Taiwan has announced plans to significantly boost plastic bag production to address a recent supply shortage, with the Executive Yuan confirming that monthly output will increase by the equivalent of 1.25 billion 600ml bags.
The government has launched a special initiative to stabilize raw material supply by providing ethylene to Formosa Plastics for the production of cost-effective polyethylene. The move comes amid disruptions in global energy markets linked to instability in the Middle East, which has triggered what officials describe as a “plastic bag crisis” in recent weeks.
To support upstream supply, the Cabinet coordinated with state-owned oil supplier CPC Corp, Taiwan to restart its No. 4 naphtha cracker. The facility resumed operations last week, increasing ethylene production capacity. Output of the key raw material is projected to rise from 60,000 tonnes last month to 79,000 tonnes this month, and further to 90,000 tonnes next month, with a potential expansion of up to 30,000 tonnes.
Production of polyethylene, a critical midstream material, is also set to increase from 22,000 tonnes last month to 27,500 tonnes this month, with further growth expected.
Yeh Chun-hsien, Minister Without Portfolio and head of the National Development Council, stated that the government has activated two key stabilization mechanisms to ensure consistent oil and gas supply while maintaining industrial supply chain operations. Current energy inventories exceed statutory requirements, and additional crude oil and naphtha shipments have been secured through July, with rerouted deliveries avoiding the Red Sea.
Liquefied natural gas supplies for the coming months have also been secured, with 15 vessels required for June—11 of which have already been arranged.
Despite global price pressures, domestic fuel prices will remain stable. Planned increases of NT$6.8 per liter for gasoline and NT$8.8 for diesel will be absorbed by CPC under a special price stabilization scheme. As a result, household natural gas, bottled LPG, and electricity tariffs will remain unchanged this month.
The government expects combined ethylene production from CPC and Formosa Plastics to reach 169,000 tonnes by October, sufficient to meet domestic demand. CPC has also committed to supplying 5,000 tonnes of ethylene at stabilized prices to ensure affordable polyethylene production.
In parallel, 20 plastic processing companies have been mobilized to expand production capacity, delivering the targeted increase in plastic bag output. Authorities have also established support mechanisms to assist businesses facing material shortages through dedicated coordination and resource allocation.
Meanwhile, the Food and Drug Administration reported that domestic medical device manufacturers require approximately 1,138 tonnes of plastic raw materials each month. To safeguard supply, the agency has introduced a reporting platform for shortages and is working with the Ministry of Economic Affairs’ Industrial Development Administration to prioritize medical sector needs.
So far, eight pharmaceutical firms and 14 medical device manufacturers have flagged potential shortages. Of these, six pharmaceutical companies and six medical device manufacturers have already been matched with suppliers.
To address rising costs, additional funding will be drawn from the National Health Insurance Reserve Fund, while manufacturers can apply for price adjustments through the NHI Administration. Authorities have also urged healthcare providers to report any suspected price gouging to the Ministry of Justice.