Formosa Plastics and Daicel Corp. Launch Joint Venture for Semiconductor Material Production

Taipei: Formosa Plastics Corp. announced Wednesday that it is partnering with Japanese chemical company Daicel Corp. to establish a 50-50 joint venture aimed at producing electronic-grade photoresist thinner. This initiative comes in response to the growing demand for semiconductor materials, fueled by the ongoing boom in artificial intelligence (AI). According to Focus Taiwan, Formosa Plastics and Daicel have jointly created Formosa Daicel Advanced Chemicals Co., Ltd., with an initial paid-in capital of NT$800 million (US$24.85 million). Each company holds a 50 percent stake in this venture, which will see the construction of a plant at Formosa Plastics' facility located in Kaohsiung's Renwu District. The joint venture plans to utilize Formosa Plastics' resources, including materials procurement, land, and public facilities, to establish a local supply system. The mechanical completion of the plant is projected for September 2028, with production slated to begin in December 2028. An internal investment ev aluation report reveals that electronic-grade photoresist thinner is primarily utilized in advanced semiconductor manufacturing processes. In 2025, Taiwan's supply of this chemical was approximately 100,000 metric tons, while domestic demand reached 113,000 metric tons. The shortfall was primarily addressed by purification firms importing industrial-grade products for further processing. With significant developments in AI, high-performance computing (HPC), high-bandwidth memory (HBM), and 3D NAND, Taiwan's semiconductor manufacturers are expected to continue their expansion. The demand for electronic-grade photoresist thinner is projected to rise to 267,000 metric tons by 2030, indicating an average annual growth rate of 18.8 percent, as per the company's forecast.