February 16, 2011
Tokuyama Corporation
Concerning the Commencement of Construction of a Polycrystalline Silicon Factoryin Malaysia
Tokuyama Malaysia Sdn. Bhd., a local corporation in Malaysia under Tokuyama Corporation(hereinafter referred to as “Tokuyama” or “the Company”), will start construction of apolycrystalline silicon factory at the Samalaju Industrial Park in Sarawak, Malaysia.
Tokuyama will hold a groundbreaking ceremony at Bintulu with attendees including Y.A.B. Pehin
Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak; Y.B. Datuk Patinggi Tan Sri Dr.
George Chan Hong Nam, Deputy Minister of Sarawak; Y.B. Datuk Patinggi Tan Sri (Dr) Alfred
Jabu Numpan, Deputy Minister of Sarawak; Y.B. Dato’ Jacob Dungau Sagan, Deputy Minister ofInternational Trade and Industry, Malaysia; Y.Bhg. Tan Sri Dr. Sulaiman Mahbob, Chairman of
the Malaysian Industrial Development Authority (MIDA); Y.Bhg. Dato’ Afifuddin Abdul Kadir,
Deputy Director General of the Malaysian Industrial Development Authority (MIDA); His
Excellency Masahiko Horie, Ambassador Extraordinary and Plenipotentiary of Japan to Malaysia;
and many other associates. Construction of the factory will start shortly thereafter. The newfactory is scheduled to be completed in the first quarter of 2013, and the Company aims to start
operation in September 2013. Investment in the new factory will amount to approximately ¥80
billion including investment for the infrastructure and utility facilities. The factory will produce
polycrystalline silicon for solar cells at an annual production capacity of 6,200 tons. Operations
will start with approximately 300 employees, of which 280 people are planned to be employed
locally.
To date, Tokuyama has manufactured and sold polycrystalline silicon mainly for semiconductors,
and the Tokuyama Factory (Shunan City, Yamaguchi, Japan) has been the Company’s only
manufacturing base. In order to increase manufacturing volume to address a growing demand forpolycrystalline silicon for solar cells and diversify risk, the Company decided to move forwardwith the selection of a site for a second manufacturing base. In November 2008, the Samalaju
Industrial Park was chosen as the proposed site for the second manufacturing base. The
manufacture of polycrystalline silicon is electricity intensive and requires industrial water, quality
workers and other resources. Such resources are available at the Samalaju Industrial Park. In
addition, this industrial park was selected because of the advantages it offers in terms ofpreferential tax treatment and support for the acquisition of permits and licenses provided by thefederal and state governments. After selecting the site, Tokuyama drafted the basic design of thefactory while considering various factors, including future trends in supply and demand forpolycrystalline silicon. As a result of this process, in August 2009 Tokuyama decided to constructits polycrystalline silicon factory at the Samalaju Industrial Park and has proceeded with further
detailed design.
Tokuyama has designated the polycrystalline silicon business as a core strategically growing
business in its Centennial Vision and is actively expanding its polycrystalline silicon operations.
By mass-producing polycrystalline silicon at its two manufacturing bases―the Tokuyama Factory
and the Malaysia facility―Tokuyama will maintain its presence as a major polycrystalline silicon
manufacturer in the industry by focusing on acquiring new customers in addition to retaining
existing ones. Tokuyama’s present goal is to raise its current global share of polycrystalline silicon
for solar cells, which is estimated to be about 5%, to 10% or more while maintaining its current
global share of polycrystalline silicon for semiconductors of 20% or more.

Outline of the New Factory
Location:
Samalaju Industrial Park (located 50 kilometers northeast of Bintulu,
Sarawak, Malaysia)
Product:

Polycrystalline silicon

Annual Production Capacity: 6,200 tons (which can be increased to 7,000 tons bydebottlenecking steps (replacing low performance equipment))
Production Method: Siemens method
Target Usage of Polycrystalline Silicon: Solar cells
Plan:Construction will be completed in the first quarter of 2013 andoperations will start in September 2013.

Principal Construction Company: Chiyoda Corporation
Investment:

Approximately ¥80 billion including investment for infrastructure andutility facilities (of which factory construction costs account for
approximately ¥65 billion)

Employment:

Operations will start with approximately 300 employees, of which 280
are planned to be employed locally.

History
November 2008:

Started basic design assuming the Samalaju Industrial Park as the
proposed site for the factory.

August2009:

Decided to construct a factory at the Samalaju Industrial Park.

August2009:

Established Tokuyama Malaysia Sdn. Bhd. and opened its headquartersin Kuching.

August2010:

Established the Bintulu office of Tokuyama Malaysia Sdn. Bhd.

Outline of the Company and the Company’s Subsidiary in Malaysia
Company Name:
Tokuyama Corporation
Establishment:

February 1918

Location of Headquarters:

Shunan City, Yamaguchi, Japan

Representative:

Kazuhisa Kogo

Capital:¥53.4 billion

Net sales:¥273.1 billion (consolidated basis in fiscal 2009)

Businesses:

Inorganic and organic chemicals, Cement, Building materials,
Electronic materials, Advanced materials, Synthetic resins,
Films, Medical-related products, etc.

Number of Employees:

5,444 (consolidated)

Number of Group Companies:83
Web site:(As of March 31, 2010)

English Web site:
http://www.tokuyama.co.jp/eng/index.html
Japanese Web site: http://www.tokuyama.co.jp/(Malaysia Subsidiary)Company Name:

Tokuyama Malaysia Sdn. Bhd.

Establishment:

August 2009

Location of Headquarters:

Kuching (capital of the Malaysian state of Sarawak)

Representative:

Akira Sanuki, Director, Tokuyama Corporation

Business:

Manufacture and sale of polycrystalline silicon

Polycrystalline Silicon
Silicon (Si) is one of the about 100 elements in the world, and it usually exists as an oxide (silica
stone). Silicon content near the earth’s surface is considered to be limitless in supply as it issecond in abundance only to oxygen.
The first step in the process of polycrystalline silicon production is to make metallic silicon with apurity of about 99% by deoxidizing silica stone with carbon.
Tokuyama purchases the metallic silicon and uses it as a raw material for its polycrystalline silicon
production. In its manufacturing process, trichlorosilane is first made from the metallic silicon
and purified by distillation and refining. Reduction is performed with hydrogen at temperaturesnear 1,000oC inside a bell jar, a special reactor, depositing 99.999…% (eleven 9s) high-purity
polycrystalline silicon in rod form. Polycrystalline silicon is made by the manufacturing processdescribed above.
Polycrystalline silicon is a fundamental material for the semiconductor industry and is used insingle-crystalline and polycrystalline silicon solar cells as well as single-crystalline silicon wafers.
Contact concerning this issue:
Corporate Communications & Investor Relations
Dept., Tokuyama Corporation
Phone: +81-3-3499-8023