Merck Group yesterday held a groundbreaking ceremony for its new semiconductor solutions mega site in Kaohsiung, as the German company looks to bolster supply chain resilience and growth.

The new site marks the second phase of Merck’s investment in Taiwan after the completion in October last year of its phase 1 investment, with the inauguration of a Delivery Systems and Services site in Kaohsiung.

LONG-TERM PLAN

Merck Foundation Board of Trustees chairman Frank Stangenberg Haverkamp, center, Minister of Economic Affairs Wang Mei-hua, fourth right, and other government officials and German representatives attend a groundbreaking ceremony at the Southern Taiwan Science Park’s campus in Kaohsiung’s Lujhu District yesterday.

Photo: Su Fu-nan, Taipei Times

Merck plans to invest 500 million euros (US$537 million) in Taiwan over the next five to seven years, with a focus on semiconductors.

The company is implementing a “Level Up” global growth program for its electronics business, aiming to invest more than 3 billion euros by 2025.

The 15-hectare site in Kaohsiung is Merck’s first move to integrate comprehensive product lines from different technology fields, including thin film and specialty gases, into one single location, the company said in a statement.

The investment is an important building block in Merck’s ambition to capture growth opportunities offered by accelerating global demand for innovative semiconductor materials, it said.

The first product lines are expected to become operational by 2025 and will ramp up in phases, Merck said, adding that the investment is expected to create more than 400 jobs.

HUGE MARKET

“Taiwan is a huge market for semiconductor materials and advanced manufacturing. With the establishment of our Semiconductor Solutions Mega Site in Kaohsiung, we aim to work closely with customers to push the technological boundaries in this exciting industry,” Kai Beckmann, a member of the executive board at Merck KGaA and CEO of Merck Electronics, said in the statement.

The new site will host multiple first-time mass-production lines for more innovative semiconductor materials for Merck’s customers, said Anand Nambiar, executive vice president and global head of Merck Semiconductor Materials.

By expanding the company’s capabilities and capacities in Taiwan, it will serve as a powerhouse to speed up customers’ research and development, advance chip manufacturing and build a strong base for boosting supply chain resilience, Nambiar said.

Source:TAIPEI TIMES