Core Viewpoint - Merck's new semiconductor materials plant in southern Taiwan, with an investment of €500 million ($579 million), has begun the qualification process before mass production of materials for AI chip manufacturing, expected to start in 2026 [1][2]. Group 1: Plant Details and Production Capacity - The new facility, located in Kaohsiung, Taiwan, spans approximately 150,000 square meters and will produce thin films, formulation materials, and specialty gases essential for advanced chip manufacturing [1]. - Once operational, the plant is projected to meet about 80% of the local demand for thin film materials and over 50% of the overall material needs [1]. - The production of advanced chips, such as 3nm and beyond, involves over 1,000 processing steps, increasing the demand for materials [2]. Group 2: Strategic Importance and Local Impact - Merck has adopted a localization strategy over the past six to seven years to better serve customers and enhance supply chain resilience [1]. - The new plant is expected to improve local self-sufficiency from over 50% and play a significant role in meeting demand in the Asia-Pacific region [2]. - The facility will create approximately 400 jobs as it scales up production [3]. Group 3: Collaboration and Quality Assurance - Collaboration with customers in their factories is crucial for chip material manufacturers due to the importance of material integration and customization in chip production [2]. - Strict validation processes are required before the chemicals and materials produced can be widely used in advanced semiconductor production lines [2].