The International Finance Corporation has provided a $125 million loan to OCI TerraSus to develop a semiconductor-grade polysilicon manufacturing plant in Bintulu, Sarawak. The facility, powered by renewable energy, will be Southeast Asia's first ultra-high purity polysilicon plant, supporting Malaysia's semiconductor supply chain ambitions.
The International Finance Corporation has partnered with OCI TerraSus, a subsidiary of Korea's OCI Holdings, to provide an A loan of up to $125 million for the construction of a semiconductor-grade polysilicon manufacturing facility in Bintulu, Sarawak, according to an official announcement. The facility, developed through a joint venture with Japan's Tokuyama Corporation, will be the first of its kind in Southeast Asia and will be powered by clean and renewable energy.
OCI TerraSus is a Malaysian subsidiary of OCI Holdings, a Korean chemical and industrial materials company. The facility will produce ultra-high purity polysilicon, an essential raw material for silicon wafers and semiconductor chips. The project aims to enhance OCI TRS's ESG standards and management systems alongside physical infrastructure development. This development matters for Malaysia's semiconductor industry, which has set ambitions to move up the value chain in advanced manufacturing.
The polysilicon facility addresses a critical upstream segment currently concentrated in a few global suppliers. Sarawak's renewable energy resources provide a competitive advantage for energy-intensive semiconductor materials production. For the global semiconductor supply chain, the facility diversifies geographic concentration of polysilicon production at a time when demand is rising with AI-driven chip growth. Stakeholders including chip manufacturers, equipment suppliers, and local workforce stand to benefit from high-quality job creation.
The project also marks IFC's first investment in Sarawak, reinforcing Malaysia's position in the semiconductor ecosystem.
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