Formosa Plastics and Daicel Establish Joint Venture to Capture Photoresist Diluent Market, Targeting Production by End of 2028

Formosa Plastics (1301-TW) has announced that its board of directors has approved the establishment of a joint venture company, 'Formosa Daicel Precision Chemicals,' in partnership with Japanese chemical giant Daicel Corporation. Both parties will contribute NT$400 million, holding equal 50% stakes, to manufacture electronic-grade photoresist diluents for advanced semiconductor processes.

The joint venture plans to invest NT$2.39 billion in constructing a manufacturing facility in Renwu, Kaohsiung, with completion scheduled for September 2028 and production commencing by the end of that year.

The initial authorized capital of Formosa Daicel Precision Chemicals is set at NT$1.5 billion, with an initial paid-in capital of NT$800 million—NT$400 million each from Formosa Plastics and Daicel Corporation, representing approximately 50% ownership apiece.

According to Formosa’s official announcement, the project leverages the company’s strengths in raw material procurement, land access, and shared utility infrastructure. The electronic-grade photoresist diluent plant will be built within the Renwu industrial zone, aiming to establish a localized supply chain ecosystem in Taiwan.

As outlined in Formosa’s investment assessment report, electronic-grade photoresist diluents are primarily used in advanced semiconductor manufacturing. In 2025, Taiwan’s supply reached approximately 100,000 tons, while demand stood at 113,000 tons. The supply gap has largely been filled by importers refining industrial-grade materials. This joint venture is expected to strengthen Formosa Group’s semiconductor chemicals business with a new strategic capability.

Industry analysts note that rising demand driven by AI, high-performance computing (HPC), high-bandwidth memory (HBM), and 3D NAND flash memory technologies is accelerating market growth. It is projected that Taiwan’s demand for electronic-grade photoresist diluents will surge to 267,000 tons by 2030, highlighting significant future expansion potential.