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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

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