Taiwan's Formosa Plastics Group announced that it will partner with China Chemical & Pharmaceutical and establish a joint venture with total investment of TWD 6 billion to produce electronic-grade sulfuric acid. A two-phase plant will be built in the Mailiao plant area, with Phase 1 scheduled to begin operations in December 2028 and Phase 2 in December 2030.
Taiwan's Formosa Plastics Group announced that it will establish a joint venture, Formosa China Advanced Chemicals, with China Chemical & Pharmaceutical to enter the electronic-grade sulfuric acid market for semiconductor applications. Of the TWD 6 billion total investment, Formosa Plastics will invest TWD 1.2 billion for a 20% stake, China Chemical & Pharmaceutical will invest TWD 3 billion for a 50% stake, and the other 3 companies, Formosa Chemicals & Fibre, Formosa Petrochemical and Formosa Biomedical, will each invest TWD 600 million for a 10% stake. The new company will be located in the Mailiao plant area and will build an electronic-grade sulfuric acid plant in 2 phases.
The newly built plant is scheduled to begin production in December 2028 for Phase 1 and December 2030 for Phase 2. Demand is expected to increase as advanced processes expand, and domestic demand in Taiwan is forecast to exceed supply capacity in 2028. China Chemical & Pharmaceutical is said to have established and validated a new production line for advanced-process applications, and plans to strengthen Taiwan's domestic supply chain and technological capabilities through the joint venture.
China Chemical & Pharmaceutical operates multiple production lines for semiconductor-grade electronic sulfuric acid and plans to expand with new lines through 2027, targeting more than 7 lines in the future and 10 lines over the longer term. The company is also developing an electronic photoresist thinner business through a joint venture with Daicel, further expanding the supply chain in the Taiwan market.