NXP Breaks Ground on Malaysia Plant Expansion, Adding 500,000 Square Feet, Production to Begin in 2028

en.Wedoany.com Reported - NXP Semiconductors has officially broken ground on the expansion of its assembly and test (A&T) facility in Petaling Jaya, Malaysia. This expansion project aims to strengthen the company's internal manufacturing capabilities, thereby enhancing the resilience of the global supply chain.

At the groundbreaking ceremony, Malaysia's Minister of Digital, Gobind Singh Deo, and the Ambassador of the Kingdom of the Netherlands to Malaysia, Jacques Werner, delivered speeches respectively, with representatives from politics, business, and NXP management jointly attending the event.

This expansion will add approximately 500,000 square feet of production space to the site, dedicated specifically to the assembly and testing of NXP's various products. Upon completion of all construction work, the site's total production area will reach approximately 900,000 square feet.

According to the plan, the new production lines will commence phased production in the first quarter of 2028, at which point the site's total output is expected to more than double from current levels. This additional capacity will support the subsequent expansion of NXP's manufacturing ecosystem, including the anticipated production volume requirements of the VSMC joint venture in Singapore and the ESMC joint venture in Dresden, Germany.

Andy Micallef, NXP's Executive Vice President and Chief Operations and Manufacturing Officer, stated that Malaysia, with its mature semiconductor industry ecosystem and professional talent pool, has been a vital pillar of NXP's manufacturing network for decades. This expansion will not only enhance the company's assembly and test capabilities but also, through the diversification of operational footprint, provide global customers with more resilient and flexible supply chain assurance.

The new plant will be built to the standards of a highly automated smart factory, incorporating automated material handling systems (AMHS) and advanced quality management technologies to improve manufacturing efficiency and ensure product quality.

Expanding in-house A&T capacity is a core component of NXP's hybrid manufacturing strategy, aimed at strengthening supply control, operational flexibility, and geographic balance. Once the Petaling Jaya site expansion is completed, it will complement NXP's existing A&T bases in Greater China and Thailand, collectively forming a diversified global manufacturing network.

NXP has been conducting manufacturing operations in Malaysia since 1972, and the country has become a key node in its global supply chain. In addition to expanding capacity, NXP also supports engineering education and joint research through strategic partnerships with local universities, continuously building the next generation of engineering talent for Malaysia's semiconductor industry.