OCI Holdings secures $125 mil. IFC financing for Malaysian chip expansion

Exterior view of OCI Holdings’ Malaysian subsidiary, OCI TerraSus / Courtesy of OCI Holdings

OCI Holdings' Malaysian unit, OCI TerraSus, has secured $125 million in financing from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, to expand its semiconductor-grade polysilicon production in Sarawak, the company said Monday.

The deal marks the IFC’s first-ever investment in the largest state of Malaysia and will fund the construction and operation of a new facility under OCI Tokuyama Semiconductor Materials (OTSM), a 50-50 joint venture between OCI TerraSus and Japan’s Tokuyama Corp.

Unlike commercial lenders, the IFC requires strict adherence to international environmental, social and governance standards. OCI Holdings said the investment reflects the project’s business viability and the company’s commitment to low-carbon management, human rights and industrial safety.

“Securing this investment as the first recipient in Sarawak after meeting the IFC’s rigorous screening standards is a landmark achievement. This partnership serves as international validation of our semiconductor business’s viability and our ESG execution capabilities,” an OCI official said.

The facility will produce 11-Nine grade, or 99.999999999 percent, ultra-high-purity polysilicon using renewable hydropower. Construction and trial operations are scheduled for completion in 2027, with full-scale production of 8,000 metric tons a year expected by 2029, following customer approvals.

Semiconductor-grade polysilicon is more technically demanding than solar-grade material, limiting production to a handful of global suppliers, including OCI, Germany’s Wacker, U.S.-based Hemlock and Tokuyama. OCI Holdings said the expansion will strengthen the global semiconductor supply chain and create high-quality local jobs.