OCI Expands Polysilicon Capacity to Support AI, Solar and Advanced Technology Demand

South Korea’s leading chemical company OCI Holdings is accelerating its polysilicon expansion strategy as demand for high-purity silicon materials rises across solar, semiconductor and emerging technology sectors.

The Seoul-based company announced plans to double its polysilicon production capacity from the current 35,000 tons per year to 70,000 tons by 2029. The expansion represents a major investment aimed at strengthening OCI’s position in the global silicon supply chain, particularly as the U.S. continues to invest heavily in artificial intelligence infrastructure, renewable energy and advanced manufacturing.

The rapid growth of AI data centers is driving higher electricity demand, creating new opportunities for solar power deployment. As solar modules rely heavily on polysilicon as a key raw material, demand for reliable and high-quality silicon supply is expected to continue increasing.

OCI’s Malaysia-based subsidiary, OCI TerraSus, has already secured long-term supply agreements with new U.S. customers for its existing 35,000-ton annual polysilicon capacity, effectively locking in full production. Earlier reports also indicated that OCI TerraSus was in discussions with SpaceX regarding a potential long-term polysilicon supply partnership, highlighting the company’s ambition to become a strategic supplier for high-end silicon applications.

To reduce supply chain risks and adapt to changing global trade policies, OCI has developed a Non-PFE supply chain connecting its Malaysian polysilicon facilities with Vietnam-based wafer producer NeoSilicon Technologies, targeting the U.S. solar market.

The expansion project requires an estimated investment of KRW 1.4 trillion (approximately USD 946 million) and will be carried out in two phases. First, OCI will relocate idle equipment from its Gunsan facility in South Korea to Malaysia, adding 5,000 tons of capacity. The company will then build new production lines to add another 30,000 tons, with construction expected to be completed by the end of 2028 and commercial operation targeted for the first half of 2029.

OCI said further optimization of existing facilities could create an additional 10,000–15,000 tons of annual capacity expansion between 2030 and 2031, although this potential increase is not included in the current investment plan.

Beyond polysilicon, OCI is also upgrading its wafer business in Vietnam, aiming to increase wafer production capacity from 2.7 GW to 11.5 GW by 2029. Meanwhile, OCI Energy is developing a growing portfolio of solar and energy storage projects in Texas, with 29 projects totaling 6.5 GW, including 3.4 GW of solar capacity and 3.1 GW of battery storage.

With new polysilicon and wafer capacity coming online, OCI expects to strengthen global supply stability and support the next phase of growth in solar energy, semiconductors and advanced industries. The expansion could also help ease future supply constraints and bring greater stability to polysilicon prices.