BASF to Build Ammonium Hydroxide Plant in Ludwigshafen, Strengthening Its Electronic-Grade Chemicals Supply Network

BASF announced on October 30 that it will construct a new, state-of-the-art electronic-grade ammonium hydroxide facility at its Ludwigshafen site in Germany. Designed to meet the stringent purity requirements of advanced semiconductor manufacturing, the plant will produce materials primarily used in wafer cleaning, etching, and other critical process steps. Scheduled to start operations in 2027, the facility will provide European chip manufacturers with a more localized, stable, and traceable supply of key materials.

This investment marks another important step in BASF’s strategic expansion in semiconductor materials and aligns with the objectives of the European Chips Act, which seeks to enhance local manufacturing and supply chain resilience. As artificial intelligence, electric mobility, and high-performance computing continue to drive semiconductor demand, Europe is entering a new phase of capacity expansion. The need for high-purity electronic chemicals is rising rapidly, and BASF aims to support this trend by strengthening the upstream material base for the region’s chip industry.

The project follows another major investment announced earlier this year. In April, BASF revealed plans to build a new semiconductor-grade sulfuric acid facility at the same Ludwigshafen site, also scheduled to start up in 2027. Together, these projects demonstrate BASF’s systematic approach to enhancing its production capacity and technological capability in Europe’s electronic chemicals market, while expanding its localized product portfolio and reinforcing its strategic role within the semiconductor value chain.

BASF noted that it will leverage the integrated structure and resource synergies of its Ludwigshafen Verbund site to boost competitiveness in supply chain, logistics, and technology. By locating production closer to customers, the company aims to reduce reliance on intercontinental transport while improving supply security and responsiveness.

The new facility will feature advanced purification technologies and energy-efficient design concepts to ensure that products meet the highest standards required by semiconductor customers, reflecting BASF’s commitment to innovation and sustainable manufacturing.

Jens Liebermann, Senior Vice President of BASF’s Electronic Materials business, and Gops Pillay, President of Global Operations, jointly stated: “This investment is a direct response to the capacity expansion plans of European chipmakers. It deepens BASF’s long-term partnerships with key customers and further enhances regional supply reliability through localized production.”

BASF’s latest initiative in Ludwigshafen underscores its forward-looking view of market demand and its deep engagement with Europe’s semiconductor ecosystem. Collectively, these investments signal a comprehensive upgrade of Europe’s semiconductor value chain—from design to materials—and reflect BASF’s steady transformation from a traditional chemical company into a leading global provider of high-tech materials.