Sarawak Firm Partners With South Korea In AI Chip Race

Sarawak Firm Partners With South Korea In AI Chip Race

KUCHING – A strategic alliance has been formed between a local firm and a South Korean technology company to bolster Malaysia’s standing in the international artificial intelligence semiconductor sector.

SMD Semiconductor Sdn. Bhd. formalised a partnership with Seoul-based Rebellions Inc. through a Memorandum of Understanding (MoU) exchanged at the International Digital Economy Conference Sarawak (IDECS) 2025.

The collaboration aims to merge Korea’s advanced capabilities in AI processor design with Malaysia’s growing semiconductor manufacturing infrastructure.

The ultimate objective is to develop sophisticated new technologies that can compete in a market currently dominated by industry giants like Nvidia.

This agreement follows a recent meeting in Seongnam City, South Korea, on 1 October. During that engagement, SMD Semiconductor was part of an official delegation from Sarawak led by the Deputy State Secretary, Dato Sri Dr. Muhammad Abdullah Zaidel. The meeting laid the groundwork for the current partnership.

The scope of the joint venture will include several key areas. Both entities will investigate collaborative projects in data centre power management solutions and large-scale AI applications.

The partnership also encompasses the creation of specialised training programmes in conjunction with local universities and will explore potential equity investment opportunities, facilitating greater technological exchange between the two nations.

Dato Sri Dr. Wan Lizozman Wan Omar, the Chairman of SMD Semiconductor, characterised the MoU as a significant long-term commitment to developing human resources and fostering innovation.

He stated that the initiative extends beyond mere technical cooperation, describing it as a transformative endeavour for the local population.

The goal is to establish a foundational ecosystem that empowers young people, reinforces the economic structure, and promotes sustainable technological advancement.

Echoing this sentiment, the company’s Chief Executive Officer, Shariman Jamil, outlined the ambition to establish Sarawak as a formidable participant in the global semiconductor industry.

He confirmed that the partnership with Rebellions Inc. is a deliberate strategy to combine Korean expertise with Malaysian industrial capacity, thereby creating a new competitive entity capable of rivalling established market leaders.

This signing represents the latest in a series of strategic moves by SMD Semiconductor, building on a recent exchange with technology firms from the United Kingdom.

It signals continued momentum in Sarawak’s broader policy to evolve from a technology consumer into a recognised technology producer.

With the state positioning itself as a central hub for Malaysia’s semiconductor ambitions, this partnership is anticipated to accelerate opportunities in research, development, and global market competition within the AI-driven economy.

By Sarawak Daily

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