Merck plans to invest 1 billion yuan in China to expand the local production and research and development of electronic materials in the Yangtze River Delta

On January 26, German pharmaceutical and high-performance materials giant Merck AG announced that it will invest at least 1 billion yuan (about 130 million euros) in China to its electronic technology business by 2025. The new investment will focus on chip manufacturing, aiming to build and expand a series of local production, R&D and supply chain facilities for electronic materials to actively participate in and support China's currently booming integrated circuit industry.

Kai Beckmann, Member of Merck's Executive Board and CEO of Electronics Technology

Kai Beckmann, member of Merck's executive board and CEO of electronic technology business, said in an interview with the surging news reporter that the current global semiconductor industry is entering a super cycle, with unprecedented capacity investment and expansion, China is also rising to become the world's fastest growing integrated circuit manufacturing market. "We believe that China's semiconductor industry and the entire electronic information industry are in a golden period of development opportunities. Merck will meet and cooperate with the Chinese market, especially in the field of chip manufacturing and processing. ”

Bi Kangming said that in the past decade, Merck has invested 1 billion yuan in China's display field, and this bold investment is very successful from now on, and this investment in the semiconductor field hopes to replicate the success in the display field. "Not only performance growth and revenue sources, but also hope to enhance the innovation ability of the Chinese market, Shanghai will be completed as the Shanghai Merck Electronic Technology China Center, which will help China's semiconductor and display industries to increase competitiveness through material innovation."

Allan Gabor, President and Managing Director of Merck China's Electronics Technology business, said: "Continued localization in the Chinese market has proven to be rewarding. Today, we show that about half of the world's sales revenue in the materials sector comes from the Chinese market. In the past 2021, China has become the world's largest single sales market and the largest contributor to performance growth of the entire Merck Electronic Technology business.

Bi Kangming said that the new 1 billion yuan investment is mainly invested in the Yangtze River Delta region with Shanghai as the core, which is used to build the toughness and flexibility of electronic materials and better help partners.

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 three electronic materials laboratories in China, focusing on the research and development and application of liquid crystals, photoresists and OLED (organic light-emitting diode) materials.

Merck is currently building its "Merck Electronics Technology China Center" in Shanghai, which has the widest range of products in the world. The center, which is mainly used for the analysis, testing and sampling of various semiconductor and display materials, is expected to be completed and put into use in the summer of 2022. After the completion of the center, Merck can provide more rapid and comprehensive technical services and more customized material solutions for local semiconductor companies and display panel manufacturers in China.

Through a series of strategic mergers and acquisitions and successful integrations in recent years, Merck has become one of the most extensive and full-materials suppliers in the global semiconductor manufacturing industry, with a comprehensive portfolio that covers the six key steps of the wafer processing process – doping, patterning, deposition, planarization, etching, cleaning and post-packaging testing – while Merck also tailors specialty chemical and gas supply systems for fabs, as well as field service and equipment management. 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.