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OCI Holdings announced today that its Malaysian subsidiary, OCI TerraSus, has successfully closed a $125 million financing agreement with the International Finance Corporation (IFC), the private sector arm of the World Bank Group. 
Thise investment marks a historic milestone as the IFC’s first-ever project in Sarawak. The capital will fund the construction and operation of a new state-of-art manufacturing facility under OCI Tokuyama Semiconductor Materials (OTSM), a 50:50 joint venture between OCI TerraSus and Japan’s Tokuyama Corporation.

The IFC’s decision to partner with OCI TerraSus follows a comprehensive evaluation of the project’s business viability and commitment to environmental, social, and governance (ESG) standards. Unlike profit-oriented private lenders, the IFC’s involvement requires the company to adhere to strict international benchmarks regarding low-carbon management, human rights, and industrial health and safety throughout the duration of the loan.

“Securing this investment as the first recipient in Sarawak after meeting the IFC’s rigorous screening standards is a landmark achievement,” said an official from OCI Holdings. “This partnership serves as international validation of our semiconductor business’s viability and our ESG execution capabilities. Moving forward, we remain committed to strengthening our sustainable management practices in alignment with global benchmarks.”

The OTSM facility, located in Bintulu, Sarawak, will produce 11-Nine grade (99.999999999%) ultra-high purity semiconductor-grade polysilicon using clean, renewable hydropower. Construction and trial operations are slated for completion in 2027. Following the Process Change Notification (PCN) and customer approval process, the facility targets full-scale commercial production of 8,000 metric tons per year by 2029.

Semiconductor-grade polysilicon requires significantly higher technical expertise than solar-grade materials, resulting in high barriers to entry. The global market is currently served by a select group of industry leaders including OCI, Germany’s Wacker, the U.S.-based Hemlock, and Japan’s Tokuyama. This strategic expansion is expected to enhance the resilience of the global semiconductor supply chain while creating high-quality jobs in the region.