OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM), a joint venture equally held by South Korea’s OCI TerraSus and Japan’s Tokuyama Corporation, is set to invest RM2 billion in a state-of-the-art manufacturing facility in Samalaju Industrial Park, Bintulu. The new plant will focus on the production of high-purity semiconductor-grade polysilicon, a key material in advanced chip manufacturing.
The project marks a significant milestone in Sarawak’s industrial development, with the groundbreaking ceremony scheduled for this Wednesday, officiated by Sarawak Premier Tan Sri Abang Johari Tun Openg. OTSM’s facility is expected to create 200 skilled employment opportunities for Sarawakians and will operate continuously to meet rising global demand.
Chief Executive Officer Steve Choi confirmed that the plant will be developed in a single phase and is targeted for completion in the first quarter of 2027, with full production anticipated by January 2029. Once fully operational, the plant will produce up to 8,000 tonnes of semiconductor-grade polysilicon annually.
OTSM has secured a 10-year power purchase agreement with Sarawak Energy Bhd, under which 70 percent of the plant’s electricity needs will be supplied by renewable hydropower, with the balance drawn from gas and coal-based sources. This arrangement underscores OCI and Tokuyama’s commitment to low-carbon industrial development and sustainable manufacturing practices.
According to Choi, the semiconductor-grade polysilicon produced at the facility is foundational to modern technologies, ranging from smartphones and electric vehicles to solar energy systems and artificial intelligence applications. He noted that the material will play a critical role in enabling the AI-driven economy, supporting data centres, smart factories and EV technologies.
The OTSM plant is strategically positioned to supply major technology players in South Korea, Japan and Taiwan, enhancing regional supply chain resilience. With global demand for semiconductor-grade polysilicon currently at approximately 50,000 tonnes annually, OTSM is set to supply close to one-sixth of that volume, firmly establishing itself as a key player in the global market. The high value of the material is reflected in its pricing, which stands at US$40 per kilogram—double that of solar-grade polysilicon.
This investment marks OCI’s third major initiative in Sarawak. The company’s entry into the state began in 2017 with the acquisition of Tokuyama Malaysia’s polysilicon plant, now operated under OCI TerraSus. With an annual capacity of 35,000 tonnes, the facility produces high-purity solar-grade polysilicon used in photovoltaic solar cells. OCI TerraSus has since invested over RM8 billion to expand its operations.
OCI’s second major undertaking involves a joint venture with South Korea’s Kumho Petro Chemical Group—OCIKumho—establishing a RM1.7 billion plant to produce epichlorohydrin (ECH), a critical input for epoxy, synthetic glycerin and special rubber. Production at this facility is expected to commence by the end of 2025. The ECH plant will also harness hydropower and utilise bio-glycerin and natural salts in its manufacturing process.
Choi emphasised Sarawak’s strategic advantages, citing its proximity to key Asian markets, reliable renewable energy infrastructure, political stability and investor-friendly policies under the Post-Covid Development Strategy 2030. He also praised initiatives such as the Centre for Technology Excellence Sarawak (CENTEXS) and government support in advancing technical capabilities.
He noted that OCI TerraSus is actively building an ESG-centric, circular industrial ecosystem in Sarawak that integrates chlor-alkali production with ECH and semiconductor-grade polysilicon manufacturing. This cohesive value chain supports Sarawak’s sustainability goals and positions the state as a model for green industrialisation in the region.
Looking ahead, Choi said the OTSM facility would enable further research and development collaboration, promote upstream and downstream investments, and integrate Sarawak more deeply into the regional semiconductor ecosystem. The initiative also aligns with Malaysia’s National Semiconductor Strategy by anchoring high-value materials manufacturing locally and advancing the nation’s position in the global chip supply chain.
-The Star
