Up to 600 million euros will be spent in South Korea in five years
Merck said on Oct. 7 that the technology giant will spend more than 3 billion euros over the next five years in the electronics business, including 600 million euros in Korea.
Kai Beckmann, member of the Merck Executive Board and CEO Electronics, made the announcement while visiting a research center and production facilities in Korea.
He also plans to meet Minister of Trade, Industry and Energy Moon Seung-wook later this week.
Based on the large-sized investment, Merck aims to double its annual growth rate to 6 percent through 2025 compared to the initially expected rate of 3 percent.
Merck said that South Korea is a significant investment target in its “Level Up” growth program because the country is one of its key focus places in electronics.
Through the Level Up program, Merck’s electronics business seeks to capture the growth opportunities that come along with the mounting global demand for innovative semiconductors and display materials.
“Our highly attractive growth markets such as semiconductors and OLED are expanding at an increasing rate. By tapping into this momentum, we are significantly enhancing our growth prospects,” Beckmann said in a statement.
“We have proven our commitment towards relentless execution, having successfully concluded our Bright Future transformation program two years ahead of schedule. It has laid the foundation for the ambitious growth trajectory that we now envision for Merck and its Electronics business.”
Merck noted that the Level Up growth program is composed of four major pillars of scale, technology, portfolio, and capabilities.
The first two pillars of “scale” and “technology” support the massive capacity expansion, and “portfolio” is about exploiting external growth opportunities via acquisitions, according to Merck.
“Capabilities” are internal initiatives aimed at leveraging the outfit’s data analytics capabilities and investing even further into the safety realm.
Merck’s Electronics business sector provides materials and technologies for next-generation memory chips and processors. It also develops materials for advanced displays and new effect pigments for use in the automotive, cosmetics, and printing industries.