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Linde to invest $1 billion in Arizona for semiconductor gas supply

Created at 31 Jul · 9:25 AM1 source↑ Market-relevant
IN SHORT

Linde will invest approximately $1 billion to expand its industrial gases complex in Phoenix, Arizona, to support a new long-term agreement to supply ultra-high-purity gases to a major semiconductor manufacturer. The expansion will include two new air separation units.

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Key Numbers

$1 billionLinde investment in Arizona
$800 millionLinde LienHwa investment in Taiwan
twonew air separation units to be built
threeexisting air separation units at the Phoenix site
$34 billionLinde's 2025 sales

Who's Involved

Linde
World's largest industrial gases company
Armando Botello
President Linde Gases, US
Dan Yankowski
President Linde Gases North America
Linde LienHwa
Linde's joint venture partner in Taiwan
Linde to invest $1 billion in Arizona for semiconductor gas supply

↳ Why This Matters

This investment by Linde highlights the growing demand for semiconductors and the critical role of industrial gas suppliers in supporting the expansion of advanced manufacturing facilities in the United States and globally. It also signals continued investment in the US semiconductor supply chain.

Key facts

  • Linde will invest approximately $1 billion in Arizona to expand its industrial gases complex in Phoenix.
  • The investment is to support a new long-term agreement to supply ultra-high-purity industrial gases to a major semiconductor manufacturer.
  • Linde will build, own, and operate two new SPECTRA® air separation units at the Phoenix site.
  • The expansion will supply nitrogen, oxygen, and argon for two new semiconductor fabrication facilities.
  • Linde's joint venture in Taiwan will invest approximately $800 million for similar supply agreements.

Linde, a global leader in industrial gases and engineering, announced a significant investment of approximately $1 billion in its Phoenix, Arizona facility. This expansion is driven by a new long-term agreement to supply ultra-high-purity industrial gases to a major semiconductor manufacturer, supporting the expansion of two new fabrication facilities.

The investment will see Linde build, own, and operate two new SPECTRA® air separation units (ASUs), adding to the three existing units at the Phoenix site. These ASUs will provide essential gases like nitrogen, oxygen, and argon, crucial for advanced semiconductor manufacturing processes. This move underscores Linde's commitment to supporting the growth of the semiconductor industry in the United States.

In parallel, Linde's joint venture in Taiwan, Linde LienHwa, has also been selected by the same customer to supply industrial gases for new semiconductor manufacturing and advanced packaging facilities. This partnership involves an investment of approximately $800 million for several ASUs and hydrogen production units.

Armando Botello, President of Linde Gases, US, highlighted the critical role of reliable gas supply at exceptional purity levels for advanced semiconductor manufacturing. He emphasized that this investment demonstrates Linde's capability to meet the increasing global demand for semiconductors and reinforces its long-term global relationship with its customers.

Frequently asked questions

Linde is investing approximately $1 billion to expand its existing industrial gases complex in Phoenix, Arizona.

The investment is to support a new long-term agreement to supply ultra-high-purity industrial gases to a major semiconductor manufacturer for its expansion.

The expansion will include building and operating two new SPECTRA® air separation units (ASUs) and associated infrastructure.

Linde will supply ultra-high-purity nitrogen, oxygen, and argon.

What Happens Next

01The first new plants and supporting infrastructure are due to start up in the second half of 2022 (based on a 2021 announcement, likely superseded by newer plans).
02Linde will continue to support the customer's expansion in the United States and Taiwan.

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Cadence

How It Developed

Linde secured a long-term agreement to supply industrial gases to a major semiconductor manufacturer.
Linde will invest approximately $1 billion to expand its existing gases complex in Phoenix, Arizona.
The investment will increase capacity to support the customer's semiconductor manufacturing expansion.
Linde will build, own, and operate two new SPECTRA® air separation units.
The new units will complement three existing units at the Phoenix site.
The expansion will supply ultra-high-purity nitrogen, oxygen, and argon for two new semiconductor fabrication facilities.
Linde's joint venture partner in Taiwan, Linde LienHwa, will also supply gases to the same customer in Taiwan, with an investment of approximately $800 million.
Linde stated the investment demonstrates its ability to deliver purity, reliability, and scale for advanced semiconductor manufacturing.

Sources

T1
Linde to invest $1 billion in Arizona after winning semiconductor supply dealReuters
T2
Linde to Invest 1 Billion to Support Major US Semiconductor Facility Expansion | Lindelinde.com
T2
Linde Signs Long-Term Agreement to Supply New World- ...linde.com

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