Merck to double investment in China with 1b yuan expansion

German high tech firm Merck plans to double its investment in China by spending over 1 billion yuan (US$156 million) by 2025 on expanding its electronics business.

The investment will be used in semiconductor material production and research aligned with the company's three existing manufacturing sites in China, two in Shanghai and one in Suzhou.

Merck is closely linked to the start of the "golden era" of China's semiconductor industry and its latest investment represents Shanghai's appeal to overseas firms, with improved business environment and ecosystem, despite COVID-19 challenges.

"Along with unprecedented industry expansion globally, we believe a golden era for China's semiconductor industry has just begun," said Kai Beckmann, a member of Merck's executive board and CEO of Electronics.

China is currently the fastest growing semiconductor manufacturing market worldwide and the largest end market for semiconductors, with more than half of the world's total chip output going to China.

The investment of more than 1 billion yuan will help Merck to expand its local footprint across manufacturing, laboratories and supply chain through its electronics global growth program called "Level Up."

Before this investment, Merck had spent around 1 billion yuan in China in three electronics manufacturing sites in Shanghai's Jinqiao and Waigaoqiao and Suzhou.

It now offers more than 150 products that are being supplied to around 100 chipmakers in China over the entire chip-making process.