A swamp in the jungle of Borneo, in the Malaysian state of Sarawak, provides clues about what ails the global semiconductor industry. Sarawak has done well in the past few decades-timber, gas and oil have made it comparatively rich, and headhunting (of the traditional sort) went out of fashion over a generation ago. In the 1990s, though, Sarawak's government got ambitious and decided it was time to build a modern, high-tech industry. Semiconductors sprang to mind.
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