Merck to invest over €3 billion in electronics business by 2025

10:59 AM, 21st September 2021
With focus on Electronics, Merck seeks to capture the opportunities in semiconductor and display materials. The demand is driven by exponential data growth and highly impactful technology trends such as the Internet of Things and 5G.

DARMSTADT, GERMANY: Merck KGaA said it plans to invest significantly more than €3 billion in innovation and capacities of its Electronics business sector up to the end of 2025. The company will continue to heavily invest in research and development (R&D) in leading-edge material solutions and plans to spend more than €2 billion in long-term fixed assets (Capex).

The investment is an essential part of the business sector’s Level Up growth program, as announced at the company’s Capital Markets Day on September 9th. Through Level Up, Electronics seeks to capture the growth opportunities that come along with the significantly accelerating global demand for innovative semiconductor and display materials. This demand is driven by exponential data growth and highly impactful technology trends such as the Internet of Things and 5G. The Electronics business sector of Merck KGaA is aiming for an organic compound annual growth rate (CAGR) of 3 to 6 percent between 2021 and 2025.

“With our growth program Level Up, we are considerably extending our global production footprint and boosting R&D and innovation. Our highly attractive growth markets such as semiconductors and OLED are expanding at an increasing rate. By tapping into this momentum, we are significantly enhancing our growth prospects", said Kai Beckmann, executive board member, Merck KGaA and CEO Electronics.

Merck KGaA, Darmstadt, Germany, is investing in expanding its production and innovation footprint in close proximity to its customers – addressing the global chip shortage. The Electronics business sector seeks to exploit attractive, external growth opportunities via selected bolt-on acquisitions. Among other things, it will further leverage its data analytics capabilities and invest even further into the safety realm.

The Electronics business sector provides innovative materials and technologies for next-generation memory chips and processors. Moreover, it develops materials for advanced displays and new effect pigments for use in the automotive, cosmetics and printing industries. Products of Merck KGaA are present in nearly all electronic devices.

In a data-driven world, modern society requires functional, high-performance technical infrastructure. This requirement is constantly increasing due to growing trends such as 5G and Big Data and rapid advancements in applications such as autonomous driving and the Internet of Things. The company supplies products for all essential production steps of wafer processing: patterning, deposition, planarization, etching, cleaning, doping and packaging. Its Silicon Valley innovation hub, Intermolecular, tests and develops advanced materials to revolutionize the next-generation electronics that makes lives easier, entertaining, and more productive.

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