Indonesia Seeks Sarawak Partnership to Boost Semiconductor Goals
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Indonesia Seeks Sarawak Partnership to Boost Semiconductor Goals

Asia Manufacturing Review Team | Friday, 06 February 2026

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  • Indonesia explores a partnership with Sarawak to boost semiconductor manufacturing and reduce supply chain reliance.
  • Sarawak’s natural resources and technological infrastructure support Indonesia’s goal of semiconductor self-sufficiency.
  • The collaboration aims to attract investment, create jobs, and strengthen Indonesia’s position in global tech.

Indonesia is poised to take advantage of an excellent chance to improve its semiconductor industry through a partnership with the state of Sarawak, which is remarkably enhancing its technological prowess.

Indonesia is seeking an opportunity to establish a self-sustaining industry for semiconductor advancement that would enhance its position as a leading global powerhouse in the technology industry.

The partnership with the state of Sarawak is important for improving Indonesia's capability for semiconductor manufacturing to satisfy the heightened need for electronic components within the automotive industry, telecommunication industry, and other sectors.

This partnership comes at a time when Indonesia’s government has wisely decided to strategically place a focus on the semiconductor industry as part of a larger strategy of economic diversification and reduction of natural resource dependency.

Also read: India Joins BRICS Centre to Promote Manufacturing Growth

Sarawak, with its rich natural resources and highly skilled workforce and technology infrastructure base, presents the perfect scenario for the execution of this strategic partnership.

The state itself is working to ensure the sustainability of a highly advanced semiconductor supply chain and sees this as an opportunity to also improve their own supply chain by investing in Sarawak’s development.

Officials from both nations are also reportedly looking at the possibility of collaborative ventures and infrastructure deals that could spur the growth of technology. Currently, Indonesia is very interested and motivated by the possibility of resolving supply chain issues that have arisen over the past few years, especially after the international chip shortage.

By getting a firm foothold in the manufacture of such parts, Indonesia hopes to attract investors and supply a steady flow of such technology to support its own burgeoning digital economy.

This partnership underscores the region's growing role in global semiconductor manufacturing and positions Indonesia to become a key player in the global tech industry.


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