Taiwan’s petrochemical industry is turning toward the United States for alternative feedstocks after Middle Eastern supply disruptions exposed its dependence on the Persian Gulf.
Formosa Petrochemical traditionally imports around two-thirds of its naphtha, much of it from the Middle East. When shipments through the Strait of Hormuz were disrupted, the company was forced to shut one production line, reducing capacity by about 42%.
Taiwanese producers responded by sourcing LPG from the United States, providing an alternative feedstock for producing plastics.
The disruption may accelerate Taiwan’s efforts to diversify its petrochemical supply chain and reduce its vulnerability to future Middle Eastern crises.