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🇹🇼 Taiwan /Economy & Trade

Old Taiwanese Industries Ride AI Wave to Stock Market Success

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Traditional Taiwanese companies Formosa Plastics and Shin Shin are experiencing stock price surges by entering specialty chemicals and electronic materials sectors.
  • These companies' transformations are seen as a rare "once-in-a-century miracle phenomenon" amid the global AI investment boom.
  • The strategic shift highlights how traditional industries can find new growth by adapting to emerging technological trends and focusing on core competitiveness.

In Taiwan, established traditional companies like Formosa Plastics (TMC) and Shin Shin (Shin Kong Synthetic Fibers) are experiencing remarkable stock market turnarounds. This resurgence is attributed to their strategic pivot into the high-growth sectors of specialty chemicals and electronic-grade materials, sectors increasingly driven by the global artificial intelligence (AI) investment wave.

Financial commentator Hsieh Chin-ho highlighted this transformation, calling it a "once-in-a-century miracle phenomenon." He noted that Formosa Plastics' stock price surged significantly after announcing its entry into the specialty chemicals market. This move not only boosted Formosa Plastics but also positively impacted affiliated companies within the Formosa Plastics Group, collectively increasing their market capitalization substantially in a single week.

Weak horses can also kick a step! The transformation of traditional industries is all between the entrepreneur's thoughts!

— Hsieh Chin-hoCommenting on the turnaround of traditional companies.

Shin Shin has shown even more dramatic performance, with its stock price hitting the daily limit for four consecutive days. This traditional chemical fiber manufacturer, listed for over half a century, is now outperforming its peers like Far Eastern New Century. Shin Shin's success is linked to its investment in high-purity electronic-grade hydrogen peroxide and advanced materials for AI applications, demonstrating how embracing innovation can unlock new market opportunities and revitalize legacy businesses.

The success stories of Formosa Plastics and Shin Shin serve as powerful examples for other traditional industries. Hsieh emphasizes that transformation hinges on the management's willingness to innovate and adapt. By identifying the right market "tracks" and focusing on core competitiveness, these companies are not only surviving but thriving, finding new "blue oceans" in sectors previously dominated by high-tech startups. This shift suggests that even mature industries can harness the momentum of technological revolutions like AI.

Running on the right track is the only way to discover the blue ocean!

— Hsieh Chin-hoExplaining the key to success for traditional industries.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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