IFC Partners With OCI TerraSus to Support Malaysia’s Semiconductor Supply Chain Expansion
The World Bank Group, through its private-sector arm the International Finance Corporation (IFC), has partnered with OCI TerraSus Sdn Bhd (OCI TRS) to support Malaysia’s growing role in the global semiconductor supply chain. The collaboration includes financing for a new manufacturing facility in Bintulu, Sarawak, aimed at producing ultra-high purity semiconductor-grade polysilicon. According to Bernama, the project is expected to strengthen advanced manufacturing capabilities while contributing to job creation and improved environmental, social and governance (ESG) practices.
Investment to Support Semiconductor Materials Production
Under the agreement, IFC will provide OCI TRS with a loan facility of up to US$125 million (US$1 = RM4.01). The funding will primarily support construction of a state-of-the-art manufacturing plant powered by clean energy to produce ultra-high purity polysilicon used in semiconductor fabrication.
The facility will be developed through a joint venture between OCI TerraSus and Japan’s Tokuyama Corporation. It is expected to be the first manufacturing facility of its kind in Southeast Asia, reinforcing Malaysia’s ambitions to expand higher value-added segments of the semiconductor ecosystem.
The initiative aligns with broader efforts to strengthen the country’s semiconductor capabilities, complementing initiatives highlighted in Malaysia’s expanding semiconductor technologies sector and wider efforts to modernise industrial production.
Strengthening ESG Standards and Corporate Governance
Beyond financing, the collaboration aims to enhance OCI TerraSus’ environmental, social and governance management systems. IFC will support the company in strengthening corporate governance practices, technical capabilities and operational resilience as it scales its role in global semiconductor supply chains.
“As demand grows for semiconductors and artificial intelligence, the importance of high-purity materials will continue to increase,” — Lee Woo Hyun, Chairman, OCI Holdings and OCI TerraSus
The collaboration also reflects Malaysia’s ongoing shift towards advanced manufacturing and digital industry development, similar to developments described in Malaysia’s adoption of Industry 4.0 systems in manufacturing.
Supporting Malaysia’s Move Up the Manufacturing Value Chain
Malaysia has positioned advanced manufacturing as a strategic growth area, particularly in sectors linked to global technology supply chains. Semiconductor-related industries are considered key job creators and an important part of the country’s industrial upgrading strategy.
“Malaysia has significant ambitions to move up the value chain in value-added manufacturing industries, which are major job creators, making them a key area of focus for the group. We are delighted to support the country towards fulfilling these ambitions. We are also encouraged by OCI TerraSus’ commitment to strengthening its ESG standards, and look forward to supporting the company in achieving its commitments,” — Judith Green, Country Manager for Malaysia, World Bank Group
As demand for semiconductor components continues to grow globally, projects that strengthen upstream materials supply may play an increasingly important role in ensuring supply chain resilience while supporting Malaysia’s longer-term industrial policy objectives.
