Shiny Chemical Industrial Corp. is investing NT$1.9 billion ($60.8 million) to build its second propylene glycol methyl ether (PM) plant, marking its latest push to capture growing demand from Taiwan’s semiconductor industry.
The new facility, scheduled to begin operations in 2027, will boost the company’s PM production capacity by 120,000 metric tons annually. This represents a 140% increase from the existing plant’s 50,000-ton capacity.
The expansion follows the company’s October investment of NT$2.3 billion ($73.6 million) in two electronic-grade isopropyl alcohol production lines at the Changbin Industrial Park.
Shiny Chemical’s spokesperson Huang You-ching said the industrial-grade solvent market faces pressure from oversupply in China’s petrochemical sector. However, demand for electronic-grade solvents remains stable, with growth seen in both semiconductor and display panel segments.
The company, which reported revenue of NT$10.1 billion ($323 million) in the first 11 months of 2023, faces potential challenges from rising shipping costs due to geopolitical tensions. With half of its raw materials dependent on sea freight, delivery schedules could be affected by Middle East conflicts, potentially forcing the purchase of higher-priced spot materials to maintain production stability.
