Malaysia Begins Construction of $435 Million Polysilicon Plant by Japan’s Tokuyama and Korea’s OCI

Japanese chemical firm Tokuyama Corporation and South Korean polysilicon producer OCI have commenced construction of a 10,000 metric ton polysilicon facility at the Samalaju Industrial Park in Sarawak, located on the island of Borneo, Malaysia.

The new plant is being developed through their joint venture OTSM, which was established with OCI TerraSus. According to Tokuyama, OTSM will oversee the production and sales of polycrystalline silicon semi-finished products specifically intended for semiconductor applications.

The facility involves a capital investment of approximately $435 million.

OCI already has a presence at the Samalaju site through its Malaysian subsidiary OCIM Sdn Bhd (OCIMSB), which operates a 35,000 MT polysilicon plant acquired from Tokuyama in 2016.

Including OCI’s 3,000 MT production facility in Gunsan, South Korea, the company’s total annual polysilicon output now stands at 38,000 MT.

In a separate expansion move, Tokuyama signed a deal in August 2024 with Thanh Binh Phu My JSC to establish a $30 million polysilicon facility at the Phu My 3 Industrial Park in Ba Ria–Vung Tau province, Vietnam, further strengthening its position in the regional semiconductor materials market.