Merck, a leading science and technology company, will accelerate the growth of electronic materials, including semiconductors and displays, by investing a total of 3 billion euros (4.1282 trillion won), including approximately 600 million euros (equivalent to 825.6 billion won) in Korea over the next five years.

Merck announced on the 7th that it will invest well over 3 billion euros in innovation and production capacity in its electronics business unit by the end of 2025.

The Electronics business will continue to invest heavily in research and development of cutting-edge material solutions and plans to invest over €2 billion in long-term fixed assets (Capex).

In Korea in particular, approximately 600 million euros will be invested by 2025.

Dr. Kai Beckmann, current Merck Executive Board Member and CEO of the Electronics business, is visiting Korea following the announcement of new investment plans, visiting Merck's key materials research and production sites.

This investment is a key part of the Electronics business unit's "Level-Up" growth program, which was announced at Merck's Capital Markets Day event held on September 9th.

Kai Beckmann, CEO of Merck, said, "Through our new growth program, 'Level-Up,' for our electronics business, we are significantly expanding our global production capacity and strengthening our R&D and innovation. Attractive growth industries, such as semiconductors and OLED, in which Merck is active, are expanding at an increasingly rapid pace. Merck is leveraging this momentum to significantly enhance its growth prospects."

Kim Woo-kyu, CEO of Merck Korea, emphasized, "As Merck celebrates its 32nd anniversary in Korea, the electronics industry, driven by displays and semiconductors, is rapidly evolving globally, driven by increasing demand for digital devices and technologies. Merck's latest investment plan significantly exceeds the €200 million announced in April with Gyeonggi Province and is based on our confidence in Korea's future growth potential. We will continue to support the growth of our Korean customers through internal innovation and collaboration with the scientific community."

In 2018, Merck's Electronics business unit announced a five-year plan called "Bright Future," an innovation program that aims to redefine its position in the industry and become a leader in the global electronic materials market.

“Achieving the Bright Future program’s goals two years ahead of schedule is a testament to Merck’s tireless efforts and execution capabilities,” said Chairman Beckmann. “This success lays the foundation for the ambitious growth trajectory we are currently envisioning for Merck and its Electronics business,” he explained.

The Level-Up program focuses on four interconnected growth axes: scale, technology, portfolio, and capabilities.

Additional investments in these four areas, coupled with strong demand for electronic materials, particularly semiconductors, will lay the foundation for more ambitious growth goals for the electronics business.

‘Scale’ and ‘technology’ support the global expansion of large-scale production capacity in the semiconductor and electronics industries, driven by large-scale investments from Merck customers.

Merck is responding to the global semiconductor shortage by investing in expanding production and innovation capabilities closer to customers.

In the 'Portfolio' sector, the electronics business is seeking opportunities for high external growth through carefully selected bolt-on acquisitions.

Furthermore, "Level-Up" will initiate or accelerate key internal initiatives in the area of "capabilities." Most importantly, through the "Level-Up" program, Merck plans to further leverage its data analytics capabilities and increase its investment in safety.

The Electronics Business Unit provides innovative materials and technologies for next-generation memory chips and processors. In addition to materials for cutting-edge displays, we are also developing new effect pigments for use in the automotive, cosmetics, and printing industries.

Currently operating Electronics Technology Centers in the United States, Korea, Germany, Taiwan, Japan, and China, this strategic R&D network in key markets allows Merck to work closely with its global customers as an innovation partner.