Can Sarawak become a global chip supply player through this collaboration?

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Sarawak Poised to Become a Global Chip Supply Player Through Strategic Collaboration

Sarawak's semiconductor industry is set to achieve a more significant role in the global chip supply chain through a new collaboration between SMD Semiconductor Sdn Bhd, a state-owned entity, and X-FAB Global Services. This partnership, formalized by a Framework Service Agreement (FSA), is designed to enhance Sarawak's capabilities in chip design and align with X-FAB's expansion plans, positioning the state as a key contributor to the international semiconductor market. The initiative is also expected to foster the creation of high-skilled employment opportunities and encourage the return of local talent.
Enhanced Chip Design Capabilities and Foundry Expansion

SMD Semiconductor Sdn Bhd has been contracted by X-FAB Global Services to provide chip design services, focusing on the development of advanced silicon IP libraries. This collaboration is directly linked to X-FAB's strategic expansion at its Samajaya facility. The foundry's output is scheduled to increase from 30,000 to 40,000 wafers per month by 2025, indicating a substantial growth in manufacturing capacity that will be supported by enhanced design expertise.
Strategic Alignment with State Economic Goals

The agreement signifies Sarawak's commitment to advancing its industrial sector towards Industry 4.0 and a high-value economy. The establishment of a deep-tech semiconductor chip design house is a core objective aimed at increasing labor productivity growth, boosting the manufacturing sector's contribution to the state's economy, enhancing innovation capacity, and generating more high-skilled jobs. This strategic focus underscores the state's ambition to move up the value chain in semiconductor manufacturing.
Fostering Local Talent and Expertise

This partnership is anticipated to create a substantial number of higher-skilled jobs within Sarawak. Furthermore, it is expected to act as a catalyst for Sarawakian semiconductor professionals currently working overseas to return and contribute their expertise to the developing local industry. In parallel, X-FAB Global Services is being encouraged to collaborate with Sarawak's technical institutions and universities to shape new semiconductor-focused curriculums, ensuring a pipeline of skilled graduates ready to enter the industry.

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Can Sarawak become a global chip supply player through this collaboration?

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