Merck KGaA, Darmstadt, Germany, strengthens site in Tempe, Arizona as key strategic production and R&D hub for semiconductor materials in the US

Merck KGaA, Darmstadt, Germany today announced an investment of $22 million at its site in Tempe, Arizona

09 Feb 2021 | Tempe, Arizona, United States of America
  • Purchase of previously leased facility in Arizona State University Research Park in Tempe, AZ
  • Investment of $22 million
  • Planning security for future investments to strengthen position in electronics market

Merck KGaA, Darmstadt, Germany, a leading science and technology company, today announced an investment of $22 million at its site in Tempe, Arizona. The company previously leased the 95,000 square-foot facility from Lexington Tempe L.P. 

This investment gives Merck KGaA, Darmstadt, Germany the flexibility to invest in its production facilities and strengthen its R&D capabilities in its global network of high-tech locations.

“We’ve operated out of Tempe for almost ten years. By purchasing the facility we are demonstrating our clear commitment to the site. We want to retain top talent in the area, being within close proximity to our west-coast customers is very important for us as well,” said Jeff White, President of EMD Performance Materials, the US-based Performance Materials business of Merck KGaA, Darmstadt, Germany. “Also from an economic point of view the purchase makes sense. It came at a reasonable price which allows more long-term planning into future R&D and production investments, further strengthening our position in the electronics market,” he continued. 

As part of this transaction, Merck KGaA, Darmstadt, Germany acquired Lexington’s ground leasehold interest in the facility, which is located within the Arizona State University Research Park.  

"We are proud to have Merck KGaA, Darmstadt, Germany, purchase its ASU Research Park facility," said Morgan R. Olsen, ASU Research Park board president and executive vice president, treasurer and Chief Financial Officer. "The company’s investment at the ASU Research Park will expand its access to our talented students studying at one of the world's leading research universities and positively impact our local economies for years to come”.  

The facility houses more than 180 employees who support the Semiconductor Solutions business in the areas of manufacturing, R&D, administration, sales and marketing. In recent years, nearly an additional $10 million has been invested in the facility to enhance its manufacturing and R&D capabilities. 

Prior to the purchase, the facility had been leased by the Versum Materials business for over nine years. Versum Materials was acquired in 2019 by Merck KGaA, Darmstadt, Germany.


For more information, contact Meagan Kane

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About Merck KGaA, Darmstadt, Germany

Merck KGaA, Darmstadt, Germany, a leading science and technology company, operates across healthcare, life science and performance materials. Around 58,000 employees work to make a positive difference to millions of people’s lives every day by creating more joyful and sustainable ways to live. From advancing gene editing technologies and discovering unique ways to treat the most challenging diseases to enabling the intelligence of devices – the company is everywhere. In 2019, Merck KGaA, Darmstadt, Germany, generated sales of € 16.2 billion in 66 countries.

The company holds the global rights to the name and trademark “Merck” internationally. The only exceptions are the United States and Canada, where the business sectors of Merck KGaA, Darmstadt, Germany operate as EMD Serono in healthcare, MilliporeSigma in life science, and EMD Performance Materials. Since its founding 1668, scientific exploration and responsible entrepreneurship have been key to the company’s technological and scientific advances. To this day, the founding family remains the majority owner of the publicly listed company.

About the ASU Research Park

The ASU Research Park in south Tempe has three lakes and six miles of pedestrian paths. The park currently houses 51 corporate tenants that employ more than 6,000 people at Amazon, Amkor Technology, Edward Jones, Go Daddy, Iridium, PADT, Peoples Mortgage, Tech Data and ViaSat. Also located in the park is ASU MacroTechnology Works, home to ASU’s Flexible Electronics and Display Center and Solar Power Lab.

ASU Research Park land is ground leased on a long-term basis. The park currently is 91% leased, with more than two million square feet of completed improvements. Two prime parcels totalling 21.9 acres, including a 16.5-acre premiere center parcel, remain for ground lease in the park.

The park is managed and marketed by Sunbelt Holdings, which continuously has provided park services since 1992. For information about ground leases, please contact Heidi Kimball.

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