New Fourth Naphtha Cracker Targets Downstream 5G Medical and Semiconductor Industries, Supplying the Southern Tech Giants
CPC's New Fourth Cracker aims to ensure stable supply chains for high-tech industries like semiconductors and 5G materials, timing its launch strategically amid global petrochemical market shifts.
📋 Article Processing Timeline
- 📰 Published: April 19, 2026 at 11:20
- 🔍 Collected: April 19, 2026 at 12:00 (40 min after Published)
- 🤖 AI Analyzed: April 19, 2026 at 12:11 (11 min after Collected)
According to CPC statistics on the ethylene demand of Pan-CPC system operators over the past 10 years, after peaking at 1.55 million tons in 2018, demand remained at 1.12 million metric tons in 2024 despite economic downturns, highlighting rigid downstream demand. In the long term, Taiwan's annual ethylene imports range from 300,000 to 500,000 tons.
A closer look reveals that upstream petrochemical raw materials produced by CPC, including six major products (ethylene, propylene, butadiene, benzene, toluene, and xylene), have extensive downstream market applications. Everything from drones, optoelectronics, medical materials, offshore wind turbine blades, lithium battery copper foil, to semiconductor chemicals requires petrochemical products. In other words, apart from ordinary daily necessities like plastic bags, it also encompasses numerous high-value products.
The output value of the domestic petrochemical and related industries is approximately NT$4 trillion, accounting for about 20% of the overall manufacturing output. CPC has conducted multiple surveys with downstream operators. Considering their expansion needs for industrial transformation, CPC carefully evaluated and planned the New Fourth Cracker with an annual capacity of 1 million tons. Recently, it reached a preliminary carbon reduction consensus with the Kaohsiung City Government. If advanced smoothly, this will help alleviate the domestic raw material shortage and reduce the risk of supply chain disruptions for downstream industries.
Looking at the current international situation, driven by global climate change factors, industries are pursuing low-carbon products. Consequently, countries are gradually shutting down low-yield crackers while simultaneously building large-capacity ones. Once the New Fourth Cracker is completed, its capacity will jump from 350,000 tons to 1 million tons, offering better economies of scale, energy efficiency, and pollution emission intensity.
Regarding concerns over petrochemical overcapacity, industry insiders state that China is expected to begin carbon reduction after reaching its carbon peak by 2030. It is estimated that no new factories will be approved after 2028. In fact, China is actively phasing out highly energy-intensive factories. Therefore, the timeline for launching the New Fourth Cracker is expected to align with the global petrochemical recovery. Forecasts from S&P Global also indicate that the petrochemical market will gradually digest excess capacity starting in 2029.
CPC stated that while the New Fourth Cracker project expands capacity, it will integrate new feedstocks, technologies, and the energy resources of the existing Linyuan Plant, ensuring that overall carbon emissions still decrease, thereby meeting the carbon reduction targets and pathways mandated by the Kaohsiung City Government. The specific reduction methods and their effectiveness await design and verification, and must pass the environmental impact assessment before being finalized. CPC will carry out this work with the assistance of professional consulting firms, expecting to complete it by the end of 2026. (Editor: Pan Yi-ching) 1150419
A closer look reveals that upstream petrochemical raw materials produced by CPC, including six major products (ethylene, propylene, butadiene, benzene, toluene, and xylene), have extensive downstream market applications. Everything from drones, optoelectronics, medical materials, offshore wind turbine blades, lithium battery copper foil, to semiconductor chemicals requires petrochemical products. In other words, apart from ordinary daily necessities like plastic bags, it also encompasses numerous high-value products.
The output value of the domestic petrochemical and related industries is approximately NT$4 trillion, accounting for about 20% of the overall manufacturing output. CPC has conducted multiple surveys with downstream operators. Considering their expansion needs for industrial transformation, CPC carefully evaluated and planned the New Fourth Cracker with an annual capacity of 1 million tons. Recently, it reached a preliminary carbon reduction consensus with the Kaohsiung City Government. If advanced smoothly, this will help alleviate the domestic raw material shortage and reduce the risk of supply chain disruptions for downstream industries.
Looking at the current international situation, driven by global climate change factors, industries are pursuing low-carbon products. Consequently, countries are gradually shutting down low-yield crackers while simultaneously building large-capacity ones. Once the New Fourth Cracker is completed, its capacity will jump from 350,000 tons to 1 million tons, offering better economies of scale, energy efficiency, and pollution emission intensity.
Regarding concerns over petrochemical overcapacity, industry insiders state that China is expected to begin carbon reduction after reaching its carbon peak by 2030. It is estimated that no new factories will be approved after 2028. In fact, China is actively phasing out highly energy-intensive factories. Therefore, the timeline for launching the New Fourth Cracker is expected to align with the global petrochemical recovery. Forecasts from S&P Global also indicate that the petrochemical market will gradually digest excess capacity starting in 2029.
CPC stated that while the New Fourth Cracker project expands capacity, it will integrate new feedstocks, technologies, and the energy resources of the existing Linyuan Plant, ensuring that overall carbon emissions still decrease, thereby meeting the carbon reduction targets and pathways mandated by the Kaohsiung City Government. The specific reduction methods and their effectiveness await design and verification, and must pass the environmental impact assessment before being finalized. CPC will carry out this work with the assistance of professional consulting firms, expecting to complete it by the end of 2026. (Editor: Pan Yi-ching) 1150419