Air Products (industrial gases company) has secured a long-term agreement through its Taiwan subsidiary, Air Products San Fu, to expand its industrial gas supply network in support of a semiconductor manufacturer's next-generation facility expansion in Taiwan, the company announced on July 21, 2026.

Scope of the New Investment

Under the terms of the agreement, Air Products San Fu will build, own, and operate four large state-of-the-art air separation units along with bulk gas supply systems and new underground pipeline systems.

The project will serve multiple new semiconductor fabs as well as back-end packaging facilities, with the company supplying a range of industrial gases including nitrogen, oxygen, argon, and helium to support the customer's semiconductor operations.

The new underground pipeline infrastructure will be connected to Air Products' existing pipeline network already in place across Taiwan. The company said this integration is designed to further enhance supply reliability, operational efficiency, and resilience across its operations in the country.

Air Products did not disclose the name of the semiconductor manufacturer involved in the agreement or provide a financial value for the contract.

Driving Forces Behind the Expansion

Air Products cited growing demand driven by artificial intelligence and high-performance computing as the primary forces underpinning the semiconductor manufacturer's expansion plans and, by extension, the need for expanded gas supply infrastructure.

The project spans both front-end semiconductor manufacturing and back-end advanced packaging operations, reflecting the breadth of industrial gas requirements across the semiconductor production chain.

The expansion reinforces Air Products' position at both ends of the chip manufacturing process, a footprint the company described as an integrated supply presence across the Taiwan semiconductor industry.

Air Products San Fu's History in Taiwan

Air Products has operated in Taiwan through Air Products San Fu for more than 70 years and has built what it describes as leading supply positions across key science parks in the country, supported by extensive pipeline networks.

The company operates one of the world's largest ultra-high purity nitrogen pipeline systems in Southern Taiwan and was the first gas company in Taiwan to be awarded ISO9002 and ISO14000 certifications.

Paul Yang, President of Air Products San Fu, said the project builds on an established partnership with the customer. "Air Products is honored to be selected by our strategic customer to support their continued growth, building on our proven track record and strong long-term partnership," Yang said in a statement accompanying the announcement.

"This project further reinforces our role as a trusted supplier in Taiwan and reflects our long-term commitment to grow with our customers. It also underscores our world-class performance in safety, reliability and operational excellence, which are critical to meeting the increasingly demanding requirements of the electronics industry."

Air Products' Broader Electronics Industry Presence

Beyond Taiwan, Air Products has been supplying industrial gases to the global electronics industry for more than 40 years, counting many of the world's leading technology companies among its customers.

The company, headquartered in Lehigh Valley, Pennsylvania, and listed on the New York Stock Exchange under the ticker APD, reported fiscal 2025 sales of USD 12 billion from operations in approximately 50 countries.

Air Products describes itself as a world-leading industrial gases company that has been in operation for over 85 years. In addition to electronics, the company serves customers in refining, chemicals, metals, manufacturing, medical, and food industries.

The company also holds the position of leading global hydrogen supplier and develops, engineers, builds, owns, and operates some of the world's largest hydrogen projects. Through its sale of equipment businesses, Air Products provides turbomachinery, membrane systems, and cryogenic containers on a global basis.

Strategic Significance for Taiwan Operations

The latest contract adds to an already substantial operational foundation that Air Products San Fu has built across Taiwan's semiconductor manufacturing landscape.

The connection of the new underground pipeline systems to the company's existing network is positioned as a measure that deepens the reliability and redundancy of gas supply at a time when semiconductor manufacturers are expanding capacity to meet intensifying demand from AI and high-performance computing applications.

The project's coverage of back-end advanced packaging facilities alongside front-end fab operations is notable given the increasing strategic importance of advanced packaging technologies in the global semiconductor supply chain.

As chipmakers pursue more complex packaging architectures to improve performance and efficiency, the industrial gas requirements associated with those processes have grown alongside demand at the fab level.

Air Products said the project further strengthens its integrated supply footprint across the full spectrum of semiconductor manufacturing activity in Taiwan, consolidating its role as a key supplier to the electronics industry in one of the world's most significant chip-producing markets.

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