Merck Inaugurates Semiconductor Solutions Site in Taiwan to Support AI Growth
The company is strengthening its global supply chain resilience while deepening its leading role in the semiconductor ecosystem
Advertisement
New site scales the fast-growing Thin Films business of Merck to meet accelerating AI demand after a record third quarter 150,000 m 2 site to produce critical materials for next generation of AI chips, creating 150 new jobs * Strategic capacity expansion program nears completion, strengthening global semiconductor supply chain resilience
Merck, a leading science and technology company, today inaugurated its Semiconductor Solutions megasite in Kaohsiung, Taiwan, after investing a total of € 500 million. With this investment, the company is strengthening its global supply chain resilience while deepening its leading role in the semiconductor ecosystem.
The new integrated production site focuses on semiconductor materials, especially Thin Films – the business within the Electronics business sector of Merck that recorded record sales in the third quarter of 2025, driven by surging demand for AI applications. Thin film technology allows materials to be deposited and removed on an atomic level, enabling more layers, higher complexity and new chip architectures essential for advanced semiconductors.
“Our strategy is to stay close to customers and their technology roadmaps. This investment allows us to reinforce our position in one of the world’s most strategically important semiconductor ecosystems,” said Kai Beckmann, Deputy Chair of the Executive Board of Merck and CEO Electronics. “Our new Taiwan site will support our long-term growth ambitions within Electronics and strengthens our R&D and manufacturing capabilities.”
Covering 150,000 square meters, the Kaohsiung site is the company’s largest semiconductor materials campus worldwide. It focuses on thin films, formulation materials and specialty gases for high-precision layering, etching and patterning processes in advanced semiconductor production. These materials are essential for manufacturing next-generation logic and memory chips, particularly for AI applications. Through a “lab-to-fab, fab-to-lab” approach, Merck is strengthening the local supply chain and enabling seamless collaboration between research labs and wafer fabs. The new site will begin production in 2026, creating 150 additional jobs in Kaohsiung.
Built to LEED Gold standards, the facility showcases advanced smart manufacturing through digital twin technology, improving precision and efficiency while supporting predictive maintenance and process optimization. Renewable energy supply offsets 50% of annual electricity consumption.
With the investment in Kaohsiung, the “Level Up” investment program announced by Merck in 2021 is nearing completion. Over the last five years, Electronics has invested over € 3 billion worldwide in capacity and innovation in lockstep with major customers, increasing its supply chain resilience.
Other news from the department business & finance
