By Karen Bong
BINTULU, July 17: Sarawak marked another significant leap in its high-technology industrial journey as OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM) held a groundbreaking ceremony today for a RM2 billion semiconductor-grade polysilicon manufacturing plant at Samalaju Industrial Park.
The landmark project, officiated by Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, will see the construction of the facility on 13.7 hectares of land with an annual production capacity of 8,000 metric tonnes of high-purity polysilicon, a critical material for semiconductors, primarily for export to key technology markets in Korea, Japan, and Taiwan.
Construction is slated to begin in the third quarter of this year, with mechanical completion targeted for the first quarter of 2027. Full operations are scheduled to commence in 2029.
OTSM is a 50:50 joint venture between South Korea’s OCI TerraSus Sdn Bhd, a subsidiary of OCI Holdings, and Japan’s Tokuyama Corporation. The venture is set to create approximately 200 job opportunities, contributing to Sarawak’s economic growth and strengthening the State’s technical workforce.
Addressing the ceremony, Abang Johari emphasised that the project exemplified investor confidence in Sarawak’s stability, infrastructure, and long-term strategic vision.
“This marks a significant milestone in advancing high-technology industrial development in our region. Sarawak is increasingly becoming a trusted destination for sustainable, high-tech investments, and this new facility strengthens our position in the global semiconductor value chain,” he said in the event broadcasted live through Ukas Channel.
He added that Sarawak’s industrial push was anchored by its abundant renewable energy resources, with over 70 per cent of electricity generated from hydro and solar power.
“Our green, stable, and cost-efficient energy supply is a key attraction for industries of the future,” he said, noting that the Sarawak’s green credentials would be further strengthened by initiatives such as floating solar projects and advanced battery storage.
The Premier also highlighted the plant’s alignment with Sarawak’s Post-Covid Development Strategy (PCDS) 2030 and Semiconductor Strategic Framework, which aims to build a robust, technology-driven economy, create quality jobs, and upskill local talent.
“I hope OCI and Tokuyama will further expand their footprint in Sarawak and carry the Sarawak brand globally,” he said, expressing optimism that the new facility would catalyse the State’s ambitions of becoming a regional semiconductor hub.
The ceremony also witnessed the official exchange of a Power Purchase Agreement (PPA) between OCI TerraSus and Syarikat Sesco Berhad, Sarawak Energy’s operations and retail arm, ensuring the plant will receive 80 megawatts of power for 10 years from 2029.
OCI Holdings and OCI TerraSus chairman Woo Hyun Lee hailed the project as a transformative milestone for Sarawak.
“Today, our collaboration with Tokuyama reaffirms Sarawak’s position in the heart of Asean, where strategic location, policy clarity, and sustainable energy converge. This collaboration is especially meaningful as it unites two industrial giants – Korea and Japan – in a project outside of Korea, something rarely seen in our industries, and a sign of our strong confidence in Sarawak.
“We are confident that our OTSM plant will play a pivotal and leading role in achieving Sarawak’s PCDS goal by creating high-quality jobs, strengthening local talent, and introducing advanced technology and global best practices,” he said.
Tokuyama Corporation president Hiroshi Yokota, in a recorded speech, said the project would enhance Sarawak’s role in the global semiconductor industry.
“With OCI and Tokuyama’s technical expertise, Sarawak’s skilled workforce, and access to green energy, we are confident this project will deliver high-quality products and generate meaningful socio-economic benefits,” he stated.
The new plant is OCI TerraSus’ second major project in Sarawak, following its joint venture with Kumho P&B Chemicals — OCI Kumho — launched in 2024 to produce epichlorohydrin (ECH), an important chemical for epoxy resins and industrial applications.
This latest investment reaffirms Sarawak’s rise as a preferred destination for cutting-edge manufacturing and high-value industrial growth in the region.
Deputy Premier Datuk Amar Dr Sim Kui Hian, Minister of Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom, Deputy Minister of Port Development Dato Majang Renggi, and Deputy Minister of International Trade and Investment Datuk Malcolm Mussen Lamoh were among the distinguished guests present. — DayakDaily
