ASE Technology Holding Co., Ltd. (NYSE: ASX, TAIEX: 3711) and Analog Devices, Inc. (NASDAQ: ADI) announced a strategic collaboration that could see ASE acquire Analog Devices’ Penang, Malaysia, manufacturing facility, marking a significant step in expanding global semiconductor operations.
Under a binding Memorandum of Understanding, ASE intends to purchase 100% of the equity of Analog Devices Sdn. Bhd., including its Penang factory, pending the execution of definitive transaction documents and regulatory approvals. In addition, ASE and ADI plan to enter into a long-term supply agreement, under which ASE will provide manufacturing services for ADI, while ADI will co-invest with ASE to upskill the Penang facility.
Established in 1994 in the Bayan Lepas industrial hub, the ADI Penang site spans more than 680,000 square feet. Completion of the acquisition is expected to expand ASE’s IC packaging and testing network, enabling greater operational flexibility and scale while supporting complex customer and supply chain requirements.
“The proposed acquisition of ADI’s Penang facility is a strategic move designed to broaden ASE’s global manufacturing capabilities and achieve a higher degree of operational flexibility and scale,” said Tien Wu, Chief Operating Officer at ASE. “This announcement also underscores our commitment to strengthen collaboration with ADI in delivering exceptional IC packaging and testing solutions for their high-performance analog, mixed-signal and digital signal processing chips. We look forward to welcoming the ADI Penang team into the ASE family and leveraging the strengths of both companies to drive future growth and innovation.”
Vivek Jain, Executive Vice President of Global Operations & Technology at ADI, said the collaboration will enhance manufacturing resilience and technology capabilities. “We are teaming up with ASE to expand the Penang factory’s capability and capacity. This strengthens our technology offering and supply chain resiliency while continuing to provide best-in-class support for our customers. The joint effort will leverage the companies’ expertise to foster growth of technology and manufacturing in the Penang facility and enable career opportunities for employees.”
The companies expect to finalize definitive agreements in the fourth quarter of 2025, with the transaction anticipated to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. Once completed, ASE will take over operations at the Penang site and further develop it to support ADI as well as other clients, consolidating its position in the global IC packaging and testing market.
