Sarawak Semiconductor Roadmap 2030 to attract RM2bil in investment

12 September 2025
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3 min read
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By Sulok Tawie

September 12, 2025

KUCHING: The recently formulated Sarawak Semiconductor Roadmap 2030 is projected to attract over RM2 billion in funding from both public and private sector investments, says Premier Tan Sri Abang Johari Openg.

He said that the roadmap would also initiate strategic collaborations with more than 10 global industry leaders and create over 3,000 high-skilled job opportunities.

"It will commercialise new intellectual properties (IPs) and train 3,000 local graduates through dedicated talent development initiatives," he said during the opening of the RM3 billion expansion of the X-FAB semiconductor manufacturing facility in Sarawak.

The ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim today.

Abang Johari highlighted one of the roadmap's key proposed initiatives: the establishment of the SMD Advanced Chip Integration Centre on a 10-acre site at Sama Jaya Industrial Park, Kuching, through SMD Semiconductor Sdn Bhd, a wholly government-linked company tasked with workforce training and developing Sarawak's semiconductor ecosystem.

He said that the advanced chip centre was the result of a strategic collaboration between SMD Semiconductor, Compound Semiconductor Applications (CSA) Catapult, and the Welsh government.

"This will form the backbone of a globally connected research and development ecosystem — anchored here in Sarawak but reaching across borders. It will position Sarawak as a hub for high-value semiconductor activities in the future, including the creation of intellectual property, cross-border collaboration with global partners, and the nurturing of both local and international talent."

He said that the Sama Jaya facility would accelerate local capabilities in advanced semiconductor design, integration, and innovation, ensuring that Sarawak was not merely a participant but a competitive leader in Malaysia's semiconductor industry.

"As part of this strategic initiative, the Sarawak government, through SMD Semiconductor Sdn Bhd, is collaborating with X-FAB in Dresden, Germany, as well as Cambridge Microelectronics and CSA Catapult, to develop new compound semiconductor-based chips using Gallium Nitride (GaN). This partnership will enable SMD Semiconductor to design and develop a Sarawak-owned chip, leveraging the potential of GaN technology for next-generation applications," he said.

Abang Johari said that, in the longer term, the plan was to transfer this advanced technology to Sarawak, thereby strengthening process capabilities and expanding production capacity at X-FAB Kuching.

He called for federal support to collaborate with Sarawak in developing its semiconductor ecosystem under Malaysia's Silicon Vision and the National Semiconductor Roadmap.

"We believe this partnership will accelerate our efforts to build local talent and develop intellectual property, chip design, and production in Sarawak," he said.

He also said that the Sama Jaya Free Industrial Zone had attracted RM15.4 billion in foreign and domestic investments.

On the X-FAB expansion, he said it represented a significant milestone, increasing Sarawak's monthly wafer production from 30,000 wafer starts to 40,000, with future plans to reach 50,000.

The expanded capacity will support a wide range of applications, from automotive and medical technologies to industrial systems, communications, and consumer products.

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