Sarawak wants to become the centre for high-quality semiconductors in Southeast Asia, says Prime Minister

KOTA SAMARAHAN, June 26 – Prime Minister Tan Sri Abang Johari Openg today said the state government’s aim is to establish Sarawak as a high value-added semiconductor hub in the Southeast Asia region by 2030.

He predicted that by then there would be an increase in investment in the semiconductor sector, which would lead to an increase in its contribution to the state’s gross domestic product (GDP).

Therefore, the state government will unveil a holistic sustainability and circular economy strategy by the end of the year to consolidate the position of state-owned chip designer SMD Semiconductor Sdn Bhd globally while establishing new industry standards for sustainable business practices, he said.

“SMD Semiconductor is also embarking on a path to sustainable innovation by adopting a strategic roadmap for holistic sustainability and circular economy practices, emphasizing environmental protection, social responsibility and economic resilience,” he said at the opening of the SMD Design Centre and Academy here.

He said SMD had been allocated a 4.1-hectare plot of land in the Samajaya High Tech Zone to expand its semiconductor operations.

“It is also about taking into account the increasing importance of advanced chip packaging technologies for high-performance semiconductor chips,” he said.

He said the move will enable SMD to collaborate with private investors and partners and drive development in fast-growing markets such as artificial intelligence (AI) and the automotive sector.

“Advanced chip packaging will generate new research and development opportunities such as system design, chiplet design and packaging design, which will create new high-quality jobs for the local industry.

However, Abang Johari said it was critical for SMD to assemble a team of exceptional individuals to excel in these high-end, visionary and collaborative ventures.

“First and foremost, we need to find and train highly qualified, innovative and dedicated integrated chip development engineers who can make a significant contribution to the joint effort and ensure that the product we develop meets high quality and functionality standards,” he said.

He urged SMD to establish its presence in an international center with a large pool of specialized talent in order to attract the highest caliber of engineers and industry experts who are essential to the development of advanced semiconductor technologies.