By Li Panpan

German supplier of semiconductors materials Merck KGaA said on May 31 that it signed a contract to open a semiconductor base in Zhangjiagang, eastern Jiangsu Province, Reuters reported.

Germany-based Merck KGaA said the deal would be its largest single electronics business investment in China.

Merck China President Allan Gabor said that China is the largest end market for semiconductors, with more than half of the world’s total chip output going to China. Given the unprecedented capacity investment and expansion of domestic chip manufacturers, China is also the fastest-growing semiconductor manufacturing market worldwide. “We believe a golden era for China’s semiconductor industry has just begun,” he added.

The new 69-acre base will house production plants for thin-film materials and electronic specialty gasses, warehouses, and operation centers.

Merck said earlier this year it will invest at least another $150.18 million in China by 2025 to support the chip industry. Of that amount, RMB550 million ($82.60 million) will go towards the new Zhangjiagang base, Merck told Reuters.