The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, has partnered with OCI TerraSus Sdn. Bhd., a subsidiary of South Korea’s OCI Holdings, to develop first semiconductor-grade polysilicon manufacturing facility of Southeast Asia in Malaysia. The project will be supported by up to $125 million in financing from IFC.
Strategic Investment in Semiconductor Supply Chain
The collaboration aims to strengthen Malaysia’s role in the global semiconductor supply chain while supporting the country’s transition toward high-value manufacturing. The project is also expected to generate skilled employment and enhance OCI TerraSus’s environmental, social, and governance (ESG) standards.
At the core of the partnership is the construction of a clean energy-powered facility in Bintulu, Sarawak. The plant will produce ultra-high-purity semiconductor-grade polysilicon, a critical raw material for silicon wafers and semiconductor chips. The facility is being developed through a joint venture with Japan’s Tokuyama Corporation.
IFC Financing to Enable First-of-its-Kind Facility
IFC will extend an A Loan of up to $125 million to OCI TerraSus, primarily to fund the construction of the advanced manufacturing plant. Once operational, the facility will run on clean and renewable energy, aligning with broader sustainability goals and reducing the carbon footprint of semiconductor production.
The project is positioned as a milestone for Malaysia and Southeast Asia, marking the region’s entry into high-purity polysilicon production for semiconductor applications.
ESG and Corporate Capability Enhancement
Beyond infrastructure development, the partnership is expected to support improvements in OCI TerraSus’s corporate governance, ESG frameworks, and operational capabilities.
“We see this partnership’s benefits extend beyond support for a physical infrastructure,” said Lee Woo Hyun, Chairman of OCI Holdings and OCI TerraSus. “It is a key driver in strengthening our management systems, ESG practices and long-term competitiveness as a global company.”
He added, “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.”
Judith Green, World Bank Group Country Manager for Malaysia, highlighted the project’s significance as IFC’s first investment in Sarawak and its alignment with Malaysia’s economic goals.
“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,” she said.
“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.
The project underscores growing global demand for semiconductor materials driven by advancements in artificial intelligence and digital technologies.
