Helical is against Kensington Developments' newest plans for Graving Dock Road on the Quays.
And bosses at the car parts manufacturer have not ruled out a legal challenge against the scheme.
Lytham-based developer Kensington originally wanted to build 3,000 homes there, but this was scrapped in 2005 after huge opposition.
The latest proposal for 337 new homes was revealed by Kensington at a public exhibition in February.
Engineering director for Helical, Charles Morris, said: "If there are lots of residents here, traffic will be a big issue for them and our trucks might not be able to get through easily, which would jeopardise everybody's livelihood.
"People would also not be happy about us running our generators in the evenings, which we need to do to test the equipment.
"Some of the houses would be within 30 metres of the factory, but it would be too noisy, and that is what industrial estates are for, to keep noisy factories separate."
He also said Helical needed to expand the site to accommodate new technicians, as they had new markets in China and India, but was worried all of the land would be acquired by Kensington.
A planning consultant representing Helical has issued a letter of objection against the plans and Helical has not ruled out court proceedings as a potential course of action.
Kensington would not comment about the objections.
But a Fylde Council spokesperson said: "The issues raised by Helical would be addressed through the development control process after an application for new development is submitted. However, as none has currently been submitted, it is very difficult to comment further at this time."