BINTULU: Sarawak took a major step forward in its ambition to become an advanced technology manufacturing hub with the groundbreaking of a RM2-billion semiconductor-grade polysilicon plant in Samalaju Industrial Park.
The new facility, developed by OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM), a 50-50 joint venture between South Korea’s OCI TerraSus Sdn Bhd and Japan’s Tokuyama Corporation, will produce 8,000 metric tonnes of high-purity polysilicon annually.
The product is a critical material in the global semiconductor supply chain, powering industries from smartphones to electric vehicles and artificial intelligence.
Officiating the groundbreaking ceremony, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the investment strengthens Sarawak’s position in the global semiconductor value chain.
“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,” he said.
Abang Johari said the project reflects strong confidence in Sarawak’s long-term stability, infrastructure, and commitment to sustainable partnerships.
“This marks a significant milestone in advancing high-technology industrial development, especially in this part of our region, and also reflects our commitment to sustainable partnerships that will power the future.
“It further affirms Sarawak’s vision as a trusted and strategic destination for a sustainable high-tech investment in the region,” he said in his speech during the ceremony on Wednesday.
He also expressed appreciation to both OCI and Tokuyama for choosing Sarawak as the site for the new plant, noting that this project aligns with the Sarawak Semiconductor Strategic Framework to attract investments across the entire value chain.
Abang Johari said the semiconductor industry is among the fastest-growing globally, and Sarawak’s participation in it is timely and strategic.
“This material plant, I hope, will also produce electronic bases such as wafers, which are very important in manufacturing electronics and high-communication devices, including satellites. And this is the industry of the future,” he said.
He added that outside of Korea and Japan, Sarawak could become the first location to host such a brand, enhancing its reputation on the world stage.
The new plant will be built on 13.7 hectares of land, with construction expected to begin in the third quarter of this year. Mechanical completion is projected for the first quarter of 2027, and operations are set to begin in 2029.
In addition to supporting Sarawak’s economic growth, the project is expected to create approximately 200 new job opportunities, contributing to the development of local technical talent.
The event also saw the exchange of the power purchase agreement (PPA) document between OCI TerraSus and Syarikat Sesco Bhd, the operations and retail arm of Sarawak Energy Bhd.
