Following a previous description of Λ and Λ̄ polarization in unpolarized p-p. interactions, within a perturbative QCD factorization scheme with new polarizing fragmentation functions, here we investigate the transverse polarization of Λ's and Λ̄'s produced in semi-inclusive DIS. Analytical expressions for both neutral and charged current exchange are given. Since quantitative predictions cannot be given at this stage and the comparison with existing data is not yet significant, we present the general formalism and a qualitative analysis displaying generic features of the Λ and Λ̄ polarization for specific scenarios. Different kinematical situations are considered, corresponding to experiments currently able to study Λ production in semi-inclusive DIS. © 2002 The American Physical Society.