KUCHING: OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM), a 50:50 joint venture between OCI TerraSus (formerly OCIM, and a wholly-owned subsidiary of South Korea’s OCI Holdings) and Japan’s Tokuyama Corp, is investing RM2bil in a manufacturing plant to produce high-purity semiconductor-grade polysilicon in Samalaju Industrial Park, Bintulu.
Sarawak Premier Tan Sri Abang Johari Tun Openg has been scheduled to perform the groundbreaking ceremony for the manufacturing plant project this Wednesday.
The plant, which will create 200 high-quality jobs and opportunities for Sarawakians, will operate around the clock and have an annual production capacity of 8,000 tonnes of semiconductor-grade polysilicon, according to OTSM chief executive officer Steve Choi.
“We expect the manufacturing plant to be completed in a single phase in the first quarter of 2027 (1Q27). We will ramp up production gradually and are expected to achieve full production by January 2029,” he said in an interview.
OTSM has a 10-year power purchase agreement with Sarawak Energy Bhd, which will supply 70% of the electricity to the plant sourced from renewable hydropower and the remaining 30% from gas and coal-fired power plants.
Choi said the company’s low-carbon industrial development with renewable and green energy sourcing is testimony to OCI and Tokuyama’s shared commitment to sustainable and circular manufacturing.
“Semiconductor-grade polysilicon is a foundational material for everything from smartphones and electric vehicles (EV) to solar energy and artificial intelligence (AI).
“OTSM will produce a key raw material used to make chips that power AI technologies, from data centres and smartphones to EV and smart factories. The AI-driven economy will witness high demand for advanced semiconductors, all of which need polysilicon.
“The material produced here supports clean energy and next-generation technologies, reinforcing the plant’s dual role in climate and digital transitions.
“The OTSM plant will serve demand from major tech players in South Korea, Japan and Taiwan, ensuring resilience and regional diversity in global supply chains,” he added
Choi said the company would be supplying close to one-in-six tonnes of the current global demand for semiconductor-grade polysilicon of 50,000 tonnes a year, which positions OTSM as a key global player.
He added that semiconductor-grade polysilicon’s specialisation and higher value-added makes the price twice as high as solar-grade polysilicon, at US$40 per kg.
The OTSM plant project represents OCI’s third major investment in Sarawak. OCIM (renamed OCI TerraSus) was established in 2017 following OCI’s acquisition of Tokuyama Malaysia’s polysilicon plant, also in Samalaju Industrial Park.
OCI TerraSus, which has an annual capacity of 35,000 tonnes, specialises in the production of high-purity solar-grade polysilicon, an essential raw material used to produce high-efficiency photovoltaic solar cells that convert sunlight into electricity.
The company has invested over RM8bil, including expansion of production capacity over the years.
Choi said OCI’s second major investment involved a joint venture with South Korea’s Kumho Petro Chemical Group (OCIKumho) in a RM1.7bil manufacturing plant in Samalaju to produce epichlorohydrin (ECH). The plant is expected to commence production at end-2025.
ECH, a key intermediate for epoxy, synthetic glycerin and special rubber, would be produced using hydropower with bio-glycerin and natural salts.
On why OCI has chosen Sarawak for its major investments, Choi said: “Sarawak offers a strategic location within South-East Asia, and is close to major technology markets like South Korea, Japan and Taiwan.
“Sarawak’s abundant clean hydropower, political stability and forward-looking policies, such as the Post-Covid Development Strategy 2030, make it ideal for advanced, sustainable manufacturing.
“Sarawak is emerging as a Centre of Geopolitical and Technical Excellence, with institutions like the Centre for Technology Excellence Sarawak or Centexs, and strong government facilitation.”
Choi said OCI TerraSus is building a circular, ESG-driven industrial ecosystem in Sarawak that links its chlor-alkali production to ECH production (via OCIKumho) and semiconductor-grade polysilicon (OTSM).
“This integrated value chain supports the Sarawak government’s environmental, social and governance roadmap, making Sarawak a blueprint for green industrialisation in the region.”
Going forward, Choi said the OTSM plant will open doors to potential research and development collaboration, further upstream/downstream investments, and Sarawak’s integration into the regional semiconductor ecosystem.
“This partnership also supports Malaysia’s National Semiconductor Strategy by anchoring advanced materials manufacturing in the country, helping it to move up the value chain and becoming a key part of the global chip ecosystem,” he added.
