Taipei, Aug. 12 (CNA) Formosa Plastics Corp. announced Wednesday that it is partnering with Japanese chemical company Daicel Corp. to establish a 50-50 joint venture to produce electronic-grade photoresist thinner, as demand for semiconductor materials grows amid the artificial intelligence (AI) boom. The plant will be built at Formosa Plastics' facility in Kaohsiung's Renwu District. The joint venture will leverage Formosa Plastics' resources, including materials procurement, land and public facilities, to establish a local supply system, the company said. According to an internal investment evaluation report, electronic-grade photoresist thinner is mainly used in advanced semiconductor manufacturing processes. Taiwan's supply of the chemical totaled about 100,000 metric tons in 2025, while domestic demand reached 113,000 metric tons.