German chemical giant Merck has launched certification for its €500 million (approx. $579 million) advanced semiconductor materials plant in Kaohsiung, Taiwan, with mass production expected in 2026. The 150,000 sqm facility will become Merck’s largest global production base for semiconductor materials, supplying key materials to leading chipmakers like TSMC and Samsung.
The plant will focus on critical materials such as atomic-layer deposition (ALD) films and specialty formulations, essential for manufacturing 3nm and below process nodes. With advanced chips requiring over 1,000 manufacturing steps—double that of 14nm—demand for such high-performance materials is surging.
Once operational, the facility will meet 80% of Taiwan’s demand for ALD films and significantly boost the region’s overall materials self-sufficiency. This move aligns with Merck's "local for local" strategy, placing production near major clients to enhance supply chain resilience.
The Kaohsiung plant will serve as a key regional hub for the Asia-Pacific, supplying materials across the entire chip production chain. As a core supplier to giants like TSMC and Intel, Merck’s materials must pass rigorous validation processes in close collaboration with customers.
The project will also create over 400 jobs at full capacity. Notably, Merck Electronics CEO Kai Beckmann is set to become group CEO in May 2026, signaling the company’s intensified focus on its semiconductor materials business.
ICgoodFind: Merck’s new plant strengthens the material foundation for AI chip manufacturing in a strategically vital region.
