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UPI
17-07-2025
- Business
- UPI
Korea's OCI, Japan's Tokuyama build $435M polysilicon Malaysian factory
South Korean chemical giant OCI Holdings said Thursday that its subsidiary OCI TerraSus and Japan's Tokuyama would invest $435 million to build a semiconductor-grade polysilicon factory in Malaysia. Photo courtesy of OCI Holdings SEOUL, July 17 (UPI) -- South Korean chemical giant OCI Holdings said Thursday that its subsidiary OCI TerraSus and Japan's Tokuyama would invest $435 million to build a semiconductor-grade polysilicon factory in Malaysia. To that end, the two East Asian corporations set up a joint venture, named OCI Tokuyama Semiconductor Materials, or OSTM, which broke ground on a 32.7-acre site in Sarawak, East Malaysia, on Wednesday. Commercial operation is scheduled to start in 2029 with an annual capacity of 8,000 metric tons. TerraSus and Tokuyama will each hold a 50% stake in OSTM, which recently signed a 10-year power purchase agreement with a local energy company. Made from multiple small silicon crystals, polysilicon is widely used for such high-tech products as solar panels, flat-panel displays, automotive electronics, aerospace sensors and photonic devices. For semiconductors, an ultra-pure form of polysilicon is necessary, as even a very small amount of impurities can cause malfunctions. One of the most common purity descriptors for semiconductor-grade polysilicon is 9N, meaning 99.9999999% pure silicon. OCI said that the new Malaysian factory would undergo more extensive purification to achieve a purity level of 11N. "The semiconductor-grade polysilicon to be produced by OTSM is already drawing strong interest from major clients in Korea, Japan, and Taiwan," OCI Holdings Chairman Lee Woo-hyun said in a statement. "Working closely with Tokuyama and the Sarawak state, OCI Holdings will proactively respond to rising global semiconductor demand and continue strengthening our competitiveness in the semiconductor market," he added. OCI currently manufactures about 4,700 metric tons of semiconductor-grade polysilicon at its Korean plant. OCI and Tokuyama are major players in the sector, together with Wacker of Germany and Hemlock of the United States. According to consultancy Verified Market Reports, the semiconductor-grade polysilicon market was valued at $10.5 billion last year, and the size is projected to nearly double to $20.3 billion by 2023, with an annual growth rate of over 8%.
Borneo Post
16-07-2025
- Business
- Borneo Post
OTSM launches RM2 bln polysilicon plant construction in Bintulu, eyes 2029 operations
Abang Johari (centre) and other dignitaries officiate the groundbreaking ceremony for the OTSM plant. SAMALAJU (July 16): OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM) has officially launched the construction of its RM2 billion semiconductor-grade polysilicon plant at the Samalaju Industrial Park, marking a major milestone in Sarawak's industrialisation push. The facility, spanning 13.7 hectares, will have an annual production capacity of 8,000 metric tonnes of high-purity polysilicon for the semiconductor industry, targeting export markets in South Korea, Japan, and Taiwan. Operations are expected to commence in 2029. Construction is set to begin in the third quarter of this year, with mechanical completion projected for the first quarter of 2027. OTSM is a 50:50 joint venture between South Korea's OCI TerraSus Sdn Bhd, a wholly owned subsidiary of OCI Holdings, and Japan's Tokuyama Corporation. The project is expected to create around 200 high-value jobs, contributing to Sarawak's economic growth and the development of its technical workforce. This marks OCI TerraSus' second major investment in Sarawak, following the launch of its joint venture with Kumho P&B Chemicals – OCI Kumho – to produce epichlorohydrin (ECH), a key component in epoxy resins and water treatment chemicals. During the groundbreaking ceremony, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg witnessed the signing of a 10-year Power Purchase Agreement (PPA) between OCI TerraSus and Syarikat Sesco Berhad, the operations and retail arm of Sarawak Energy. Under the agreement, the new plant will receive 80 megawatts of power from Sarawak Energy for a 10-year period starting in 2029. OCI Holdings and OCI TerraSus Chairman Lee WooHyun said the joint venture between OCI TerraSus and Tokuyama was especially meaningful, bringing together industrial powerhouses from Korea and Japan in a rare international collaboration. 'It is a powerful reflection of our strong confidence in Sarawak as a strategic investment destination. 'We believe this plant is more than just a physical structure, it is a symbol of what can be achieved when vision, values, and partnerships align. 'It stands as a model for innovation, sustainability, and meaningful local impact,' he said. Lee said the investment also reflects confidence in Sarawak's leadership, stability, and long-term vision under the Post Covid-19 Development Strategy 2030. 'We are confident that our OTSM plant will play a pivotal role in achieving this vision by creating high-quality jobs and transferring global best practices. 'We are grateful to the Sarawak Government and Sarawak Energy Berhad for creating an ecosystem that welcomes responsible industrial growth. 'Their strategic policies and renewable energy infrastructure are key enablers of this international partnership,' he said. He also emphasised the importance of developing a skilled local workforce, highlighting institutions such as Centexs and the Sarawak Skills Development Centre as key partners. 'OCI TerraSus is proud to deepen our roots in Sarawak. This is not just an investment in infrastructure, it is an investment in people, in innovation, and in a shared future built on sustainability and trust,' Lee added. In a recorded message, Tokuyama Corporation President Hiroshi Yokota said the project would further strengthen Sarawak's role in the global semiconductor supply chain. 'With the seasoned technical expertise and experience of OCI and Tokuyama, along with the support of the Sarawak state government, the region's talented workforce, and competitive energy source, we will be able to produce high-quality products consistently,' he said. lead OTSM polysilicon plant Samalaju Semiconductor
Korea Herald
23-04-2025
- Business
- Korea Herald
