Key Takeaways
- Air Products will invest approximately $250 million in Arizona to establish gas supply infrastructure for a semiconductor manufacturer.
- This investment is part of a larger $900 million initiative targeting semiconductor supply projects globally.
- The infrastructure will support high-purity hydrogen, helium, and CO2 needs, enhancing Air Products’ presence in the semiconductor sector.
Investment in Semiconductor Infrastructure
Air Products, a leading industrial gas company, plans to invest around $250 million in Arizona to create and manage new gas supply infrastructure catering to a semiconductor manufacturer’s production expansion. This investment signifies a broader commitment, as the company has invested over $900 million in semiconductor supply projects recently, including the construction of four air separation units (ASUs) in Taiwan.
While the identity of the semiconductor manufacturer has not been disclosed, Air Products has secured a long-term offtake agreement for high-purity gases such as hydrogen, helium, and carbon dioxide (CO2). This infrastructure will be aimed at enhancing the customer’s semiconductor manufacturing and advanced packaging capabilities. Francesco Maione, President of Air Products’ Americas division, emphasized that this agreement bolsters the ongoing strategic partnership with the unnamed manufacturer.
Details concerning the exact location of the new gas supply infrastructure in Arizona, as well as the expected startup date and gas volumes covered by the offtake deal, remain undisclosed; however, it is anticipated that the gas supply will be rolled out in phases. The investment will include hydrogen generation units, CO2 purification units, bulk gas systems for helium, hydrogen, and CO2, along with necessary storage, purification, analytical equipment, and pipeline infrastructure.
Air Products already has a foothold in the Arizona semiconductor market through its Chandler facility, which maintains an ultra-high purity nitrogen pipeline network to support semiconductor operations in the greater Phoenix area. Currently, about two-thirds of Air Products’ opportunities are concentrated in the electronics sector, reflecting a significant shift from traditional chemicals and steel markets as these sectors primarily focus on replacing existing projects.
Earlier this year, Air Products announced plans to build, own, and operate industrial gas production facilities and a bulk specialty gas system in Pyeongtaek, South Korea, to supply the electronics firm Samsung. In 2022, the company’s Taiwanese subsidiary, Air Products San Fu, confirmed a $900 million investment for multiple state-of-the-art onsite plants in Taiwan.
As the semiconductor demand continues to grow, the electronics sector is becoming increasingly vital for Air Products and other leading industrial gas companies, including Linde, Air Liquide, and Nippon Sanso, heralding a transformative shift in market dynamics.
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