RM23.5 mln set aside for Sarawak semiconductor industry

SARAWAK has earmarked RM23.5 million under 2027 Budget to support Sarawak Microelectronics Design (SMD) Semiconductor’s operations and accelerate talent development in the semiconductor industry.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said RM8.5 million of the allocation will go towards industry-based training programmes and collaborations with semiconductor fabrication facilities.

“Through partnerships with Centre of Technical Excellence Sarawak (CENTEXS) and global leaders such as Melexis, Synopsys, and Siemens, high-level certifications in integrated circuit testing and design are now offered to produce industry-ready graduates to cater for the need of the semiconductor industry,” he said.

He said this when tabling the Supply (2027) Bill, 2026 today (Oct 12).

Abang Johari, who is also Finance and New Economy Minister, said Sarawak is advancing into the global semiconductor value chain through the implementation of the Sarawak Semiconductor Roadmap 2030.

He said the roadmap aims to attract billions in investments, create thousands of high-skilled jobs and position Sarawak as a regional hub for advanced technology within the next decade.

“We are now moving from design and research and development (R&D) into full commercialisation of locally developed chips.

“By integrating the semiconductor value chain, we complement our clean-energy advantage and secure Sarawak’s place in the industries of the future,” he said.

SMD Semiconductor recently introduced keteq.GaN, Sarawak’s first locally designed gallium nitride (GaN) power semiconductor chip, at the International Digital Economy Conference Sarawak (IDECS) 2026 on Oct 5.

Developed for next-generation power electronics, the chip is intended for applications ranging from artificial intelligence (AI) infrastructure and renewable energy to battery storage systems, smart grids and solid-state transformers.

The unveiling comes four years after SMD’s establishment in 2022, reflecting the company’s progress from developing semiconductor expertise to producing its own chip technology.