BASF to bolster European chip supply with ammonium hydroxide plant

The tier one supplier said “the double-digit-million-euro investment” will support wafer cleaning, etching and other precision processes in semiconductor manufacturing. Operations are expected to begin in 2027.

BASF said that the ammonium hydroxide produced at the plant will be used for advanced node microchip manufacturing, enabling the next generation of semiconductors vital for key European industries, including automotive and AI.

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“Automotive is among the most significant application areas for these materials, reflecting the growing demand for high-performance semiconductors in modern vehicles,” said a spokesperson for BASF, adding that automotive applications represented a major focus within the company’s portfolio.

BASF said it recognises an increasingly strong demand for semiconductor-grade chemicals that are high in quality and purity, such as ammonium hydroxide. The company said it served key semiconductor foundries globally and is committed to supporting the industry’s growth in Europe with essential materials and solutions. BASF is currently supplying most European chip manufacturers with critical materials.

Semiconductor projects currently underway in Europe include a joint venture called European Semiconductor Manufacturing Company (ESMC), led by TSMC and involving Bosch, Infineon and NXP, which together are building a new foundry in Dresden, Germany. The facility will produce high-performance, energy-efficient chips using advanced FinFet technology on 300mm wafers, with production expected to reach 480,000 wafers annually by 2029.

Meanwhile, STMicroelectronics is developing an automated chip packaging and test process technology at its Tours site in France the panel-level packaging (PLP) technology. PLP is a method where multiple integrated circuits are packaged on a single, larger rectangular substrate panel, rather than on individual circular wafers. The company is investing $60m in the pilot line.

STMicroelectronics’ plans for a semiconductor plant with GlobalFoundries in France is currently suspended.

In other news, BASF Environmental Catalyst and Metal Solutions (ECMS) opened a production facility for green hydrogen and fuel cell components in Budenheim, Germany this month (November). The plant has been jointly developed with Trigona Fuel Cell Components and Grundstücksverwaltung Rheinufer. BASF said the plant will support the hydrogen economy with circular solutions that improve performance and reduce costs for proton exchange membrane (PEM) electrolysis and fuel cells.