KOTA SAMARAHAN, June 26 — Premier Tan Sri Abang Johari Openg today said the state government aims to establish Sarawak as a semiconductor high-value added hub in the South-east Asian region by 2030.

He said he forecasts that there will be an increase in investment from the semiconductor sector that will lead to the increase in contribution to the state gross domestic products (GDP) by then.

Therefore, he said the state government will unveil the Holistic Sustainability and Circular Economy Strategy by the year-end to solidify state-owned chip designer SMD Semiconductor Sdn Bhd’s position globally while establishing new industry standards in sustainable business practices.

"SMD Semiconductor is also paving its path towards sustainable innovation, championing holistic sustainability and circular economy practices through a strategic roadmap, prioritising environmental stewardship, social responsibility, and economic resilience,” he said at the launch of SMD Design Centre and Academy here.

He said SMD has been granted a 4.1ha plot at the Samajaya High Tech Zone to expand its semiconductor operations.

"It is also to address the increasing importance of advanced chip packaging technologies for high performance semiconductor chips,” he said.

He said the move will enable SMD to collaborate with private investors and partners, fostering development in rapidly growing markets such as in artificial intelligence (AI) and the automotive sectors.

"The advanced chip packaging will spin off new research and development opportunities such as system design, chiplet design and package design that will create a new high value job opportunities for local industry.

Abang Johari, however, said that it is crucial to assemble a team of extraordinary individuals for SMD to excel in these high-end visionary and collaborative endeavours.

"At the forefront, we need to source and develop highly skilled, innovative, and dedicated integrated chip design engineers who can contribute significantly to the collective effort, ensuring that the product we develop meets high standards of quality and functionality,” he said.

He urged SMD to establish its presence in an international hub with a strong pool of specialised talent, possibly to recruit top-tier engineers and industry experts essential for the development of advanced semiconductor technologies.