OCI Holdings announced on Monday that its Malaysian subsidiary, OCI TerraSus, has finalized a $125 million financing agreement with the International Finance Corporation (IFC), a member of the World Bank Group focused on private sector investments.
This significant funding will support the construction and ongoing operation of a state-of-the-art semiconductor materials manufacturing plant in Sarawak. The project is being developed by OCI Tokuyama Semiconductor Materials, a joint venture equally owned by OCI TerraSus and Tokuyama Corporation.
Located in Bintulu, the facility will specialize in producing ultra-high-purity, semiconductor-grade polysilicon, often referred to as “11-nines” polysilicon due to its exceptional purity level of 99.999999999%. The production process will leverage renewable hydropower resources. The plant is projected to achieve full-scale production capacity of 8,000 metric tons per year by 2029, following successful completion of customer qualification processes.
Semiconductor-grade polysilicon is a critical upstream material for advanced chip manufacturing and presents significantly higher technical hurdles compared to solar-grade polysilicon. OCI emphasizes that this strategic investment will contribute to strengthening global semiconductor supply chains and generate high-quality employment opportunities within the region.
The IFC’s investment also mandates adherence to rigorous global standards concerning carbon management, human rights, and industrial health and safety throughout the loan’s duration, ensuring responsible and sustainable operations.
“Securing this investment after successfully navigating the IFC’s stringent screening process represents a significant milestone,” stated an OCI official. “This achievement underscores both the competitiveness of our semiconductor business and our strong commitment to ESG principles.”
The company further stated its dedication to aligning its operational practices with global sustainability benchmarks as it expands its presence in the high-value semiconductor materials market.
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