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Kuala Lumpur: The World Bank Group, through its private sector arm the International Finance Corporation, will provide a US$125 million (about RM502.7 million) loan to support a semiconductor materials project in Sarawak.

According to The Edge, the funding will be channelled to OCI TerraSus Sdn Bhd for the development of a clean energy-powered semiconductor-grade polysilicon manufacturing facility in Bintulu.

The project will be undertaken via a joint venture with Tokuyama Corporation under a new entity, OCI Tokuyama Semiconductor Materials Sdn Bhd.

The plant will produce ultra-high purity polysilicon, a key material used in the manufacturing of silicon wafers and semiconductor chips, supporting growing demand driven by advanced technologies such as artificial intelligence.

It is expected to be built on a 13.4-hectare site at Samalaju Industrial Park with an annual production capacity of 8,000 metric tonnes and is targeted to begin full commercial operations in January 2029.

The IFC said the facility will be powered by renewable energy and is expected to strengthen Malaysia’s position in the global semiconductor supply chain while creating skilled job opportunities.