OCI invests $78 mn in Vietnam wafer plant for US solar expansion

Rendering image of OCI Holdings-invested wafer plant in Vietnam (Screenshot captured from OCI Holdings website)

South Korea’s solar cell company OCI Holdings Co. is deepening its advance into the US clean energy market with a $78 million investment in a wafer manufacturing plant in Vietnam, a move expected to help it sidestep Washington’s tightening restrictions on foreign clean energy firms.  

The company announced Sunday that its Malaysian subsidiary OCI TerraSus Sdn Bhd has set up a special-purpose vehicle, OCI One, in Singapore to acquire a 65% stake in a Vietnamese wafer factory under construction by Elite Solar Power Wafer Co.

The facility, designed to produce 2.7 gigawatts of wafers annually, is set to begin pilot operations by the end of this year and commence mass production in early 2026.

The total project cost is $120 million, with OCI covering the bulk.

An additional $40 million investment could double output to 5.4 GW within six months, the company added.

The plant will source polysilicon from OCI TerraSus, a move allowing OCI to build a fully integrated solar materials network from polysilicon to wafers.

This is expected to boost the company’s competitiveness and profitability as US demand for non-Chinese clean-energy components is set to accelerate.

SUBJECT TO US CLEAN ENERGY SUBSIDIES 

The investment is expected to allow OCI to tap US clean energy subsidies and fit into Washington’s supply-chain diversification drive under the so-called One Big Beautiful Bill Act (OBBBA). 

The wafers made in Vietnam fall outside the US definition of the Prohibited Foreign Entities (PEF), a designation that blocks tax credits for components tied to China, Russia, North Korea or Iran, under the OBBBA.

OCI Holdings Chairman Lee Woo-hyun said the wafer plant in Vietnam will “bring us closer to building a supply chain that facilitates US exports.”

OCI will continue to strengthen partnerships with Southeast Asian firms to expand its footprint in the global solar market, he added.

OCI Holdings shares fell 1% in early Seoul trading Monday, tracking the broader Kospi decline.

By Sookyung Seo

skseo@hankyung.com

Jennifer Nicholson-Breen edited this article.

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