The International Finance Corporation (IFC) is considering an A-loan of up to $150 million for Malaysia-based OCI TerraSus Sdn. Bhd. (OCI TRS) to support a major expansion into semiconductor-grade polysilicon, a move that would strengthen Southeast Asia’s role in upstream clean energy and chip materials supply chains.
The proposed facility includes up to $75 million benefiting from credit insurance under IFC’s Managed Co-Lending Portfolio Program (MCPP) Real Sector Unfunded, allowing private insurers to share exposure alongside IFC.
The loan would be fully guaranteed by South Korea-listed parent OCI Holdings, which owns OCI TRS.
OCI TRS operates Southeast Asia’s only solar-grade polysilicon production facility at Samalaju Industrial Park in Malaysia, with an existing capacity of 35,000 tonnes per year used for photovoltaic cells.
The IFC financing would fund capital expenditure for a new 8,000-tonne-per-year semiconductor-grade polysilicon plant to be developed through OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM), a 50–50 joint venture between OCI TRS and Japan’s Tokuyama Corporation.
The new facility will be built within the existing industrial footprint in Bintulu, Sarawak.
Part of the financing scope includes electricity procurement under a power purchase arrangement with Sarawak Energy, reflecting the high energy intensity of polysilicon production and the importance of long-term power cost stability for project viability.
The Samalaju site operates as an integrated chemical and materials complex. In addition to polysilicon production, OCI TRS runs chlor-alkali facilities that produce caustic soda and related chemicals used internally and sold to nearby industrial customers.
The operations involve high-purity processing, extensive recycling of intermediate materials, and closed-loop handling of chemical by-products.
For lenders, the project represents more than a standalone plant.
It is tied to a broader industrial infrastructure system that includes power supply, water sourcing, wastewater treatment, hazardous materials management, and logistics through the nearby Samalaju Industrial Port.
IFC classified the investment as a Category B project under its sustainability framework, indicating manageable but material environmental and social risks typical of large-scale chemical manufacturing.
Due diligence included a site visit in November 2025, consultations with management and workers, and engagement with external stakeholders including industrial park authorities and nearby Indigenous communities located about 15 kilometers from the site.
Key risk areas identified include contractor and migrant labor management, occupational and process safety, hazardous materials handling, wastewater and emissions control, emergency preparedness, and community engagement.
IFC and the company have agreed on an Environmental and Social Action Plan to strengthen management systems, climate-related emergency response, supply chain screening, and worker grievance mechanisms.
As of late 2025, OCI TRS employed more than 1,100 direct workers, alongside a larger contractor workforce supporting ongoing operations and expansion.
If approved, the financing would highlight a growing role for development finance institutions in de-risking strategic industrial capacity linked to the energy transition and semiconductor ecosystems.
Power-intensive materials such as polysilicon are increasingly viewed as critical infrastructure within clean energy value chains.
The use of MCPP credit insurance also reflects IFC’s broader strategy to mobilize private risk capital into long-term industrial projects in emerging markets.
For Southeast Asia, the investment signals a shift toward deeper participation in upstream technology supply chains, supported by industrial clusters with reliable power, land, and environmental oversight—an emerging theme for infrastructure capital across the region.
InfraCapitalAsia.com
