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Sama Jaya Free Industrial Zone

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Sama Jaya Free Industrial Zone
Front gate of Sama Jaya High Tech Park
Front gate of Sama Jaya High Tech Park
CountryMalaysia
StateSarawak
CityKuching
Establishment1991
Government
[1]
 • TypeGovernment of Sarawak
 • BodyMinistry of International Trade and Industry, Industrial Terminal dan Entrepreneur Development (MINTRED)
Area
 • Total
813 ha (2,009 acres)
 [2]
Time zoneUTC+8 (MST)
 • Summer (DST)Not observed

Sama Jaya Free Industrial Zone (Sama Jaya FIZ) is a high tech industrial zone located in Kuching, Sarawak, Malaysia.

History

[edit]

Sama Jaya FIZ was established and managed by Ministry of Industrial Development Sarawak (MID) in 1991.[3] MID later regroup into Ministry of International Trade and Industry, Industrial Terminal dan Entrepreneur Development (MINTRED) in 2019.[1] Due to availability of cheap land and labour, it attracted investments from United States and Japan.[4]

In 1995, Japanese electronics manufacturer, Toko Electronics, became the first company to establish a factory in this zone.[4] This was followed by Japanese electronics company Taiyo Yuden, and American hard disk manufacturer Komag (now subsidiary of Western Digital).[2]

In 1996, US printed circuit board manufacturer named Zyco (now known as Sanmina Corporation) open their factories there.[4][2]

In 1998, the Sarawak state government, Malaysian federal government, and Interconnect Technology started a project on creating the first integrated circuit fab in Borneo named 1st Silicon. However, the deal did not materialise due to a lack of funding and technology partners. However, in 1999, the project was revived with US$200 million cash injection from Commerzbank AG of Germany with Sharp Corporation as the technology partner. An 8-inch, 0.25-micron wafer fabrication facility was built in Sama Jaya and became operational in 2001.[5][6] By 2002, the cost of the fabrication plant swelled to RM 6.5 billion (US$1.7 billion).[7] In 2005, 1st Silicon announced the production of 0.13 micron wafers, first in Malaysia to do so.[8] Despite making losses over the years, Sarawak state government continued to invest in 1st Silicon for the benefit of the future generation.[9] In September 2006, 1st Silicon completed merger with Germany-based X-Fab Silicon Foundries, to form X-Fab Sarawak Sdn Bhd where X-Fab holds 58% of the shares and Sarawak government holds 35% minority stake.[10] Meanwhile, all 1st Silicon outstanding debt will be borne by the government of Sarawak.[11]

In 2009, Western Digital decided to pull out of Sarawak and close its manufacturing plant in Sama Jaya. However, after an intervention from the Sarawak government, Western Digital decided to sell the plant to Hitachi Global Storage Technologies (HGST).[12][13]

In 2010, Malaysian government set up a plan to transform the FIZ into a solar industry hub specialising in downstream processing.[4] United States-based MEMC Electronic Material Corporation (now SunEdison, subsidiary of LONGi), invested RM 710 million to build a solar wafer producing plant in the zone.[14]

In 2012, Sanmina Corporation decided to close its facilities in Sama Jaya and moved its operations to Wuxi, China for cost saving measures.[15] Other causes of this move could be due to expensive transportation costs, inadequate infrastructure support, and lack of employable human capital.[12]

In 2015, there were 16 investors operating inside the industrial zone.[16]

In 2016, OM Group Electronic Chemicals which specialises in chemical products manufacturing,[17][18][19][20] was acquired by Element Solutions and underwent restructuring exercises.[21][22][23]

During COVID-19 pandemic in April 2020, all factories in Sama Jaya were operating at 20 to 30% capacity during Movement Control Order (MCO) period.[24] In June 2021, Taiyo Yuden factory was forced to close down for 14 days due to a high number of COVID-19 infections amongst workers.[25] In September 2021, Tabung Ekonomi Gagasan Anak Sarawak (Sarawak people's Vision Economic Fund) (Tegas) Digital Village (TDV) was opened in the FIZ to promote digital innovation and entrepreneurship in the state.[26][27] In December 2021, Sarawak government announced that Sama Jaya industrial zone was nearing its full operational capacity and proposed plans to build another high-tech park at Kota Samarahan.[28]

In November 2022, SMD (Sarawak Microelectronics Design) company was launched in TEGAS Digital Village;[29] partnering with Belgium-based semiconductor company Melexis [fr].[30] SMD provides chip design services to X-Fab.[31] SMD later moved its office to La Promenade mall near the Kuching-Samarahan Expressway.[32] Melexis opened its wafer testing site in the industrial zone in 2024.[33]

