BASF to Build Electronic Materials Plant in Nanjing by End of 2028

BASF has signed an investment agreement with Nanjing Jiangbei New Area to build an electronic materials production facility that will begin operations by the end of 2028. The plant will sit in the Nanjing Jiangbei New Area Materials High-Tech Park and supply semiconductor customers across China.

The German chemicals major frames the project as a step in its localization and manufacturing expansion strategy. It targets two outcomes: stronger local manufacturing capabilities and more reliable supply of electronic materials for China's semiconductor manufacturers.

What does the investment change?

The agreement adds a production site to BASF's existing footprint in Nanjing. According to the company, the facility will reinforce its manufacturing infrastructure, supply chain capabilities and technical support network, allowing it to serve regional customers more efficiently.

Jens Liebermann, Senior Vice President and Head of BASF's Global Electronic Materials business, said the investment would strengthen the company's local manufacturing presence and improve its ability to support customers. He also highlighted BASF's commitment to contributing to the continued development of China's semiconductor industry.

Gops Pillay, President of BASF's Global Operating Division, noted that the new facility would build on the company's established presence in Nanjing.

Once operational, the plant will serve as a platform for closer cooperation between BASF, semiconductor manufacturers and other participants across the semiconductor value chain. The project also marks another milestone in BASF's 'local-for-local' strategy, which concentrates manufacturing close to customers and strengthens regional supply networks.

In plain terms: BASF is moving production of semiconductor materials next to its Chinese customers.

How will commodity prices react?

Not immediately. Commercial operations are targeted for the end of 2028, so the facility will not influence market supply in the near term.

Longer-term effects on demand and pricing include:

• Potential demand growth for specialty chemicals, electronic-grade solvents, high-purity chemicals and semiconductor processing materials as capacity expands.
• No expected immediate price movement in bulk commodities such as methanol, acetone, toluene or caustic soda.
• Future price impact depending on production volumes, raw material procurement and semiconductor demand growth.

Why 2028 matters

The start-up date positions BASF to capture longer-term growth in China's electronics and advanced manufacturing industries. As semiconductor manufacturers pursue advanced production technologies, demand for specialized electronic materials and dependable regional supply arrangements grows in parallel. The Nanjing site is designed to meet that demand through local expertise and collaboration on technology development.

For BASF, the project deepens customer relationships, expands its electronic materials business and strengthens its position in China's semiconductor supply chain.

The plant opens in 2028; until then, the market sees commitments, not capacity.