Shinkong Synthetic Fibers Tightens Inventory Control and Accelerates AI Material Layout Amid US-Iran Tensions

Shinkong Synthetic Fibers (SSF) held its shareholders' meeting today. Chairman Wu Dong-sheng stated that the global economy remains highly uncertain in 2026, particularly with the US-Iran conflict causing raw material price hikes and supply risks. SSF will strictly control inventory while accelerating its mid-to-long-term strategic layout. Chairman Wu noted that after the outbreak of the US-Iran conflict, international oil prices soared, causing raw materials for the chemical fiber industry to spike or face shortages. In response, SSF immediately activated internal risk assessment and response mechanisms, deploying strategies across product shipments, raw material procurement, customer communication, and financial hedging to minimize impact. The company has also diversified its raw material procurement sources to avoid supply chain disruptions. SSF has set three directions for its mid-to-long-term strategy: deepening the circular economy and low-carbon materials, accelerating R&D of cutting-edge materials and high-value products, and implementing AI-driven production. Given the rapid development of AI, demand for high-end engineering plastics with high heat resistance, low dielectric loss, and dimensional stability has surged. SSF plans to leverage its existing technology to prioritize the development and mass production of high-temperature materials, targeting high-value markets such as AI server connectors, automotive electronics, and high-speed communications. Furthermore, SSF has entered the semiconductor specialty materials market. Its subsidiary, Shinsu Advanced, a joint venture with Belgium's Solvay, produces high-purity electronic-grade hydrogen peroxide, which has passed key customer verification. With rising demand, the company is actively expanding capacity. SSF's net profit attributable to the parent company in 2025 was NT$1.922 billion, a 12.7% increase year-on-year, with earnings per share of NT$1.19, the best performance in three years. The shareholders' meeting approved a cash dividend of NT$0.9 per share.