Malaysia Rises As Semiconductor Hub With X-Fab’s RM3b Sarawak Investment

KUALA LUMPUR, X-Fab, a global leader in analogue, mixed-signal and speciality semiconductor manufacturing, has announced a RM3 billion expansion of its facility in Sarawak, further solidifying Malaysia’s role in the global semiconductor supply chain.

According to a joint statement from the Malaysia Investment Development Authority (MIDA) and X-Fab, the upgraded facility will boost wafer production capacity from 30,000 to 40,000 units per month, with the new line focusing on advanced chips for automotive, medical, and industrial applications.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the expansion reflects continued foreign investor confidence in Malaysia’s long-term industrial reform strategy and supports the government’s ambition to position the country as a hub for advanced manufacturing.

“This milestone aligns with the New Industrial Master Plan 2030, the 13th Malaysia Plan, and the National Semiconductor Strategy. It strengthens Malaysia’s aspiration to achieve high-value, high-income nation status,” he said.

MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid added that the investment will act as a catalyst for socio-economic growth in Sarawak, creating high-value jobs, nurturing skilled talent, and empowering local businesses in the supply chain. “This is the very essence of our national strategy — ensuring every investment drives inclusive growth and shared prosperity,” he said.

X-Fab group CEO Rudi De Winter highlighted that the company produces chips critical to sectors such as ultrasound technology, electric vehicles, and charging infrastructure.

“This expansion not only increases Sarawak’s overall capacity by 10,000 wafers per month but also more than doubles production of our widely used 180nm BCD-on-SOI technology, essential for these applications,” he said.

With the new manufacturing line already operational, X-Fab will now serve a wider base of global customers in the automotive, medical and industrial sectors, further enhancing Malaysia’s value proposition in advanced manufacturing.

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