Merck has strengthened its site in Tempe, Arizona with an investment of €18m (approximately $21.8m), strengthening the facility as a strategic production and R&D hub for semiconductor materials in the US.

Source: Merck

Tempe facility

The science and technology company previously leased the 28,000 square-meter facility from Lexington Tempe L.P. This investment gives Merck the flexibility to invest in its production facilities and strengthen its R&D capabilities in its global network of high-tech locations.

Jeff White, President of EMD Performance Materials, the US-based Performance Materials business of Merck, said, “We’ve operated out of Tempe for almost ten years. By purchasing the facility we are demonstrating our clear commitment to the site. We want to retain top talent in the area, being within close proximity to our west-coast customers is very important for us as well. Also, from an economic point of view the purchase makes sense. It came at a reasonable price which allows more long-term planning into future R&D and production investments, further strengthening our position in the electronics market.”

As part of this transaction, Merck acquired Lexington’s ground leasehold interest in the facility, which is located within the Arizona State University Research Park. The facility houses more than 180 employees who support the Semiconductor Solutions business in the areas of manufacturing, R&D, administration, sales and marketing. In recent years, nearly an additional $10m has been invested in the facility to enhance its manufacturing and R&D capabilities.

Before the purchase, the facility had been leased by the Versum Materials business for over nine years. Merck acquired Versum Materials in 2019.