Recently, Anand Nambiar, a CEO of German chip material giant Merck, said that the company will produce next-generation semiconductor materials in Asia, including South Korea and Japan.
Merck, a German chip material giant, is increasing its layout in the Asian market, especially promoting the research and development and production of next-generation semiconductor materials in South Korea and Japan. This not only reflects Asia’s core position in the global semiconductor supply chain, but also shows Merck’s ambition in technological innovation and market strategy.
In South Korea, Merck focuses on the application of new materials such as molybdenum, gradually replacing traditional tungsten to increase the speed of chip operation and simplify the manufacturing process. This is obviously a strategy tailored to the needs of local chip giants such as Samsung and SK Hynix. The investment of 600 million euros and the establishment of a local factory in South Korea further demonstrate Merck’s attention to the Korean market. As an important production base for global memory chips and advanced processes, South Korea’s demand for high-performance materials will only increase. Merck’s move can be said to have caught the pulse of the market.
In Japan, Merck chose to produce extreme ultraviolet (EUV) lithography materials and directed self-assembly (DSA) materials, targeting the cutting-edge needs of cutting-edge lithography technology. Japan has always had a deep accumulation in the field of semiconductor equipment and materials. Merck’s 70 million euro Shizuoka plant can not only serve local customers, but may also become another technical fulcrum in Asia. The expertise in light-control materials accumulated in the display field mentioned by Nambiar has obviously been cleverly grafted onto the semiconductor business. This cross-field technical collaboration is quite interesting.
Overall, Merck’s strategy is very clear: relying on 80% of its production capacity in Asia, it will deepen local production and technological innovation, while providing a full set of solutions from lithography to packaging. This all-round layout can indeed enhance its voice in the supply chain. However, there is also a question worth thinking about – although the Asian market has great opportunities, the competition is also fierce. Local players such as Japan’s Shin-Etsu Chemical, TOK (Tokyo Ohka), and South Korea’s Dongjin Semicon are not fuel-saving lamps. In order to gain a foothold, Merck must continue to work hard on costs and customer relationships in addition to its technological advantages.
Do you think Merck’s Asian strategy will bring any major changes to the global semiconductor material landscape? Or are there any specific points you would like to discuss in more depth?