The opening of another new semiconductor factory in Chandler, Arizona, is becoming an everyday occasion. Yet, at the grand opening of EMD Electronics’ new facility, Kai Beckmann, who serves as a member of the executive board of Darmstadt, Germany-based Merck KGaA and CEO of EMD Electronics — the Merck subsidiary through which Merck does business in the United States and Canada — described the moment as being at the intersection of innovation and opportunity. With the expansion of Merck’s global manufacturing capacity and its strategic location to support the growing presence of key industry players in Arizona, Beckmann might have been on to something when he said that.
The company’s new facility embodies more than a building or the promise of 100 new jobs; it is a clear message to naysayers who feared German ownership would mean a lack of further U.S. investment. In fact, the company initially invested US$28 million into the facility, and then increased its investment another $11 million in the expansion, for a total of US$39 million — the largest investment the company has made in its semiconductor equipment and services business to date.
With an efficient manufacturing design for optimal product throughput, the new factory doubles Merck’s manufacturing capacity to produce its GASGUARD® and CHEMGUARD® systems in the U.S. The site also features a 75,000-square-foot building, a 6,000-square-foot clean room and a 2,000-square-foot training center. The training center is designed to support manufacturing and services onboarding.
Beckmann reaffirmed the company’s commitment to the U.S. and Arizona by stating they are “proud to open a new site in Arizona and strengthen [our] presence in this premier destination for semiconductor production. [The] opening symbolizes our confidence in the future of our industry and our promise to take our business and our people to new heights.”
The site’s opening is a component of the “Level Up” program, unveiled in late 2021, which concentrates on four interconnected core priorities: scale, technology, portfolio and capabilities. By enhancing investment in these sectors, it will support the ambitious growth objectives of the electronics business sector. Key growth drivers provide a strong business pipeline, especially in the semiconductor industry, guaranteeing sustained active investment by the company in broadening its production and innovation bases, with locations like Arizona being a focus. This strategy is pivotal in maintaining proximity to Merck’s clientele.
“There’s a ripple effect occurring as the semiconductor industry has its sights set on Greater Phoenix, and EMD Electronics’ expansion to Chandler shows that trend in action,” says Greater Phoenix Economic Council President and CEO Chris Camacho. “With the increased presence of this international innovator in our region, the local semiconductor ecosystem continues its upward trajectory as a global leader.”
Since semiconductors have emerged as a pivotal growth catalyst and given that Merck’s products permeate nearly all electronic devices, it is logical for the company to strengthen its supply chain pathways with the new Arizona facility. Manufacturing operations at the new site started in June 2023. Since then, staffing levels have grown to greater than 100 total employees. As part of its workforce strategy, EMD Electronics plans to engage in collaborative efforts to nurture industry talent, working closely with educational institutions and organizations like the SEMI Foundation, Arizona State University, the Maricopa County Community College District and the Tempe Chamber of Commerce Military Affairs Committee. These efforts will help the company align with its long-term vision of sustainable growth and meaningful contributions to the evolving technological landscape.
EMD Electronics is at the forefront of innovation, providing cutting-edge materials and technologies for developing next-generation memory chips and processors. While its strategic focus remains on innovation and increasing capacities to meet industry demands and challenges, such as the global semiconductor shortage, the company’s overarching goal is to continue to pioneer advancements that will revolutionize the upcoming generation of electronics, enhancing ease of life, entertainment and productivity.
Photo courtesy of EMD Electronics
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