ASE Technology Holding Co., Ltd. (NYSE: ASX) and Analog Devices, Inc. (NASDAQ: ADI) announced today, 2025‑10‑21, that ASE intends to purchase 100% of the equity of Analog Devices Sdn. Bhd. and its manufacturing facility in Penang, Malaysia, under a binding memorandum of understanding.
The Penang facility, located in the Bayan Lepas industrial hub, spans more than 680,000 square feet and will become part of ASE’s global network of IC packaging and testing operations. The acquisition expands ASE’s capacity and flexibility to meet the growing complexity of customer and supply‑chain demands, particularly in the AI and high‑performance computing markets.
In addition to the purchase, ASE and ADI will enter a long‑term supply agreement whereby ASE will provide manufacturing services for ADI’s analog, mixed‑signal and digital signal processing chips. ADI will co‑invest with ASE to upskill the Penang plant, and the parties expect to execute definitive agreements in the fourth calendar quarter of 2025, with the transaction slated to close in the first calendar half of 2026, subject to customary closing conditions and regulatory approvals.
The transaction aligns with ASE’s strategy to double facilities capital expenditure and build fungible, flexible capacity for a 7‑10 year horizon. By adding a large, high‑volume plant in Asia‑Pacific, ASE strengthens its competitive moat, enhances its ability to capture higher‑margin advanced packaging work, and positions the company to support the AI‑led super cycle that drives demand for next‑generation semiconductor packaging.
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