Merck opens South Korean molybdenum line as advanced chip demand accelerates

The new Eumseong facility will produce molybdenum precursor chemicals for denser memory and smaller semiconductor structures, strengthening Merck’s local supply network.

Merck has opened a new molybdenum production line at its site in Eumseong, North Chungcheong Province, strengthening South Korea’s role in the supply chain for advanced semiconductor materials. The German science and technology group said the facility will support local production of molybdenum precursor chemicals used in thin-film processes, as chipmakers seek materials that can work at ever-smaller geometries and within more complex structures.

Benjamin Hein, chief executive of Merck Electronics, told reporters in Seoul that South Korea is a critical market for semiconductor manufacturing and that materials suppliers need a presence there if they want to serve the sector properly. He described the country as one of the three most important semiconductor materials markets globally and argued that even partial delivery of local chipmakers’ five-year goals would create substantial growth in demand.

The new plant centres on molybdenum oxychloride dioxide, or MoO₂Cl₂, a precursor used in thin-film deposition. According to Merck, the material is becoming more important as circuitry shrinks and memory layers become denser. Compared with tungsten, it can help reduce electrical resistance in fine structures, which can improve energy efficiency and reliability. The company said the material could first see broader use in 3D NAND, before expanding into DRAM wordlines and logic chips.

Merck is also combining production in Eumseong with its supply system in Ansan, Gyeonggi Province, to offer what it describes as a more integrated service for customers. That approach links the material itself with storage containers and delivery equipment, with the aim of improving process stability. Industry reports earlier this year said the investment forms part of Merck’s wider commitment to expand its semiconductor materials business in Korea, including support for major domestic chipmakers such as Samsung Electronics and SK Hynix. Analysts and suppliers have increasingly focused on molybdenum because it offers better conductivity than established metals in some advanced applications, and because demand for such materials is expected to rise as AI, high-performance computing and advanced packaging continue to expand.

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