(Note) This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

September 25, 2020
Company name: Tokuyama Corporation
Representative: Hiroshi Yokota,President and Representative Director(Code No. 4043, First Section TSE)
Contact: Taro Kobayashi, General Manager
Corporate Communications & Investor Relations Dept.
TEL: +81-3-5207-2552

Notice Concerning Establishment of Joint Venture (Subsidiary)

Tokuyama Corporation (hereinafter referred to as “the Company” or “Tokuyama”) hereby announces that, ata Board of Directors’ meeting held on September 25, 2020, the decision was taken to establish a joint venture
in Taiwan with Formosa Plastics Corporation for the purpose of manufacturing and selling high-purity
isopropyl alcohol (IPA) for the electronics industry.
1. Purpose of Joint Venture Establishment
Due to the advances made in 5G, IoT, AI and other technologies, the semiconductor market is expected tocontinue expanding over the medium to long term, and accordingly the demand for high-purity IPA isforecasted to gradually increase. In addition, with the progress being made in the miniaturization ofsemiconductor devices, customer demands for higher quality and stable supply are ever increasing.
Manufactured by a unique, direct hydration method and featuring low concentrations of impurities,
Tokuyama high-purity IPA is a cleaning solution used in the semiconductor manufacturing process, and theCompany has been seeking higher purity to meet customer needs.
With the establishment of this joint venture, the Company will build an integrated production system frompropylene as a raw material in Taiwan and, to further expand its high-purity IPA business, establish aproduction and supply system that immediately responds to the needs of its customers in Taiwan.
2. Outline of Joint Venture
(1)

Name

Formosa Tokuyama Advanced Chemicals Co., Ltd.

(2)

Location

Kaohsiung City, Republic of China(3)

Name and Title ofChairman

Jason Lin

Representative

General Manager

Haruyoshi Honda

Business

Production and sale of high-purity IPA

(4)

1

(5)

Capital1,000 million Taiwan dollars(6)

Date of Establishment

October, 2020 (Planed)(7)

Major Shareholder andTokuyama Corporation

50%

Ratio of Shareholding

Formosa Plastics Corporation50%

3. Outline of Joint Venture Partner
(1)

Name

Formosa Plastics Corporation(2)

Location

No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 814, Taiwan(R.O.C)(3)

Name and Title ofChairman Jason Lin

Representative(4)

Business

Production and sales of petrochemical products and chemical products(5)

Capital63,657 million Taiwan dollars(6)

Date of Establishment

November 5, 1954

(7)

Major Shareholders andChang Gung Medical Foundation

9.44%

Ratios of Shareholdings

Formosa Chemicals & Fibre Corp.

7.65%

Credit Suisse AG- Credit Suisse Singapore Branch

6.26%

Nan Ya Plastics Corp.

4.63%

(8)

Relationships between

CapitalTokuyama and the relevant company have nothe Parties

Relationshipsignificant capital relationship.

Personnel

Tokuyama and the relevant company have noRelationshipsignificant personnel relationship.

Transaction

Tokuyama and the relevant company have noRelationshipsignificant transaction relationship.

Status as a

The relevant company does not belong to Tokuyama’s

Related Party

related parties.

4. Timetable(1)

Board of Directors’ resolution date

September 25, 2020

(2)

Joint venture agreement date

September 28, 2020 (Planned)(3)

Business launch date

January 2022 (Planned)

5. Impact on Business Performance
The impact of the establishment of this joint venture on the consolidated full-year earnings forecast for thefiscal year ending March 31, 2021, will be minor, but the Company will promptly give notice if the earnings
forecast is revised.

2