Grand Pacific Petrochemical Corporation (GPPC) is moving deeper into Taiwan’s semiconductor supply chain, partnering with Japanese industrial gas maker AIR WATER INC. (AWI) to invest in specialty-gas producer Hong-Kuang Hi-Tech, Corp.

 

Under the deal, GPPC and AWI will each acquire a 35% stake in Hong-Kuang Hi-Tech, making the two companies its largest shareholders and marking their entry into Taiwan’s fast-growing semiconductor specialty materials market.

 

The partnership brings together GPPC’s chemical-industry expertise, AWI’s industrial gas technology and Hong-Kuang Hi-Tech’s established position in Taiwan’s semiconductor supply chain. It also deepens industrial cooperation between Taiwan and Japan as chipmakers face rising demand for high-purity materials used in advanced manufacturing.

 

Senior executives from the three strategic partners met in Osaka on Aug. 18 to discuss the investment and future cooperation.

 

Sherie Chiu, Chairman of GPPC, said the move builds on the company’s existing capabilities rather than taking it away from its core business.

 

“The investment is not a departure from GPPC’s core business, but an extension of its technical expertise and industrial capabilities.”

 

GPPC will enter the semiconductor specialty-gas market by leveraging its chemical expertise and working with AWI, whose core business is industrial gases.

 

AWI operates proprietary VSU gas plants and on-site gas supply systems designed to ensure stable supplies while reducing energy use, carbon emissions and transportation costs. Its portfolio includes ultra-high-purity bulk gases, specialty gases, equipment and engineering services for customers across the semiconductor, energy, healthcare and agri-food sectors.

 

Yoshihiro Senzai, President and Executive Officer of AIR WATER INC., said the semiconductor sector is a key priority for the Japanese company. "AWI regards the semiconductor industry as a key strategic priority.”

 

Hong-Kuang Hi-Tech is a major supplier of specialty gases and chemicals to Taiwan’s semiconductor industry, with capabilities covering the production, sales and analysis of high-purity electronic-grade specialty gases and related technical support.

 

The company primarily serves semiconductor wafer manufacturers, while also supplying the solar and display industries. Its products include fluorocarbons, nitrous oxide (N₂O), carbon dioxide (CO₂) and fluorine-nitrogen mixtures (F₂/N₂), which are used in semiconductor manufacturing processes.

 

GPPC is also expanding its position in the semiconductor supply chain through a separate investment in logistics. The company has acquired a 23.4% stake in i-TRANS Express Co., Ltd., a specialist hazardous-chemical logistics provider serving the wafer manufacturing industry.

 

i-TRANS Express provides transportation, warehousing, transshipment and distribution services for specialty chemicals used in semiconductor production.

 

Together, the investments signal a broader strategic shift for GPPC, which aims to move beyond bulk petrochemicals and expand into higher-value segments including specialty chemicals, advanced composite materials and electronic-grade materials.

 

The company said the GPPC-AWI partnership combines international industrial-gas expertise with Taiwan’s manufacturing strength to meet growing demand for high-purity materials as semiconductor processes become increasingly advanced.

 

CDIB Capital Group, a major Taiwan private-equity investor and backer of the GPPC-AWI joint venture, helped shape the cross-border partnership.

 

Melanie Nan, President of CDIB, said the firm has maintained a long-term investment focus on Taiwan’s strengths in semiconductors and advanced manufacturing while expanding its presence in Silicon Valley, Japan and the artificial-intelligence sector.

 

The partnership, she said, highlights CDIB’s ability to connect industrial ecosystems, supply chains and market opportunities across Taiwan and other major global economies.