PETALING JAYA: NXP Semiconductors is doubling down on its Malaysian manufacturing footprint with a new smart factory, supported by rising demand for intelligent and connected technologies that is driving the chipmaker to strengthen capacity and supply-chain flexibility.
Executive vice-president and chief operations and manufacturing officer Andy Micallef said as the group marks more than five decades of operations in Malaysia, its latest expansion goes beyond furthering its manufacturing capacity ambitions.
He highlighted continued growth in demand for intelligent and connected technologies, with customers increasingly relying on NXP for secure, high-quality products and reliable supply.
“This expansion helps ensure we can meet those expectations for years to come, while creating additional flexibility and resilience across our global operations.
“This facility will create opportunities for talent development, strengthen engagement with the local manufacturing ecosystem, and help fuel the next generation of semiconductor innovation in Malaysia.”
Yesterday, NXP celebrated the groundbreaking of its new assembly and test (A&T) factory in Petaling Jaya, an expansion of the company’s existing A&T site.
The factory is expected to begin ramping production in the first quarter of 2028, with overall output projected to more than double once fully operational, the group noted in a statement.
“Upon completion, the total site will encompass approximately 900,000 sq ft of production space,” it said.
Micallef added that the new facility is a highly automated smart factory featuring advanced manufacturing technologies and automation systems that improve efficiency, quality, and operational excellence.
“These investments will help position the site at the forefront of next-generation semiconductor manufacturing.”
Digital Minister Gobind Singh Deo, who attended the groundbreaking ceremony, said NXP’s expansion would help strengthen the technological foundation of Malaysia’s digital economy.