With new US duties on solar imports, Hanwha, OCI eye bigger market share
Korean energy companies, namely Hanwha Qcells and OCI Holdings, are expected to benefit from the United States' decision to impose tariffs of up to 3,500 percent on solar energy imports from Southeast Asia. Earlier this week, the US Department of Commerce released the final tariff amounts planned for solar cells from Cambodia, Malaysia, Thailand and Vietnam. The antidumping and countervailing duties seek to protect American solar panel manufacturing. The decision came after the American Alliance for Solar Manufacturing Trade Committee, which includes Hanwha Qcells, a solar energy unit under Korea's Hanwha Solution, Arizona-based First Solar, and other smaller energy companies, filed a petition in April last year, prompting the US authorities to begin the investigation. The group claimed that Chinese companies were producing solar products in Southeast Asia to avoid paying tariffs on their exports, and were subsidized by the governments of the four aforementioned countries. These products would then be "dumped" into the US market at low prices that other solar panel manufacturers could not compete with. As the announcement of the tariffs on Cambodia, Malaysia, Thailand and Vietnam puts pressure on China's major solar panel producers, the US solar panel supply chain will be rearranged with Korean companies becoming key players, Kang Dong-jin, an analyst at Hyundai Motor Securities, said in a report on Wednesday. 'The antidumping and countervailing duties will be added to (the US') reciprocal tariffs and (the four countries) will weaken in terms of their competitiveness in American exports,' said Kang. 'Aside from these four countries, other nations will also find it difficult to export solar cells and modules to the US.' The analyst selected Hanwha Solution as the most preferred stock in the solar energy industry as the Korean company is setting up what it calls 'Solar Hub,' a 3 trillion won ($2.1 billion) investment to establish a complete solar panel production chain in the state of Georgia. Once the Solar Hub project is completed by year-end, Hanwha will secure an annual production capacity of 8.4 gigawatts and ramp up its US production portion to 70 percent. Kang also pinpointed OCI Holdings as a stock to keep an eye on. The Korean company is investing $265 million to build solar cell production plant in Texas. OCI Holdings plans to begin commercial production of 1 GW solar cells in the first half of next year and gradually increase the capacity later to eventually reach 2 GW. 'Hanwha Qcells had been suffering due to dumped and subsidized solar panel imports from Southeast Asian countries despite investing heavily in its US production,' said an official working in the solar energy sector. 'The tariffs will give the Korean companies fair competition in the US market.' The tariffs on the Southeast Asian countries will go into effect after and if the US International Trade Commission makes a final ruling by June 2 that the American solar panel industry was harmed due to the imports from those nations.
Korea Herald
20-03-2025
- Business
- Korea Herald
OCI Holdings to invest $265m in new Texas production plant
OCI Holdings, a South Korean chemical and renewable energy company, announced Thursday that it will build an independent solar cell production plant at its US subsidiary, Mission Solar Energy, in Texas. The $265 million facility is set to begin commercial production of 1 gigawatt cells in early 2026, with plans to expand to 2GW by the end of the year. The initiative aims to strengthen the company's competitiveness in the US market, as US tariff policies against China have raised market uncertainties. The project will establish a fully independent supply chain using OCI TerraSus polysilicon, which is produced in Malaysia with eco-friendly hydropower and complies with RE100 standards and the Uyghur Forced Labor Prevention Act. With the US facing a 90 percent solar cell supply shortage, OCI's production is expected to meet strong market demand. The facility will also benefit from Inflation Reduction Act incentives, including a $0.04 per watt Advanced Manufacturing Production Credit and a 10 percent Investment Tax Credit for projects using US-made components. 'This marks the beginning of US-produced solar cells made with OCI TerraSus polysilicon,' said Lee Woo-hyun, chairman of OCI Holdings. 'This project will further strengthen our US solar value chain.'
Korea Herald
24-02-2025
- Business
- Korea Herald
OCI Holdings partners with Arava Power to build 260MW solar farm in Texas
US Inflation Reduction Act, energy community bonus expected to return up to 40 percent of investment to involved companies OCI Holdings said Monday that its United States subsidiary OCI Energy has teamed up with Arava Power, an Israeli solar energy firm, to build a 260 megawatt solar power plant in Wharton County, Texas. According to the announcement, each side will contribute 50 percent into the project named Sun Roper, which is expected to begin construction later this year and be complete by the end of next year. The amount of the investment was not disclosed. The Sun Roper project will cover an area of about 6.93 million square meters and produce enough electricity to power approximately 60,000 households per day. OCI Holdings explained that the Sun Roper project is estimated to result in high profitability as it can receive up to 40 percent of its investment back. The US government's Inflation Reduction Act supports investment tax credits of about 30 percent with an added 10 percent expected from the energy community bonus. The Sun Roper project marks the latest collaboration between OCI Energy and Arava Power as they continue to build on a partnership that began when the former sold project Sun Ray, a 200 MW solar farm in Uvalde County, Texas, to the latter in 2021. 'OCI Energy has established itself as the leading solar power developer in Texas, currently holding a 15 percent market share,' said Lee Woo-hyun, chairman of OCI Holdings. 'This year, we plan to expand our solar business beyond Texas to create new revenue streams." OCI Energy has continued to invest in the North American utility-scale solar and energy storage system markets since 2011. The Korean energy company currently operates over 10 solar power and ESS project pipelines, which totals about 5.2 gigawatt in energy capacity.
