Performance Materials Is Now Electronics: Merck Renames Business Sector Following Strategic Realignment 5th March 2021
- New name underscores strategic focus on the electronics industry
- Name change is a further milestone of the “Bright Future” transformation program
- Business unit structure comprising Semiconductor Solutions, Display Solutions and Surface Solutions remains in place
Merck, a leading science and technology company, is changing the name of its Performance Materials business sector to Electronics. The new name is the visible result of the strategic realignment conducted over the past several years and a further milestone of the “Bright Future” transformation program, which began in 2018.
“The renaming of our business sector to Electronics is a logical step for us. After all, the new name underscores our strategic focus on the electronics industry. At the same time, it clearly illustrates our contribution to a world characterized by tremendous technological advances and exponential data growth,” said Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics. “Under the ‘Bright Future’ umbrella, we’ve developed into a leading player within the electronics industry over the last few years. And with the new name Electronics, we’re now also making it clear, at a glance, what our business sector represents.”
As the company behind the companies advancing digital living, the Electronics business sector is involved in all major technology trends – be it 5G, Big Data, autonomous driving, artificial intelligence, or the Internet of Things. Thanks to these and other megatrends, the demand for ever smaller, faster and more energyefficient electronics is continuously growing. For example, more and more of the components in modern chips are now approaching atomic dimensions.
“Bright Future” – A successful transformation program
The acquisitions of Intermolecular and Versum Materials in 2019 represented two very important moves within the scope of the ongoing transformation program. Thanks to the integration of Intermolecular, which offers unique processes and R&D capacities, Merck is now capable of making the latest material innovations available to its customers in the electronics industry even more rapidly. Through the acquisition of Versum Materials, the company has expanded its portfolio to include innovation-driven, ultra-high-purity process chemicals, gases and equipment for semiconductor manufacturing. The name Versum Materials, which has been in use separately until now, will be superseded by the new name of the business sector.
However, the name change will not have any effect on the existing organizational structure of the business sector, which comprises the three business units Semiconductor Solutions, Display Solutions and Surface Solutions. Electronics thus covers a particularly broad range of products and solutions, including high-tech materials and solutions for the semiconductor industry as well as liquid crystals and OLED materials for displays and effect pigments for coatings and cosmetics.
In September 2020, Merck raised its expectations for average annual organic sales growth of Electronics to 3% to 4% against the backdrop of its focus on the semiconductor industry, which is showing strong growth. The business sector currently generates around 90% of its sales in the two business units Semiconductor Solutions and Display Solutions.