Grand Pacific Petrochemical Corporation (GPPC) has partnered with Japanese industrial gas manufacturer AIR WATER INC. (AWI) to participate in a capital increase for Hong-Kuang Hi-Tech, a manufacturer of specialty gases used in semiconductor production. As part of the deal, GPPC and AWI will each hold a 35% stake, becoming Hong-Kuang's two largest shareholders. The investment marks both companies' entry into Taiwan's semiconductor specialty materials market and strengthens broader Taiwan-Japan cooperation in the sector.
Senior executives from both companies met in Osaka on August 18 to discuss the partnership and future collaboration. Sherie Chiu, chairman of GPPC, said the investment isn't a departure from the company's core petrochemical business but rather an extension of its technical expertise and industrial capabilities, and that GPPC will enter the semiconductor specialty gases market by drawing on its chemical industry experience while working closely with AWI.
AWI's core business is industrial gases. The company's proprietary VSU gas plant technology and on-site gas supply systems support stable supply while also promoting energy savings, lower carbon emissions, and reduced transportation costs. AWI also provides ultra-high-purity bulk gases, various specialty gases, related equipment, and engineering services, with operations spanning the semiconductor, energy, healthcare, and agri-food industries. Yoshihiro Senzai, president and executive officer of AIR WATER INC., said the company considers the semiconductor industry a key strategic priority.
Hong-Kuang Hi-Tech is a leading supplier of specialty gases and chemicals within Taiwan's semiconductor supply chain, with local capabilities spanning production, sales, and analysis of high-purity electronic-grade specialty gases, along with related technical support. It primarily serves semiconductor wafer manufacturers, as well as the solar and display industries. Its product lineup includes specialty gases used in semiconductor manufacturing, such as fluorocarbons, nitrous oxide, carbon dioxide, and fluorine-nitrogen mixtures.
Separately, GPPC has also acquired a 23.4% equity stake in i-TRANS Express, a specialized logistics provider focused on hazardous chemicals. i-TRANS Express handles specialty chemicals used throughout the wafer manufacturing supply chain and offers logistics services covering transportation, warehousing, transshipment, and distribution.
GPPC said the partnership with AWI combines international industrial gas expertise with Taiwan's manufacturing capabilities to meet growing demand for the high-purity materials needed in advanced semiconductor processes. The company frames the collaboration as part of its broader transformation into the semiconductor supply chain, as it works to strengthen its core businesses and shift from bulk petrochemicals toward specialty chemicals, high-end composite materials, and electronic-grade materials.
CDIB Capital Group, a major Taiwanese private equity firm and an investor in the GPPC-AWI joint venture, played a key role in putting together the cross-border partnership. Melanie Nan, president of CDIB, said the firm has maintained a long-term investment focus on Taiwan's core strengths, including semiconductors and advanced manufacturing, while strategically expanding its presence in Silicon Valley, Japan, and the AI sector. She said the partnership reflects CDIB's ability to connect industrial ecosystems, supply chains, and market opportunities between Taiwan and other major global economies.
