(Photo/Courtesy of Kaohsiung City Government)

Kaohsiung's semiconductor key materials supply chain gains new investment momentum. Formosa Toshin Specialty Chemicals held the 'Groundbreaking Ceremony for the Lin Yuan IPA Plant Recycling Project and Blessing Ceremony for Phase II New Construction' today (31) at Lin Yuan Industrial Park, announcing an additional investment of approximately NT$1 billion in its electronic-grade isopropyl alcohol (IPA) Phase II expansion plan. The project aims for completion and operation by 2028, with the simultaneous introduction of a circular recycling system to enhance local supply capabilities for semiconductor key materials, building a regional supply chain that balances industrial development with environmental sustainability.

The Lin Yuan Phase II plant is scheduled to begin operations in 2028, strengthening semiconductor resilience through electronic-grade IPA recycling and reuse. Kaohsiung City Deputy Mayor Luo Da-sheng attended the ceremony on behalf of the city government, expressing gratitude to the Formosa Group and Japan’s Toshin for their long-term commitment and continuous investment in Kaohsiung. He stated that this investment reflects strong corporate confidence in Kaohsiung’s investment environment, which will not only boost semiconductor material production capacity and create local employment but also further strengthen Taiwan’s semiconductor supply chain resilience.

Deputy Mayor Luo noted that Kaohsiung has been actively promoting industrial upgrading in recent years, gradually forming industrial clusters in semiconductors, AI, advanced materials, and smart manufacturing. With the rapid development of emerging industries such as AI servers, electric vehicles, and 5G, demand for high-quality materials continues to rise. Formosa Toshin has become a key supplier of semiconductor materials, and the city government will continue to provide services including land, water, electricity, transportation, talent cultivation, and administrative support to create a business-friendly investment environment.

Formosa Toshin Chairman Kuo Wen-pi stated that, in alignment with the localization policy for semiconductor materials, the company has introduced Toshin’s most advanced Japanese technology to establish an integrated production line in Kaohsiung—from propylene feedstock to finished electronic-grade IPA. This breakthrough ends the previous model of 'made in Japan, packaged in Taiwan,' enabling direct supply of high-purity electronic-grade IPA to domestic advanced process manufacturers, shortening delivery times and enhancing supply efficiency.

In response to rising semiconductor market demand driven by AI, Formosa Toshin has officially launched its Phase II expansion project, adding 30,000 tons of annual electronic-grade IPA production capacity, with operations scheduled to begin in 2028. Simultaneously, the company is advancing its electronic-grade IPA recycling and purification initiative, aiming to regenerate and reuse waste liquids from semiconductor manufacturing processes. The system is expected to be completed by the third quarter of 2026, implementing circular economy principles and low-carbon production.

The Kaohsiung City Economic Development Bureau stated that Kaohsiung hosts Taiwan’s most complete petrochemical industry cluster and has been actively promoting the sector’s transition toward high-value, intelligent, low-carbon, and circular economic development. Formosa Toshin, established in 2020 as a joint venture between Formosa Plastics and Japan’s Toshin, is a representative enterprise of the petrochemical industry’s expansion into high-value semiconductor materials. The simultaneous advancement of expansion and recycling projects not only demonstrates the company’s continued investment in Kaohsiung but also adds significant momentum to the city’s semiconductor materials cluster and net-zero sustainable development.