Taiwan Plastics Group's July Revenue: Year-on-Year and Month-on-Month Growth, South Asia Benefits from AI Contribution to Achieve 49-Month High

Taiwan Plastics (1301-TW) Group's four subsidiaries announced their July revenue and future outlook on July 1. Benefiting from the rise in oil prices and petrochemical raw material prices due to the geopolitical conflict between the U.S. and Iran, as well as seasonal support, revenue showed year-on-year and month-on-month growth. South Asia (1303-TW), Formosa Petrochemical (1326-TW), and Formosa Chemicals (6505-TW) saw year-on-year growth of over 30%. South Asia achieved a 49-month high in revenue due to the full-scale construction of data centers by North American cloud service providers (CSPs) and the price increase of electronic materials.

Taiwan Plastics' July revenue was NT$15.294 billion, up 9.4% month-on-month and 4.8% year-on-year. The cumulative revenue for the first seven months of 2026 was NT$104.533 billion, down 2.5% year-on-year. Taiwan Plastics stated that in July, the supply of ethylene increased compared to June, and the operating rate improved. Due to the resurgence of the U.S.-Iran conflict, downstream customers expected a rise in petrochemical product prices, leading to increased purchasing intentions. The sales volume of major products increased by 78,000 tons compared to June.

South Asia's July revenue was NT$30.573 billion, up 12.7% month-on-month and 44.5% year-on-year. The cumulative revenue for the first seven months was NT$182.816 billion, up 19.9% year-on-year. South Asia's revenue share increased to 57% driven by the core momentum of electronic materials. As North American CSPs expanded their data centers and added servers, and Chinese companies actively deployed computing power, the supply-demand gap for related materials widened. South Asia adjusted the selling prices of electronic materials based on market conditions and increased production capacity utilization to over 90%, boosting revenue contributions.

Additionally, South Asia's consumer-oriented general-purpose materials also continued to grow. Chemical products benefited from downstream restocking of EG and BPA, while plastic products saw increased sales and revenue due to the recovery in demand for automotive and footwear materials.

Formosa Petrochemical's July revenue was NT$31.267 billion, up 13% month-on-month and 34.2% year-on-year. The cumulative revenue for the first seven months was NT$200.171 billion, up 13.9% year-on-year. Formosa Petrochemical stated that due to geopolitical factors, market conditions were volatile, so they strengthened sales and inventory reduction, including increased sales of PX, SM, PS, ABS, and PP. Downstream customer demand for PTA and PIA increased. In terms of pricing, Formosa Petrochemical adjusted product prices due to rising oil and petrochemical raw material prices, optimized product combinations, and increased the proportion of differentiated products, thereby raising the average selling price.

Formosa Chemicals' July revenue was NT$74.821 billion, up 17.5% month-on-month and 31.5% year-on-year. The cumulative revenue for the first seven months was NT$907.313 billion, up 11.9% year-on-year. Formosa Chemicals pointed out that as crude oil was delivered in stages, the total product sales volume increased by 1,414 thousand barrels compared to June. With the resumption of U.S.-Iran talks, international oil prices gradually fell. The average Dubai crude oil price in July was $76.7 per barrel, down $2.8 per barrel from the previous month. However, the supply of refined oil in the Middle East remained tight, and the export of refined oil from Northeast Asia was conservative, pushing up the spot price of refined oil. As a result, the average selling price of all products increased by $1.5 per barrel compared to June.

The operating revenue of Formosa Chemicals' olefin business increased by 29.7% compared to June, mainly due to increased sales volume of ethylene products and month-on-month increases in both electricity sales price and sales volume, which also drove a 15% increase in the operating revenue of public utilities compared to the previous month.