INOX Air Products Launches Major Investment in Dholera to Strengthen India’s Semiconductor Supply Chain

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Image Courtesy: Inox Air Products

INOX Air Products (INOXAP), India’s foremost supplier of industrial and electronic gases, has unveiled a significant investment aimed at bolstering the country’s rapidly expanding semiconductor and OSAT (Outsourced Semiconductor Assembly and Test) industries. Earlier this year, the company secured a key land parcel in Dholera, Gujarat, where it is planning the development of a state-of-the-art Electronic Specialty Gas Hub. This facility will focus on producing and distributing Ultra High Purity (UHP) bulk and specialty gases—including Nitrogen, Oxygen, Argon, and Hydrogen—essential for advanced chip manufacturing processes.

Designed to serve both as a production unit and distribution centre, the new Hub will play a pivotal role in ensuring safe, contamination-free supply of gases to semiconductor fabs and OSAT units across the country. The initiative is a critical part of INOXAP’s broader ₹500 crore investment plan, which includes expanding purification capabilities, strengthening import-independent supply chains, and deploying next-generation transport and packaging infrastructure for high-purity gases.

Siddharth Jain, Managing Director of INOX Air Products, commented on the development “Our investment in Dholera marks a key milestone in our mission to build a resilient and scalable infrastructure for India’s semiconductor ecosystem. By establishing this Hub, we are laying the groundwork for a reliable, domestic supply chain that can support global chipmakers and electronics manufacturers setting up operations in India. Our presence across the country, along with decades of engineering expertise, positions us well to execute on this vision. This project is closely aligned with national goals such as Make in India and Atmanirbhar Bharat, and is a step toward making India a global hub for advanced manufacturing.”

INOXAP is already actively supporting India’s first semiconductor facility in Gujarat, providing critical UHP gases and secure delivery systems designed to meet the stringent requirements of modern fabs. In addition, the company operates six large-scale Air Separation Units in Gujarat that produce Liquid Oxygen, Liquid Nitrogen, and Liquid Argon, supplying a broad range of sectors including semiconductors, solar, and other advanced manufacturing fields.

Ultra-pure gases are fundamental to semiconductor fabrication, playing vital roles in processes such as etching, doping, deposition, and chamber cleaning. The reliability and purity of these gases directly impact chip performance, manufacturing yield, and product consistency—making robust supply systems an essential part of the semiconductor value chain.

INOX Air Products stands as India’s largest manufacturer of industrial and medical gases, offering a wide range of products and services through a production capacity exceeding 4,700 tonnes per day. Operating from more than 50 sites nationwide, the company serves over 1,800 customers across industries ranging from metallurgy and electronics to pharmaceuticals and food processing. Its operational excellence is underpinned by a dedicated workforce of 1,700+ employees and guided by core values of transparency, service, and delivering customer value.

Founded in 1963 as Industrial Oxygen Company Ltd in Pune by the Jain family, the company has evolved in step with India’s industrial growth. In 1999, it entered into a long-standing partnership with Air Products and Chemicals Inc., USA, which acquired a 50% stake—forming what remains one of the most enduring Indo-American joint ventures in the manufacturing sector.