NXP breaks ground on RM3.2 billion Petaling Jaya semiconductor expansion
NXP Malaysia broke ground on a RM3.2 billion expansion of its Petaling Jaya semiconductor facility, the Ministry of Digital Malaysia said today.
Source: Ministry of Digital Malaysia · August 13, 2026 at 10:43 PM · AI-assisted report
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KUALA LUMPUR, 14 AUGUST 2026 —
NXP Malaysia broke ground on a RM3.2 billion expansion of its Petaling Jaya semiconductor facility, the Ministry of Digital Malaysia said today.
Market Impact
The investment will raise production capacity and modernise the site, the Dutch chipmaker said at the ceremony attended by Malaysia’s Digital Minister Dr Mohammad Fahmi Ngah. NXP has operated in Selangor for decades.
Malaysia attracted RM92.8 billion of approved investment in the first quarter of 2026, with Selangor contributing the largest share. Foreign direct investment accounted for 60.5% or RM56.2 billion of the total.
The expansion supports Malaysia’s push up the semiconductor value chain, including integrated circuit design, advanced packaging and AI hardware. The government said the project aligns with the Digital Malaysia 2030 master plan, which targets a 30% digital economy contribution to GDP by 2030.
BMI, a unit of Fitch Solutions, noted Malaysia prioritises high-impact AI-based data-centre capacity, with about 4.6 gigawatts in planning or construction. The NXP site will help meet this demand and create higher-value technical roles, the ministry said.
NXP will partner with Universiti Malaya, Universiti Putra Malaysia and Monash University Malaysia to train local talent in automation, AI, semiconductor engineering and smart manufacturing. The programme aims to build pathways for students, graduates and existing workers, Dr Fahmi said.
The ceremony highlighted Malaysia’s long-standing ties with the Netherlands in resilient semiconductor supply chains. The government reiterated its commitment to becoming a reliable partner for global technology firms.
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