Investment in China takes a milestone step – talking about Angobo An, President and Managing Director of Merck China for Electronic Technology Business

Recently, Merck laid the foundation stone for the construction of an advanced semiconductor integration base
in Yangtze River International Chemical Industrial Park, Zhangjiagang, Jiangsu Province.
This is the largest single investment of Merck's electronic technology business in China and an important step for
Merck's investment in China.
The project mainly serves China's chip manufacturing industry, aiming to further optimize the layout of local production and supply chain, make positive contributions to the currently booming integrated circuit industry, and empower China's electronic information industry
.
At the groundbreaking ceremony, An Gaobao, President of Merck China and Managing Director of Electronic Technology Business China, said that the base is an important measure for Merck to complete the "Upward Attack" plan, which will help the Yangtze River Delta region strengthen the integrated circuit industry chain
.

The heart of the Attack Upward plan

"The Verbund base is a core component of Merck's 'Attack Up' plan and will play a key role
in helping China's semiconductor industry become bigger and stronger and promoting innovation in China's electronics market," Angobo said.
”

At the beginning of 2022, Merck Electronic Technology announced the "Upward Attack" China investment doubling plan, which is expected to invest at least 1 billion yuan in its electronic technology business in China by 2025, and the new investment will focus on chip manufacturing
.
The construction of the Verbund Base, covering an area of about 69 acres, will build a mass production plant for semiconductor thin film materials and electronic specialty gases, as well as an integrated warehousing and logistics distribution center
for related semiconductor process key materials.
The fixed assets investment of the first phase of the project is about 550 million yuan, and its logistics distribution center and production plant will be completed and put into operation
in the first and fourth quarters of 2023 respectively.

Thin film deposition process is one of the most critical processes in the manufacturing process of integrated circuits, semiconductor thin film material is the key material in the thin film deposition process, and in the key link of the wafer processing process, from deposition, doping, etching to later packaging and testing every step is inseparable from electronic special gas
.
Merck's Verbund site will provide logistics and warehousing for a wide range of semiconductor process critical materials, including thin film materials and
electronic specialty gases.
The local production of the semiconductor film precursor materials planned for mass production at the base will help fill the production capacity gap of domestic thin film precursor materials, and the high-purity electronic special gas planned to be put into production in the same period as a key material in the advanced memory chip process, its localized mass production will also provide a solid guarantee
for the supply of raw materials and stable production of major memory chip manufacturers.

"After the completion of the base, Merck will be able to provide comprehensive material solutions for local customers and partners in China with faster response speed, and play an important role
in improving the reliability of the industrial chain and supply chain and comprehensively promoting the coordinated development of the semiconductor industry at home and abroad," said Angobao.
”

Strengthen the industrial chain of the Yangtze River Delta

Angobo said that the scale of the integrated circuit industry in the Yangtze River Delta occupies half of China, and semiconductor companies cover all aspects of upstream and downstream, and the construction of Merck Zhangjiagang integrated base will further accelerate the rapid development of
electronic technology business service chip manufacturers, wafer foundries and packaging and testing enterprises.

According to the data, at present, more than half of the world's chips flow to the Chinese market every year, with the unprecedented capacity investment and expansion of domestic chip manufacturers, China is also rising to become the world's fastest growing integrated circuit manufacturing market
.
In the Yangtze River Delta region, Zhangjiagang is striving to build an industrial innovation cluster
represented by characteristic semiconductors.
During the "14th Five-Year Plan" period, Zhangjiagang will focus on the industrial chain of new materials, digital economy and advanced semiconductors
.
This is highly consistent with
the strategic planning of Merck's electronic technology business.

"The foundation stone of this project will inject surging momentum into Merck's global 'upward attack' plan, and will also activate a powerful engine
for Zhangjiagang to 'travel lightly and accelerate industrial transformation'.
" ”

Currently, Merck operates three high-tech manufacturing plants in Jinqiao, Shanghai, Waigaoqiao and Suzhou, Jiangsu Province, producing and marketing a wide range of display and semiconductor materials, as well as safe delivery systems
for electronic specialty gases and high-purity chemicals.
The establishment of the semiconductor integration base in Zhangjiagang will further enhance Merck's strategic layout
in the Yangtze River Delta region.
Merck will rely on the Yangtze River Delta region as the regional advantage of the largest integrated circuit in China, the highest output value, rich talents and huge market potential, and link upstream and downstream enterprises to jointly build an internationally competitive semiconductor industry chain
.

Continue to cultivate the Chinese market

"Merck will invest at least 3 billion euros globally by 2025, and China is one of Merck's most important markets, and continuing to cultivate the Chinese market is Merck's 'winning battle'
".

He said that China's "14th Five-Year Plan" takes the development of the digital economy as a strategic decision to grasp the new opportunities of the new round of scientific and technological revolution and industrial transformation, which will lay a solid foundation for China's new generation of digital infrastructure in the future, and the vigorous development of the digital economy means the continued strong demand
for China's semiconductor industry.

Through a series of strategic acquisitions and successful integrations in recent years, Merck has become a full-product electronic materials supplier in the global semiconductor manufacturing industry, with a product portfolio covering all key aspects of the wafer processing process, as well as customized supply systems for specialty chemicals and gases for fabs, as well as field service and equipment management
.

"With the further advancement of the 'Attack Up' program, Merck is committed to becoming the innovation partner of choice for customers and striving to achieve steady growth
in the new wave of digitalization," said Angobao.
Merck will further enhance its production, R&D and technological innovation capabilities to better protect its industry customers with an optimized global network and local presence
.
”