The World Bank Group’s private-sector arm, the International Finance Corporation (IFC), is partnering with OCI TerraSus Sdn. Bhd., a subsidiary of South Korea’s OCI Holdings, to build Southeast Asia’s first semiconductor-grade polysilicon plant in Malaysia, backed by $125 million in IFC funding.
The duo said in a statement on Monday that the partnership aims to advance Malaysia’s participation in the global semiconductor supply chain and create jobs in the country, and drive enhancements in OCI TerraSus’s environmental, social, and governance (ESG) standards and management systems.
Central to this collaboration is the development of a clean energy-powered manufacturing facility for ultra-high purity semiconductor-grade polysilicon in Bintulu, Sarawak, through a joint venture with Japan’s Tokuyama Corporation.
IFC will provide OCI TRS with an A Loan of up to $125 million, which will primarily be used to construct the state-of-the-art manufacturing facility, the first-of-its-kind in Southeast Asia.
Once completed, the facility will be powered by clean and renewable energy and will produce essential raw materials for silicon wafers and semiconductor chips, creating high-quality jobs.
This facility will become a major milestone for both Malaysia and the broader region’s participation in the global semiconductor supply chain.
Through this partnership with IFC and expansion in the global semiconductor supply chain, OCI TRS targets active enhancements to its corporate governance and management systems, ESG capabilities, technical advancements, competitiveness and long-term resilience.
“We see this partnership’s benefits extend beyond support for a physical infrastructure,
“It is a key driver in strengthening our management systems, ESG practices and long-term competitiveness as a global company,” said Lee Woo Hyun, Chairman of OCI Holdings and OCI TerraSus.
“As demand grows for semiconductors and artificial intelligence, the importance of high-purity materials will continue to increase,
“This cooperation with IFC is a recognition of our ESG enhancements. It reinforces our confidence in Sarawak and Malaysia as strategic partners in the global semiconductor value chain,” he added.
Meanwhile, Judith Green, World Bank Group Country Manager for Malaysia, said this landmark development marks IFC’s first project in Sarawak.
“Malaysia has significant ambitions to move up the value chain in value-added manufacturing industries, which are significant creators of jobs, making them a key area of focus for the World Bank Group, and we are delighted to support the country towards fulfilling these ambitions,
“We are also encouraged by OCI TerraSus’s commitment to strengthening its environmental, social and governance standards, and look forward to supporting the company in achieving its commitments,” she added.
IFC provides $70M financing to Malaysia’s XSD to boost environmentally responsible paper production