Latest news with #OCITokuyamaSemiconductorMaterialsSdnBhd
Borneo Post
16-07-2025
- Business
- Borneo Post
Premier: Sarawak committed to becoming major high-tech player powered by clean, sustainable energy
Abang Johari (centre) witnesses the exchange of documents for the 10-year Power Purchase Agreement between OCI TerraSus and Syarikat Sesco Berhad. BINTULU (July 16): Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has reaffirmed Sarawak's commitment to becoming a major player in high-tech industries, particularly the semiconductor sector, while embracing clean and sustainable energy to power the state's industrial transformation. Speaking at the groundbreaking ceremony for OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM) at Samalaju Industrial Park today, Abang Johari congratulated both OCI TerraSus and Tokuyama Corporation for choosing Sarawak as the location for their strategic investment. 'This marks a significant milestone in advancing high technology industrial development in the region. It also reflects our commitment to sustainable partnerships that will power the future,' he said. Abang Johari described the ceremony as a strong testament to investor confidence in Sarawak's political stability, robust infrastructure, and long-term vision. He noted that the plant further solidifies Sarawak's reputation as a trusted and strategic destination for sustainable, high-tech investments. He highlighted that semiconductors are at the heart of the modern digital economy and said this investment strengthens Sarawak's position in the global semiconductor value chain. 'With this investment, Sarawak moves one step closer to becoming an advanced technology manufacturing hub in the region,' said Abang Johari, adding that it aligns with the state's semiconductor strategic framework, which aims to attract investments across the entire value chain. He also linked the investment to OCI Terasus' earlier collaboration with Korea's Kumho P&B Chemicals for epichlorohydrin (ECH) production, saying it sends a clear signal that long-term investors continue to find value in Sarawak's thriving industrial ecosystem. Abang Johari also elaborated on the vital role of materials such as wafers. 'Based on our observation, semiconductor is a very fast-growing industry, it is based on the latest technology and also the material value chain in producing the product that is needed in the semiconductor industry. 'This material plant I hope will also produce electronics such as wafers that are very important in manufacturing electronics and also high communicating devices including satellites,' he said. The Premier pointed out the Sarawak government is also forming its own semiconductor manufacturing firm. The initiative includes a partnership with an academy in Cardiff, Wales, where a Sarawak-funded research lab is developing a scalable AI power chip. 'We hope that by the end of the year, we will be able to register international intellectual property (IP) on this AI power chip,' he said, adding that this is part of Sarawak's roadmap to become a serious contender in the global semiconductor industry. The Premier also underscored Sarawak's commitment to green energy and sustainable industrial practices, highlighting the state's use of hydro and solar power, with plans to incorporate battery technology to enhance solar reliability. 'What you need is green energy to produce green material. Then you can have certifications that are globally recognised as green products. In the long run, the global economy will demand sustainable, decarbonised solutions,' he noted. He added that Sarawak's Post Covid-19 Development Strategy (PCDS) prioritises environmental sustainability, with green energy forming the core of its energy policies. The state currently generates 70 per cent of its power from hydropower, with floating solar installations and methane-based green gas energy also in the pipeline. He said to support the workforce needs of this expanding sector, the Sarawak government is offering free tertiary education to all Sarawakians studying in state universities. 'We are working closely with the industry to ensure we produce the right talent to match the rapid global developments,' Abang Johari said. He also shared insights from his recent discussions with global energy players, noting that while nuclear energy is being explored, Sarawak is instead investing in future energy based on hydrogen. 'The hydrogen molecule has the potential to produce cleaner, safer energy, perhaps even better than nuclear, this will all be powered by modern devices, including artificial intelligence,' he stated. Among those present at the event were Deputy Premier Datuk Amar Dr Sim Kui Hian; Minister of Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom; and OCI Holdings and OCI TerraSus chairman Lee Woo Hyun.
