Sarawak Welcomes USD 435 Million Polysilicon Factory Led by Japan’s Tokuyama and South Korea’s OCI

Aug 2025

Japanese chemical company Tokuyama Corporation and South Korea’s polysilicon producer OCI have commenced construction of a new 10,000-metric-ton (MT) polysilicon plant at the Samalaju Industrial Park in Sarawak, Malaysia. Valued at approximately USD 435 million, the facility will focus on producing and marketing polycrystalline silicon semi-finished products for semiconductor applications.

Built on idle land owned by OCI, it will serve as the first Southeast Asian polysilicon manufacturing base dedicated to the semiconductor sector. Initial operations are expected in the first half of 2027, with full commissioning scheduled for 2029. The project is being developed through the OCI Tokuyama Semiconductor Material (OTSM) joint venture, established by OCI TerraSus, a subsidiary of OCI Holdings, and Tokuyama.

OCIM Sdn Bhd, OCI’s Malaysian unit, already operates a 35,000 MT polysilicon factory at Samalaju, acquired from Tokuyama in 2016, which, together with OCI’s 3,000 MT facility in Gunsan, South Korea, brings the group’s total annual output to 38,000 MT. The new plant is expected to strengthen the company’s ability to meet rising regional demand for semiconductor-grade polysilicon. This expansion is part of Tokuyama’s broader Southeast Asia strategy. In August 2024, the company signed an agreement with Thanh Binh Phu My JSC to build a USD 30 million polysilicon factory at Vietnam’s Phu My 3 Industrial Park in Ba Ria-Vung Tau province. The move reinforces Tokuyama and OCI’s commitment to expanding polysilicon production across the region while supporting the semiconductor supply chain in Asia.

(Sources: PV Magazine; Renewables Now)

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