Materials for Press Conference
Aug. 11, 2009

Polycrystalline Silicon Projectin Malaysia

1 1New Factory
Production Capacity

6,000 tons/ year

Production Method

Siemens method

Target Usage

Solar cells

Construction Plan

Commence construction early in 2011
Start operations in spring 2013

Main Construction
CompanyChiyoda Corporation

Construction Costs

Approx. ¥65 billion

Administration

Establishment of and administration by wholly
owned subsidiary in Malaysia (Tokuyama MalaysiaSdn. Bhd.)
2

New Company

Company Name

Tokuyama Malaysia Sdn. Bhd.

Establishment

August 2009

Location ofHeadquarters

Kuching (capital of the Malaysian state of Sarawak)

CapitalRepresentative

TBD (Tokuyama: 100% [tentative])

TBD

3Employment

Number ofEmployees

Approx. 300 people at the time of start-up of operations,about 280 of whom will be hired locallyTime of Hiring

In 2010: Start hiring for certain positions
In 2012: Start hiring for all other positions

Education andTraining

Education and training for 6 months to 2 years at
Tokuyama Factory for key persons in manufacturing
process

4

Sales Plan

Commencement ofSales

Summer 2013

Sales Scope

Plan to sell to the global market, including new andexisting customers

Net SalesApprox. ¥35 billion

5Samalaju Industrial Park: (1) Location

Kuching

Samalaju Industrial Park

クチン

PlannedConstruction SiteBintulu

Plan to secure approx. 200 hectare site for second manufacturing baseat Samalaju Industrial Park (located 50 km northeast of Bintulu)
6

Samalaju Industrial Park: (2) Reasons for Selection

Ease of Securing Needed Resources• Abundant supply of electricity (hydropower)• Industrial water• Highly educated workers
Bakun Dam

Preferential Treatment
by Federal and State Government• Preferential tax treatment• Support for acquisition of permits andlicensesPress Conference in Kuala Lumpur, Nov. 20087

Samalaju Industrial Park: (3) Today and Tomorrow
Land

Land development to start this summerElectricity(power plant)

Bakun Dam: To be completed in 2010 according to planand start supplying power in 2012
Æ Not expected to interfere with factory construction andtrial operation

Roads

Already constructed

SeaportBintulu Port
(to use Samalaju Port once it is constructed)

Planned construction site ofSamalaju Industrial Park

8

Centennial Vision and Polycrystalline Silicon BusinessCentennial Vision• Net Sales: ¥500 billion or more

Numerical Targets• The ratio of operating income to net sales: 15% or higher• Overseas sales ratio: 30% or higher(FY2017)• Strengthening of Strategically Growing Businesses

Basic Strategies• Strengthening of International Competitiveness* Tokuyama will celebrate its centennial on Feb. 16, 2018

Position of Polycrystalline Silicon Business• Core part of Strategically Growing Businesses• Main driver of achievement of numerical targets
9Basic Strategy for Polycrystalline Silicon Business• Expand business through active investment• Enhance competitiveness in quality, cost, and stable supply• Establish vapor to liquid deposition (VLD) method as technology andconsider commercial production using VLD method• Maintain presence in polycrystalline silicon industry (over 10% share ofworld market)

3,000 ton plant started commercial operations inApril 2009 (Tokuyama Factory’s Higashi Plant)

Verification plant for VLD method(Tokuyama Factory’s Higashi Plant)

10Timeline for Polycrystalline Silicon Business(CY)

BaseMethod

Siemens
ジーメンス法
徳山製造所
Tokuyama
Factory2008

2009

2010

2011

2012

2013

2014

2015+

Addition of
3,000 ton plant
Establishment ofVLD method as technology

ＶＬＤ法
VLDConsider mass production
using VLD method

Malaysia(second
マレーシア
manufacturing（第2製造拠base)点）
Siemens
ジーメンス法

Total Annual
Production Capacity

Selection ofsite forBasic
secondmanufacturing designbase

5,200 tons

Detailed
designConstruction of
6,000 ton factory

8,200 tons

Consider expansion

14,200 tons

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