Barnama
16-07-2025
- Business
- Barnama
OTSM's RM2 Bln Investment A Boost To Sarawak's Regional Tech Hub Ambition
BINTULU, July 16 (Bernama) -- OCI Tokuyama Semiconductor Materials Sdn Bhd's (OTSM) RM2 billion investment to establish a semiconductor-grade polysilicon plant at the Samalaju Industrial Park here is a strategic milestone that reinforces Sarawak's position in the global semiconductor value chain. Sarawak Premier Tan Sri Abang Johari Tun Openg said the investment by a joint venture between South Korea's OCI Company Ltd and Japan's Tokuyama Corporation reflects international confidence in Sarawak's political stability, industrial infrastructure and long-term development vision. 'This marks a significant milestone in advancing high-technology industrial development in the region. It also underscores our commitment to sustainable partnerships that will power the future,' he said at the groundbreaking ceremony here today. Abang Johari noted that the facility, expected to be the first of its kind outside Japan and South Korea, will produce high-purity polysilicon – a critical material used in the production of semiconductors for smartphones, electric vehicles, data centres and artificial intelligence (AI). He said the project supports Sarawak's Semiconductor Strategic Framework, which aims to establish the state as a regional hub for advanced technology manufacturing. 'With this investment, Sarawak strengthens its position in the global semiconductor value chain and moves closer to becoming a regional technology hub,' he said. Highlighting Sarawak's green energy credentials, Abang Johari said 70 per cent of the state's electricity is generated from hydropower, supported by emerging solar technologies, which positions Sarawak as a prime location for sustainable and environmentally friendly investments. 'Sustainability is the core of our Post COVID-19 Development Strategy (PCDS). With green energy from hydro and solar, Sarawak is poised to support global demand for certified green materials,' he said. He also revealed ongoing efforts to enhance Sarawak's technological capabilities through the development of an artificial intelligence-powered semiconductor chip in collaboration with academic institutions in the United Kingdom.
The Sun
16-07-2025
- Business
- The Sun
OTSM's RM2 bil investment boosts Sarawak's tech hub ambition
BINTULU: OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM) has committed RM2 billion to build a semiconductor-grade polysilicon plant at Samalaju Industrial Park, marking a strategic leap for Sarawak's role in the global semiconductor industry. Sarawak Premier Tan Sri Abang Johari Tun Openg said the joint venture between South Korea's OCI Company Ltd and Japan's Tokuyama Corporation highlights international trust in the state's stability, infrastructure, and long-term vision. 'This is a major milestone for high-tech industrial growth in Sarawak. It reflects our dedication to sustainable partnerships that will shape the future,' he said during the groundbreaking ceremony. The facility, the first of its kind outside Japan and South Korea, will produce high-purity polysilicon, a key material for semiconductors used in smartphones, electric vehicles, data centres, and AI. Abang Johari emphasised that the project aligns with Sarawak's Semiconductor Strategic Framework, which aims to position the state as a regional hub for advanced tech manufacturing. 'This investment solidifies Sarawak's place in the global semiconductor supply chain and brings us closer to becoming a regional tech leader,' he added. Sarawak's green energy advantage was also highlighted, with 70 per cent of its electricity sourced from hydropower and solar energy. 'Sustainability drives our Post COVID-19 Development Strategy. Our green energy makes Sarawak ideal for eco-friendly investments,' he said. The Premier also shared plans to develop an AI-powered semiconductor chip in collaboration with UK academic institutions, with international intellectual property registration targeted by year-end. To support industry growth, the state government offers free tertiary education at local universities, ensuring a skilled workforce for future tech demands. 'Sustainable and green products will define global competitiveness, and Sarawak is prepared to lead,' he concluded. - Bernama
Borneo Post
14-07-2025
- Business
- Borneo Post
OTSM's new polysilicon plant in Sarawak to set global standards
Choi says Sarawak was chosen for the investment because of its strategic location, political stability and focus on renewable energy. KUCHING (July 12, 2025): Sarawak is set to make Malaysia the fifth country in the world to produce semiconductor-grade polysilicon with the launch of a new plant under OCI Tokuyama Semiconductor Materials Sdn Bhd (OTSM). The RM2 billion facility is a 50:50 joint venture between Japan's Tokuyama Corporation and South Korea's OCI TerraSus. It will be built on a 13.7-hectare site at Samalaju Industrial Park in Bintulu, next to OCI TerraSus' existing solar-grade polysilicon plant. OTSM chief executive officer Steve Choi said the new plant will position Malaysia alongside the US, Germany, China and Taiwan in producing this high-purity material. 