Formosa Plastics Invests NT$500M in Formosa Tokuyama to Expand Electronic-Grade IPA Capacity

Central News Agency (Taipei) - Formosa Plastics announced today that its audit committee has approved a NT$500 million capital injection into its joint venture, Formosa Tokuyama, to expand the second phase of its Linyuan plant and increase production capacity for electronic-grade isopropyl alcohol (IPA). Formosa Plastics Chairman Kuo Wen-pi stated that the company is accelerating its layout in trend-setting fields such as semiconductor chemicals. Senior Manager Chien Chia-hung explained that Formosa Tokuyama currently produces 30,000 tons of electronic-grade IPA annually at its Linyuan plant. To meet growing demand from semiconductor clients, the company plans to build a second plant with an annual capacity of 30,000 tons, requiring a NT$1 billion capital increase. Formosa Plastics will contribute NT$500 million based on its 50% stake, bringing its total investment to approximately NT$1.57 billion. Formosa Plastics and Japan's Tokuyama Corporation established the joint venture in 2020. With the semiconductor industry's rapid growth, the second plant is scheduled to begin operations in September 2028, doubling the company's electronic-grade IPA capacity. Chairman Kuo emphasized at the shareholders' meeting that in the face of petrochemical overcapacity, the company is focusing on high-value products, including semiconductor chemicals like electronic-grade hydrogen, ammonia, and sulfuric acid, as well as key materials for advanced processes.