Formosa Plastics Group and Chung Hwa Chemical form JV to target semiconductor-grade sulfuric acid

Formosa Plastics Group has moved deeper into higher-value chemicals by teaming up with Chung Hwa Chemical to establish Formosa Chung Hwa Advanced Chemicals Co. The new venture will have paid-in capital of NT$6 billion, with Chung Hwa Chemical holding 50% and four Formosa affiliates sharing the other 50%. Formosa Plastics will own 20%, while Formosa Petrochemical, Formosa Chemicals & Fibre, and Formosa Biomedical Technology will each take 10% stakes. The first-phase plant is scheduled to begin production in December 2028. According to the source report, the facility will be built in two phases and will mainly produce electronic-grade sulfuric acid used in key semiconductor processes such as wafer cleaning and etching. The report said demand for electronic-grade sulfuric acid in advanced process manufacturing in Taiwan is expected to exceed available supply capacity by 2028 as extreme ultraviolet, or EUV, scaling continues. The venture is aimed at ultra-high-purity semiconductor chemicals including EGSA. The companies said capital will be injected in stages based on actual funding needs of the new entity.