Germany’s Merck to Build $82m China Semiconductor Plant

Drugs and chemicals group Merck in Darmstadt, Germany. Photo: Reuters

Merck KGaA of Germany announced plans to invest US$82 million to build a new a semiconductor facility in China, located in Zhangjiagang, close to Shanghai. The company said the deal, signed with local authorities, marks its single largest electronics investment in China to date.

The new 69-acre facility will include plants to make thin film materials and electronic specialty gasses, in addition to warehouses and operations centers.

Merck KGaA supplies chemicals and materials used to make semiconductors.

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“China is the largest end market for semiconductors with more than half of the world’s total chip output going to China. Given the unprecedented capacity investment and expansion of domestic chip manufacturers, China is currently also the fastest growing semiconductor manufacturing market worldwide,” Merck China President Allan Gabor said in a statement. “We believe a golden era for China’s semiconductor industry has just begun.”

Earlier this year, Merck said it will invest at least another one billion yuan (US$150.18 million) in China by 2025 to support the chip industry, of which 550 million yuan ($82.60 million) will finance the new Zhangjiagang location.

Reuters, with editing by Neal McGrath

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Neal McGrath

Neal McGrath is a New York-based financial journalist. Neal started his career covering the Asia-Pacific region for the Economist Intelligence Unit, then joined Asian Business magazine. He's subsequently held a variety of editorial positions covering business, economics, finance and sustainability. Neal has lived and worked in Hong Kong, Singapore, Germany and the US.