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52 min ago 2 min read
Industrial gas major Air Liquide has begun work on a new air separation unit (ASU) in Huizhou, south China’s Guangdong Province.
The ASU is expected to generate 800 tonnes per day of liquid oxygen, nitrogen, and argon supply once operations begin in 2027 at the Huizhou New Material Industrial Park.
Air Liquide said the facility would produce high-purity gases for customers in the semiconductor and advanced manufacturing sectors, while also serving petrochemical and medical industries.
CEO of Air Liquide China Rui Coelho said the investment reflects the company’s commitment to the local market and its strategy of supporting China’s transition toward high-quality and low-carbon development.
Chinese semiconductor firms have reported record revenue in recent times, driven by AI demand, a shortage of chips, and US export restrictions.
US export restrictions on China’s tech sector over the last few years have boosted domestic production. Semiconductor Manufacturing International Co, China’s largest chip manufacturer, said revenue for 2025 rose 16% to a record $9.3bn compared to 2024.
Revenue could top $11bn in 2026, according to LSEG analyst estimates.
Air Liquide, which has been active in China since the early 1900s, recently invested €25m ($29.4m) in in Yulin.
By 2027, Air Liquide plans to convert the steam-driven ASU to a more efficient electricity-driven system. This is expected to reduce the unit’s carbon dioxide emissions by 224,000 tonnes per year and increase its oxygen production capacity by 10%.
“The shift towards reducing carbon emissions is an ongoing movement in China, and our company is proud to be actively supporting it while managing to grow,” said Ronnie Chalmers, Air Liquide Group Vice President.
