NXP Semiconductors is receiving a $250 million loan from the European Investment Bank’s international development arm, EIB Global, to expand its semiconductor operations in Malaysia.
The funding will be used to increase assembly, packaging and testing capacity at a plant near Kuala Lumpur for semiconductors used in cars, industrial equipment, smart-home devices, and identification and payment systems, the EIB announced on Tuesday.
The project is due to be completed by 2030 and is expected to create more than 1,000 jobs in Malaysia.
The financing agreement was announced at an EU–Malaysia business forum in Kuala Lumpur.
EIB vice-president Nicola Beer said the investment would support a European chipmaker while bringing technology, know-how and jobs to Malaysia.
Linked to the EU’s Global Gateway plan
The loan was described as part of the European Union’s “Global Gateway” strategy, an EU programme to mobilise international investment in areas including digital technologies, the EIB said.
European Commissioner for International Partnerships Jozef Síkela, who attended the forum, stated that the support would help expand advanced semiconductor manufacturing in Malaysia and strengthen supply chains.
The EIB said the agreement builds on existing cooperation with NXP, noting it provided €1 billion in financing in 2024 for the company’s research, development and innovation activities in Europe.
Andy Micallef, NXP’s executive vice-president and chief operations and manufacturing officer, said the loan would help expand the company’s manufacturing footprint in Malaysia and support jobs and skills in the region.
NXP is headquartered in the Netherlands and operates in more than 30 countries, with revenue of $12.27 billion in 2025.
