Wednesday, 21 January 2026

Sarawak courts global chipmakers for long-term investments

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Awang Tengah (seated, 6th left) in a group photo with government officials and the delegation of MSIA. Photo: UKAS

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KUCHING: Sarawak has further strengthened its standing in Malaysia’s semiconductor industry following a high-level visit by the Malaysia Semiconductor Industry Association (MSIA), which brought together 33 companies and nearly 50 senior industry leaders led by its president Datuk Seri Wong Siew Hai.

The visit included site tours and a high-level internal MSIA meeting held here on Wednesday (Jan 21) to evaluate potential areas for collaboration, long-term investment opportunities and deeper supply-chain integration in the state.

A closed-door strategic discussion was also held between MSIA leadership and Deputy Premier Datuk Amar Awang Tengah Ali Hasan, who is also the Minister for International Trade, Industry and Investment (MINTRED).

During the engagement, Awang Tengah reaffirmed the Sarawak government’s commitment to positioning the semiconductor industry as a strategic pillar of the state’s long-term industrial and economic development.

“Sarawak is not starting from zero. We already host established semiconductor operations and supporting industries, backed by reliable and competitively priced energy from hydropower and renewables, industrial-ready land, and a growing pool of skilled talent,” he said.

He added that Sarawak offers stability, energy security and long-term policy clarity at a time when global supply chains are seeking greater resilience and diversification.

Awang Tengah said the state remains focused on ensuring reliable and affordable power supply, strengthening industrial infrastructure, streamlining investment facilitation, and deepening collaboration with industry and educational institutions to support talent development and technology upgrading.

The presence of senior executives from leading global companies underscored strong industry interest in Sarawak’s semiconductor value proposition.

Meanwhile, Wong said the association stands ready to support Sarawak in realising its aspiration to emerge as a new semiconductor hub.

“This initiative is aimed at building confidence among companies to consider Sarawak as a viable destination for long-term investments in the semiconductor sector,” he said, adding that the opportunity was “certainly there to be realised”.

The one-day programme on Tuesday (Jan 20), facilitated by InvestSarawak, brought together multinational corporations and technology players across the semiconductor value chain.

Among the participating companies were Infineon Technologies, Intel, X-FAB, Melexis, Motorola Solutions, IBM ASEAN, Applied Materials, Inari, Plexus and Penguin Solutions (Smart Modular), as well as equipment manufacturers, automation specialists, cleanroom engineering firms, logistics providers and talent development organisations.

The engagement followed discussions at the Sarawak Semiconductor Investment Forum held in Penang in August 2025, where strong interest from MSIA members led to the organisation of the focused on-the-ground programme in Kuching.

During the visit, the delegation also received briefings from SMD Semiconductor, X-FAB Sarawak and Melexis, providing first-hand insights into Sarawak’s wafer fabrication and semiconductor manufacturing ecosystem.

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