August 11, 2009
Tokuyama Corporation
Tokuyama Corporation Announces Decision to Build Polycrystalline Silicon
Factory in Malaysia

Investment of Approx. ¥65 Billion; Factory to Mass-Produce Polycrystalline Silicon
for Solar Cells

Tokuyama Corporation (hereinafter referred to as “Tokuyama” or “the Company”) has
decided to build a new factory in Sarawak, Malaysia, to manufacture polycrystalline silicon
for solar cells.
The new factory will be constructed at the Samalaju Industrial Park in Sarawak, Malaysia.
Construction of the new factory is scheduled to commence early in 2011, and the start ofoperations is scheduled for spring 2013. The factory will be the Siemens method-based
facilities with an annual production capacity of 6,000 tons. Tokuyama plans to produce
polycrystalline silicon for solar cells at the time of the start of operations. The factory
construction costs will be approximately ¥65 billion.
This decision has no effect on the Company’s performance for this fiscal year (the fiscalyear ending March 31, 2010).
In preparation for this, Tokuyama Malaysia Sdn. Bhd. will be newly established in Sarawakin August of this year as a company to manufacture and sell polycrystalline silicon.
Employees for the new company are to number about 300 people at the time of thestart-up of operations, about 280 of whom will be hired locally.
Polycrystalline silicon for solar cells is expected to enjoy high-level growth over themedium to long term, although the supply and demand situation is easy temporarily due tothe worldwide recession triggered by the financial crisis in the United States.
To date, Tokuyama has manufactured and sold polycrystalline silicon mainly forsemiconductors, and the Tokuyama Factory (Shunan City, Yamaguchi) has been theCompany’s only manufacturing base. In terms of the dispersion of risk as well, theCompany decided to move forward with the selection of a site for a second manufacturingbase. The Samalaju Industrial Park was chosen as the candidate site for the second

manufacturing base in November of last year. The manufacture of polycrystalline silicon iselectricity intensive and requires industrial water, quality workers, and other resources. Such
resources are available at the Samalaju Industrial Park. In addition, this industrial park wasselected because of the advantages it offers, including preferential tax treatment andsupport for acquisition of permits and licenses provided by the federal and state
government. After selecting the site, Tokuyama drafted the basic design of the factory andat the same time considered various factors, including future trends in supply and demandfor polycrystalline silicon. As a result of this process, Tokuyama has decided to move
forward as described here.
Tokuyama has designated polycrystalline silicon business as a strategically growing businessin its Centennial Vision and is actively strengthening to expand related operations. By
mass-producing polycrystalline silicon at the two manufacturing bases of the Tokuyama
Factory and the Malaysia facility, Tokuyama will maintain its presence in the industry byfocusing on getting new customers in addition to retaining existing ones.

Outline of Second Manufacturing Base
Location:
Samalaju Industrial Park (located 50 kilometers northeast of Bintulu,Sarawak, Malaysia)
Planned Site Area: About 200 hectares (about 2 million square meters)

Kuching

クチン

Samalaju Industrial Park

Bintulu

Outline of New Factory
Outline of New Factory
Annual Production Capacity:
Production Method:
Target Usage of Polycrystalline Silicon:
Construction Plan:
Principal Construction Company:
Factory Construction Costs:
Overview of New Company
Name:
Location of Headquarters:
Representative name:Business:
Capital:Establishment:
Composition of shareholders:

6,000 tons
Siemens method
Solar cells
Commence construction early in 2011 andstart operations in spring 2013
Chiyoda CorporationApprox. ¥65 billion

Tokuyama Malaysia Sdn. Bhd.
Kuching (capital of the Malaysian state of Sarawak)
Undecided
Manufacture and sale of polycrystalline silicon
Undecided
August 2009
Tokuyama 100% (planned)

Polycrystalline Silicon
To make polycrystalline silicon, trichlorosilane is produced from metallic silicon and thenpurified by distillation refining. Reduction is performed with hydrogen at temperatures near
1,000oC inside a bell jar, a special reactor, depositing 99.999…% (eleven 9s) high-purity
polycrystalline silicon in rod form. This is polycrystalline silicon.
Polycrystalline silicon is a fundamental material for the semiconductor industry and is usedin single-crystalline silicon wafers as well as single-crystalline and polycrystalline siliconsolar cells.
Tokuyama URLs
English: http://www.tokuyama.co.jp/eng/index.html
Japanese: http://www.tokuyama.co.jp/