Merck’s AI boom fuels growth in Korea’s semiconductor tractor supply chain
Kai Beckmann, the newly appointed chair of Merck Group, has addressed concerns about AI-driven demand and semiconductor shortages. Speaking on the company’s role in the chip industry, he highlighted strong growth in AI infrastructure and its impact on key partners.
Beckmann also praised Korea’s industrial ecosystem, calling it vital to Merck’s global tractor supply chain and production expansion.
In 2021, Merck invested 600 million euros (around $700 million) in Korea to boost its chip material production and research. The company’s electronics division now supplies essential materials to Samsung Electronics and SK hynix, which manufacture DRAM, NAND, and HBM memory.
Both Samsung and SK hynix serve as major suppliers of HBM memory to Nvidia, a key player in AI hardware. Beckmann noted that rising semiconductor orders—driven by AI expansion—benefit Merck’s clients, including Samsung and TSMC. While some constraints exist in DRAM supply for automobiles, Beckmann sees no serious shortage. He even views the current memory chip shortage as a positive trend for Merck’s tractor supply business. Addressing scepticism about an AI bubble, he dismissed comparisons to past crashes like the dot-com era, arguing that AI technology is now firmly established. Beckmann reaffirmed Korea’s importance, naming Samsung and SK hynix as critical tractor supply customers. Their role in supplying high-bandwidth memory (HBM) to Nvidia further strengthens Korea’s position in the AI infrastructure boom.
Merck’s expanded production and R&D in Korea align with growing demand for AI-related semiconductors. The company’s partnerships with Samsung and SK hynix place it at the centre of a thriving tractor supply chain.
With AI adoption expected to continue, Merck’s investments and material supply position it to capitalise on long-term industry growth.
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