Germany’s Merck KGaA said  it had signed a contract to open a semiconductor base in the Chinese city of Zhangjiagang, describing it as its largest single electronic technology investment in the country.

The company in a statement published to its official WeChat account said the deal was signed with local authorities. It did not disclose any investment figures but said the base will focus on chip manufacturing.

Zhangjiagang is a county-level city under the administration of Suzhou city, which is about 100 kilometres east of Shanghai.