NXP Semiconductors Breaks Ground in Malaysia

NXP Semiconductors N.V. celebrated the groundbreaking of its new assembly and test (A&T) factory in Petaling Jaya, Malaysia, an expansion of the company’s existing A&T site. 

The facility will further strengthen NXP’s global manufacturing footprint and increase internal capacity to support greater supply chain resilience and flexibility.

Adding approximately 500,000 square feet of production space, the facility will expand NXP’s current operations in Malaysia, which is dedicated to supporting the assembly and testing of NXP’s broad product portfolio. Upon completion of the new factory, the total site will encompass around 900,000 square feet of production space.

The factory is expected to begin ramping production in the first quarter of 2028, with the site’s overall output projected to more than double once fully operational. 

The added A&T capacity will help support future growth across NXP’s manufacturing ecosystem, including expected output from the VSMC joint venture in Singapore and the ESMC joint venture in Dresden, Germany.

Designed as a highly automated smart factory, the facility will feature Automated Material Handling Systems (AMHS) and advanced quality management technologies to optimize manufacturing operations, improve efficiency and support high-quality production.

The expansion of internal A&T operations is a key part of NXP’s hybrid manufacturing strategy, which is designed to provide greater flexibility, supply control and geographic diversification. 

The expanded Petaling Jaya site complements NXP’s existing A&T operations, including those in Greater China and Thailand, to help maintain a balanced and globally diversified manufacturing network.

The groundbreaking ceremony brought together government officials, partners, and NXP executives and team members to commemorate the start of construction. NXP was also honored to have the Honorable Gobind Singh Deo, Minister of Digital, Malaysia, and His Excellency Jacques Werner, Ambassador of the Kingdom of the Netherlands to Malaysia, speak at the ceremony.

“Malaysia has been an important part of NXP’s global manufacturing footprint for decades, with a 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,” said Andy Micallef, Executive Vice President and Chief Operations and Manufacturing Officer, NXP Semiconductors