Tata, Merck explore exclusive chemical deal for Dholera semiconductor facility

Tata Electronics is in discussions with German chemicals giant Merck for a potential exclusive long-term agreement, people aware of the developments told ET. The deal would see Merck become a primary supplier of specialty chemicals and materials essential for semiconductor manufacturing at Tata’s upcoming Dholera facility.

The Dholera fab, a 91,000 crore ($11 billion) project, is a joint venture with Powerchip Semiconductor Manufacturing Corp (PSMC) of Taiwan. It’s a cornerstone of India’s ambitious push to establish a domestic semiconductor ecosystem. As construction progresses and the plant gears up for production by 2026, securing a steady and reliable supply of ultra-pure chemicals is paramount. A potential partnership with Merck will help seal this gap, analysts said.