OTSM BREAKS GROUND ON RM2 BILLION SEMICONDUCTOR-GRADE POLYSILICON PLANT

• The plant will produce 8,000 metric tonnes of high-purity semiconductor-grade polysilicon annually, with operations targeted to begin in 2029.
• A 10-year Power Purchase Agreement (PPA) for power supply signed with Sarawak Energy Berhad ensures renewable energy for the facility.
• The project will create approximately 200 high-quality jobs and strengthen Sarawak’s position in the global semiconductor supply chain.

BINTULU, 16 JULY 2025 – OCI Tokuyama Semiconductor Materials Sdn. Bhd. (OTSM) marked a major milestone with a groundbreaking ceremony for a new semiconductor-grade polysilicon plant in Samalaju Industrial Park here today.

The RM2 billion plant, to be built on 13.7 hectares of land will have a production capacity of 8,000 metric tonnes annually for major export tech markets in Korea, Japan and Taiwan.

The plant construction is expected to begin in Q3 this year, with mechanical completion projected for Q1 2027.

The plant is expected to begin operation in 2029. OTSM is a 50-50 joint venture outfit between OCI TerraSus Sdn. Bhd., a wholly owned subsidiary of OCI Holdings from South Korea and Tokuyama Corporation from Japan.

This joint venture is expected to generate approximately 200 new job opportunities, supporting Sarawak’s economic growth and developing the state’s technical talent pool.

This new plant is OCI TerraSus’ second major project in Sarawak, following the successful launch of its joint venture with Kumho P&B Chemicals – OCI Kumho – in 2024 to produce epichlorohydrin (ECH), a chemical used mainly to produce epoxy resins and in water treatment and rubber manufacturing.

During the groundbreaking ceremony, officiated by Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, the power purchase agreement (PPA) document exchange also took place between OCI TerraSus and Syarikat Sesco Berhad, Sarawak Energy’s operations and retail arm.

Under the agreement, the new plant will receive an 80-megawatt power supply from Sarawak Energy over a 10-year period, starting from the commencement of operations in 2029.

In his speech, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said, “This marks a significant milestone in advancing high technology industrial development, especially in this part of our region. It also reflects our commitment to sustainable partnership that will power the future.”

He added that “The groundbreaking ceremony is a strong testimony of confidence in our state’s stability, infrastructure, and long-term vision. It further affirms Sarawak’s position as a trusted and strategic destination for a sustainable high-tech investment in the region … With this investment, Sarawak strengthens its position in the global semiconductor value chain and moves one step closer to becoming an advanced technology manufacturing hub in the region.”

In his speech, OCI Holdings and OCI TerraSus Chairman Lee WooHyun said the joint venture between OCI TerraSus and Tokuyama is especially meaningful as it unites two industrial giants-Korea and Japan- in a project outside of Korea, something rarely seen in the industries.

“It is a powerful reflection of our strong confidence in Sarawak as a strategic investment destination.

“We believe this plant is more than just a physical structure- it is a symbol of what can be achieved when vision, values, and partnerships align.

“It stands as a model for innovation, sustainability, and meaningful local impact.

” Lee added that the investments are a testament to Sarawak’s leadership, stability and future, especially under the Post COVID-19 Development Strategy 2030.

“We are confident that our OTSM plant will play a pivotal role in achieving this vision by creating high-quality jobs and transferring global best practices.

“We are grateful to the Sarawak Government and Sarawak Energy Berhad for creating an ecosystem that welcomes responsible industrial growth.

Their strategic policies and renewable energy infrastructure are key enablers of this international partnership.”

Through this joint venture, Lee said OTSM aims to contribute to developing a skilled local workforce.

“Institutions like CENTEXS and the Sarawak Skills Development Centre are instrumental in preparing talent for the global semiconductor and clean energy sectors.

“OCI TerraSus is proud to deepen our roots in Sarawak. This is not just an investment in infrastructure- it is an investment in people, in innovation, and in a shared future built on sustainability and trust,” Lee added.

Earlier, President of Tokuyama Corporation, Hiroshi Yokota in his recorded speech expressed his confidence that this project would further strengthen Sarawak’s economy, especially for the semiconductor industry where Sarawak, he said, has already played an important role for the global semiconductor value chain.

“With the seasoned technical expertise and experience of OCI and Tokuyama, along with the support of the Sarawak state government, the region’s talented workforce, and competitive energy source, we will be able to produce high-quality products consistently.

“We believe this project can contribute a lot to the local economy of Sarawak by creating new employment opportunities, improving regional infrastructure and cultivating skilled technical people,” he said.