KUCHING – Sarawak has taken a bold step in shaping its industrial future with the launch of X-FAB Sarawak Sdn Bhd’s RM3 billion expansion and the unveiling of the Sarawak Semiconductor Roadmap 2030. These two milestones, announced today, mark a turning point for the state as it positions itself as a key player in the global semiconductor ecosystem. The investment not only strengthens Sarawak’s role in advanced manufacturing but also places the state on track to become a regional hub for chip design and production by 2030.
The expansion of X-FAB’s Kuching facility, located in the Sama Jaya Free Industrial Zone, will increase monthly wafer output from 30,000 to 40,000 wafer starts, with plans to scale up to 50,000 in the future. These wafers are critical to industries around the world, including automotive, healthcare, industrial systems, and communications. With global demand for chips continuing to rise, X-FAB’s growth underscores Sarawak’s importance in ensuring stable and sustainable semiconductor supply chains.
Presiding over the ceremony, the Premier of Sarawak said that the expansion is proof of the state’s formula of “long-term partnerships, clear policy direction, and local determination.” He recalled that the company’s presence in Sarawak dates back to its 2006 merger with 1st Silicon, a move that has since laid the foundation for the growth seen today. He emphasised that Sarawak is not simply a host to world-class investments but an enabler, providing infrastructure, renewable energy, and supportive policies that allow industries like X-FAB to thrive.
One of the strongest advantages Sarawak offers is its reliable and affordable renewable energy supply, particularly through hydropower. The Premier highlighted that this low-carbon energy mix not only reduces costs but also aligns with global trends in sustainable manufacturing. He said this positions Sarawak as a natural partner for environmentally conscious companies such as X-FAB.
The Sama Jaya Free Industrial Zone has already cemented its reputation as a hub for growth, attracting RM15.4 billion in both foreign and domestic investments and creating more than 15,000 jobs to date. X-FAB itself has become one of its most successful stories, with nearly 98 per cent of its workforce being Malaysians, and almost 95 per cent of those Sarawakians. Engineers, managers, and industry leaders from the state are now playing a key role in advancing the semiconductor industry to international standards.
Recognising that talent development is crucial for sustaining industrial growth, the Premier announced a Free Tertiary Education Scheme that will begin next year in Sarawak-owned higher learning institutions. The scheme will complement expanded investments in technical and vocational education and training as well as public-private partnerships aimed at preparing a highly skilled workforce. He stressed that this initiative goes beyond education, serving as a signal to the industry that Sarawak is committed to building a resilient workforce ready to meet global demand.
In his closing remarks, the Premier reaffirmed Sarawak’s long-term commitment to creating an environment built on strong infrastructure, continuous innovation, and skilled talent. He also called on the Federal Government to align its efforts with Malaysia’s Silicon Vision, ensuring that Sarawak’s achievements contribute to the broader national ambition of becoming a global semiconductor hub. “The story of X-FAB Sarawak is not just about silicon wafers and cleanrooms. It is the story of Sarawakians rising to meet world-class standards, backed by a government that believes in long-term vision,” he said, while expressing gratitude to X-FAB’s leadership for their continued trust and partnership.
The launch was attended by senior state leaders, including Deputy Premiers Datuk Amar Awang Tengah Ali Hasan and Datuk Amar Professor Dr. Sim Kui Hian, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Deputy Minister of Energy and Environmental Sustainability Datuk Dr. Hazland Abang Hipni, and Deputy Minister of Urban Planning, Land Administration and Environment Datuk Len Talif Salleh.
With RM3 billion in fresh investment, a clearly mapped-out strategy to 2030, and a strong focus on education and renewable energy, Sarawak has placed itself firmly on the global stage as a rising force in the semiconductor industry. – Sarawakku