Wedoany.com Report-Nov. 3, BASF has announced plans to construct a new ammonium hydroxide (NH4OH) plant at its Ludwigshafen site in Germany to strengthen the semiconductor materials supply chain in Europe. The facility will produce ultra-pure chemicals essential for wafer cleaning, etching, and other processes in advanced chip manufacturing, with operations expected to begin in 2027. The investment reflects the rising focus on chemical supply resilience as Europe expands its semiconductor production capacity.

Demand for high-purity process chemicals in Europe is increasing sharply as new fabs and expansions come online. Electronic-grade ammonium hydroxide is a key bulk chemical in front-end semiconductor processes, where impurity levels must remain extremely low. BASF’s new plant aims to address this demand, ensuring reliable local supply for advanced node production and supporting the region’s growing chip manufacturing ecosystem.

The company emphasized that the investment is linked to long-term strategic partnerships, including collaboration with a customer currently building a new semiconductor facility in Europe. The project is part of BASF’s broader strategy to enhance supply chain resilience and support technological competitiveness in sectors such as automotive, AI computing, and industrial electronics.

“We are thankful and proud of our customers’ trust in BASF to be a long-term strategic partner in their growth ambition in the region,” said Jens Liebermann, Senior Vice President, Electronic Materials at BASF.

Gops Pillay, President of BASF’s Global Operating Division, added: “This new investment not only further enhances our capabilities but also reinforces our commitment and our presence to supporting the semiconductor industry in Europe.”

BASF has a long-standing role as a supplier of semiconductor process chemicals, providing materials for cleaning, etching, photo processes, metal deposition, and CMP applications. The Ludwigshafen NH4OH plant is expected to play a central role in supporting Europe’s expansion of advanced chip manufacturing while contributing to local economic development and the innovation ecosystem.

Overall, the project demonstrates BASF’s commitment to meeting Europe’s increasing demand for high-purity semiconductor chemicals, strengthening local production capabilities, and ensuring supply chain reliability. By delivering ultra-pure ammonium hydroxide domestically, BASF aims to reduce dependency on imports and facilitate the growth of advanced semiconductor technologies in the region.

The investment underscores the importance of integrated chemical supply solutions in maintaining Europe’s competitiveness in semiconductor manufacturing and reflects BASF’s strategic approach to supporting long-term industry growth and innovation.