BASF will expand its production capacity for semiconductor-grade sulfuric acid (H2SO4), which is an essential ultra-pure chemical. Accordingly, the new production facility at its Ludwigshafen site in Germany will feature cutting-edge purity capabilities. Thus, expanding to serve the growing demand for advanced semiconductor chip manufacturing across Europe.

Operations are likely to start by 2027, coinciding with the capacity expansion of key customers. The BASF investment will be in a high double-digit million-euro range.

Importance of Chemicals in Chipmaking

Semiconductor-grade sulfuric acid, or the highly pure form of sulfuric acid is essential for cleaning and etching chips that serve as the braid of electronics and devices that people use in their daily lives.

Sulfuric acid removes organic residue from silicon wafers and during the photoresist stripping stage. This is the part where manufacturers have to slice thinly the silicon wafers, which form as the foundation of semiconductors, integrated circuits, and other small devices.

During production, silicon wafers are cut into circular shapes and must be meticulously cleaned to eliminate impurities and organic residues. This is where electronic-grade sulfuric acid comes into play.

Several chip manufacturing plants ae emerging and expanding in Europe. Therefore, there is an increasingly strong demand for high-quality and high-purity semiconductor-grade chemicals, such as sulfuric acid.

This need has been accelerated by a close cooperation partner of BASF, which is currently building a new chip production plant in Europe. These chips play important role in wide range of industries such as automotive, mobile communications, and AI chip applications.

For that reason, BASF is investing in the semiconductor chemical value chain based on mutual long-term customer-supplier commitments with its strategic partners.

This expansion will greatly enhance supply chain reliability for BASF’s partners by ensuring a dependable and consistent supply of high-quality semiconductor-grade sulfuric acid produced locally. 

To Propel Chipmaking Growth in Europe

The planned expanded plant will rise at the heart of BASF’s integrated chemical production site in Ludwigshafen. The state-of-the-art production plant, backed by rigorous quality control measures, will ensure that customers receive chemicals of exceptional purity and quality, necessary for advanced semiconductor manufacturing processes.

Additionally, production in proximity to key customer operations allows BASF to better meet their needs, providing prompt support and minimizing lead times.

According to Anup Kothari, member of the Board of Executive Directors of BASF SE, said, “We are proud to have earned the trust of key players in the semiconductor sector and to serve them as their partner of choice in establishing the future supply chain for advanced semiconductor materials in Europe.”

In addition, Kothari, who is responsible for the Dispersions & Resins division said the strategic move underscores BASF’s commitment to supporting the growth of the advanced semiconductor industry in Europe while further leveraging the Ludwigshafen Verbund site.

BASF is a global leader in supplying the semiconductor industry with high-purity single bulk chemicals and specialized chemical formulations essential for semiconductor manufacturing. The company offers a comprehensive portfolio of materials primarily used in semiconductor production processes, including cleaning, etching, metal deposition, and chemical mechanical planarization.

02 May 2025