**Inox Air Products Targets Semiconductor Gas Supply**
Inox Air Products is strategically enhancing its production capabilities for 40 gases currently imported, essential for the semiconductor industry. The company sees significant potential in establishing liquefied natural gas (LNG) facilities. Siddharth Jain, a promoter of the Inox Group, emphasized the group’s commitment to capitalizing on the burgeoning semiconductor and LNG sectors in India.
Inox Air Products aims to supply gases to semiconductor manufacturers, while Inox India, a publicly listed entity, is focused on developing gas-related infrastructure for semiconductor fabrication plants and LNG storage. Jain noted that semiconductor manufacturing requires up to 46 different gases, with only six produced domestically, indicating a substantial supply gap. He stated, “If semiconductor manufacturing takes off in the country, we will need to develop the capability to supply all of them.”
The Indian government is working to reduce reliance on imported semiconductors, having secured over ₹1.5 trillion in investments from firms like Micron, Tata Electronics, CG Power, and Kaynes Technology to establish chip production in India. The first chip from an Indian fabrication facility is anticipated to launch by October, marking a significant milestone towards self-sufficiency in the sector.
Inox Air Products is committed to investing in the production capabilities for the remaining 40 gases required for semiconductor manufacturing. Jain mentioned, “The technology is available, and we are actively engaging with global partners to bring it to India. However, this is not a quick solution—finding the right partners for all 40 technologies is a lengthy process. While discussions with Tata are ongoing, we have already finalized a deal with Micron.”
Initially, semiconductor manufacturers will depend on imported gases and chemicals. Suppliers like Inox will need to maintain substantial inventories of these imported gases in India to minimize the risk of trade disruptions, as semiconductor fabs cannot afford any downtime. Inox Air Products is in search of land to create India’s first dedicated semiconductor gas warehouse, which will require an investment of “thousands of crores” of rupees. Jain indicated that funding will come from accruals and debt, with no current plans for a public offering.
Industry estimates suggest that India’s semiconductor market could reach $109 billion by 2030, a significant increase from approximately $38 billion in 2023.