Long-term contracts, local production: serving Asia semiconductor growth
Published on April 13, 2026
4 minutes
The strengthening of the semiconductor market is reshaping Asia's industrial landscape, with new fabs and advanced manufacturing driving demand for ultra-high purity gases and molecules. Air Liquide is responding with targeted investments and long-term contracts across South Korea, Singapore and China, reinforcing its local production capacity and its technology offer while supporting customers' performance and decarbonization pathways.
In South Korea, scaling advanced materials to power semiconductor growth
Over the last 18 months, Air Liquide has expanded its presence in South Korea with the opening of three new plants to secure the supply of critical molecules for chipmakers.
In Sejong, to the west, the Group inaugurated a new plant at its Advanced Materials Center, providing high-quality diborane, an essential molecule used to fine-tune the electrical properties of silicon in semiconductor devices. This facility supports the decision made in July 2023 to invest 200 million U.S. dollars in advanced materials production sites in South Korea and Taiwan Island. In Cheonan, a few miles north, a rare gases purification unit is now supplying krypton and xenon to major local customers in the semiconductor industry, leveraging Air Liquide's proprietary cryogenic technologies to achieve the ultra-high purity levels required for chip manufacturing. In Hwaseong, further north, Air Liquide has started up the world's largest molybdenum1 manufacturing plant, supplying leading semiconductor customers with Subleem™, a portfolio of ultra-high purity molecules and proprietary delivery systems that enable sublimation2 of solid precursors into gas directly at the customer's site.
Together, these investments strengthen Air Liquide's role as a long-term partner and supplier of electronic materials to global semiconductor leaders by combining local manufacturing with proprietary purification and delivery technologies. These investments improve safety, quality and security of supply, while accelerating customers' time-to-market for next-generation chips in a context of rapid capacity expansion and rising resilience expectations across the semiconductor value chain. This momentum is further reinforced by the acquisition of DIG Airgas, which significantly expands Air Liquide's footprint in South Korea and strengthens its position in ultra-pure industrial gases.
In Singapore, developing on-site ultra-high purity gas solutions
In Singapore, Air Liquide is reinforcing its forefront position by anchoring new industrial gas capacity directly in the country's main semiconductor hub, where supply continuity and purity have become strategic differentiators. The Group is investing around 70 million euros to build, own and operate a new industrial gas production unit to supply large volumes of nitrogen, oxygen, argon and other ultra-pure gases to VisionPower Semiconductor Manufacturing Company (VSMC). Operations are planned to begin in 2026.
This step is complemented by two additional long-term industrial gas contracts signed just months apart with another major semiconductor customer. For a total investment of 130 million euros, Air Liquide will build, own and operate two next-generation industrial gas facilities in Singapore to support the expansion of a leading semiconductor manufacturer. These units will supply large volumes of ultra-high purity nitrogen and integrate digital features such as automation and predictive maintenance to enhance energy efficiency, operational reliability and quality control. Operations are expected to begin in 2027.
A defining feature of these projects – and Air Liquide's broader footprint in Singapore, is the Group's ultra-compact plant design, developed for land-scarce environments.
In China, scaling ultra-pure industrial gases to support the local semiconductor industry
In China, Air Liquide is strengthening its position in the semiconductor value chain through multiple long-term contracts to supply ultra-pure industrial gases across the country. In 2025, the Group signed new agreements in Beijing and Shenzhen, for a total investment of nearly 75 million euros. These contracts will deliver up to 90,000 Nm³/h of gaseous nitrogen alongside significant volumes of hydrogen, oxygen, argon, helium and CO₂, supporting China's growing semiconductor industry.
Building resilience as supply chains reconfigure
Together, these projects show how Air Liquide is building an Asia platform around two structural shifts: the acceleration of semiconductor investment, and the rebalancing of global value chains. As companies and governments pursue "de-risking", including reshoring strategies, supply security and local production are becoming central operating conditions. By adding advanced materials and ultra-high purity gas production capabilities close to manufacturing sites in South Korea and Singapore, and by securing long-term contracts to supply China's expanding semiconductor industry, the Group is strengthening its position as a leader in industrial gases throughout the region.
2 Sublimation is the transition of a gas directly from a solid state to a gaseous state.