PETALING JAYA: Germany’s X-FAB, a global leader in analog/mixed-signal and specialty semiconductor manufacturing, recently unveiled a RM3 billion expansion of its semiconductor manufacturing facility in Sarawak.
The state-of-the-art expansion increases X-FAB Sarawak’s wafer production capacity from 30,000 to 40,000 units per month.
This significant boost strengthens Malaysia’s position as a crucial hub in the global semiconductor supply chain. The additional facility specialises in producing advanced chips for automotive, medical and industrial applications.
Prime Minister Datuk Seri Anwar Ibrahim and Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg jointly inaugurated the expanded facility at the Sama Jaya Free Industrial Zone in Kuching, marking a pivotal moment in Malaysia’s endeavour to advance upwards in the global technological value chain, as targeted by the New Industrial Master Plan 2030 (NIMP 2030).
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said, “X-FAB’s investment is an important step in Malaysia’s journey to strengthen our position in the global semiconductor industry. It reflects foreign investors’ continued confidence in our long-term industrial reform direction, and supports the kind of partnerships we want to build.
“Both the Ministry of Investment, Trade and Industry and the 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. This expansion also brings us closer to our goal of becoming a leading hub for advanced manufacturing – in line with the New Industrial Master Plan 2030, the 13th Malaysia Plan and the National Semiconductor Strategy – to achieve Malaysia’s goal of becoming a high-value, high-income industrialised nation.”
Mida CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said, “While this expansion is a strategic win for our semiconductor industry, its true impact will be felt on the ground. This investment is a catalyst for socio-economic upliftment in Sarawak, creating a ripple effect that benefits local communities.
“We’re not just attracting high-value jobs, we’re cultivating a new generation of skilled talent and empowering local businesses in the supply chain. This is the very essence of our national strategy: ensuring every investment serves as a launchpad for inclusive growth and shared prosperity for all Malaysians.”
X-FAB Group CEO Rudi De Winter said, “We make chips that save lives, such as those used in ultrasound applications, and that power the future, like our power semiconductor solutions for electric vehicles and charging infrastructure.”
He added that this expansion not only increases X-FAB Sarawak’s overall monthly capacity by 10,000 wafers but also more than doubles the site’s capacity for their popular 180nm BCD-on-SOI technology, which is essential for these types of applications.
“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 new manufacturing line is operational and will serve global customers across automotive, industrial and medical sectors, which also strengthens Malaysia’s value proposition in these manufacturing sectors.