By Karen Bong
KUCHING, Oct 1: Sarawak is leveraging its renewable energy strengths to produce green chips, aligning with surging global demand for sustainable technologies while positioning Malaysia as a creator of semiconductor innovations rather than merely an assembler.
Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg said Sarawak’s roadmap under the Post-Covid Development Strategy (PCDS) is designed to diversify the State’s economy by marrying renewable energy resources with front-end chip innovation.
“We know we have strong potential in renewable energy, and with our roadmap for 2030–2035, we can ensure affordable and sustainable supply. Once we have the energy, naturally we must identify industries that require this energy and can add value to our economy. Semiconductors are one of them,” he said during an interview focusing on Sarawak Strengthens Malaysia Semiconductor Industry on Agenda Awani on Tuesday (Sept 30).
Abang Johari highlighted Sarawak’s long-term involvement in the sector, recalling how the State first ventured into chip-making in the 1990s with 1st Silicon, later partnering with Belgium’s X-FAB, which today is the world’s leading producer of analog chips for automotive and medical devices.
Building on that foundation, Sarawak has now moved into next-generation materials through its Sarawak Microelectronic Design (SMD) Semiconductor initiative, in partnership with UK-based Catapult. A lab in Cardiff, Wales, has enabled Sarawakian engineers to work on cutting-edge wafers for artificial intelligence (AI) applications.
“Silicon wafers are no longer sufficient because of energy and heat retention issues. Together with our partners, we have developed a new wafer made from Gallium Nitride (GaN), a material capable of storing data without disruption even under high voltage. This opens the door to AI-driven solutions and energy applications,” he said.
The Premier announced that Sarawak now has its own global brand, KETEQ AI, driven by locally trained talents working abroad with international scientists.
“Although born in Sarawak, KETEQ AI is a global brand. This is a truly global product. What Malaysia mostly have is back-end operations, like Intel in assembling and packaging products, but nor front-end innovation. What Sarawak wants is for Malaysia to become a creator, not just an assembler. We must have our own indigenous inventions that add value to chips,” he emphasied.
Abang Johari stressed that Sarawak’s edge lies in combining green energy with semiconductor innovation.
“Our chips are green products because they are produced by renewable energy. This is what the world demands today. Life depends on chips, from phones and cars to drones and even food security. If Malaysia wants to remain competitive, we must become a strong player in this industry,” he said.
He pointed out that global giants like Nvidia rose by focusing on design while relying on foundries such as TSMC in Taiwan, underscoring the value of front-end innovation.
Sarawak, he argued, is now on the same trajectory, supported by strong renewable energy and strategic investments abroad.
The Premier also underlined the importance of human capital. “The most critical thing is training, exposure, and capacity building. That’s why we send our youth here, to interact with international scientists, learn, innovate, and create,” he said.
On how Sarawak intends to attract global semiconductor leaders amid intense global competition, Abang Johari said the State will lean on its natural advantages.
“We have abundant renewable energy, enhanced with technologies like hydro pump storage and battery storage. Our rivers alone provide gravity-fed energy for turbines. This is cutting-edge technology, and it is our advantage,” he explained.
He added that once the supply chain is established, small and medium enterprises (SMEs) will naturally participate as vendors, with opportunities to scale up.
“Industries such as data centres, which require energy, water, and skilled talent, will be among the first to come. Once the ecosystem is there, SMEs will follow. What is important is focus, and Sarawak has a clear focus on a niche,” he said.
Abang Johari said that the world economy today depends on chips, from communication and transport to healthcare and even agriculture, and Sarawak is determined to become a strong player in this essential industry. — DayakDaily
