Formosa Plastics, Japan's Daicel form semiconductor related joint venture

Taipei, Aug. 12 (CNA) Formosa Plastics Corp. announced Wednesday that it is partnering with Japanese chemical company Daicel Corp. to establish a 50-50 joint venture to produce electronic-grade photoresist thinner, as demand for semiconductor materials grows amid the artificial intelligence (AI) boom.

The two companies have jointly established Formosa Daicel Advanced Chemicals Co., Ltd. with initial paid-in capital of NT$800 million (US$24.85 million), with each holding a 50 percent stake. The plant will be built at Formosa Plastics' facility in Kaohsiung's Renwu District.

The joint venture will leverage Formosa Plastics' resources, including materials procurement, land and public facilities, to establish a local supply system, the company said.

Mechanical completion of the plant is expected in September 2028, with production scheduled to begin in December 2028.

According to an internal investment evaluation report, electronic-grade photoresist thinner is mainly used in advanced semiconductor manufacturing processes.

Taiwan's supply of the chemical totaled about 100,000 metric tons in 2025, while domestic demand reached 113,000 metric tons. The shortfall was mainly met by purification firms importing industrial-grade products for further processing, according to the report.

Driven by developments in artificial intelligence (AI), high-performance computing (HPC), high-bandwidth memory (HBM) and 3D NAND, Taiwan's semiconductor manufacturers are expected to continue expanding, the company said.

Demand for electronic-grade photoresist thinner is projected to reach 267,000 metric tons in 2030, representing an average annual growth rate of 18.8 percent, according to the company's forecast.