Thursday, 5 February 2026

Semiconductor capabilities strengthened to move up value chain

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Abang Johari delivers his speech. - Photo: Mohd Alif Noni

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KUCHING: Sarawak is moving up the semiconductor value chain by strengthening its capabilities in compound semiconductor design, advanced chip integration and power electronics, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the State’s strategy builds on Sarawak’s existing position in the global semiconductor ecosystem, where established industry players are already operating in the Samajaya High Tech Zone, providing a solid industrial foundation.

“Building on this foundation, we are now moving up the value chain by enhancing our capabilities in compound semiconductors, advanced chip integration and power electronics.

“This is supported by consistent long-term policies and strong infrastructure,” he said at the exchange of Memorandum of Understanding (MoU) documents between SMD Semiconductor, Yayasan Sarawak and the University of Bristol, United Kingdom, at the Satria Pertiwi Complex here today.

Abang Johari said Sarawak’s approach focuses on the high-value front end of the semiconductor value chain through SMD Semiconductor, a wholly Sarawak Government-owned company tasked with developing intellectual property in chip design and new technologies.

“Through SMD, Sarawak is focusing on areas where value is created – chip design, new materials, device concepts, system-level integration and intellectual property development while working closely with global manufacturing partners,” he said.

He added that this strategy positions SMD as the industry anchor, translating research outcomes into products, technologies and applications that align directly with Sarawak’s long-term development priorities.

Abang Johari said the model allows Sarawak to build meaningful and scalable semiconductor capabilities without relying entirely on capital-intensive fabrication, while remaining fully connected to global semiconductor supply chains.

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