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BASF is set to expand its production capabilities with a new semiconductor-grade sulfuric acid plant at its Ludwigshafen site in Germany. This new facility is designed to meet the increasing demand for ultra-pure chemicals necessary for advanced semiconductor manufacturing across Europe. Scheduled to begin operations by 2027, the plant will feature cutting-edge purity technologies to ensure the highest quality of semiconductor-grade sulfuric acid, a vital component in chip production. This investment aligns with the anticipated capacity expansion of BASF鈥檚 key customers, who are ramping up semiconductor production in Europe.

The investment, valued in the high double-digit million-euro range, reflects the growing importance of high-purity chemicals in the European semiconductor sector. With several new chip manufacturing plants under construction or expansion in the region, the demand for these essential materials has surged. This need has been accelerated by a strategic partnership between BASF and a leading semiconductor manufacturer, which is building a new chip production facility in Europe. The chips produced at these plants are used in critical industries such as automotive, mobile communications, and artificial intelligence, further driving the need for reliable supplies of high-quality chemicals.

BASF鈥檚 new semiconductor-grade sulfuric acid plant will be strategically located at the heart of the company鈥檚 integrated chemical production site in Ludwigshafen. The proximity to key customer operations allows BASF to better serve its partners with fast and efficient delivery, reducing lead times and ensuring consistent supply. The plant will be equipped with rigorous quality control measures to ensure that every batch of sulfuric acid meets the strict purity requirements for semiconductor manufacturing. By producing locally, BASF is also ensuring a stable, uninterrupted supply chain for its customers, an essential factor as demand for advanced semiconductor materials continues to rise.

Anup Kothari, a member of BASF鈥檚 Board of Executive Directors, emphasized the company鈥檚 commitment to supporting the semiconductor industry鈥檚 growth in Europe. 鈥淲e are proud to have earned the trust of key players in the semiconductor sector and to serve them as their partner of choice in establishing the future supply chain for advanced semiconductor materials in Europe,鈥� Kothari said. 鈥淭his strategic move underscores BASF鈥檚 commitment to the industry鈥檚 development while further leveraging the Ludwigshafen Verbund site.鈥� Kothari鈥檚 remarks highlight BASF鈥檚 deep involvement in the semiconductor value chain, where the company plays a crucial role in supplying not only semiconductor-grade sulfuric acid but also a comprehensive range of other materials used in semiconductor manufacturing processes, such as cleaning, etching, metal deposition, and chemical mechanical planarization.

BASF鈥檚 decision to invest in the semiconductor chemical value chain reflects its long-term commitment to its strategic partners and the growing semiconductor sector. The company has established itself as a global leader in supplying high-purity single bulk chemicals and specialized formulations that are essential to the semiconductor manufacturing process. Through this expansion, BASF aims to strengthen its position in the market and ensure that its customers can meet the increasing demand for advanced semiconductor components in a rapidly evolving technological landscape.