Alpha HPA lifts on semiconductor demand growth prospects
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More news: Shares in Alpha HPA are up 3.3% to 93 cents in early trading on the ASX after the aluminium materials producer said it had signed a fresh letter of intent amid a lift in demand from the semiconductor sector.
Alpha HPA seeing demand lift from semiconductor industry
The news: Aluminium materials producer Alpha HPA says it has signed a fresh letter of intent (LOI) amid a lift in demand from the semiconductor sector.
The numbers: The company said it has received a letter of intent from a market leader in the thermal interface sector for purchase of high-purity materials, including scaling up of orders from stage one in 2025 and 2026, and commercial volumes from stage two from 2027.
The context: The company said the LOI is further endorsement of the adoption of Alpha’s materials in the semiconductor sector and its ability to meet stringent quality standards. It said sector demand is being driven by artificial intelligence data centres and power semiconductors for the energy transition. In particular, demand for high-purity alumina hydrate has significantly increased with a material lift in product sales orders.
Alpha current produces high purity aluminium products at its 10,000 tonnes per annum HPA First Project in Gladstone. Last year, it also confirmed an investment decision into stage two of the project, for which it will receive a $200 million loan from the federal government’s Northern Australia Infrastructure Facility (NAIF).
The source: ASX announcement