Infrastructure and incentives

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Companies inside the FIZ are exempted from sales and services tax.[34] Besides, companies given pioneer status inside the zone are exempted from import and export tariffs, 35% corporate income tax, and 5% development tax for five to ten years. After expiry of the income tax exemption, the company can also apply for investment tax credit exemption for additional five to ten years. Sarawak state government offers subsidies of water, electricity and also other physical infrastructure support in the zone.[4]

Sama Jaya FIZ is located 12 km from Kuching International Airport, 6 km from Kuching port and 16 km from the city centre. Roads, drainage systems, electricity substations, water supplies, and telephone networks were constructed here.[2] IPVPN, Fibre Optics and ADL/ADSL internet connections are available.[35]

In 2015, X-Fab signed a memorandum of understanding (MoU) with engineering faculty of Universiti Malaysia Sarawak (UNIMAS) on research and development.[36] X-Fab also expanded its collaboration with Swinburne University of Technology Sarawak Campus.[37]

East Coast Freight Forwarders is involved in integrated logistics, international freight forwarding, warehouses, and distribution of manufactured goods in the zone.[38]

Tenants

[edit]
  • X-Fab - wafer design, processing, masking, assembly, and testing[39]
  • Taiyo Yuden - inductors, common mode choke coils, ring varistors, balun transformers, wireless modules, aluminum electrolytic capacitors, and solar power generation products[40][41]
  • LONGi Green Energy Technology. Subsidiary: SunEdison Kuching (previously MEMC Kuching in 2010)[42] - Whole mono photovoltaic industry chain[43]
  • Western Digital. Subsidiary: Hitachi Global Storage Technologies (HGST) Malaysia - storage device manufacturing[44][19]
  • Murata Manufacturing. Subsidiary: Toko Electronics - induction coils production[45]
  • Active Point - general trading[46]
  • SE Micro Engineering - precision machined parts, nozzle manufacturing[47]
  • Kwong Seng Cheong Food Industries - supply halal food for Taiyo Yuden[48][49]
  • Iljin Group. Subsidiary: IMM Technology Sdn Bhd[50] - Elecfoil manufacturing[51][52]
  • Tenaga Kenari - Bare Printed Circuit Board manufacturing[53]
  • Elite Industries - jigs, fixtures, dies, molds and other custom-made parts[54]
  • Hai Shoon Group. Subsidiary: Samyoung Global Construction Malaysia - concrete supplier[55][56]
  • Shoei Chemical Inc. Subsidiary: SEM Malaysia - Basic inorganic chemical manufacturing[57][58]
  • Linde plc Malaysia - industrial nitrogen gas supply for Taiyo Yuden and LONGi[59]

Economy

[edit]

The total exports from Sama Jaya FIZ were valued at RM 2.7 billion in 2016, and increased to RM 3.2 billion in 2017.[60] The figure reached RM 4.6 billion in 2018.[61] In 2019, total export value from the park exceeded RM 5.43 billion, followed by RM 6.93 billion in 2020.[62] As of 2019, cumulative investments by multinational companies exceeded RM 12 billion, created 118,000 jobs where 99% of the jobs were filled up by Sarawakians.[61]

