OTSM launches RM2 month polysilicon plant construction in Bintulu, eyes 2029 operations
Posted on 16 Jul 2025
Source of News: THE BORNEO POST ONLINE
SAMALAJU (July 16): OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM) has officially launched the construction of its RM2 billion semiconductor-grade polysilicon plant at the Samalaju Industrial Park, marking a major milestone in Sarawak's industrialization push.
The facility, spanning 13.7 hectares, will have an annual production capacity of 8,000 metric tons of high-purity polysilicon for the semiconductor industry, targeting export markets in South Korea, Japan, and Taiwan. Operations are expected to begin in 2029.
Construction is set to begin in the third quarter of this year, with mechanical completion projected for the first quarter of 2027.
OTSM is a 50:50 joint venture between South Korea's OCI TerraSus Sdn Bhd, a wholly owned subsidiary of OCI Holdings, and Japan's Tokuyama Corporation.
The project is expected to create around 200 high-value jobs, contributing to Sarawak's economic growth and the development of its technical workforce.
This marks OCI TerraSus' second major investment in Sarawak, following the launch of its joint venture with Kumho P&B Chemicals - OCI Kumho - to produce epichlorohydrin (ECH), a key component in epoxy resins and water treatment chemicals.
During the groundbreaking ceremony, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg witnessed the signing of a 10-year Power Purchase Agreement (PPA) between OCI TerraSus and Syarikat Sesco Berhad, the operations and retail arm of Sarawak Energy.
Under the agreement, the new plant will receive 80 megawatts of power from Sarawak Energy for a 10-year period starting in 2029.
OCI Holdings and OCI TerraSus Chairman Lee WooHyun said the joint venture between OCI TerraSus and Tokuyama was especially meaningful, bringing together industrial powerhouses from Korea and Japan in a rare international collaboration.
"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," he said.
Lee said the investment also reflects confidence in Sarawak's leadership, stability, and long-term vision 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," he said.
He also emphasized the importance of developing a skilled local workforce, highlighting institutions such as Centexs and the Sarawak Skills Development Center as key partners.
"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.
In a recorded message, Tokuyama Corporation President Hiroshi Yokota said the project would further strengthen Sarawak's role in the global semiconductor supply 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," he said.
