CPC Corporation, Taiwan, pivots to AI data centers amid petrochemical losses

CPC Corporation, Taiwan, is undergoing a strategic shift to mitigate annual losses of approximately 2 billion TWD in its petrochemical business. Driven by increased capacity from mainland China, the company plans to gradually reduce its petrochemical production and focus on high-growth sectors.

A key part of this transition involves repurposing the decommissioned Toufen plant in Miaoli. The company aims to transform the site into an AI data center (AIDC), leveraging existing infrastructure such as power lines and gas generators. Negotiations are reportedly in the final stages with partners like Xter. Additionally, CPC is seeking to sell or lease idle assets, including a fine chemical plant, to generate liquidity.

To address a significant funding gap and manage approximately 30 billion TWD in bank loans, CPC is divesting stakes in various holdings and exploring the sale of land assets. The company's financial recovery also depends on legal developments regarding the Jinghua City land site, which remains a critical factor for its capital relief efforts.