NXP’s Malaysia back-end operations are about to get much bigger. The chipmaker has started construction on a new assembly and test facility in Petaling Jaya that adds about 500,000 square feet and will roughly double the site’s output once it ramps in the first quarter of 2028.
The expansion pushes the campus to around 900,000 square feet of production space. NXP is building the plant as a smart factory, with automated material handling systems and advanced quality management tools built in from the start.
The capacity plugs into NXP’s hybrid manufacturing plan, which pairs internal fabs and back-end sites with joint ventures. Output will support the VSMC operation in Singapore and the ESMC venture with TSMC in Dresden.
Andy Micallef, the executive vice president leading operations and manufacturing, said the site builds on a relationship with Malaysia stretching back decades. The expansion diversifies NXP’s footprint, he added, which should make its supply chains more resilient.
Malaysia’s digital minister Gobind Singh Deo and the Netherlands’ ambassador attended the groundbreaking, a sign of how central the country has become to back-end chip manufacturing as companies spread capacity across regions.
