KUALA LUMPUR (Aug 12): Nasdaq-listed NXP Semiconductors NV is expanding its assembly and test operations in Malaysia with a new highly automated facility that will more than double its production capacity in the country when fully operational.
The new facility, known as the North Campus, will be operated by its local unit NXP Malaysia and is expected to be completed by the first quarter of 2028, with commercial operations to begin thereafter.
The facility will add about 500,000 sq ft of production space, bringing NXP Malaysia's total production space to about 900,000 sq ft.
“This expansion increases our assembly and test capacity while diversifying operations to strengthen supply chain resilience and flexibility for customers worldwide,” NXP executive vice-president and chief operations and manufacturing officer Andy Micallef said at the groundbreaking ceremony on Wednesday.
Micallef, however, did not disclose NXP Malaysia's current production output or capacity.
The North Campus will be located less than 500 metres from NXP Malaysia's existing South Campus in the Sungai Way Free Trade Zone in Selangor.
The new facility will feature automated material handling systems and advanced quality management technologies aimed at improving operational efficiency and supporting high-quality production.
NXP Malaysia operates a semiconductor manufacturing facility in Petaling Jaya dedicated to the assembly and testing of integrated circuits. Assembly and testing form part of the back-end semiconductor manufacturing process, where devices are packaged and tested before being supplied for use in electronic systems.
The groundbreaking ceremony was officiated by Digital Minister Gobind Singh Deo, Deputy Investment, Trade and Industry Minister Sim Tze Tzin, Selangor State Investment, Trade and Mobility exco Ng Sze Han, Netherlands ambassador to Malaysia Jacques Werner, and NXP Malaysia managing director and vice-president Goon Ben Nee.
Gobind said the investment would support greater adoption of artificial intelligence and Malaysia's target of increasing the digital economy's contribution to gross domestic product to 30% by 2030.
“NXP’s expansion contributes not only to Malaysia’s manufacturing base, but also to the technological foundation of our digital economy,” he said.
“We want investments that introduce more advanced systems into our industrial base, create higher-value technical roles and give Malaysians the opportunity to work with technologies that will define the future of manufacturing,” Gobind added.