TAIPEI (Taiwan News) — Formosa Plastics approved a capital increase of NT$448 million (US$14.94 million) on Tuesday for its 50%-owned venture Formosa Daikin, marking a strategic push into specialty chemicals to support Taiwan’s semiconductor sector.

Formosa Plastics acting spokesperson Chien Chia-hung (簡嘉宏) said the expansion aims to meet growing demand from Taiwan’s advanced semiconductor manufacturers, per CNA. Once completed, the new facility will enhance the company’s ability to supply high-purity hydrofluoric acid — a key chemical in chipmaking.

Under pressure from Chinese petrochemical overcapacity, Formosa Plastics has been shifting its focus toward higher-value materials, especially those tied to the global chip supply chain. Chair Kuo Wen-pi (郭文筆) told shareholders in June that producing specialty chemicals locally offers strategic advantages over imports.

Kuo said demand for electronic-grade chemicals is expected to rise as foundries scale up next-generation production. Formosa Daikin’s chip-grade hydrofluoric acid already accounts for over 55% of Taiwan’s domestic market, according to UDN.

Beyond hydrofluoric acid, Formosa Plastics also supplies caustic soda for use in semiconductor wastewater treatment. The company said it plans to leverage this foundation to expand into electronic-grade materials and specialty gases.