OCI Holdings announced that its Malaysian subsidiary, OCI Terasys, has secured investment from the International Finance Corporation (IFC) for the OTSM semiconductor joint venture project. The investment brings the total project budget to $125 million, equivalent to approximately 190 billion won.

Joint Venture Structure and Funding

The OTSM project represents a joint venture established with a 50% equity split between OCI Terasys and Japanese chemical specialist Tokuyama. The secured funding will be allocated for building a semiconductor-grade polysilicon plant and for operating capital requirements.

This financial milestone establishes the complete funding framework for the semiconductor manufacturing initiative in Malaysia, marking a significant development in the region's technology sector infrastructure.

International Finance Corporation Partnership

The International Finance Corporation, an institution under the World Bank Group, serves as an international financial organization that supports private corporations to promote economic development in developing countries. The IFC's investment decision process involves comprehensive evaluation of multiple factors including a corporation's growth potential, ESG (environmental, social, and governance) management practices, and compliance indicators.

The partnership with IFC represents a notable achievement for OCI Terasys, as the company became the first corporation to attract IFC investment in Sarawak State, Malaysia. This distinction highlights the project's alignment with international development finance standards and criteria.

Strategic Significance and Recognition

An OCI Holdings official characterized the IFC investment as "a highly meaningful achievement that OCI Terasys met IFC's rigorous screening standards and was selected as the first corporation to attract investment in Sarawak State, Malaysia." The official emphasized that the investment validates multiple aspects of the company's operations and strategic direction.

The official further stated that "with this investment, not only the strong business viability of the semiconductor business but also our ESG growth strategy and execution capabilities have been internationally recognized, and we will continue to strengthen sustainable management that meets global standards."

Manufacturing and Operational Focus

The project centers on establishing semiconductor-grade polysilicon manufacturing capabilities in Malaysia. The facility will leverage the joint expertise and resources of both OCI Terasys and Tokuyama, combining their respective strengths in the chemical and semiconductor materials sectors.

The Malaysian subsidiary OCI Terasys will serve as the operational base for this semiconductor manufacturing venture, positioning the company to serve regional and international markets from this strategic location in Southeast Asia.

The investment structure ensures adequate capitalization for both the construction phase of the polysilicon plant and the subsequent operational requirements, providing a comprehensive financial foundation for the project's implementation and ongoing operations.

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