Merck, Linde eye India for semiconductor-grade chemical, gas facilities: Report

The proposed investments by Merck and Linde would contribute to the development of a robust supply chain for India’s semiconductor sector.

Global specialty chemicals and industrial gases giants Merck and Linde are considering setting up manufacturing facilities in India to cater to the country’s growing semiconductor industry, Economic Times reported, citing sources familiar with the development. The move signals increasing interest from global players in becoming part of India’s emerging chip manufacturing ecosystem.

Semiconductor production relies on over 150 chemicals and more than 30 gases and minerals, with their quality and reliability playing a crucial role in the success of the manufacturing process.

According to Economic Times, German multinational Merck is in discussions with the Indian government to establish a specialty chemicals plant specifically for the semiconductor sector. The potential investment for the facility is estimated to be between $300 million and $500 million, though the location is yet to be finalized.

Meanwhile, industrial gases firm Linde is reportedly planning to set up plants dedicated to high-purity gases essential for semiconductor production. In a statement to Economic Times, Linde confirmed its commitment to supporting the growth of the semiconductor industry in India.

Moneycontrol could not independently verify the report.

"As a leading global industrial gases and engineering company, Linde is an essential supplier to the semiconductor industry," the company said. "Linde actively supports investments in this critical sector and is committed to supporting its growth in India."

Merck, which has been monitoring India’s semiconductor manufacturing landscape for the past few years, also acknowledged the country’s increasing importance in the global chip ecosystem. However, the company noted that it is too early to disclose specific investment figures.

"We believe that India is becoming an increasingly important partner in the global semiconductor ecosystem," Merck said in a statement to the Economic Times. "However, at this time it is too early to talk about concrete investment numbers in India. We continue to closely follow opportunities that align with our strategic goals."

Specialty chemicals and gases are vital to semiconductor fabrication, enabling precise processes such as etching, doping, cleaning, and depositing layers on silicon wafers while maintaining ultra-high purity levels. The proposed investments by Merck and Linde would contribute to the development of a robust supply chain for India’s semiconductor sector.