Tip: Try a valid symbol or a specific company name for relevant results Air Products (APD) Is Doubling Down on the Gases Inside Chip Fabs The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link.
Prices displayed are informational. On September 16, Air Products (NYSE:**APD**) said it had signed a long-term deal to supply high-purity gases to a leading chipmaker, backed by roughly $250 million of its own money in Arizona. It is the company's second semiconductor supply win, and the two projects together carry more than $900 million of investment.
That is a notable turn for a company that has been pulling back from big clean-energy projects. CoreWeave (CRWV) Is Charging More for AI Compute, and Customers Keep Paying The Arizona project plays to what Air Products already does. It will build, own, and operate the equipment, from hydrogen generation units and carbon dioxide purification to bulk supply for three gases: helium, hydrogen, and carbon dioxide.
That means the customer's gas supply runs through equipment Air Products owns. Supply is targeted to start in phases, so the buildout can move alongside the customer's expansion plans. And this is familiar ground.
Air Products has supplied electronics makers for more than 40 years, and its Chandler facility has served the Phoenix chip cluster since 1981, with a pipeline system carrying ultra-high purity nitrogen around the area. The core business gives the deal a solid floor. In the fiscal third quarter, reported on July 30, adjusted earnings per share rose 12% to $3.47, and management lifted its full-year outlook to an adjusted $13.39 to $13.49 per share.
Margins widened as well, so growth is showing up as profit. Chips appear elsewhere in the results too, since the company announced a deal to build four large air separation units to serve a chipmaker's growth in Taiwan. The cost of the pivot is hard to ignore.
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