'This is quite a meaningful investment. With this investment, we will create about 200 high-quality jobs and upskilling opportunities for Sarawakians,' he told The Borneo Post. According to Choi, the plant will have an annual production capacity of 8,000 metric tonnes of semiconductor-grade polysilicon and is expected to be mechanically completed by the first quarter of 2027. Full commercial operations are targeted to begin in January 2029, he said. 'From the beginning of 2029, we are targeting January for full production. The products will be distributed to Japan, Korea and Taiwan,' he said. He also revealed that a groundbreaking ceremony for OTSM is scheduled to be held on July 16 attended by representatives from the Sarawak government. For information, the difference between solar-grade and semiconductor-grade polysilicon lies in its level of purity. Solar-grade polysilicon typically reaches a purity level of 99.999999 per cent, commonly referred to as 9N (nine nines). It is the key material used in the production of solar cells, which are the fundamental components of solar panels. On the other hand, semiconductor-grade polysilicon must reach 11N purity, or 99.999999999 per cent. It is primarily used to manufacture silicon wafers, which are the foundational material for integrated circuits (ICs) and other microelectronic components found in a wide range of electronic devices such as computers and smartphones. 'This level of purity is much harder to achieve. Each additional nine in the purity level means the material is ten times more refined. So to go from 9N to 11N, the purification process becomes significantly more demanding,' Choi explained. On global demand for semiconductor-grade polysilicon, Choi noted that it currently stands at only 50,000 metric tonnes annually. This means OTSM's output will account for close to one-sixth of global supply, making it a key player in the semiconductor industry. Spotlight for Sarawak Photo shows OCI TerraSus' existing production plant. The new plant will have an annual production capacity of 8,000 metric tonnes of semiconductor-grade polysilicon and is expected to be mechanically completed by the first quarter of 2027, while full commercial operations are targeted to begin in January 2029. Choi said Sarawak was chosen for the investment because of its strategic location, political stability and focus on renewable energy. 'Since we (OCI Holdings) acquired Tokuyama Malaysia in 2017, we have experienced Sarawak to be politically stable. The state also uses a large share of green energy, such as hydro-generated power,' he said. He said the joint venture brings high-end capabilities and credibility from both Japan and South Korea, helping Sarawak grow its industrial platform and technology base. Furthermore, Sarawak's position in Southeast Asia offers proximity to major tech markets such as Korea, Japan and Taiwan. He said this is important as the world moves away from reliance on China in the semiconductor value chain. 'This is meaningful at a time of US-China decoupling. We can diversify and strengthen Southeast Asia's position in the high-purity polysilicon sector,' he said. In line with its commitment to develop local talent, he said about 90 per cent of the company's workforce is Sarawakian. It is also collaborating with universities and vocational colleges to secure young talents and develop their skills. 'We trained them and gave them exposure to the complex chemical manufacturing industry. Through this joint venture, we will deliver even higher standards of skills to the 200 new employees we plan to hire,' he said. OTSM's operations will also contribute to climate goals, as its products support clean energy technologies and digital innovation. Choi said the venture is powered by 70 per cent renewable hydropower through a 10-year Power Purchase Agreement (PPA) with Sarawak Energy Berhad (SEB). 'This ensures a stable and sustainable power supply from the state. This is on top of Sarawak's already competitive energy pricing,' he said. Not much global competition yet When asked whether China poses a strong threat in this market, Choi said Chinese companies are trying to break into the semiconductor-grade segment but have yet to succeed. 'Currently, China's polysilicon companies are trying to move into the semiconductor-grade space. But so far, they haven't been successful. 'In the global market, particularly in the US, they are trying to differentiate Chinese and non-Chinese sources. This is where OTSM holds a strategic advantage,' he said. Choi said Malaysia especially Sarawak stands to benefit from this shift and it poses a great opportunity for Sarawak to attract investment, as companies look to relocate away from China. He noted that while Southeast Asia has seen the emergence of many solar value chain companies, the US has imposed anti-dumping and countervailing duties on some products from the region, including Malaysia. He stressed that OTSM is not affected by these issues. 'We are a 50-50 joint venture between Korea and Japan. We have no Chinese ownership. Therefore. we are largely insulated from such future issues,' he said. Choi added that many investors are now looking to Southeast Asia for new projects due to the difficulty of accessing the US market from China. 'Malaysia, and especially Sarawak, is in a strong position to take advantage of this realignment,' he said.
