November 27, 2008
Tokuyama Corporation

Tokuyama Corporation Plans to Build Its Second Polycrystalline Silicon
Manufacturing Base in Sarawak, Malaysia
Tokuyama to Start Drafting Basic Design
Tokuyama Corporation (hereinafter referred to as “Tokuyama”) plans to build its second
polycrystalline silicon manufacturing base at the Samalaju Industrial Park in Sarawak,
Malaysia, and has decided to start drafting the basic design of these facilities aimed atexpanding Tokuyama’s polycrystalline silicon business.
In its FY2008–2010 Medium-Term Management Plan, Tokuyama has classified
polycrystalline silicon as a material for strategic growth. The company is actively
strengthening this business, planning to increase the annual production capacity of thefacilities in the Tokuyama Factory (Shunan City, Yamaguchi) from the current 5,200 tons
to 8,200 tons in the spring of 2009. Demand for polycrystalline silicon is expanding rapidly
with its applications in solar cells and so on, and Tokuyama is receiving many orders fromcustomers. At present, the Tokuyama Factory is the company’s only manufacturing basefor polycrystalline silicon, and thus the construction of a second polycrystalline siliconmanufacturing base is urgent from the viewpoint of the dispersion of risk as well.
In April this year, Tokuyama launched a project to select a site for a second manufacturingbase for polycrystalline silicon. Sites both in Japan and overseas were studied, and it was
decided that the optimal site is coastal land of about 200 hectares in the Samalaju Industrial
Park, which is located 50 kilometers northeast of central Bintulu, Sarawak, Malaysia.
Tokuyama will start drafting the basic design for a second polycrystalline silicon
manufacturing base at this industrial park. The basic design is scheduled to be completed
by the middle of 2009 and will be created through a partnering agreement with ChiyodaCorporation.
The manufacture of polycrystalline silicon is electricity intensive and requires industrial
water, labor and other resources. Such resources are available at the Samalaju Industrial
Park in Sarawak. In addition, this industrial park was selected because of the advantages it
offers, including preferential tax treatment and support for acquisition of federal and state
government permits and licenses.

Outline of Plan
Planned Site: Samalaju Industrial Park which is located northeast of central
Bintulu, Sarawak, Malaysia
Site Area:
About 200 hectares (about 2 million square meters)
Business:
Manufacture and sale of polycrystalline silicon for semiconductors
and solar cells
Business Plan: Plan to start operations of polycrystalline silicon manufacturing
facilities with an annual production capacity of about 3,000 tons in
2012, after which demand trends for semiconductors and solar cells
will be carefully observed and the expansion of the facilities will beconsidered.
Employment: Plan to hire about 300 local employees.

Contact:
Tokuyama Corporation
Corporate Communications & Investor Relations Dept.
TEL : +81-3-3499-8023

Samalaju Industrial Park in Sarawak, Malaysia

Planned Construction Site

Polycrystalline Silicon
Silicon (Si) is one of the about 100 elements in the world, and it usually exists as an oxide(silica stone). Silicon is found near the earth’s surface and is considered to be limitless in
supply as it is second in abundance only to oxygen.
Polycrystalline silicon is made from silica stone. Metallic silicon with a purity of about 99%
is first made by reducing the silica stone with carbon. Trichlorosilane is produced from themetallic silicon and purified by distillation refining. Reduction is performed with hydrogenat 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.