Sarawak poised as global semiconductor leader with X-FAB’s RM3 bln expansion in Sama Jaya

Anwar (third left) flanked by Abang Johari on his left activates a device to mark the launching of X-FAB Sarawak 40K Expansion facility at Sama Jaya Free Industrial Zone on Sept 12, 2025.
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By Karen Bong

KUCHING, Sept 12: Sarawak has enormous potential to emerge as a global leader in semiconductor innovation and production, a development that will firmly position Malaysia as a key global hub in the industry, said Prime Minister Datuk Seri Anwar Ibrahim.

He made the remark when launching the RM3 billion X-FAB Sarawak 40K Expansion at Sama Jaya Free Industrial Zone today, where he lauded the State’s visionary leadership and commitment to driving high-tech growth.

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Anwar said Sarawak’s success in attracting high-value investments reflects not only its robust infrastructure and supply chain but also the foresight of leaders who have nurtured the State’s transformation from early silicon ventures to an internationally renowned semiconductor centre.

“This achievement shows that challenges once deemed insurmountable decades ago are now overcome through hard work, vision, and the right structures in place.

“The expansion is testament to investor confidence in Malaysia, and particularly in Sarawak’s governance under Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg,” he said.

A file photo of the facade of X-FAB Sarawak admin building at Sama Jaya Free Industrial Zone.

Anwar emphasised that the federal government would continue to support Sarawak’s semiconductor ambitions through the National Semiconductor Strategy, which was formulated to recognise Sarawak’s enormous potential to lead innovation and production on a global scale.

“I am not exaggerating. Given the geopolitical scenario and Malaysia’s centrality in ASEAN, engaging major economies including the United States, China, Europe, Asia, and now even Latin America and Africa, we are in the best position to be seen as stable, central, and ready to engage with all countries.

“Our ambition is clear: we want to make Malaysia, and Sarawak particularly, a semiconductor hub for the region. We are succeeding because the infrastructure is in place, supported by a strong supply chain and a thriving ecosystem,” he added.

Anwar further noted that X-FAB’s expansion is not just about boosting capacity but also about embedding automation, artificial intelligence, and precision at every level of production, making Malaysia a showcase for advanced manufacturing.

“This is why, in forums such as the ASEAN Summit and other global economic platforms, I ensure that state leaders like Premier Abang Johari are given the opportunity to present Sarawak’s case.

“In conjunction with the ASEAN summit, we will also promote the semiconductor strategy and competitive incentives to foreign firms. The best person to articulate this on behalf of Malaysia and Sarawak is the Premier. Our partnership is complementary, while I emphasise philosophy, culture, and economics, he brings engineering depth and technical vision,” he said.

X-FAB Group board of directors chairman Tan Sri Hamid Bugo (centre) presenting a wafer crafted with the Prime Minister’s portrait to Anwar witnessed by Winter (right) at the launching of X-FAB Sarawak 40K Expansion at Sama Jaya Free Industrial Zone on Sept 12, 2025.

With Sarawak already positioning itself as a regional energy hub through green hydrogen and renewable energy, Anwar said semiconductors now join the State’s portfolio of transformative industries, reinforcing its reputation as a forward-looking, innovation-driven economy.

“I am proud, as a Malaysian, to join Sarawak in celebrating this milestone. From timber to energy, and now semiconductors, Sarawak has proven that with discipline, hard work, and determination, it can achieve what once seemed impossible,” he said.

X-FAB, the world’s leading analog/mixed-signal and specialty semiconductor manufacturer, unveiled its state-of-the-art expansion which increases wafer production capacity at its Sarawak facility from 30,000 to 40,000 units per month.

The upgraded facility will produce advanced chips for automotive, medical, and industrial applications, strengthening Malaysia’s role in the global semiconductor supply chain.

In his speech, X-FAB chief executive officer (CEO) Rudi De Winter said the Kuching facility plays a pivotal role in the company’s global operations.

“On these wafers, we produce over two billion products every year here in Kuching. You will find them at the heart of everything around us. It takes decades of continued innovation to build a sustainable and flourishing semiconductor manufacturing business. Thanks to decades of strong collaboration between Sarawak and Europe, we can now celebrate the opening of this significant expansion.

“X-FAB Sarawak is not only a production site, but also a hub of innovation. It is the most active engineering and prototyping site for X-FAB’s specialty technologies, delivering unique solutions into automotive, industrial, and medical markets. We continually expand our capabilities and leverage specialised technologies to meet emerging application requirements,” he said.

He added that X-FAB Sarawak has become a global benchmark and leader in BCD on SOI technology, offering the most extensive high-voltage portfolio for advanced smart solutions.

“This was invented, developed, and matured here in Kuching—a success story that started about 15 years ago,” he said. — DayakDaily

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