NXP Semiconductors held a groundbreaking ceremony for a new assembly and test (A&T) plant in Petaling Jaya, Malaysia, marking an expansion of its existing site there. The event brought together government representatives, business partners, and NXP staff, with remarks from Malaysia's Minister of Digital, Gobind Singh Deo, and the Dutch Ambassador to Malaysia, Jacques Werner.
The new building will add roughly 500,000 square feet of manufacturing space, bringing the site's total footprint to about 900,000 square feet once finished. Production is set to start ramping up in early 2028, and the site's total output is expected to more than double after the expansion is fully operational. This added capacity is meant to support NXP's broader manufacturing network, including anticipated production from its joint ventures VSMC in Singapore and ESMC in Dresden, Germany.
The plant will be built as a smart, highly automated facility, incorporating Automated Material Handling Systems and advanced quality-control technology to boost efficiency and consistency in production.
This investment fits into NXP's hybrid manufacturing approach, which aims to give the company more flexibility, better control over its supply chain, and manufacturing spread across multiple regions. The upgraded Petaling Jaya facility works alongside NXP's other A&T operations in Greater China and Thailand as part of a balanced, globally distributed production network.
NXP has had a manufacturing presence in Malaysia since 1972, and the country remains an important part of its global supply chain. Beyond expanding its physical capacity, NXP also partners with local universities to support engineering education and research, helping build up Malaysia's future talent pool in the semiconductor field.
