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28 min ago 3 min read
Japanese industrial gas company Air Water is expanding its Taiwan semiconductor gas business through a new partnership with Grand Pacific Petrochemical Corporation (GPPC), with both companies taking 35% stakes in specialty gas producer Hong-Kuang Hi-Tech.
Hong-Kuang supplies high-purity electronic specialty gases and chemicals to Taiwan’s semiconductor supply chain, serving wafer manufacturers in addition to solar and display industries.
Its portfolio includes fluorocarbons, nitrous oxide, carbon dioxide, and fluorine-nitrogen gas mixtures used in the chip manufacturing process.
The deal follows comments from Yoshihiro Senzai, President and Executive Officer of Air Water, who described the semiconductor industry as a “key strategic priority.”
Air Water, which also supplies ultra-high-purity bulk gases and various specialty gases, previously invested in Hong-Kuang through its Materials business. In 2023, AW Materials acquired HK and made it a subsidiary.
GPPC’s investment marks its entry into the semiconductor specialty-gas market as part of a wider strategy to diversify from bulk petrochemicals into specialty and electronic materials.
GPPC has also acquired a 23.4% stake in i-TRANS Express, a hazardous-chemical logistics company serving the wafer manufacturing supply chain. The company provides transportation, warehousing, transshipment and distribution services for specialty chemicals.
The petrochemical giant said the partnership will combine international industrial-gas expertise with Taiwan’s manufacturing capabilities to meet growing demand for high-purity materials used in advanced semiconductor processes.
The move comes as industrial gas companies continue to expand their presence in Taiwan’s semiconductor supply chain.
Air Products announced in July that it would build and new pipeline infrastructure to supply a semiconductor manufacturer in Taiwan, while Air Liquide opened an in the country earlier this year.
Linde LienHwa, Linde’s joint venture partner in Taiwan, was selected last month to supply industrial gases to new semiconductor manufacturing and advanced packaging facilities at multiple sites in Taiwan, with the joint venture planning to invest approximately $800m in several ASUs and hydrogen production units.
The investment activity comes amid strong demand for advanced semiconductor manufacturing, with TSMC warning earlier this year of rising costs for critical inputs including specialty gases and chemicals as the industry responds to growing AI-related chip demand.
In 2024, Taiwan’s semiconductor industry generated over $165bn in revenue, making up around 21% of the country’s GDP.
