Allan Gabor, president of Merck China, speaks at the groundbreaking ceremony for the company's new semiconductor factory in Zhangjiagang, Suzhou, Jiangsu province. [Photo/zjgonline.com.cn]

A groundbreaking ceremony for the new semiconductor factory of Merck, a Germany-headquartered multinational company, was held in Zhangjiagang, a county-level city in Suzhou, East China's Jiangsu province on Sept 15.

Located in the Jiangsu Yangtze River International Chemical Industrial Park, the factory will be used to manufacture semiconductor precursors and electronic specialty gases. It will also include a storage and distribution center.

Allan Gabor, president of Merck China, said at the ceremony that the new project will increase the company's presence in the Yangtze River Delta region, which is home to China's largest integrated circuit industry. Supported by the YRD region's rich human resources and enormous market, the new factory will help Merck provide technical services and customized solutions to its Chinese clients and partners in a more effective way, said Gabor.

Chen Tao, director of the Jiangsu Provincial Department of Commerce, said Merck's new project showcases the company's confidence in Jiangsu's investment environment and will inject strong impetus to the transformation and growth of the province's semiconductor industry.

Chen also expressed hope that Merck can invest in more sectors such as electronic technology and healthcare in Jiangsu. He urged local government departments to improve their services to ensure Merck's new project can start operations as soon as possible.