Merck Establishes New Semiconductor Hub in Taiwan

Merck has opened a new semiconductor operations base in Taiwan, reinforcing the resilience of its global supply chain and strengthening its position within the semiconductor ecosystem.

The integrated facility will focus on semiconductor materials, especially thin-film materials. Driven by rapidly growing AI-related demand, Merck Electronics’ thin-film business achieved record sales in the third quarter of 2025. Thin-film technologies enable atomic-level material deposition and removal, supporting the creation of increasingly complex, multilayer chip architectures required for advanced semiconductor manufacturing.

“Our strategy is to stay close to our customers and align with their technology roadmaps. This investment secures our position in one of the world’s most strategically important semiconductor ecosystems,” said Kai Beckmann, Vice Chair of Merck’s Executive Board and CEO of the Electronics business sector. “The new site in Taiwan will support our long-term growth ambitions in electronics and expand our R&D and manufacturing capabilities.”

The Kaohsiung site spans 150,000 square meters and is Merck’s largest semiconductor materials production facility worldwide. It specializes in thin-film materials, formulated materials, and specialty gases essential for precision layering, etching, and patterning processes in modern semiconductor manufacturing. These materials are critical for producing cutting-edge logic and memory chips, particularly those used in AI applications. Merck’s “lab-to-fab and fab-to-lab” model enhances the local supply chain and fosters seamless collaboration between research labs and semiconductor fabs. The facility is scheduled to begin operations in 2026 and will create 150 new jobs in Kaohsiung.

Built to LEED Gold standards, the project incorporates advanced smart manufacturing technologies, including digital twins. These innovations improve accuracy and efficiency, streamline production processes, and enable predictive maintenance. Renewable energy will cover 50% of the site’s annual electricity consumption.

With this investment in Kaohsiung, Merck is nearing completion of its “Level Up” investment program announced in 2021. Over the past five years, Merck Electronics has invested more than €3 billion in innovation and capacity expansion. These efforts not only support customers’ growth plans but also strengthen the resilience of the global supply chain.