Air Liquide invests $160 million in Arizona semiconductor gas plant with carbon capture for low-carbon hydrogen

Air Liquide is investing over $160 million to build a new ultra-high purity gas facility in Arizona, supplying gases including low-carbon hydrogen with on-site carbon capture to a major semiconductor fab expansion. The plant is expected to start operations in 2028 and will capture and purify CO2 for reuse, reducing the carbon footprint of hydrogen used in chip manufacturing. This investment highlights how industrial gas companies are integrating carbon capture into their supply chains for advanced manufacturing. For those tracking industrial decarbonization and the economics of low-carbon hydrogen, this project shows a real world example of pairing carbon capture with a high value customer. The on-site CO2 liquefaction and purification step also closes a loop that many carbon capture announcements leave vague. The facility supports the reshoring of semiconductor production in the U.S. and demonstrates that low-carbon hydrogen can be competitive when integrated into a larger gas supply contract. The key question will be whether the carbon capture rate and cost are disclosed once the plant is operational.