Alpha HPA (ASX:A4N) said it has made "significant" progress for the construction and delivery of stage 2 of its HPA First project, including site delivery of the first large-scale, offsite fabricated process equipment and major civil works, according to a Tuesday Australian bourse filing.

The company also disclosed the conversion of a letter of intent into a binding 2026 supply contract to a South Korean customer for thermal fillers in HBM chip packaging, with further 2026 supply contracts to Japanese customers under negotiation.

The company's contracts under negotiation have exceeded stage 1 supply capacity with record semiconductor sector shipments in December 2025.

The company added that test and sales orders continue to grow strongly, with 500 orders since the final investment decision in May 2024, and successful stage 1 and stage 2 site audits by two major end-users.

The company's shares fell 3% in recent Tuesday trade.