The petrochemical industry has been stuck in an intensely competitive red ocean market. The Chinese government has begun promoting measures to curb excessive internal competition, and the cycle of low-price competition is expected to ease in 2026. Formosa Chemicals & Fibre Corporation (FCFC) launched a streamlining plan in the second half of 2025 and is actively shifting toward the compound plastics market. To enter higher-end markets, FCFC plans to complete 5N hydrogen purification equipment by 2027 to secure a foothold in the electronics industry supply chain, while continuing research and development in silicon carbide to align with advanced chip thermal management technologies.