By Sarah Wu

TAIPEI, Reuters – Merck KGaA (German supplier of chemicals, materials and used in the manufacture semiconductors) announced Tuesday that it will invest 500 million Euros in Taiwan in five to seven year’s time, mainly in semiconductor technology.

Merck stated that it will be the largest foreign investment it has made in Taiwan since 1989, when it began operations.

“In the previous year, there have been many challenges in supply chains. Kai Beckmann (chief executive, electronics division of German company) spoke via video link at a Taipei news conference.

Beckmann explained that Merck will expand its footprint in Kaohsiung’s southern region with the new investment. This would allow them to strengthen their local production as well as create new capabilities in order to meet Taiwan’s fast-growing semiconductor market.

Merck’s announcement comes after that made by Taiwan Semiconductor Manufacturing Co Ltd. (TSMC), last month. TSMC, the largest contract chip manufacturer in the world, announced it would set up a new Kaohsiung chip factory to increase production during a worldwide shortage.

Chen Chern-Chyi, Deputy Economy Minister, stated that Merck has shown great confidence in Taiwan and is willing to invest in Taiwan.

Merck currently employs around 1,000 workers in Taiwan. The new investment will result in the hiring of 400 additional employees.

Jorg Polster is Taiwan’s de facto ambassador to Germany. “As an advanced-tech centre, Taiwan has everything it needs to carry on the success story.”