Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks.
Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said.
Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of the development of customers’ products, but the group now sees that approach as more about enhancing resilience in supply.
Photo: Su Fu-nan, Taipei Times
Merck Group Taiwan managing director John Lee (李俊隆) said the group can supply more than 50 percent of semiconductor materials and specialty gases to local customers via its plants in Taiwan, adding that the localization rate would go up after the new facility enters volume production next year.
For thin-film materials, Merck is capable of satisfying 80 percent of local demand, compared with 54 percent last year, Lee said.
Merck last month also launched a capacity expansion project to increase the supply of formation materials used in semiconductor manufacturing, Lee said.
That aligns with Taiwanese customers’ advance toward cutting-edge semiconductor technologies and artificial intelligence-related technologies, he added.
Beckmann said Merck also applied its “local-for-local” strategy in other regions of the world to provide locally built capacity.
Asked whether Merck is gaining an upper hand over rivals in supplying semiconductor materials to Taiwan Semiconductor Manufacturing Co (台積電), which is reportedly avoiding sourcing key equipment and materials from China, Beckmann said that the company’s “local-for-local” approach in China aimed to build local capacity for Chinese customers and does not export key equipment or strategic materials.
As for whether the company would be affected by the growing weaponization of key raw materials such as rare earths, Beckmann said he would “try to find something positive in that complication, because it sounds all very complicated and negative.”
Merck would be less exposed to that issue, as it has built a strong global footprint, allowing it to differentiate itself, Beckmann said, adding that the company has expanded its technology offerings and material portfolios, and developed multiple sources of rare earths and minerals.
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
INSULATED: The company said it is less exposed to global complications, as it has built a strong footprint worldwide, and has multiple sources of rare earths and raw minerals Merck Group yesterday said it would ramp up production next year at its new flagship facility in Kaohsiung’s Lujhu District (路竹) to satisfy growing demand for advanced semiconductor materials and specialty gases, and to address supply resilience issues amid mounting geopolitical risks. Merck made the remarks during a news conference before the inauguration of its 500 million euros (US$582.1 million) facility, which is also to supply other markets in the Asia-Pacific region, it said. Merck executive board deputy chair and electronics CEO Kai Beckmann told reporters the company adopted a “local-for-local” strategy about seven years ago to address the cycle time of
Two companies wholly owned by the daughter of the founder of Hon Hai Precision Industry Co (鴻海精密) on Monday reported to the Taiwan Stock Exchange that they would dispose of all of the Hon Hai shares they hold. In filings with the exchange, Hong Wei Investment Co (鋐維) said it would sell the 2.771 million Hon Hai shares it holds and Frontier Investment Corp (承鋒投資) said it would sell its 2.409 million Hon Hai shares from tomorrow until Jan. 3 next year. The two companies are wholly owned and chaired by Shirley Gou (郭曉玲), the eldest daughter of Hon Hai founder Terry
RSS