The International Finance Corporation (IFC) is loaning up to $125 million for a semiconductor-grade polysilicon manufacturing facility in Malaysia.

The loan is granted to OCI TerraSus Sdn. Bhd., a subsidiary of Korean polysilicon producer OCI, for its polysilicon facility under development through a joint venture with Japanese chemical company Tokuyama Corporation.

Construction of the facility, located within the Samalaju Industrial Park in Sarawak, Borneo, began last July. Previous reports place the facility's planned capacity at 10,000 MT, with total investment expected to reach $435 million.

Billed as the first of its kind in Southeast Asia, the facility will be powered by renewable energy and produce raw materials for silicon wafers and semiconductor chips. “As demand grows for semiconductors and artificial intelligence, the importance of high-purity materials will continue to increase,” commented OCI TerraSus chairman Lee Woo Hyun.

Last August, IFC loaned $250 million to a 100,000 MT polysilicon manufacturing facility in Oman. The project reached financial close in January, allowing for production to begin during the first quarter of this year.