DAP today urged Sarawak's loss-making chip producer 1st Silicon (M) Sdn Bhd to present the state legislative assembly with 'a concrete plan' of its projected income and expenditure for the next decade before it is allowed to proceed further.

Speaking at a media conference today, DAP Bandar Kuching MP Chong Chieng Jen said when the company first started in 1998 with a RM1.8 billion paid-up capital 'the picture painted was a rosy one.'

But up to December 2003, he added, the wafer fab had suffered accumulated losses of about RM2.5 billion, 'with more to come'.

The Sarawak Economic Development Corporation (SEDC) has a 70 percent stake in the company located in Sama Jaya Free Industrial Zone outside Kuching City.

"If this is your money that has been lost would you go on forever based on two factors - after six years into incorporation of the company with an accumulated loss of RM2.5 billion and cost-to-revenue ratio of 4:1?" was the question posed by Chong to the shareholders.

"Any person with a right frame of mind would not, of course, continue (with the business)," he stressed.

Committee of inquiry

Chong, who is also DAP state secretary, said if 1st Silicon could come up with a plan of projected income and expenditure, "there will be some doubt as to the correctness of the plan, what more at this stage having squandered RM2.5 billion they could not even come up with any projection."

As to the company's recent announcement that it had completed qualification and begun production shipment of .013 micron technology node for Sharp Corporation of Japan, he said: "Again, would they give the cost and revenue analysis (of it)?"

Wafer fabs produce silicon micro-processing chips for the world's telecommunication devices, personal device assistants and computers.

Chong said DAP would ask its sole representative in the state assembly, Chiew Chin Sing, to raise the issue of 1st Silicon's performance, the losses suffered to date and to state what steps are being taken to remedy the situation.

He also suggested that the state assembly, which will convene next month, set up a committee of inquiry and include the opposition to check how much 1st Silicon is in debt up this stage.

TONY THIEN is malaysiakini 's Sarawak-based stringer.