ASE to acquire Analog Devices' Malaysia facility in strategic deal

ASE Technology Holding Co., Ltd. (NYSE: ASX) and Analog Devices, Inc. (NASDAQ: ADI) announced a strategic collaboration involving the planned acquisition of ADI's manufacturing facility in Penang, Malaysia.

Under the binding memorandum of understanding, ASE intends to purchase 100% of the equity of Analog Devices Sdn. Bhd. and its manufacturing facility. The companies plan to establish a long-term supply agreement for ASE to provide manufacturing services to ADI, with ADI co-investing in facility upgrades.

The ADI Penang facility, established in 1994, spans over 680,000 square feet in the Bayan Lepas industrial hub. The acquisition will expand ASE's global network of integrated circuit packaging and testing operations.

"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 Technology Holding Co.

Vivek Jain, Executive Vice President of Global Operations & Technology at ADI, stated that "assembly technology and resilient manufacturing are critical elements for fueling ADI's short- and long-term growth."

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. Upon completion, ASE will assume operations and develop the site to serve both ADI and other customers.

ASE Technology Holding provides semiconductor manufacturing services including assembly, testing, materials and system designs. Analog Devices reported revenue of more than $9 billion in fiscal year 2024 and employs approximately 24,000 people globally.

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