KUALA LUMPUR: German analog, mixed-signal and specialty semiconductor manufacturer X-FAB Silicon Foundries SE has unveiled a RM3 billion expansion of its facility in Sarawak, boosting the state’s role in the global chip supply chain.
The state-of-the-art addition lifts its Malaysian unit, X-FAB Sarawak Sdn Bhd, from 30,000 to 40,000 wafers per month, specialising in advanced chips for automotive, medical and industrial applications.
Investment, Trade and Industry Minister Tengku Datuk Seri Utama Zafrul Aziz said the investment marks an important step in Malaysia’s bid to reinforce its position in the international semiconductor arena.
Tengku zafrul said this reflects foreign investors’ continued confidence in the country’s long-term industrial reform direction and supports the kind of partnerships Malaysia want to build.
“Both the ministry and Malaysian Investment Development Authority (Mida) are focused on attracting quality investments that create jobs and build key tech skills for Malaysians, to further drive innovation in our industries.
“It also brings us closer to our goal of becoming a leading hub for advanced manufacturing to achieve Malaysia’s goal of becoming a high-value, high-income industrialised nation,” he said in a statement.
Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the expansion is a strategic win for Malaysia’s semiconductor sector, with benefits extending beyond the factory floor.
“This investment is a catalyst for socio-economic upliftment in Sarawak, creating a ripple effect that benefits local communities,” he said.
“We are not just attracting high-value jobs, we are cultivating a new generation of skilled talent and empowering local businesses in the supply chain.
“This is the essence of our national strategy, ensuring every investment serves as a launchpad for inclusive growth and shared prosperity,” he added.
X-FAB Group chief executive officer Rudi De Winter said the new manufacturing line doubles the site’s capacity for its popular 180nm BCD-on-SOI technology.
“I am grateful for the continued support from Mida and the Sarawak government, enabling us to achieve this major milestone for the future success of the entire X-FAB Group,” he said.
The expanded line is now operational and will serve global customers in automotive, industrial and medical markets, further strengthening Malaysia’s value proposition in advanced manufacturing.
© New Straits Times Press (M) Bhd
