Japanese chemical company Tokuyama Corporation and South Korea-based polysilicon producer OCI have begun construction of a 10,000 MT polysilicon factory at the Samalaju Industrial Park in Sarawak, Borneo, Malaysia.

“OTSM, established jointly with OCI TerraSus, will be responsible for the production and sales of polycrystalline silicon semi-finished products for semiconductors,” Tokuyama said in a statement.

The 10,000 MT factory is being built with an investment of around $435 million.

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.

In August 2024, Tokuyama signed an agreement with Thanh Binh Phu My JSC to build a $30 million polysilicon factory at the Phu My 3 Industrial Park in Vietnam's Ba Ria-Vung Tau province.