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APD Expands Semiconductor Footprint With $250M Arizona Investment
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Key Takeaways
Air Products will invest about $250M in Arizona to support semiconductor manufacturing and packaging.
The project includes hydrogen units, CO2 purification and bulk gas systems with storage and pipelines.
Air Products says two recent semiconductor supply wins represent more than $900M in combined investment.
Air Products and Chemicals, Inc. (APD - Free Report) has landed a long-term agreement with a leading semiconductor manufacturer to supply high-purity industrial gases and related infrastructure for production expansion in the United States. This agreement marks the second semiconductor manufacturing supply win recently announced by Air Products, with the two projects representing a combined investment of more than $900 million.
Under the agreement, Air Products will invest approximately $250 million in Arizona to build, own and operate gas supply infrastructure supporting semiconductor manufacturing and advanced packaging operations. This investment includes PRISM hydrogen generation units, carbon dioxide purification systems, bulk gas systems for helium, hydrogen and carbon dioxide, and associated storage, purification, analytical equipment and pipeline infrastructure.
The contracts highlight the company's role as a supplier to capitalize on growing demand for reliable, high-purity gases amid the expansion of semiconductor manufacturing capacity in the United States. Air Products has served the global electronics industry for more than 40 years. Its Chandler, AZ, facility has supported the Phoenix semiconductor ecosystem since 1981 and operates an ultra-high-purity nitrogen pipeline network across the greater Phoenix area. Its established infrastructure and technical expertise will serve the increasingly demanding requirements of advanced semiconductor manufacturing.
APD’s shares have lost 1.8% in the past year compared with the industry’s 3.2% decline in the same period.
Image Source: Zacks Investment Research
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $22.23 per share, indicating a 55.89% year-over-year increase. RS’shares have gained 37.1% over the past year.
The Zacks Consensus Estimate for KRO’s 2026 earnings is pegged at 35 cents per share, indicating a rise of 136.46% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 33.99%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 12.6% over the past year.
View the Zacks #1 Rank List
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APD Expands Semiconductor Footprint With $250M Arizona Investment
Key Takeaways
Air Products and Chemicals, Inc. (APD - Free Report) has landed a long-term agreement with a leading semiconductor manufacturer to supply high-purity industrial gases and related infrastructure for production expansion in the United States. This agreement marks the second semiconductor manufacturing supply win recently announced by Air Products, with the two projects representing a combined investment of more than $900 million.
Under the agreement, Air Products will invest approximately $250 million in Arizona to build, own and operate gas supply infrastructure supporting semiconductor manufacturing and advanced packaging operations. This investment includes PRISM hydrogen generation units, carbon dioxide purification systems, bulk gas systems for helium, hydrogen and carbon dioxide, and associated storage, purification, analytical equipment and pipeline infrastructure.
The contracts highlight the company's role as a supplier to capitalize on growing demand for reliable, high-purity gases amid the expansion of semiconductor manufacturing capacity in the United States. Air Products has served the global electronics industry for more than 40 years. Its Chandler, AZ, facility has supported the Phoenix semiconductor ecosystem since 1981 and operates an ultra-high-purity nitrogen pipeline network across the greater Phoenix area. Its established infrastructure and technical expertise will serve the increasingly demanding requirements of advanced semiconductor manufacturing.
APD’s shares have lost 1.8% in the past year compared with the industry’s 3.2% decline in the same period.
Image Source: Zacks Investment Research
APD’s Zacks Rank & Key Picks
APD currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Kronos Worldwide, Inc. (KRO - Free Report) and Avient Corporation (AVNT - Free Report) .
While RS currently sports a Zacks Rank #1 (Strong Buy), KRO and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $22.23 per share, indicating a 55.89% year-over-year increase. RS’shares have gained 37.1% over the past year.
The Zacks Consensus Estimate for KRO’s 2026 earnings is pegged at 35 cents per share, indicating a rise of 136.46% year over year. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing it in the rest, with an average surprise of 33.99%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pinned at $3.2 per share, indicating a 13.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%. AVNT’sshares have gained 12.6% over the past year.