Four Formosa Plastics Group companies announced today afternoon their participation in a NT$13 billion capital increase for subsidiary Formosa New Smart Technology, with the four companies investing approximately NT$12.35 billion according to their original shareholding ratios. The capital increase will fund the Changbin Phase 2 expansion to respond to rising global AI data center construction demand driven by rapid AI computing power growth. Formosa New Smart Technology is positioning to enter the AI data center market through its battery technology, system development, and engineering integration capabilities combined with Formosa Plastics Group's industrial resources.
Four Companies Invest NT$12.35 Billion in Capital Increase
According to investment details announced by the four companies, Formosa Petrochemical, Nan Ya Plastics, and Formosa Plastics—each holding 25% stakes in Formosa New Smart Technology—will each invest NT$3.25 billion in the capital increase. Following the capital increase, each company's total investment will reach NT$7.5 billion. Formosa Chemicals, holding a 20% stake, will invest NT$2.6 billion, bringing its total investment to NT$6 billion.
Board Approval Schedule Spans November 5-12
Formosa Petrochemical Vice President Tsai Chien-tang stated that the capital increase has been approved by Formosa Petrochemical's audit committee and board of directors. Formosa Chemicals Senior Manager Liu Chia-ju stated that the case requires board approval tomorrow (November 6). Nan Ya Vice President Peng Fu-jung stated that approval is required at the board meeting next week on November 11. Formosa Plastics Senior Manager Chien Chia-hung stated that the case will be decided at the November 12 board meeting.
Changbin Phase 2 Adds 5GWh Battery Capacity for 2028 Production
Formosa New Smart Technology currently generates annual revenue of approximately NT$6 billion and is working toward an annual revenue target of NT$10 billion. Changbin Phase 2 is planning to add 5GWh (gigawatt-hours) of battery cell capacity, with mass production estimated to begin in Q2 2028.
Formosa New Smart Technology Targets AI Data Center Battery Market
Formosa New Smart Technology CEO Liu Hui-chi stated at Taiwan's International Smart Energy Week this year that the company is focusing on battery applications for AI data centers. Starting from batteries, the company is expanding into AI server room system integration and CSP (cloud service provider) operations management, demonstrating capabilities spanning energy equipment, engineering construction, and operational services for the AI data center business.
Formosa New Smart Technology is assisting group member Nanya Technology with energy storage construction, covering backup power, equipment room construction, and subsequent operations. The company is expected to enter the North American market from 2027.
FAQ
What is the total amount of Formosa Plastics Group's capital increase in Formosa New Smart Technology?
The four Formosa Plastics Group companies announced a total capital increase of NT$13 billion for Formosa New Smart Technology, with the four companies investing approximately NT$12.35 billion according to their original shareholding ratios.
When will Changbin Phase 2 begin mass production?
Changbin Phase 2 is planning to add 5GWh of battery cell capacity, with mass production estimated to begin in Q2 2028.
What is Formosa New Smart Technology's business focus for AI data centers?
Formosa New Smart Technology is focusing on battery applications for AI data centers, expanding from batteries into AI server room system integration and cloud service provider operations management, covering energy equipment, engineering construction, and operational services.
