Formosa's operations have been significantly influenced by Taiwanese politics and cross-strait relations with China. Its founder, Wang, was considered a moderate liberalizer with close ties to Taiwan's democratic party. However, he also sought to expand into the Chinese mainland during his lifetime, which often caused conflicts between Taiwanese and Chinese administrations (Lin 2016, 81).
Wang's plans to build a large petrochemical complex in Taiwan were initially halted in 1973 by the authoritarian Kuomintang (KMT) government. However, following the lifting of martial law in the mid-1980s, Formosa attempted to build the complex in the scenic Yilan County (Ho 2014). Unfortunately, rising concerns over petrochemical development and pollution led to mass protests by local residents and fisher people, which became a turning point for Taiwan's democracy movement (Ho 2014).
In the face of this opposition, Wang arranged secret trips to mainland China and announced that the plant would be built on the island of Haitsang in Xiamen province. However, due to economic sanctions between China and Taiwan and pressure from the nationalist KMT government, the construction of the vast petrochemical complex ultimately took place in the rural and impoverished Yunlin County in Central Taiwan (Lin 2016, 82).
Overall, Formosa's history reflects the complex interactions between Taiwanese politics, cross-strait relations with China, environmental concerns, and grassroots activism. These dynamics have played a significant role in shaping the company's operations and impact on the communities in which it operates.
As of today, Formosa Plastics' Sixth Naphtha Cracker Complex (SNCC) has become the main source of revenue in Yunlin County, generating about 90% of the local economy. Although the county has long been known as the agricultural hub of Taiwan, renowned for its fertile farmland and abundant fishing resources, it has also been plagued by ongoing conflicts with polluting industries. In 2010, a series of accidents and explosions at the Formosa complex resulted in significant investments in local schools, waste removal, and public infrastructure.