Tata Electronics is reportedly in advanced discussions with German chemicals major Merck for an exclusive long-term agreement to supply specialty chemicals and materials for its upcoming semiconductor facility in Dholera, Gujarat. The Dholera fab, a Rs 910 billion ($11 billion) joint venture with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC), is a flagship project in India’s push to build a domestic semiconductor ecosystem. As the plant targets production by 2026, ensuring a reliable supply of ultra-pure chemicals is seen as critical.
Semiconductor manufacturing requires over 150 chemicals and more than 30 gases and minerals. A potential partnership with Merck would provide Tata Electronics with supply chain stability in the volatile global semiconductor market, while also giving Merck a significant entry point into India’s emerging industry.
The tie-up would enable Tata Electronics to leverage Merck’s supplier expertise and research and development (R&D) capabilities, supporting robust processes, higher manufacturing yields, and faster production ramp-up. For Merck, success will hinge on establishing a local chemicals plant in Gujarat, supported by a strong ecosystem of infrastructure, logistics, and upstream supply chain partners.
