Sarawak, traditionally known for its abundant natural resources, is now making headlines for its ambitious moves in the semiconductor industry. This Malaysian state on the exotic island of Borneo is not just rich in oil and timber, but is also carving out a niche as a critical hub for semiconductor design, thanks to its strategic initiatives and international partnerships.
The recent announcement from Shariman Jamil, CEO of Sarawak Microelectronics Design (SMD Semiconductor), highlights the state’s latest efforts. In an enlightening interview with Nikkei Asia, Jamil shared that Sarawak is poised to expand its role in the global chip sector by fostering new relationships with U.K.-based firms. This initiative is not just a leap but a strategic stride towards transforming Sarawak into a key player in designing analog and mixed-signal integrated circuits.
SMD Semiconductor, a company fully backed by the Sarawak state and founded just last year, is a testament to Malaysia’s growing influence in the semiconductor industry. With giants like Infineon and Intel investing billions into their Malaysian operations, the country is steadily securing a spot on the global tech map. Sarawak’s own semiconductor journey dates back to the early ’90s when it was among the first in Southeast Asia to establish silicon foundries, a bold step that preceded the rise of industry leaders like Taiwan’s TSMC.
Today, Sarawak is expanding its reach by entering into strategic partnerships with two prominent British entities: Riverbeck and the Big Innovation Centre. Riverbeck will collaborate with SMD to pioneer advanced radio frequency integrated circuit technology for satellite applications, potentially aligning with global aerospace leaders. Meanwhile, the partnership with the Big Innovation Centre aims to explore sustainable semiconductor manufacturing practices, focusing on advancements in AI, blockchain, and the digital economy.
These initiatives reflect a broader trend of environmental responsibility in the semiconductor industry, a priority Shariman emphasized as critical for future developments. The partnership with the Netherlands-based Melexis, which includes a substantial design service agreement and a new factory in the works, further underscores Sarawak’s commitment to becoming a leading hub in the industry.
On the domestic front, Sarawak’s Sama Jaya High Tech Park stands as a beacon of innovation, drawing over 14 billion ringgit in investments and hosting powerhouses like X-Fab Silicon Foundries and Western Digital. The park is not only a pivotal site for production but also for R&D, contributing significantly to the global supply of essential components like multilayer ceramic capacitors (MLCCs) used in numerous electronic devices.
With over 15,000 local jobs created and a significant investment in expanding production capabilities, Sarawak is setting a rapid pace for its economic transformation. The recent commitment by X-Fab to boost its wafer production capacity and the government’s plan to enhance power infrastructure exemplify the strategic moves being made to accommodate this growth.
As Sarawak continues to develop its semiconductor capabilities, it positions itself as a prime investment destination. The fusion of rich natural resources, strategic geographical location, and forward-thinking industrial policies is not only reshaping Sarawak’s economic landscape but also its role on the international stage, making it a lynchpin in Asia’s burgeoning semiconductor industry.