References

[edit]
  1. ^ a b "About US". MINTRED Sarawak. Archived from the original on 2 October 2021. Retrieved 2 October 2021.
  2. ^ a b c d "SAMA JAYA : Sarawak's High-Technology Success Story". NetInc. Archived from the original on 11 September 2019. Retrieved 30 September 2021.
  3. ^ "Industrial Estate Developed by MID". Archived from the original on 25 January 2021. Retrieved 2 October 2021.
  4. ^ a b c d e Wulandari, Sri. Malaysia's Free Industrial Zones: Reconfiguration of the electronics production space (PDF). Hong Kong: Asia Monitor Resource Centre. p. 217. Archived from the original (PDF) on 21 July 2021. Retrieved 30 September 2021.
  5. ^ Carroll, Mark (30 March 1999). "1st Silicon to build foundry in Borneo". EE Times. Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  6. ^ "1st Silicon Opens Sarawak Wafer Fab". Semi-conductor Digest. 2001. Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  7. ^ Thien, Tony (30 December 2002). "Cost of controversial silicon chip factory swelled to RM6.5 bil". Malaysiakini. Archived from the original on 30 December 2016. Retrieved 4 October 2021.
  8. ^ Wong, Jack (10 May 2005). "1st Silicon is first Malaysian foundry to make 0.13 micron wafers". The Star (Malaysia). Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  9. ^ "Sarawak defends investments in 1st Silicon". The Star (Malaysia). 1 August 2006. Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  10. ^ Hammerschmidt, Christoph (6 September 2006). "X-Fab completes merger with 1st Silicon". EE Times. Retrieved 4 October 2021.
  11. ^ "Rating Action: Moody's assigns Aaa to Sarawak Capital Incorporated's US$350 million notes benefiting from a MBIA financial guarantee". Moody's Investors Service. Archived from the original on 22 January 2023. Retrieved 22 January 2023.
  12. ^ a b Ji, Yu (5 December 2012). "Not made in Sarawak". The Star (Malaysia). Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  13. ^ "Western Digital to sell Sarawak plant to Hitachi". The Edge Markets. Archived from the original on 3 February 2019. Retrieved 4 October 2021.
  14. ^ Wong, Jack (27 May 2010). "MEMC of US plans solar wafer plant". The Star (Malaysia). Archived from the original on 2 October 2021. Retrieved 2 October 2021.
  15. ^ How Pim, Lim; Lian Cheng, Phyllis Wong; Jenis, Anasathia (9 June 2021). "Sanmina closed due to relocation to China". The Borneo Post. Archived from the original on 9 June 2021. Retrieved 4 October 2021.
  16. ^ "Sarawak develops more value-added industries". Oxford Business Group. Archived from the original on 8 May 2021. Retrieved 24 April 2022.
  17. ^ "OMG Electronic Chemicals M Sdn Bhd". Bloomberg. Retrieved 2 October 2021.
  18. ^ "Contact Us". OM Group. Archived from the original on 2 October 2021. Retrieved 2 October 2021.
  19. ^ a b "EXCELLENT INDUSTRIAL FACILITIES". MINTRED Sarawak. Archived from the original on 24 August 2021. Retrieved 2 October 2021.
  20. ^ Wong, Jack (31 March 2005). "OMG Fidelity plans to expand Kuching plant". The Star (Malaysia). Archived from the original on 3 October 2021. Retrieved 3 October 2021.
  21. ^ "Platform Specialty Products Corporation Announces Third Quarter 2015 Financial Results" (Press release). Platform Specialty Products Corporation. 11 November 2015. Archived from the original on 3 October 2021. Retrieved 3 October 2021.
  22. ^ "Platform Specialty Products Corporation Announces Preliminary 2015 Fourth Quarter and Full Year Financial Performance". Element Solutions. Archived from the original on 3 October 2021. Retrieved 3 October 2021.
  23. ^ "Commission file number: 001-36272 - Element Solutions Inc". Securities and Exchange Commission United States. Retrieved 3 October 2021.
  24. ^ Edward, Churchill (7 April 2020). "Naroden: Factories in Samajaya Free Trade Zone operating at bare minimum, no plans to suspend their operations". The Borneo Post. Archived from the original on 13 June 2021. Retrieved 4 October 2021.
  25. ^ "Registering 128 Covid-19 cases, Taiyo Yuden shuts down for 14 days". Dayak Daily. 29 May 2021. Archived from the original on 29 May 2021. Retrieved 4 October 2021.
  26. ^ Mail, Rintos (1 January 2017). "Construction of Digital Village to begin this month". The Borneo Post. Archived from the original on 31 May 2021. Retrieved 3 October 2021.
  27. ^ Mail, Rintos (2 September 2021). "CM: Tegas Digital Village to help promote digital innovation, entrepreneurship in Sarawak". The Borneo Post. Archived from the original on 3 September 2021. Retrieved 3 October 2021.
  28. ^ "Sarawak govt identifies new 1,000 acre site for new high-tech park in Samarahan". Dayak Daily. 10 December 2021. Archived from the original on 10 December 2021. Retrieved 12 February 2022.
  29. ^ "Contact Us". Sarawak Microelectronics Design (SMD). Archived from the original on 31 August 2023. Retrieved 31 August 2023.
