Aiming at chip manufacturing, Merck Electronics will invest 1 billion yuan in China by 2025

On January 26, Merck announced that it will invest at least 1 billion yuan (about 130 million euros) in China's electronics technology business by 2025. Merck said that the investment is mainly used for the production, research and development of electronic materials, supply chain localization construction and expansion, and is a core component of Merck's electronic technology business's global "upward attack" plan.

"China is not only the world's largest semiconductor consumer market, but also the fastest growing market for electronic materials in the world." In a conference call on the afternoon of the same day, Kai Beckmann, a member of Merck's executive board and CEO of the electronic technology business, told reporters including First Finance: "China is the world's largest chip consumer market and the largest chip importer, and more than half of the total global chip production flows to China every year. "At present, the global semiconductor industry is entering a super cycle, and with unprecedented capacity investment and expansion, China is also emerging as the world's fastest growing integrated circuit manufacturing market."

Bi Kangming said that China's semiconductor industry and the entire electronic information industry are in a golden period of development opportunities. "The future of materials science will play a vital role in driving innovation in China's electronics market and helping China's semiconductor industry grow bigger and stronger."

Currently, Merck Electronics Operates Three High-Tech Manufacturing Plants in Chinese mainland, located in Jinqiao, Shanghai, Waigaoqiao, and Suzhou, producing a wide range of display and semiconductor materials, as well as transportation and storage equipment for electronic specialty gases and high-purity chemicals. In addition, Merck has invested in the establishment of three electronic materials laboratories in China, namely the development and application of liquid crystal, photoresist, olED (organic light-emitting diode) materials.

Merck said that in the past decade, the company has invested more than 1 billion yuan in the field of electronic materials in the Chinese market, mainly in the field of display materials and technologies such as liquid crystals.

"Continued localization in the Chinese market will pay off handsomely, and today, we show that about half of the world's sales revenue in the materials sector comes from the Chinese market." Allan Gabor, president of Merck China and managing director of electronic technology, told reporters that the new investment is to create a resilient material supply environment through investment, taking advantage of local teams. "In the future, we will not only introduce materials overseas, but also increase local production."

"Specifically, the 1 billion yuan investment will be concentrated in the Yangtze River Delta region centered on Shanghai, and these investments will be used for the expansion plan of the factory." Bi Kangming told reporters that the Yangtze River Delta integrated circuit industry centered on Shanghai has formed a complete integrated circuit industry chain integrating design, manufacturing, packaging and testing, materials, equipment and other supporting services, which is the most complete domestic integrated circuit industry chain and the most balanced industrial structure.

"From the perspective of the investment direction of funds, 60% of the funds are used for local high-tech manufacturing, 20% for the construction of local supply chains, and the remaining 20% for research and development." Bi Kangming said.

Merck is currently building the Merck Electronics China Center in Shanghai, which is mainly used for the analysis, testing and sampling of various semiconductor and display materials, and is expected to be completed and put into use in the summer of 2022.

Merck is one of the leading suppliers of electronic materials to the global semiconductor manufacturing industry, with a comprehensive portfolio that covers 6 key stages of the wafer process, doping, patterning, deposition, planarization, etching, cleaning, and post-packaging testing. At present, Merck has supplied more than 150 kinds of high-purity chemicals, electronic special gases and performance materials to more than 100 chip manufacturing companies in the Chinese mainland.