Merck, a leading science and technology company, has inaugurated its Semiconductor Solutions megasite in Kaohsiung, Taiwan, following a total investment of EUR 500 million. The new facility represents the company's effort to strengthen global supply chain resilience while deepening its role in the semiconductor ecosystem.

Strategic Investment and Facility Details

The Kaohsiung site spans 150,000 square meters, making it the company's largest semiconductor materials campus worldwide. The facility is designed to focus on semiconductor materials, particularly Thin Films – a business within Merck's Electronics sector that recorded record sales in the third quarter of 2025, driven by surging demand for AI applications.

Thin-film technology enables materials to be deposited and removed at the atomic level, allowing for more layers, greater complexity, and new chip architectures essential for advanced semiconductors. The site will concentrate on thin films, formulation materials, and specialty gases for high-precision layering, etching, and patterning processes in advanced semiconductor production.

Production Timeline and Employment Impact

The new site will begin production in 2026 and is expected to create 150 additional jobs in Kaohsiung. These materials produced at the facility are essential for manufacturing next-generation logic and memory chips, particularly for AI applications.

Merck is implementing a “lab-to-fab, fab-to-lab” approach at the facility to strengthen the local supply chain and enable seamless collaboration between research labs and wafer fabs. The facility has been built to LEED Gold standards and showcases advanced smart manufacturing through digital twin technology, improving precision and efficiency while supporting predictive maintenance and process optimization.

Sustainability and Technology Features

The Kaohsiung facility incorporates a renewable energy supply that offsets 50% of annual electricity consumption. The site uses digital twin technology as part of its smart manufacturing approach, enhancing precision and efficiency while supporting predictive maintenance and process optimization.

Broader Investment Program Context

The Kaohsiung investment marks the near completion of Merck's “Level Up” investment program, announced in 2021. Over the past five years, the Electronics division has invested over EUR 3 billion worldwide in capacity and innovation, working in coordination with major customers to increase supply chain resilience.

According to Kai Beckmann, Deputy Chair of the Executive Board of Merck and CEO Electronics, the company's strategy focuses on staying close to customers and their technology roadmaps. Beckmann stated that the investment allows Merck to reinforce its position in one of the world's most strategically important semiconductor ecosystems, supporting long-term growth ambitions within Electronics while strengthening R&D and manufacturing capabilities.

The Thin Films business recorded record sales in the third quarter of 2025, reflecting the accelerating demand for AI applications. This growth has driven the need for expanded production capacity to meet the increasing requirements for advanced semiconductor materials.

Merck operates across life science, healthcare, and electronics sectors, employing more than 62,000 people globally. In 2024, the company generated sales of EUR 21.2 billion across 65 countries. The founding family remains the majority owner of the publicly listed company, which has operated since its founding in 1668.

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