(Bloomberg) -- Merck KGaA plans to invest more than 3 billion euros ($3.5 billion) through 2025 in its electronics business to capitalize on rising demand for semiconductor and display panel materials.

The German company will expand production capacity, bolster research and development spending, and is also considering bolt-on acquisitions, it said Monday in a statement.

Merck makes materials and technologies for computer chips and display screens, as well as effect pigments -- products that are sold to the automotive, printing and cosmetics industries. A global semiconductor shortage has been devastating car production this year.

The company in August raised its profit forecast for 2021. Covid has boosted demand for its technology to develop diagnostic tests and vaccines. 

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