  30. ^ Ling, Hui; Bong, Karen. "Newly launched SMD Semiconductor partners with Melexis Belgium to design, produce chips in Sarawak". Dayak Daily. Archived from the original on 9 November 2022. Retrieved 9 November 2022.
  31. ^ "SMD Semiconductor to provide chip design services to Germany's X-FAB". 27 March 2023. Archived from the original on 27 March 2023. Retrieved 31 August 2023.
  32. ^ "Contact Us". Sarawak Microelectronics Design (SMD). Archived from the original on 25 April 2024. Retrieved 25 April 2024.
  33. ^ Ten, Marilyn (10 July 2024). "Melexis opens largest global wafer testing site in Kuching". The Borneo Post. Archived from the original on 11 July 2024. Retrieved 11 July 2024.
  34. ^ Kong, Sharon (7 August 2018). "No SST for manufacturers in free zones, says Customs". The Borneo Post. Archived from the original on 10 June 2021. Retrieved 4 October 2021.
  35. ^ Malaysia Industrial Park directory (PDF). Federation of Malaysian Manufacturers. 2018. p. 99. Retrieved 4 October 2021.
  36. ^ "X-Fab Sarawak keen to work with universities on research and development". The Borneo Post. 8 October 2015. Archived from the original on 30 May 2021. Retrieved 3 October 2021.
  37. ^ "Swinburne Sarawak and X-FAB expand collaboration". Swinburne University of Technology Sarawak Campus. 22 December 2021. Archived from the original on 27 December 2021. Retrieved 12 August 2022.
  38. ^ ""DELIVERING THAT EXTRA MILE, EVERY TIME"". Archived from the original on 25 January 2021. Retrieved 30 September 2021.
  39. ^ "X-Fab Sarawak Sdn Bhd". Bloomberg. Retrieved 2 October 2021.
  40. ^ "Taiyo Yuden Sarawak Sdn Bhd". Bloomberg. Retrieved 1 October 2021.
  41. ^ "Taiyo Yuden expanding Sarawak plant". The Star (Malaysia). 22 September 2021. Archived from the original on 1 October 2021. Retrieved 1 October 2021.
  42. ^ 志敏, 张. "信息披露 (Disclosure)" (PDF). 证券日报 (Securities Daily). Archived from the original (PDF) on 2 October 2021. Retrieved 2 October 2021.
  43. ^ "Malaysia production base(Whole mono PV Industry Chain)". LONGi. 1 October 2021. Archived from the original on 1 October 2021. Retrieved 1 October 2021.
  44. ^ Nurashiqynn (19 November 2020). "HGST to spend RM1 bln on factory expansion". The Borneo Post. Archived from the original on 15 June 2021. Retrieved 1 October 2021.
  45. ^ "TOKO Electronic (Sarawak) Sdn. Bhd". Retrieved 30 September 2021.
  46. ^ "ACTIVE POINT (M) SDN BHD". Malaysia Data. Retrieved 30 September 2021.
  47. ^ "About Us". SE Micro Engineering. Archived from the original on 16 September 2019. Retrieved 30 September 2021.
  48. ^ "KWONG SENG CHEONG FOOD INDUSTRIES SDN BHD (MALAYSIA)". Archived from the original on 3 October 2021. Retrieved 3 October 2021.
  49. ^ "Data Halal Sarawak". Sarawak Data. Archived from the original on 3 October 2021. Retrieved 3 October 2021.
  50. ^ "Iljin Materials to invest $555 mn in Malaysian subsidiary to up elecfoil output". Maeil Business News Korea. Pulse. 18 January 2022. Archived from the original on 26 June 2022. Retrieved 15 April 2023.
  51. ^ "ILJIN MATERIALS MALAYSIA SDN BHD". Malaysia Data. Retrieved 2 October 2021.
  52. ^ Wong, Jack (28 January 2019). "Iljin Materials' production of electfoil to rise to 25,000 tonnes". The Star (Malaysia). Archived from the original on 6 January 2021. Retrieved 2 October 2021.
  53. ^ "TENAGA KENARI SDN BHD (MALAYSIA)". Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  54. ^ "About Us". Elite Industries. Archived from the original on 3 February 2020. Retrieved 4 October 2021.
  55. ^ "HAI SHOON CONCRETE SDN BHD". Hai Shoon Concrete. Archived from the original on 3 August 2020. Retrieved 4 October 2021.
  56. ^ "Our services". Archived from the original on 3 August 2020. Retrieved 4 October 2021.
  57. ^ "SEM (MALAYSIA) SDN. BHD. (MALAYSIA)". Archived from the original on 4 October 2021. Retrieved 4 October 2021.
  58. ^ "Response to COVID 19 infectious diseases" (PDF). Shoei Chemical Inc. 27 May 2020. Archived from the original (PDF) on 23 October 2020. Retrieved 4 October 2021.
  59. ^ Wong, Jack (1 November 2021). "New plant to cater for industrial gases demand". The Star (Malaysia). Archived from the original on 12 February 2022. Retrieved 12 February 2022.
  60. ^ "Export from Samajaya High Tech Park expected to hit RM4.5 billion by year-end — Deputy CM". The Borneo Post. Archived from the original on 2 June 2021. Retrieved 30 September 2021.
  61. ^ a b "Sama Jaya Free Industrial Zone has benefited Sarawak in many ways - CM". Dayak Daily. 17 April 2018. Archived from the original on 25 February 2021. Retrieved 30 September 2021.
  62. ^ Chua, Sam. "Four firms to invest RM6.31 bln in business expansion at Sama Jaya High Tech Park". The Borneo Post. Archived from the original on 4 October 2021. Retrieved 4 October 2021.

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