KUCHING: Sarawak is charting an ambitious path to become a global player in the semiconductor industry by leveraging its renewable energy resources, fostering international collaborations, and building local innovation capacity.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the Post-Covid-19 Development Strategy (PCDS) 2030 outlines efforts to diversify the economy, with renewable energy serving as the foundation for high-value industries.
“We already have a roadmap until 2030–2035 to supply energy at affordable and sustainable tariffs.
“Once you have the energy, you must identify industries that require it and can add value to the economy,” he said during Agenda Awani’s talkshow titled ‘Sarawak Strengthens Malaysia’s Semiconductor Industry’ broadcasted via Astro Awani on Tuesday (Sept 30).
Recalling Sarawak’s early ventures, Abang Johari highlighted the state’s investment in 1st Silicon in the 1990s, which later partnered with Belgian-based X-FAB.
Today, X-FAB is one of the world’s largest analog chip producers for the automotive and medical device industries.
Building on that foundation, he said Sarawak has moved into the next phase of innovation with the establishment of Sarawak Microelectronics Design (SMD) Semiconductor, collaborating with UK-based Compound Semiconductor Applications (CSA) Catapult to explore new materials for chip production.
“With silicon wafers reaching their limits, particularly in handling high voltage and AI applications, we are working on alternatives like gallium nitride.
“This new material is more resilient and can store data effectively even under high power. Our young Sarawakians in Cardiff have already created new products under our global brand, Keteq.AI,” he said.
Abang Johari stressed that Sarawak is not content with only playing a supporting role in the global supply chain.
“In Malaysia, much of what we have is the back-end assembly and packaging. But what we want is to create our own indigenous inventions that add value to the chip. That is why Sarawak is investing heavily in research and design,” he said.
He noted that the state’s advantage lies in combining clean energy with cutting-edge technology, positioning Sarawak as a producer of “green products” that align with global demand.
“The world wants innovation powered by sustainable energy.
“And for us in Sarawak, we see that we have leverage, but one important aspect is training and exposure.
“That is why we send our people here (London, UK), especially the young, so they can interact with international scientists and have the opportunity to innovate and create new things,” he added.
Abang Johari added that the state’s strategy involves building a comprehensive ecosystem, where small and medium enterprises (SMEs) play a role in the supply chain.
“Once you identify the supply chain, SMEs will come in as vendors. They may start small, but with knowledge and focus, they can grow big.
“Even Jack Ma started small — now he is big. Sarawak must focus on its niche and not try to be a master of all,” he said.
