Air Water Materials Acquires Semiconductor Gas Dealer Based in Taiwan Hong-Kuang Hi-Tech, Making it a Subsidiary
– Strengthening gas supply services for semiconductor manufacturers in Japan and Taiwan –

Air Water Inc. is pleased to announce that Air Water Materials Inc. (hereinafter "AW Materials"), a trading company in the Air Water Group specializing in semiconductor, industrial chemical and other products has acquired Hong-Kuang Hi-Tech Co., Ltd. (hereinafter "HK") and made it a subsidiary.  HK is a semiconductor-related gas dealer in Taiwan. AW Materials acquired a stake (after-investment stock ownership rate of 21.9%) in March 2022,* and then made HK a subsidiary through a capital increase through third-party allocation carried out by AW Materials for HK in December of the same year.

In response to the increased production of semiconductor manufacturers, HK is strengthening its gas supply business, through efforts such as its construction of a new semiconductor-related gas refining plant in Taiwan. Further utilizing HK's customer network through the additional investment, AW Materials will bolster its proposals on semiconductor-related gases, specialty chemical materials, gas refining systems and other peripheral solutions to semiconductor manufacturers in Japan and other regions, as well as in Taiwan where the semiconductor market is expected to continuously grow.
 

*Refer to the news release on April 26, 2022 titled Air Water Materials Takes Stake in Hong-Kuang Hi-Tech, a Semiconductor Gas Dealer Based in Taiwan

1. Overview 

HK is a trading company established in 2010. It sells semiconductor-related gases for the electronics industry, such as liquefied carbon dioxide, nitrous oxide and fluorine-containing gases in Taiwan. HK is constructing a gas refining plant at the Tainan Technology Industrial Park to enhance its manufacturing functions and the construction will finish in March 2023. They are going to expand the gas supply business to serve the nearby cutting-edge semiconductor factories, and they will be able to refine 600 tons of carbon dioxide gas and 80 tons of nitrous oxide and will have a fluorine-containing gas warehouse.

Having integrated the two business domains of gases for semiconductor manufacturing and chemicals in the organizational reform in April 2022, the Air Water Group offers the many different technologies, goods and services that it holds to the digital sector, which is growing an accelerating pace. In so doing, it will aim to cement its position as a general semiconductor-related manufacturer.

Under this business policy, AW Materials deals in a broad range of chemical products for the electronics sector, including high purity chemicals, electrical insulating materials and resin molded products, in an effort to build closer ties with semiconductor manufacturers in Japan and Taiwan by utilizing its customer network through the additional investment in HK.

　

2. Investment

(1) Investor: Air Water Materials Inc.
(2) Date of investment: December 28, 2022
(3) Amount of investment: 180 million New Taiwan dollars (approximately 830 million Japanese yen)
* Shareholding ratio after investment: 50.1% (ratio of voting rights)

4. (Reference) Overview of Air Water Materials Inc.
(1) Date of establishment: August 1, 2003 (Foundation in 1661)
(2) Representative: Kazuyuki Tomoto, President
(3) Head office location: 2-13-7 Hamamatsucho, Minato-ku, Tokyo
(4) Capital: 150 million yen
(5) Business: Domestic sales and export and import of the following items
(i) Electrical insulating materials (ii) Materials and parts for electric and electronic equipment
(iii) Machinery tools and system products (iv) Materials and parts for chemical engineering
(v) Industrial chemicals (vi) High-pressure gas (vii) Food additives 
(viii) Various industrial materials and packaging materials
(6) Shareholder: Air Water Inc. (with a stake of 99.8%)

[Contact for inquiries]
Corporate Communications, Air Water Inc. E-mail：info-h@awi.co.jp