KUCHING: Sarawak Microelectronics Design (SMD) Semiconductor Sdn Bhd, a wholly owned subsidiary of Sarawak Research and Development Council has signed a framework services agreement (FSA) with Germany’s X-FAB Global Services to provide chip design services.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg was delighted that X-FAB Global Services, which has been in Sarawak for many years producing semiconductors, is now expanding its operations in the state.
He said demand from the consumer electronics and automotive industries has been on the rise, especially during the height of the Covid-19 pandemic, coupled with geopolitical tension between Ukraine and Russia, and also with the introduction of the Chips Act 2022.
“All these have created this opportunity for Sarawak to further develop and explore the semiconductor and chip producing sector,” he said at the ceremony held at his office at Wisma Bapa here Monday.
“I believe that we should not be left behind and should be aware that chip designs keep on evolving, and we should be on track with that.
“With this in mind, the steps we are taking through SMD Semiconductor and the collaborations are necessary as they will develop talent, provide high-paying jobs for our locals and enable knowledge transfer between our partners to nurture a robust research and development strategy,” he said at the signing ceremony.
The agreement was signed by SMD Semiconductor chief executive officer (CEO) Shariman Jamil, its director Peter Morin Nissom, X-FAB Group CEO Rudi de Winter, and group chief technology officer Joerg Doblaski.
The FSA exchange ceremony was witnessed by Abang Johari, state Education, Innovation, and Talent Development Minister Datuk Roland Sagah and his deputy Datuk Dr Annuar Rapaee, Sarawak Financial Secretary Datuk Seri Wan Lizozman Wan Omar, and X-FAB Silicon Foundries SE chairman Tan Sri Hamid Bugo.
Through the agreement, SMD will render chip designs to X-FAB to develop X-FAB’s latest silicon IP libraries for their advanced process technology node migration.
This activity also aligns with X-FAB’s expansion plan at the Samajaya facility here to increase the foundry output from 30,000 to 40,000 wafers per month by 2025.
Sarawak, Abang Johari said, has aimed to increase labour productivity growth, manufacturing contribution to the economy, innovation capacity, and high-skilled jobs by establishing a deep-tech semiconductor chip design house focused on designing and commercialising IC products in partnership with key players.
The on-going Autonomous Rapid Transit (ART) project, he said, is one perfect example of why it is highly necessary for chip design technology operations to be running in the state, as this would supplement the need for relying entirely on foreign expertise in the long run.
Apart from this collaboration, he also welcomed X-FAB to partner with technical institutions and universities in Sarawak to shape new curriculum in semiconductors for undergraduates, postgraduates and industry certifications to enable young graduates to acquire the necessary skills to become semiconductor experts.
“I hope these collaborations will also create opportunities for Sarawakian semiconductor professionals working overseas to return to Sarawak and contribute to our industry,” he said.
