronics is strengthening its expertise in thin-film materials for semiconductor manufacturing and can expand its global capacities. “The acquisition of the chemical business of Mecaro ideally demonstrates how targeted acquisitions are moving Electronics and Semiconductor Solutions forward,” said Beckmann.

Also in 2022, Merck opened its China Electronics Technology Center and a production facility for organic light-emitting diode (OLED) materials in Shanghai, China. This marks the third OLED materials facility that the company has already commissioned aside from Pyeongtaek, Korea, and Darmstadt, Germany. With these investments, Merck is further expanding its analytical capacities in the OLED materials field. OLED technology enables flexible displays and display-based consumer electronics of the future.

Sustainability in Kaohsiung

The new Semiconductor Solutions Site in Kaohsiung will bring the most innovative semiconductor materials while reducing the carbon footprint generated by simplifying logistics to local and Asian region customers. In addition, the campus was designed based on LEED Green Building Gold certification standards and will be equipped with many sustainable elements, such as the use of renewable energy and a rainwater collection system. In line with its sustainability goal of reducing its environmental footprint and becoming carbon neutral by 2040, Merck is creating a sustainable campus in Kaohsiung with minimal impact on the environment.

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