BASF invests in new semiconductor-grade sulfuric acid plant in Ludwigshafen
New capacity meets growing demand for the manufacturing of chips in Europe
BASF will expand its production capacity for semiconductor-grade sulfuric acid (H2SO4), which is an essential ultra-pure chemical. The new production facility at its Ludwigshafen site in Germany will feature cutting-edge purity capabilities to serve growing demand for advanced semiconductor chip manufacturing across Europe. Operations are expected to start by 2027, coinciding with the capacity expansion of key customers. The BASF investment will be in a high double-digit million-euro range.
With several new chip manufacturing plants being constructed or expanded in Europe, there is an increasingly strong demand for high-quality and high-purity semiconductor-grade chemicals, such as sulfuric acid. This need has been accelerated by a close cooperation partner of BASF, who is currently building a new chip production plant in Europe. These chips are used in automotive, mobile communications and AI chip applications. BASF is investing in the semiconductor chemical value chain based on mutual long-term customer-supplier commitments with its strategic partners.
This expansion will greatly enhance supply chain reliability for BASF’s partners by ensuring a dependable and consistent supply of high-quality semiconductor-grade sulfuric acid produced locally.
Located at the heart of BASF’s integrated chemical production site in Ludwigshafen, the state-of-the-art production plant, backed by rigorous quality control measures, will ensure that customers receive chemicals of exceptional purity and quality, necessary for advanced semiconductor manufacturing processes. Additionally, production in proximity to key customer operations allows BASF to better meet their needs, providing prompt support and minimizing lead times.
Anup Kothari, member of the Board of Executive Directors of BASF SE, responsible for the Dispersions & Resins division, commented: “We 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. This strategic move underscores BASF’s commitment to supporting the growth of the advanced semiconductor industry in Europe while further leveraging the Ludwigshafen Verbund site.”
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