Merck has signed a contract to open a semiconductor base in the Chinese city of Zhangjiagang.
Merck described the base as its largest single electronic technology investment in the China.
The German company in a statement published to its official WeChat account said that the deal was signed with local authorities.
Zhangjiagang is a county-level city under the administration of Suzhou city, which is about 100 kilometres east of Shanghai.