Latest news with #OTSM
Borneo Post
7 days ago
- Business
- Borneo Post
OTSM launches RM2 bln polysilicon plant construction in Bintulu, eyes 2029 operations
Abang Johari (centre) and other dignitaries officiate the groundbreaking ceremony for the OTSM plant. 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 industrialisation push. The facility, spanning 13.7 hectares, will have an annual production capacity of 8,000 metric tonnes of high-purity polysilicon for the semiconductor industry, targeting export markets in South Korea, Japan, and Taiwan. Operations are expected to commence 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 emphasised the importance of developing a skilled local workforce, highlighting institutions such as Centexs and the Sarawak Skills Development Centre 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. lead OTSM polysilicon plant Samalaju Semiconductor
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.
