Merck opens molybdenum chip-material plant in Eumseong, South Korea
In short
German company Merck said it would hold an opening ceremony on 22 October for a new molybdenum chip-material production facility at its Eumseong site in North Chungcheong. Merck Electronics CEO Benjamin Hein said the company is preparing for a possible doubling of semiconductor materials demand within five years.
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German company Merck said it would hold an opening ceremony on 22 October for a new molybdenum dioxide dichloride (MoO2Cl2) production facility at its Eumseong site in North Chungcheong, Korean Merck said, according to Yonhap and Newsis. Kyunghyang Shinmun said Merck plans to begin full-scale production of molybdenum. [ 2 , 3 , 4 ]
Molybdenum is used in the metal wiring of chips. Outlets said it has lower electrical resistance than tungsten, which was used before, as circuits shrink and memory is stacked higher. Bing Han, Merck Electronics senior vice president for thin-film materials, said it is used in 3D NAND now and may be applied to DRAM and logic devices later. [ 1 , 2 , 3 , 4 ]
Chosun Ilbo reported that the Eumseong plant makes the chemical raw material used to deposit a thin molybdenum film, while the system that turns it into gas and feeds it to process equipment is made at the Ansan site in Gyeonggi. Merck said providing the two together can raise material use efficiency to 99% or more and cut production costs. Yonhap said all precursor made at the new plant will go to Korean customers, while ZDNet Korea said the plant is meant to serve Korean customers first and later customers across Asia. [ 1 , 4 , 5 ]
Merck Electronics CEO Benjamin Hein, on his first visit to Korea since taking office in May, spoke at a press conference in Seoul on 21 October. He said that if even half of Korean chipmakers' goals are met, there would be enormous growth. Newsis reported that he expects demand for chip materials and solutions to double within five years; Chosun Ilbo and ZDNet Korea quoted him as saying Merck is preparing for that case. Kyunghyang Shinmun quoted him on export controls, geopolitics and tariffs making supply-chain resilience the most important challenge. [ 1 , 2 , 3 , 5 ]
Newsis reported that Bing Han said Merck will also build capacity in other regions, including the United States, so as not to depend on one region. Kyunghyang Shinmun said he suggested materials for EUV exposure equipment could later be made in Korea. On investment, Kyunghyang Shinmun and Chosun Ilbo said Merck announced 600 million euros for Korea in 2021, and Kyunghyang Shinmun added that the 2023 acquisition of M Chemical (엠케미칼) helped build Eumseong into a precursor production base. ZDNet Korea put cumulative Korean investment at 820 million euros. [ 1 , 2 , 3 , 5 ]
Why it matters
The outlets present the plant as a way for Merck to supply Samsung Electronics, SK hynix and other customers from inside Korea. The documents give no output, cost or customer-contract figures for the new facility.
Key facts
- Merck said it would hold an opening ceremony on 22 October for a new molybdenum dioxide dichloride (MoO2Cl2) production facility at its Eumseong site in North Chungcheong. [ 2 , 3 , 4 , 5 ]
- Molybdenum is used for metal wiring in chips and is currently used in 3D NAND flash; Merck said it may later be applied to DRAM and logic chips. [ 1 , 2 , 3 , 4 , 5 ]
- Merck said that combining the molybdenum material with a supply system made at its Ansan site can raise material use efficiency to 99% or more. [ 1 , 4 ]
- Benjamin Hein, who took office as Merck Electronics CEO in May, held a press conference in Seoul on 21 October during his first visit to Korea in the post. [ 2 , 3 ]
- Merck announced a 600 million euro investment in Korea in 2021; ZDNet Korea reported cumulative Korean investment of 820 million euros. [ 1 , 2 , 5 ]
- Yonhap reported that all molybdenum precursor made at the new plant will go to Korean customers. [ 4 ]
Confirmed by several sources
- Merck is holding an opening ceremony on 22 October for a new molybdenum dioxide dichloride production facility at its Eumseong site. [ 2 , 3 , 4 , 5 ]
- Molybdenum is used in 3D NAND now and may be applied to DRAM and logic chips later. [ 1 , 2 , 3 , 4 , 5 ]
- Hein said that if even half of Korean chipmakers' goals are met, there would be enormous growth. [ 1 , 2 , 3 ]
- Merck combines the Eumseong molybdenum material with a supply system from Ansan as an integrated solution. [ 1 , 3 , 4 ]
Still unclear
- Whether demand for semiconductor materials will double within five years. Newsis reported Hein expects demand to double within five years; Chosun Ilbo and ZDNet Korea quoted him as saying Merck must be prepared if it doubles.
- Who the plant will supply. Yonhap said all output goes to Korean customers; ZDNet Korea said it is designed to support Korean customers first and later all of Asia; Kyunghyang Shinmun mentioned Asian companies as well.
- Cumulative Merck investment in Korea of 820 million euros. Only ZDNet Korea gave this figure; other outlets cited the 2021 announcement of 600 million euros.
- Possible additional Korean production of materials for EUV exposure equipment. Kyunghyang Shinmun said Bing Han hinted at it; no other outlet mentions it and no plan was given.