Tata Group is in advanced discussions with German specialty chemicals leader Merck to secure an exclusive supply agreement for its upcoming semiconductor facility in Dholera, Gujarat. The deal would make Merck the principal supplier of high-purity and specialty chemicals essential for chipmaking, a critical step as India pushes to establish itself in the global semiconductor value chain.
Semiconductor fabrication requires an extensive range of ultra-pure chemicals for etching, cleaning, and wafer processing. By tying up with Merck, Tata aims to ensure uninterrupted, high-quality supply, reducing risks of dependency on multiple vendors. For Merck, the deal represents a strategic expansion into India’s rapidly developing high-tech sector.
This potential partnership also aligns with India’s broader “Make in India” and semiconductor self-sufficiency initiatives. The Dholera facility, once operational, is expected to strengthen India’s position in electronics manufacturing and attract global players to its ecosystem.
Industry experts suggest that such partnerships are vital for overcoming India’s lack of domestic supply chains in chip manufacturing. Exclusive deals not only bring reliability but also allow technology transfer, training, and long-term collaboration between Indian and global firms.
If finalized, the Tata–Merck agreement could become a model for future collaborations, helping India accelerate its semiconductor ambitions while positioning Tata as a serious global contender in the electronics industry.