The new facility will expand capacities of the firm’s Delivery Systems & Services business and support the growth of the local semiconductor industry

January 12, 2022

TEMPE, Ariz.—EMD Electronics is investing $28 million in a new factory in the greater Phoenix area that will support the growth of the local semiconductor industry by manufacturing equipment for its Delivery Systems & Services (DS&S) business. The factory is expected to begin operations by the end of 2022 and, when fully ramped, will employ more than 100 staff, the company said in a release.

EMD Electronics is the North American Electronics business of Merck KGaA, Darmstadt, Germany. The investment is part of EMD Electronics’ Level Up program, aimed at accelerating innovation and capacities of the company’s Electronics business segment. It is intended to help EMD capture and grow its gas and chemical delivery systems business in the targeted regions of North America and Europe, with supplemental capacity to supply Asia. The new factory will be designed to provide additional capacity primarily for Gasguard® and Chemguard® systems, the company said.

“A record number of greenfield capital projects indicates that the momentum of our industry is set to remain strong,” said Katherine Dei Cas, head of the Delivery Systems & Services business unit within the Electronics business sector of Merck KGaA, in the release. “The opening of our new factory shows our commitment to further support our customers’ ambitious growth plans. We are proud to expand our production capacity and innovation footprint in Arizona and to contribute to the state’s development as a major semiconductor hub in the U.S.”

The Level Up growth program seeks to capture growth opportunities arising from the significantly accelerating global demand for innovative semiconductor and display materials. The new factory will supplement the company’s ability to support customers’ investments in the United States and boost its overall global footprint of manufacturing facilities around the globe.

“Arizona is excited to welcome EMD Electronics’ new factory,” said Governor Doug Ducey, in a statement. “EMD Electronics’ Delivery Systems and Services expansion is a valuable addition to our state’s thriving semiconductor ecosystem, increasing manufacturing and transportation capabilities critical to the semiconductor production process. We look forward to continuing to grow Arizona’s unrivaled semiconductor supply chain.”

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