Japanese chemical company Tokuyama Corporation and South Korea-based polysilicon producer OCI have signed a memorandum of understanding for the construction of a 10,000 MT polysilicon factory at an unspecified location in Malaysia.

“In light of expansion in the semiconductor market and subsequent forecast increase in demand for polycrystalline silicon, Tokuyama is looking to explore possible collaboration with OCI to build a production and supply facilities for semiconductor-grade polycrystalline silicon using clean energy, and promote accelerated business expansion in the electronics field while controlling increases in CO2 emissions,” Tokuyama said in a statement released, without providing further details. “Each company plans to conduct final process and sales as is currently the case.”

OCIM Sdn Bhd (OCIMSB), the Malaysian unit of OCI, is currently operating a 35.000 MT polysilicon factory in the Samalaju Industrial Park in Sarawak, Malaysia, which it bought from Tokuyama in 2016.

With this factory, the group's total annual polysilicon output – including its 3,000-MT factory in Gunsan, South Korea – currently amounts to 38,000 MT.