Sarawak Secures RM1.9 Billion Investment to Build Semiconductor-Grade Polysilicon Capacity
Major expansion positions the state for higher-value roles in the global chip supply chain as demand for high-purity silicon surges across AI, cloud and electronics markets.
Sarawak has secured RM1.9 billion in new private investment to expand its polycrystalline-silicon industry into semiconductor-grade production, marking a significant shift toward higher-value materials essential for the global chip supply chain.
The state government confirmed that the investment will support the development of advanced polysilicon capacity, used in semiconductor wafer fabrication for applications ranging from consumer electronics to AI data-centre infrastructure. Sarawak aims to build on its existing strengths in energy-intensive materials manufacturing, supported by stable and cost-effective hydroelectric power from the Sarawak Corridor of Renewable Energy (SCORE).
Officials said the move is part of a broader industrial strategy to diversify beyond commodity-grade materials and capture downstream opportunities in high-purity silicon, advanced materials processing, and specialized metallurgical products. Semiconductor-grade polysilicon requires significantly tighter purity standards than solar-grade materials, placing Sarawak in a more competitive position within global technology supply chains.
Industry observers note that this expansion aligns with growing demand for high-quality silicon driven by the global AI boom, cloud-computing growth, and the need for greater diversification of upstream semiconductor materials. As chipmakers and technology companies seek reliable, lower-carbon sources of raw materials, Sarawak’s access to renewable energy has emerged as a strategic advantage.
The state has set long-term ambitions to establish itself as a regional hub for semiconductor-related manufacturing and advanced materials. The latest investment is expected to create skilled jobs, deepen industrial capabilities, and strengthen Sarawak’s role in global supply networks.
With this move, Sarawak positions itself to benefit from rising wafer demand worldwide and the broader reconfiguration of semiconductor supply chains amid accelerating AI-driven growth.
