August 17, 2026 / SemiMedia / — NXP Semiconductors has broken ground on a new assembly and test factory at its existing site in Petaling Jaya, Malaysia.

The expansion will add approximately 500,000 square feet of production space. Once completed, the Petaling Jaya site will have around 900,000 square feet of total production area.

NXP expects the new factory to begin ramping production in the first quarter of 2028. The site’s overall output is projected to more than double when the expansion reaches full capacity.

Assembly and test operations connect front-end wafer production with finished semiconductor delivery. The work includes chip packaging, electrical testing and quality validation for products used in automotive, industrial, IoT, mobile and communications infrastructure applications.

The additional capacity will also support expected wafer output from NXP’s VSMC joint venture in Singapore and ESMC joint venture in Dresden, Germany.

VSMC, jointly owned by Vanguard International Semiconductor and NXP, is currently targeting initial production in 2027. NXP is entitled to 40% of the fab’s capacity.

ESMC is owned by TSMC, Bosch, Infineon and NXP and is expected to start initial production in 2028. NXP holds a 10% interest and is entitled to 10% of the facility’s capacity.

Both joint ventures are developing 300 mm wafer fabs. Expanding back-end capacity in Malaysia will allow NXP to package and test the additional wafers expected from these manufacturing projects.

The Petaling Jaya factory will operate as a highly automated smart facility using Automated Material Handling Systems and advanced quality-management technologies.

NXP said the project is part of its hybrid manufacturing strategy, which combines internal production, joint-venture capacity and external manufacturing resources to improve supply control and geographic diversification.

The expanded Malaysia site will complement NXP’s existing assembly and test operations in Greater China and Thailand. NXP has maintained a manufacturing presence in Malaysia since 1972 and also works with local universities on engineering education and semiconductor research.