NXP Semiconductors has broken ground on a new assembly and test (A&T) factory in Petaling Jaya, Malaysia, expanding its existing site to increase internal manufacturing capacity and strengthen supply chain resilience.
The new facility will add approximately 500,000 square feet of production space to NXP’s existing Malaysian operations, bringing the total site to around 900,000 square feet upon completion. The facility is dedicated to assembly and testing across NXP’s broad semiconductor product portfolio.
Production is expected to begin ramping in the first quarter of 2028. Once fully operational, the expanded site is expected to more than double the overall output of NXP’s Malaysian operations.
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The additional A&T capacity will support future growth across NXP’s manufacturing ecosystem, including expected production from its VSMC joint venture in Singapore and ESMC joint venture in Dresden, Germany.
Andy Micallef, Executive Vice President and Chief Operations and Manufacturing Officer of NXP Semiconductors, said Malaysia has been an important part of NXP’s global manufacturing footprint for decades, highlighting its strong semiconductor ecosystem and skilled talent base.
“This expansion builds on that foundation, increasing our assembly and test capacity while diversifying operations to strengthen supply chain resilience and flexibility for customers worldwide,” he said in a press statement.
The new factory is being designed as a highly automated smart manufacturing facility. It will incorporate Automated Material Handling Systems (AMHS) and advanced quality management technologies to optimize production operations, improve efficiency and support manufacturing quality.
The expansion forms part of NXP’s hybrid manufacturing strategy, which is intended to increase manufacturing flexibility, supply control and geographic diversification. The expanded Petaling Jaya facility will complement NXP’s existing A&T operations in Greater China and Thailand as part of its global manufacturing network.
NXP has maintained a manufacturing presence in Malaysia since 1972. The company considers the country an important hub within its global supply chain and continues to invest in the local engineering workforce through collaborations with universities, including initiatives supporting engineering education and research partnerships.
