Air Products eyes record South Korea investment after shelving unit sale

Four US companies, including Air Products (APD), Axcelis (ACLS), Corning (GLW), and Pacifico Energy, pledged $2B in investments in South Korea's chip, materials, and clean energy sectors. The investments follow a surge in South Korea's semiconductor exports, driven by AI demand. The announcement coincides with potential US semiconductor tariffs.

Four U.S. firms plan to invest 2.8 trillion won ($2B) in South Korea's chip, energy, and advanced materials sectors. Air Products, Axcelis, Corning, and Pacifico Energy will expand facilities and projects, supported by the South Korean government.

Air Products and Chemicals (APD) shares have risen 24.7% YTD, outperforming its industry. The company benefits from high-return projects, productivity initiatives, and acquisitions. APD reported Q3 adjusted earnings of $3.47 per share, beating estimates. It raised fiscal 2026 guidance to $13.39-$13.49 per share. The company is pursuing growth projects, including a green hydrogen project in Saudi Arabia, and expects cost savings from headcount reductions.

Air Products and Chemicals (APD) has seen consistent analyst ratings over the past three months. RBC Capital analyst Arun Viswanathan maintained an 'Outperform' rating and raised the price target to $360, suggesting a 19.7% upside. The mean price target is $339.68, indicating a 12.9% premium to current levels, with the highest target at $373, implying a 24% upside.

Linde (LIN) said it won a long-term supply agreement for ultra-high-purity industrial gases to a major semiconductor manufacturer, with a $1 billion Phoenix, Arizona investment and two SPECTRA air separation units. Linde’s Taiwan JV plans about $800 million for related expansion. Linde reported Q2 sales of $9.29 billion and adjusted EPS $4.50. Air Products (APD) also won a Taiwan semiconductor-related infrastructure deal.

Air Products canceled its Louisiana Clean Energy Complex (Darrow Project) after costs rose and key customer Yara International exited. The project was planned to produce 600,000 metric tons of hydrogen annually with 95% CO2 capture. Cost estimates climbed from $4.5 billion (2021) to about $9 billion, and Air Products expects up to $2.9 billion in pre-tax charges in fiscal 2026 Q3.