Leading science and technology company Merck announced on Tuesday its intention to build its Advanced Semiconductor Integration Site in Zhangjiagang, Jiangsu province, marking its largest single investment project of the electronics business in China.
With an investment of 550 million yuan ($82.1 million), the site incorporating several production sites of semiconductor materials, warehouses and operation centers is designed to expand Merck’s local capabilities, supply chain footprint and support China’s semiconductor industry, according to executives.
“For us, China is one of the most important markets. The country is undoubtedly a ‘must win battle’ for Merck and our Electronics business sector,” said Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, during a virtual signing agreement joined by local authorities in Zhangjiagang.
According to Beckmann, China’s 14th Five-Year Plan calling for the development of Digital China will lay a strong foundation for China’s next generation of digital infrastructure, and the development of the digital economy has “implied a sustained and strong demand for China’s semiconductor industry”.
Earlier this year, Merck announced its Level Up growth program to double its investment for its Electronics business in China with at least another 1 billion yuan before 2025, with a focus on the chip manufacturing industry.