S'wak poised to become regional semiconductor hub amid global chip war, says Premier
KUCHING (May 28): Sarawak is well-positioned to play a key role in the booming semiconductor industry, especially amid the ongoing chip war between the United States and China, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said the global semiconductor market was projected to exceed US$1 trillion by 2030, driven by increasing demand for artificial intelligence (AI), electric vehicles, the Internet of Things and 5G communications.
He noted geopolitical tensions have resulted in the US restricting China's access to advanced chips and chip-making equipment, while China was responding by heavily investing in its domestic chip capabilities and reducing reliance on foreign technologies.
'The chip war has resulted in global players such as Intel, TSMC and Samsung reacting by diversifying production to Southeast Asia, India, Europe and the US. This marks a strategic shift from concentrated manufacturing to geopolitically stable and neutral regions,' he said in his winding-up speech at the State Legislative Assembly (DUN) sitting here today.
In light of these developments, Abang Johari said Sarawak has established a Semiconductor Strategic Framework to position the state as a high-value semiconductor hub in the region.
'Our vision is clear – to make Sarawak a competitive, resilient, and future-ready player in the global semiconductor industry.'
He added that the framework would drive investments across the entire semiconductor value chain, contributing to Sarawak's Gross Domestic Product (GDP) by attracting high-impact investments, fostering innovation, and building a talent-driven ecosystem.
Touching on technological developments, he highlighted Sarawak's achievement in unveiling the world's first Edge AI Power Converter prototype – KETEQ.AI – in Newport, Cardiff last month.
'This cutting-edge device is a breakthrough solution in correcting faults in power systems in real time. It will change how decentralised, embedded AI is used to make machines smarter and more efficient, especially in tasks that require speed, stability, and autonomous control,' he said.
He said KETEQ.AI was developed by Anak Sarawak through collaboration between Sarawak Microelectronics Design (SMD) and the United Kingdom's CSA Catapult, as a result of the Sarawak-UK Semiconductor Memorandum of Understanding (MoU) signed a year ago.
'SMD is now focused on advancing KETEQ.AI to commercial readiness, ensuring it meets the highest standards of performance and reliability.'
Abang Johari also revealed that the state is initiating the process of intellectual property (IP) registration to protect the core innovations and proprietary algorithms behind KETEQ.AI.
'These bold initiatives will propel Sarawak towards becoming a semiconductor hub,' he said.
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