Tokuyama Corporation announced that its Board of Directors had resolved to execute a joint venture agreement with OCI Company Ltd. (based in Seoul, South Korea and hereinafter referred to as "OCI") for the joint production of semiconductor-grade polycrystalline silicon semi-processed products in Malaysia at a meeting held on December 13, 2023. Brief details are presented as follows. Purpose of Joint Venture Establishment: Tokuyama has identified efforts to transform its business portfolio as a key component of its Medium-Term Management Plan 2025.

Based on the aforementioned, the Company is promoting business growth by allocating management resources to the electronics, healthcare, and environmental businesses while at the same time pursuing international expansion. The joint venture business in this instance is a part of these endeavors. In light of expansion in the semiconductor market and subsequent forecast increase in demand for polycrystalline silicon, Tokuyama plans to establish a joint venture company with OCI to put in place production and supply facilities for semiconductor-grade polycrystalline silicon using clean energy and promote accelerated business expansion in the electronics field while controlling increase in CO2 emissions.

As identified, this joint venture business entails the establishment of a joint venture company that will engage in the production of semiconductor-grade polycrystalline silicon semi-processed products. The Company plans to start the operation with an annual production capacity of around 8,000 metric tons. The total investment is expected to be worth around USD 300 million.

Production capacity is planned to increase to around 10,000 metric tons in the future. Each company plans to undertake the commercialization and sale of products as is currently the case. Collaboration is subject to the approval of the relevant regulatory authorities in the countries involved.

With this in mind, Tokuyama will proceed with the establishment of the joint venture with OCI while responding appropriately.