OTSM begins RM2 billion polysilicon plant in Sarawak, boosting semiconductor exports, clean energy use, and local job creation.
OCI Tokuyama Semiconductor Materials Sdn. Bhd. (OTSM) has officially launched the construction of its advanced semiconductor-grade polysilicon plant with a groundbreaking ceremony held at Samalaju Industrial Park in Sarawak. This significant RM2 billion investment marks a strategic step forward for the region in establishing itself as a critical player in the global semiconductor supply chain.
The plant, which will span 13.7 hectares, is designed to produce 8,000 metric tonnes of high-purity polysilicon annually. This product will be primarily exported to key technology markets in Korea, Japan, and Taiwan. Construction is scheduled to begin in the third quarter of 2025, with mechanical completion anticipated by the first quarter of 2027. Full operations are expected to commence in 2029.
OTSM is a 50-50 joint venture between OCI TerraSus Sdn. Bhd., a subsidiary of South Korea’s OCI Holdings, and Japan’s Tokuyama Corporation. This partnership reflects a rare collaboration between Korean and Japanese industry leaders on a project outside their respective countries, symbolizing strong mutual confidence in Sarawak’s strategic potential and investment climate.
The new plant is expected to create approximately 200 new job opportunities, supporting Sarawak’s economic development and fostering technical skill enhancement among the local workforce. It is OCI TerraSus’ second major investment in Sarawak following the launch of its 2024 joint venture with Kumho P&B Chemicals—OCI Kumho—which focuses on producing epichlorohydrin (ECH), a key chemical used in epoxy resin, rubber manufacturing, and water treatment.
The groundbreaking event was officiated by Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, who emphasized the importance of the project in advancing high-tech industrial development within the region. He highlighted that this initiative reinforces Sarawak’s commitment to sustainable development and its emergence as a hub for advanced technology manufacturing in Southeast Asia.
A key feature of the ceremony was the exchange of a power purchase agreement (PPA) between OCI TerraSus and Syarikat Sesco Berhad, the retail arm of Sarawak Energy. Under the agreement, the plant will receive an 80-megawatt renewable energy supply for 10 years starting in 2029. This aligns with Sarawak’s vision of promoting environmentally responsible industrial growth.
Chairman of OCI Holdings and OCI TerraSus, Lee WooHyun, underscored that the collaboration is more than a commercial venture; it is a symbol of innovation, sustainability, and regional partnership. He praised the Sarawak government and Sarawak Energy for fostering a conducive environment for global investors through stable governance and renewable infrastructure. Lee noted the project would bring high-quality employment, global expertise, and capacity building to the region.
Institutions such as CENTEXS and the Sarawak Skills Development Centre were also recognized for their role in equipping local talent for careers in the semiconductor and clean energy sectors. Lee emphasized that the investment goes beyond physical infrastructure—it is about empowering people and shaping a sustainable future.
Tokuyama Corporation President Hiroshi Yokota echoed these sentiments, expressing confidence in the project’s ability to bolster the regional economy and reinforce Sarawak’s strategic role in the global semiconductor ecosystem. He emphasized the project's potential in improving local infrastructure, generating skilled employment, and consistently delivering high-quality products backed by strong technical capabilities.
