OTSM's RM2 Bln Investment A Boost To Sarawak’s Regional Tech Hub Ambition - Premier

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 Premier said the state government aims to secure international intellectual property registration for the chip by the end of the year, reflecting Sarawak’s ambition to not only manufacture but innovate in the semiconductor sector.

To support this vision, the state government has committed to providing free tertiary education for Sarawakians through state universities, ensuring a skilled talent pool for emerging industries.

“In the long run, sustainable and green products will define global competitiveness. Sarawak is ready to meet that challenge,” he added.

-- BERNAMA