German electronic materials company Merck to open semiconductor base in China
Merck, a German company that makes chemicals and materials used to make semiconductors, said on Tuesday it had signed a contract with the local government to open a semiconductor base in Suzhou, Jiangsu province.
The Suzhou project, which comprises an advanced semiconductor integrated base for semiconductor material manufacturing sites, warehouses, and operations centers, is the company’s largest single electronics business investment in the country.
The base, which intends to deliver complete material solutions to its Chinese clients at a faster response time, will play an essential role in boosting supply chain reliability and aiding the semiconductor industry’s coordinated development at home and abroad, according to the company.
“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.”
Merck said it will invest at least another one billion yuan ($150.18 million) in China by 2025 to support the chip industry. Of that amount, 550 million yuan ($82.60 million) will go towards the new base, the company told Reuters.
Currently, Merck’s electronics business operates three manufacturing plants in mainland China, located in Shanghai Jinqiao, Shanghai Waigaoqiao and Suzhou.