BASF Lays Groundwork in Taiwan and Nylon While Q3 Report Looms
Published on 10/21/2026 at 06:02 | Editorial boerse-global.de
BASF has signed a memorandum of understanding with Taiwan's Ministry of Economic Affairs to expand its Kuanyin site in Taoyuan, targeting additional capacity for semiconductor materials used in processes below 2 nanometres. The agreement, inked on Tuesday, also covers expanded quality analysis capabilities and a larger innovation centre at the location.
The planned expansion is explicitly geared toward advanced manufacturing processes. By bundling production, testing and development at a single site, BASF is aiming to grow the entire technical infrastructure around its electronics materials business rather than simply adding floor space. Investors should note the procedural status, however: the document is a declaration of intent, not a completed investment, and no additional production capacity is available yet. The announcement describes a planned build-out, not a contribution to earnings already booked.
Nylon venture under review
Separately, BASF and Highsun Holding Group signed a non-binding letter of intent on Monday covering their European PA6 businesses. The two companies are examining a merger of those activities into a joint venture with equal shareholdings. They will also assess whether worldwide extrusion operations outside North America can be folded in — a review, not a completed transaction, and one that should be distinguished from the European core of the proposal.
Should investors sell immediately? Or is it worth buying BASF?
The two announcements touch different parts of BASF and follow different logic. In Taiwan, the focus is on expanding a site; in polyamides, the question is whether to pool operations with a partner. What they share is their provisional character.
Coolant already on the market
One project has moved past the planning stage. On 8 October, BASF launched GLYTHERMIN for data-centre cooling systems, with GLYTHERMIN DC PG25 qualified as an NVIDIA DSX Ready Coolant. Unlike the Taiwan and PA6 initiatives, this is a product already commercialised — a distinction worth keeping in mind when weighing the group's digital-infrastructure exposure.
Bernstein reiterates bullish stance
Bernstein analyst James Hooper confirmed his buy rating on BASF on Tuesday with a price target of 61 euros. The note represented neither a fresh recommendation nor an upgrade of the target.
The next scheduled checkpoint comes on 28 October, when BASF publishes its quarterly statement for the third quarter of 2026 at 7:00 CET, followed by a conference call for analysts and investors. That report will shed light on actual business performance, against which the strategic plans — the Taiwan build-out, the PA6 review and the coolant launch — can be measured. No concrete earnings effect can be derived from the memorandum of understanding alone.
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