Merck and Tata Electronics in Talks for Exclusive Chemical Deal for Dholera Semiconductor Facility

Tata Electronics is in talks with Merck for a potential exclusive long-term agreement to supply specialty chemicals for its Dholera semiconductor facility. The deal would help Tata secure a reliable supply of ultra-pure chemicals for semiconductor manufacturing and bolster Merck's entry into India's burgeoning semiconductor industry. An exclusive partnership would provide Tata with supply chain stability and help Merck tap into the growing Indian market.

Tata Electronics is in advanced discussions with Merck for a potential long-term exclusive agreement to supply specialty chemicals for its semiconductor facility in Dholera, Gujarat. This deal would secure a reliable supply of ultra-pure chemicals essential for semiconductor manufacturing, while also helping Merck expand its presence in India's burgeoning semiconductor industry [1].

The proposed agreement comes as Tata Electronics continues to invest heavily in its semiconductor manufacturing capabilities. The company has already partnered with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) to build a greenfield semiconductor fabrication plant in Dholera, with a production capacity of 50,000 wafers per month. This plant will manufacture chips for various sectors, including automotive, AI, and wireless communication [2].

Merck's involvement in this deal would provide Tata Electronics with supply chain stability, ensuring a consistent and high-quality supply of chemicals necessary for semiconductor production. For Merck, this partnership would offer an opportunity to tap into the growing Indian semiconductor market, which is expected to triple from US$38 billion in 2023 to US$109 billion by 2030 [3].

The Indian government has been actively supporting the growth of the semiconductor industry through initiatives such as the India Semiconductor Mission (ISM), which has approved multiple semiconductor manufacturing projects. These projects are aimed at attracting high-value investments and strengthening India's position in the global semiconductor value chain [4].

By securing an exclusive long-term agreement with Merck, Tata Electronics can further enhance its competitive edge in the semiconductor market. This move aligns with the broader strategy of the Indian government to promote domestic semiconductor production and reduce dependence on imports.

References:
[1] India Briefing. (2025). India’s Semiconductor Sector: Tracking Government Support and Investment Trends. Retrieved from https://www.india-briefing.com/news/setting-up-a-semiconductor-fabrication-plant-in-india-what-foreign-investors-should-know-22009.html/
[2] The Economic Times. (2024). Tata Electronics and PSMC Complete Technology Transfer Pact for Gujarat Fab Unit. Retrieved from https://economictimes.indiatimes.com/
[3] The Edge Malaysia. (2025). Malaysia Eyes Deeper Cooperation with India in Semiconductor Sector. Retrieved from https://www.theedge.com.my/
[4] Money Control. (2025). India Semiconductor Mission Approves Additional Projects. Retrieved from https://www.moneycontrol.com/