Formosa Plastics Corp unveiled an ambitious NT$58.5 billion ($1.8 billion) investment program spanning semiconductors, renewable energy and digital transformation as Taiwan’s largest petrochemical conglomerate seeks growth beyond its struggling core business.
The company has faced challenging operating conditions recently, with combined revenues slipping 2.1 percent amid oversupply from Chinese competitors. Chairman Kuo Wen-pi announced the spending plan during Tuesday’s shareholder meeting, with NT$28.5 billion ($879 million) earmarked for three emerging sectors including semiconductor chemicals.
The company will develop 17 new products ranging from 1-hexene to electronic-grade hydrogen, targeting annual revenue increases of NT$23 billion ($710 million). Formosa’s semiconductor push builds on existing operations supplying caustic soda for wastewater treatment and electronic-grade hydrogen fluoride, where it commands over 55 percent domestic market share.
The conglomerate also plans NT$4.3 billion ($133 million) in renewable energy investments, aiming for 200 million kilowatt-hours of annual generation by 2030. Digital initiatives include 576 artificial intelligence development projects with projected annual benefits of NT$2 billion.
The transformation comes as the group posted modest full-year profits of NT$8.37 billion despite revenue declines, reflecting pressure from Chinese overcapacity in traditional petrochemicals. Investors will watch whether diversification can offset headwinds in Formosa’s legacy businesses.
