News / Taiwan / cnyes
Formosa Plastics and Nan Ya Eye Q4 Growth Driven by Seasonal Demand and AI Materials
Process Industries · Chemicals: Major Diversified · cnyes · 2026-09-08
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Formosa Plastics and Nan Ya Plastics project a stronger fourth quarter, citing seasonal petrochemical demand and surging AI-driven electronic material orders.
What Happened
Petrochemical Market Outlook: Formosa Plastics expects a rebound in the fourth quarter as the industry enters the traditional 'Golden September and Silver October' peak season. The company plans to increase its operating rate from 65% in Q3 to 75% in Q4 to capitalize on rising demand for ethylene and propylene.
AI Material Growth: Nan Ya Plastics reports that its electronic materials division is entering a growth phase, fueled by the rapid expansion of AI hardware. With production lines nearing full capacity, the company is focusing on meeting the upgrade requirements for next-generation electronic devices.
Capacity Expansion: To capture market opportunities, Nan Ya is implementing short-term capacity enhancements, including process optimization for copper-clad laminates and the addition of glass fiber fabric looms. These initiatives are expected to begin contributing to revenue starting in the fourth quarter.
Earnings Support: While petrochemical operations faced headwinds from oil price volatility in Q3, both Formosa Plastics and Formosa Chemicals & Fibre anticipate support from dividend income and equity-method investments. Management remains optimistic that high oil prices will continue to bolster product pricing trends.