OCI expands investment in semiconductor materials
to drive growth as a leading advanced chemical materials company
- On May 24th, OCI's Board of Directors approves binding MOU for joint venture with Tokuyama Corporation to produce semiconductor-grade polysilicon
- OCI to establish post-processing facilities for semi-finished polysilicon at Gunsan Plant
OCI, headquartered in Seoul, announced on May 24th that its Board of Directors approved to implement of a Memorandum of Understanding (MOU) to establish a joint venture with Tokuyama Corporation, a prominent Japanese chemical company. The joint venture aims to produce semiconductor-grade polysilicon in Malaysia, and the necessary procedures will soon begin. Tokuyama Corporation, renowned as the world's third-largest producer of semiconductor-grade polysilicon, is a highly esteemed global enterprise known for its exceptional technology and financial resources.
In June, both companies will set to sign a binding MOU, following which they will evaluate the business project and establish a joint venture in the first half of 2024. The joint-venture entity will be responsible for manufacturing semi-finished products of semiconductor-grade polysilicon, with an annual production capacity of 11,000 tons. Clean energy from Samalaju, Malaysia, will be utilized in the production process.
OCI plans to import semi-finished polysilicon products for semiconductors, which will be manufactured by the joint venture. These imported products will undergo post-processing at OCI's Gunsan Plant. Subsequently, the company will sell the finalized products to customers both domestically and internationally.
Presently, the OCI Gunsan Plant has a yearly production capacity of 4,700 tons for finished products. Should the joint venture project move forward, the plant will incorporate post-processing facilities for 5,000 tons of semi-finished products supplied by the joint venture by the end of 2026. OCI anticipates substantial growth in the semiconductor-grade polysilicon business from 2027 onwards, fueled by the establishment of the joint venture and strategic investments.
OCI has revealed its intentions to explore additional domestic investments in the semiconductor-grade polysilicon business alongside the joint venture. The company aims to take proactive measures in response to the increasing demand arising from the global semiconductor market's expansion. Through a series of strategic investments, OCI seeks to enhance its position as a prominent producer of semiconductor materials.
OCI's Vice Chairman, Teak Joung Kim, remarked, "Through the establishment of a joint venture with Tokuyama Corporation for the construction of a semiconductor-grade polysilicon plant in Malaysia, OCI embarks on its initial stride towards becoming a producer of advanced chemical materials, including semiconductors and battery materials, subsequent to the spin-off. Our investments aimed at expanding into the semiconductor and battery materials sector are founded upon the strength of our core business in basic chemical materials."