Sarawak Microelectronics Design (SMD) Semiconductor Sdn Bhd marked another milestone in its transformational journey to spearhead semiconductor industry in Sarawak with the signing of a Framework Service Agreement (FSA) with Germany’s X-FAB Global Services here yesterday.

The FSA was signed by SMD Semiconductor director Dr Peter Morin Nissom and chief executive officer Shariman Jamil while XFAB Global Services Group was represented by its chief executive officer Rudi de Winter and group chief technology officer Joerg Doblaski.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, who witnessed the signing ceremony at Wisma Bapa Malaysia here, said the FSA signified the Sarawak government’s commitment to gear Sarawak towards Industry Revolution (IR) 4.0 and a high-value economy.

“SMD’s collaboration with X-FAB Global Services will make Sarawak a major player in the global chip supply chain and enable higher-skilled jobs creation,” he said.

He hoped that Sarawakian semiconductor professionals working overseas will return to Sarawak and contribute to the industry through this initiative.

In his speech, the Premier said high demand from consumer electronics and automotive industries during the height of the pandemic, coupled with geopolitical tension between Ukraine and Russia as well as the introduction of the Chips Act 2022, created this opportunity for Sarawak to further develop and explore the semiconductor and chip producing sector.

“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.

He said the state’s goals included increasing 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 ongoing Autonomous Rapid Transit project 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 to rely entirely on foreign expertise in the long run,” said Abang Johari.

Present at the ceremony were Education, Innovation and Talent Development Minister Datuk Roland Sagah Wee Inn, Deputy Education, Innovation and Talent Development Minister Datuk Dr Annuar Rapaee, State Financial Secretary Dato Sri Dr Wan Lizozman Wan Omar, Ministry of Education, Innovation and Talent Development permanent secretary Azmi Bujang and XFAB Silicon Foundries chairman Tan Sri Datuk Amar Dr Hamid Bugo.

Through the FSA, SMD Semiconductor will render chip design services to X-FAB Global Services to develop 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 in Kuching to increase their foundry output from 30,000 to 40,000 wafers per month by 2025.

SMD Semiconductor is a wholly owned entity of the Sarawak government incorporated through the Sarawak Research and Development Council (SRDC), under the purview of the Ministry of Education, Innovation and Talent Development.

The company is an innovative chip design and technology solution provider to contribute towards improving global sustainability and society.

It also aims to be the catalyst to position Sarawak as the primary destination for the semiconductor industry, while establishing itself as the leading Research and Development Centre for global semiconductor companies focusing on innovative development and application of technology in supporting the strategy and aspiration of Sarawak, strategic partners and clients in the sector.

SMD’s first partnership was with Belgium-based global supplier of microelectronic semiconductor solutions where both parties signed the FSA for the development of Melexis’s automotive chips during an official launch by Abang Johari last year.