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Merck and Linde, producers of specialty chemicals and gases, are exploring opportunities to establish manufacturing plants in India to serve the growing semiconductor industry. Their interest signals a growing global focus on India’s emerging chip manufacturing ecosystem.
The Role of Chemicals and Gases in Semiconductor Manufacturing
Semiconductor production relies on over 150 chemicals and more than 30 gases and minerals. These materials are crucial for ensuring reliability, safety, and innovation in chip fabrication. They enable essential processes such as etching, doping, cleaning, and depositing ultra-pure layers on silicon wafers.
Merck Plans a Specialty Chemicals Plant in India
Merck is in discussions with the Indian government to establish a specialty chemicals plant for semiconductor manufacturing. The proposed investment could range between $300 million and $500 million. The company has yet to finalize the location for the facility.
Merck acknowledged its interest in India’s semiconductor industry, stating that it has been monitoring developments over the past few years. “India is becoming an increasingly important partner in the global semiconductor ecosystem. However, it is too early to discuss specific investment numbers,” a company statement revealed.
Linde to Establish High-Purity Gas Plants
Linde, a global player in industrial gases and engineering, also plans to set up manufacturing facilities for high-purity gases in India. The company affirmed its commitment to supporting India’s semiconductor growth. “Linde actively supports investments in this critical sector and is committed to enabling its expansion in India,” the company stated.
Building a Complete Semiconductor Supply Chain
Industry experts emphasize the need for ancillary companies to establish a presence in India. Navin Bishnoi, country head of Marvell India, highlighted the importance of a robust supply chain.
“To build a successful semiconductor ecosystem, we need suppliers of gases, chemicals, wafers, tools, and equipment. These ancillary companies played a crucial role in Taiwan’s semiconductor success and are now gradually entering India,” Bishnoi explained.
Proximity to Fabs is Crucial for Uninterrupted Supply
Neil Shah, Vice President of Research at Counterpoint Research, stressed the importance of proximity for bulk and specialty gas suppliers. Shah noted, “To ensure seamless supply, gas plants should be within 40 kilometers of semiconductor fabs”.
Linde already has a strong presence in India and supplies industries, including the country’s only semiconductor fab, the Semi-Conductor Laboratory in Mohali. Competitors like Korea Gases and Taiyo Nippon Sanso must act quickly to secure a foothold in India’s growing semiconductor market, Shah added.
Conclusion
With India making strides in semiconductor manufacturing, the arrival of global specialty chemical and gas producers is a significant step.
As reported by economictimes.com, investments from companies like Merck and Linde will help establish a stable supply chain, reinforcing India’s position in the global semiconductor ecosystem.
