In a significant development for India’s semiconductor industry global leaders Merck and Linde are exploring opportunities to establish manufacturing plants in the country. Merck a producer of specialty chemicals and Linde a supplier of industrial gases aim to support India’s growing semiconductor ecosystem by providing essential materials for chip fabrication. This move underscores India’s emergence as a key player in the global semiconductor supply chain.
The Role of Chemicals and Gases in Semiconductor Manufacturing
Semiconductor production is a highly complex process that relies on over 150 chemicals and more than 30 gases and minerals. These materials are critical for ensuring the reliability, safety, and innovation of chips. They enable essential processes such as:
- Etching: Creating intricate patterns on silicon wafers.
- Doping: Modifying the electrical properties of semiconductors.
- Cleaning: Ensuring ultra-pure surfaces for fabrication.
- Deposition: Adding thin layers of materials to wafers.
Merck’s Plan for a Specialty Chemicals Plant
Merck is in discussions with the Indian government to set up a specialty chemicals plant dedicated to semiconductor manufacturing. The proposed investment is estimated to range between 300millionand300millionand500 million. While the location for the facility is yet to be finalized, Merck has expressed its interest in India’s semiconductor industry.
“India is becoming an increasingly important partner in the global semiconductor ecosystem. However, it is too early to discuss specific investment numbers,” the company stated. Merck’s potential entry into India highlights the country’s growing significance in the semiconductor supply chain.
Linde’s Commitment to High-Purity Gas Production
Linde, a global leader in industrial gases, plans to establish manufacturing facilities for high-purity gases in India. These gases are essential for semiconductor fabrication and Linde’s investment will support the expansion of India’s semiconductor industry.
“Linde actively supports investments in this critical sector and is committed to enabling its expansion in India,” the company stated. Linde already has a strong presence in India, supplying gases to industries, including the country’s only semiconductor fab, the Semi-Conductor Laboratory in Mohali.
Building a Robust Semiconductor Supply Chain
Industry experts emphasize the importance of ancillary companies in establishing a complete semiconductor ecosystem. Navin Bishnoi, Country Head of Marvell India, highlighted the need for suppliers of gases, chemicals, wafers, tools, and equipment.
“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: A Key Factor
Neil Shah, Vice President of Research at Counterpoint Research, stressed the importance of proximity for gas and chemical suppliers. “To ensure seamless supply gas plants should be within 40 kilometers of semiconductor fabs,” Shah noted.
Linde’s existing infrastructure in India positions it well to meet this requirement. However, competitors like Korea Gases and Taiyo Nippon Sanso will need to act quickly to secure a foothold in India’s growing semiconductor market.
A Boost for India’s Semiconductor Ambitions
India has been making significant strides in semiconductor manufacturing, with initiatives like the Production Linked Incentive (PLI) scheme attracting global players. Investments from companies like Merck and Linde will help establish a stable supply chain, reinforcing India’s position in the global semiconductor ecosystem.
Conclusion
The entry of Merck and Linde into India’s semiconductor industry marks a pivotal moment in the country’s journey toward becoming a global chip manufacturing hub. By providing essential chemicals and gases these companies will play a crucial role in building a robust semiconductor supply chain.
As India continues to attract investments and develop its semiconductor ecosystem collaborations with global leaders like Merck and Linde will be instrumental in driving innovation, creating jobs, and strengthening the country’s position in the global market.
