India's semiconductor push: Tata Electronics in talks with THIS German giant for exclusive chemical deal

Tata Electronics is in advanced discussions with German chemicals giant Merck for a long-term, exclusive supply agreement of specialty chemicals and materials for its upcoming ₹91,000 crore ($11 billion) semiconductor fab in Dholera, Gujarat, being built in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC).

The plant, expected to begin production by 2026, will require over 150 ultra-pure chemicals and 30 gases critical for chipmaking. An exclusive deal could ensure Tata a stable, prioritized supply, reduced supply chain risks, price lock-in, and access to Merck’s R&D expertise to improve manufacturing yields.

For Merck, the partnership would provide a strategic foothold in India’s fast-growing semiconductor ecosystem, enabling expansion, local R&D investment, and potential government incentives. Analysts believe the collaboration would create significant advantages for both sides as India accelerates its push to establish a domestic semiconductor ecosystem.

Earlier reports suggested Merck was also exploring setting up a specialty chemicals facility in India, with Gujarat as a likely hub.

Source: - https://www.etnownews.com/companies/indias-semiconductor-push-tata-electronics-in-talks-with-this-german-giant-for-exclusive-chemical-deal-article-152471681