NXP Semiconductors N.V. broke ground of its new assembly and test (A&T) factory in Petaling Jaya, an expansion of the company’s existing A&T site. Witnessed by Digital Minister Gobind Singh Deo, the new facility will see NXP add approximately 500,000 square feet of production space and expand its current operations in assembly and testing of its 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.
“Malaysia has been an important part of NXP’s global manufacturing footprint for decades, with a strong semiconductor ecosystem and skilled talent base,” said Andy Micallef, Executive Vice President and Chief Operations and Manufacturing Officer. “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.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.
