OCI, Semiconductor Material Investment... Leap to Advanced Chemical Material Company

OCI has declared its leap into an advanced chemical materials company by entering the semiconductor polysilicon business.

On the 24th, OCI's board of directors meeting held at its headquarters in Jung-gu, Seoul, approved the agenda to sign a memorandum of understanding (MOU) for establishing a semiconductor polysilicon joint venture (JV) in Malaysia with the Japanese chemical specialist company Tokuyama. Tokuyama is the world's third-largest producer of semiconductor polysilicon.

Kim Taek-jung, Vice Chairman of OCI

The two companies plan to sign a binding MOU in June and, after business review, establish the joint venture in the first half of 2024. The joint venture will produce approximately 11,000 tons per year of semiconductor polysilicon intermediate products using eco-friendly power in the Samalaju region of Malaysia.

OCI will import the semiconductor polysilicon intermediate products produced by the joint venture, perform post-processing at its Gunsan plant, and sell finished products to domestic and international customers.

OCI's Gunsan plant currently has a production capacity of 4,700 tons per year based on finished product output. If the joint venture proceeds, facilities to post-process 5,000 tons of intermediate products produced by the joint venture are expected to be added by the end of 2026.

Through the establishment and investment in the joint venture, OCI expects the semiconductor polysilicon business to grow significantly from 2027. OCI is also actively considering additional investments to expand the domestic semiconductor polysilicon business.

Kim Taek-jung, Vice Chairman of OCI, stated, "The construction of the semiconductor polysilicon plant in Malaysia is the first step for OCI to leap into an advanced chemical materials company specializing in semiconductors and battery materials after the spin-off. Based on a stable basic chemical materials business, we will actively pursue investments to expand into semiconductor materials and secondary battery materials companies."