NXP Semiconductors, a Dutch chipmaker, broke ground on a new assembly and test factory expansion in Petaling Jaya, Malaysia, expecting to more than double the facility’s output once fully operational.

In a statement on Wednesday, NXP Semiconductors said the new factory adds about 500,000 square feet of production space, bringing the total site to around 900,000 square feet. It can begin ramping production in the first quarter of 2028. NXP Semiconductors did not provide financial details of the construction.

Designed as a highly automated plant, it will use automated material-handling systems and quality-management technologies. The new building, referred to as the North Campus, will sit less than 500 meters from NXP’s existing operations in Selangor.

NXP, with operation in Malaysia from 1972, said the expansion is part of a hybrid manufacturing strategy. The facility can give it more supply control and geographic diversification, complementing its assembly and test operations in Greater China and Thailand. The added capacity will also support output from its VSMC joint venture in Singapore and its ESMC joint venture in Germany.

At the groundbreaking, Malaysia’s Minister of Digital, Gobind Singh Deo, said the investment would support wider adoption of AI and Malaysia’s goal of raising the digital economy’s share of gross domestic product to 30% by 2030.

Andy Micallef, NXP’s executive vice-president and chief operations and manufacturing officer, said the expansion would increase assembly and test capacity while strengthening supply-chain resilience for customers, without other details.

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