DAP assemblyman for Kidurong Chiew Chin Sing has called on the Sarawak state government to be more transparent in its investment in the country's first wafer fabrication project 1st Silicon (Malaysia) Sdn Bhd.

The state government, through its agency Sarawak Economic Development Corporation, holds a 96 percent stake in the RM3.8 billion plant.

It is already in production at the Sama Jaya Free Commercial Zone hi-tech industrial site on the outskirts of Kuching.

Chiew said there was cause for concern as the project is the government's largest single investment involving taxpayers' money and the global electronics slump will recover only in two to three years according to experts.

Chiew, who is DAP Sarawak's deputy chairman, raised questions about the company's viability when debating the Supply Bill (2002) Bill 2001 in the State Legislative Assembly today.

Rumours of troubles

The company is rumoured to be facing problems with its major contractors and partners, including Japan's Sharp Corporation, and is also said to have difficulties marketing its silicon chips.

Company officials have confirmed that it is undergoing an expensive exercise as it plans to produce the newer 0.18 micron chips beside the existing 0.25 microns. The officials refuse to discuss the company's turnover and sales.

Chief executive of 1st Silicon, Claudio Loddo, was once voted Europe manager of the year. The Italian has been with the company since its formation.

The company chairman is JC Fong, Sarawak's attorney-general. Most of the company's 700 employees are engineers.

Chiew, while praising the boldness shown by the state in venturing into high-tech manufacturing said it should ensure the success of the company and minimise the investment risk of taxpayers' money.