Merck is actively evaluating Indian suppliers to capitalize on the expanding semiconductor market, emphasizing the paramount importance of quality, safety, and innovation. This strategic move aligns with the company's commitment to bolster the chip manufacturing foundation within India.
The company has already forged a partnership with Tata Electronics to cultivate semiconductor capabilities, with Merck potentially becoming a key supplier for Tata's Dholera fab. This collaboration signifies a critical shift in India's chip supply chain, with the potential for an exclusive long-term agreement to secure a primary supplier for specialty chemicals at Tata's Dholera semiconductor facility. Such an agreement aims to ensure a stable supply chain, which is crucial for India's burgeoning semiconductor industry.
Merck's involvement extends beyond mere supply, encompassing a comprehensive suite of products and services, including high-purity electronic materials, advanced gas and chemical delivery systems, turnkey fab infrastructure services, and AI-powered Material Intelligence solutions for Tata Electronics' Dholera fab. This also includes sharing best practices in safety and manufacturing excellence, and providing access to platforms like Athinia®, a secure data analytics platform to enhance collaboration across the semiconductor industry.
To further support the burgeoning semiconductor ecosystem, Merck is also planning localized warehousing, development of the raw material supply chain, talent cultivation, and the establishment of industry processes and standards in India.
Merck's commitment to India's semiconductor ambitions is underscored by its participation in the India Semiconductor Mission, aimed at fostering a vibrant semiconductor and display ecosystem. This includes collaborations with top institutions like IIT Bombay and IIT Mandi to develop next-generation materials and applications, such as advanced ALD and EUV materials. The company is also leveraging the expertise of local Indian chemical companies to create electronics-grade materials that meet stringent global standards.
CEO Kai Beckmann emphasizes that this initiative is geared towards constructing a robust foundation for chip manufacturing in the country. Merck's strategy involves establishing fabrication facilities in India to ensure material consumption and supply. The reliability, quality, and scalability of ultra-pure chemical suppliers are now mission-critical factors for semiconductor ventures in emerging markets.
With India poised to become a global hub for electronics manufacturing, Merck aims to contribute to this transformation by providing advanced materials and solutions essential for semiconductor manufacturing. The company's local R&D investments and strategic partnerships are geared towards driving innovation and enhancing local capabilities, ensuring a robust and sustainable supply chain for the future. Merck's efforts are not just about following the industry roadmap but actively shaping it by fostering local innovation and expertise.
