The COVID-19 epidemic has encouraged the vigorous development of contactless consumption, which is why market optimism for innovative applications such as 5G, automation, remote video, cloud computing, etc. have driven the growth of demands for medium and high-end electronic plates. Nan Ya Plastics has further intensified its investment with its new layout project in Taiwan including the Hsing Kang plant to produce LFT long fiber pellets and fiberglass cloth, building material tapes, and American soft tapes in the mainland plants for PCBs. Overall, the total investments at home and abroad in the past two years has exceeded NT$70 billion and has reached an amount of NT$70.35 billion. Given such investment efforts, the contribution of the output value should reach NT$53.2 billion. Among them, the high-value investments in Taiwan have exceeded NT$12.5 billion, with the contributions of the annual output value reaching over NT$11.4 billion.

 

        The epidemic has also encouraged the high demands for electronic, medical, and other niche products. As such, subsidiary plants for DRAM, electronic materials, and others that fall under Nan Ya should have benefited favorably from these outcomes. Furthermore, high-value and electronic material investment projects that have been set up on both sides of the Strait will be completed and placed into production consecutively in 2020 and 2021. Among them, high-value PVC tape plants at Nantong in China, as well as the completion of new the EG plant in the United States, should render the contributions of the annual output value reaching to approximately NT$23.4 billion.

 

        The Formosa Plastics Group considers that the normalization of the China-US struggles and the impact of COVID-19 may exercise protectionist trends in various countries and highlight the needs for the diversified layout of corporate supply chains. Also, the changes in life and economic activities involved in the long-term epidemic prevention operations have resulted in the direction and approach for enterprises to adjust their operation niche and upgrade their layout in the future.

 

        To achieve this, Taiwanese enterprises based on export sales as its core of survival need to strengthen their work in markets with vast domestic demands since it drives momentum. Therefore, when governments of various countries worldwide promote a series of economic stimulus policies upon its domestic demands, Taiwanese enterprises must strive to cope with the momentum to alleviate the challenges of slowing operations. Under this premise, China and the United States will remain the important focuses because of their vast domestic demands, as well as their flexible extension to the ASEAN, Europe, and Central and South American markets.

 

        The National Development and Reform Commission (NDRC) of the mainland has distinctly proposed the scope for new infrastructure. In the future, the momentum of development in the mainland will be driven by technological innovation, based on information network, and the State should provide such an infrastructure system that produces digital transformation, smart upgrades, and integrated innovation in response to the demands for high-quality developments.

 

        Market considerations show that "new infrastructure" is expected to be guiding the strong upsurge of the digital economy in the mainland and promotes the growth of data center construction, which will also help to generate the demands for PCB, DRAM, copper foil, and other electronic materials. As for the additional needs including upgrades in applications such as electric vehicles and medical biotechnology, they should also maintain steady growth. (News source: Commercial Times)