The dicing saw is a critical piece of equipment in IC processing, primarily used to cut wafers. Due to the high spindle speed, even small errors in the cutting process can result in wafer chipping or cracking. Therefore, the dicing saw requires a high degree of accuracy and stability. In this paper, the accuracy of the X-axis servo response was simulated using an Israeli ADT-8230 dual-axis abrasive wheel dicing saw. The study introduces a novel approach by using a fuzzy controller instead of the traditional position loop proportional integral (PI) controller. In addition, a two-input, two-output fuzzy rule is used for on-line correction of the position loop PI parameters. A heuristic algorithm is used to optimise the position loop fuzzy controller parameters. The quantization and proportionality factors are rectified using Particle Swarm Optimisation (PSO) algorithm and Genetic Algorithm (GA) respectively. By comparing the performance of the PSO fuzzy and GA fuzzy controllers, the optimal control method is derived. The proposed method is validated by simulation in the MATLAB/Simulink development environment using real ADT-8230 servo data. Experimental results show that the PSO-fuzzy structured controller reduces the position control error by 11.8%, improves the tracking performance by 26% and reduces the torque pulsation by 23%. Therefore, in future research, more advanced search algorithms should be further combined to improve the servo accuracy of the dicing saw.