By Karen Bong
KUCHING, Oct 1: Sarawak aims to focus on mass production of next-generation semiconductor chips within the State, capitalising on its cost advantages and skilled workforce, while conducting research and prototyping abroad.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said this strategy ensures that high-value manufacturing remains in Sarawak, benefiting local talent and the economy.
“Once we master the technology and prototypes, we can analyse production costs. We have a cost advantage, so production can be based in Sarawak,” he explained, highlighting X-FAB as a model, which employs nearly 3,000 people with 95 per cent of them Sarawakians.
“The same model can apply to SMD Semiconductors. Research can be done here, but production goes back to Sarawak,” he said during an interview with Agenda Awani on Sarawak Strengthens Malaysia Semiconductor Industry broadcasted yesterday (Sept 30).
The Premier stressed that market access is key, noting that the upcoming AirBorneo is planned to serve as a freighter service as well as a passenger airline to facilitate rapid chip shipments to global markets.
Recalling Sarawak’s early steps in the semiconductor sector, Abang Johari said that in the 1990s, as Minister of Industry, he helped establish 1st Silicon and later partnered with Belgium-based X-FAB, a global leader in analogue chips for automotive and medical devices.
“With AI-driven applications, traditional silicon wafers face energy and heat challenges,” he said, explaining why Sarawak Microelectronic Design (SMD) Semiconductor was established.
The state partnered with UK-based Catapult in Cardiff, Wales, to develop durable Gallium Nitride (GaN) wafers capable of storing data even under high voltage, now commercialised under Sarawak’s global brand, KETEQ AI.
“Alhamdulillah, Sarawakian talents sent here have successfully developed new GaN products. This is a truly global product,” he said, noting that GaN-based chips offer solutions for complex challenges, including energy and power grid management.
On attracting international expertise, Abang Johari said, “Competition between locals and foreign experts is essential. At X-FAB, Belgian experts work alongside Sarawakians, and at Taiyo Yuden, Japanese experts collaborate with locals. This ensures knowledge transfer and high-paying jobs for Sarawakians.”
He also highlighted Prime Minister Datuk Seri Anwar Ibrahim’s recent visit to Sarawak to officiate X-FAB’s RM3 billion plant expansion in Sama Jaya Industrial Park, which showcased the State as both an energy and semiconductor hub.
Looking ahead, Abang Johari revealed that he has been invited to take the spotlight at the upcoming ASEAN Summit’s semiconductor session, presenting Sarawak’s capabilities on a regional platform. — DayakDaily
