ASE Technology Holding Co (日月光投控), the world’s largest integrated circuit (IC) packaging and testing supplier, yesterday announced a strategic collaboration with Analog Devices Inc (ADI), coupled with the signing of a binding memorandum of understanding.
Under the agreement, ASE intends to purchase 100 percent shares of Analog Devices Sdn Bhd and acquire its manufacturing facility in Penang, Malaysia, a press release showed. The ADI Penang facility is located in the prime industrial hub of Bayan Lepas, with an area of over 680,000 square feet, it said.
In addition, the two sides intend to enter into a long-term supply agreement for ASE to provide manufacturing services for ADI, while ADI plans to co-invest with ASE in upskilling the Penang facility, the statement said.
Photo: CNA
ASE and ADI expect to complete the transaction in the first half of next year, which will still be subject to the satisfaction or waiver of customary closing conditions as agreed under the definitive transaction documents and applicable regulatory approvals, the statement said.
Upon completion of the deal, ASE said it would assume the Penang operations and further develop the site to support ADI as well as other customers.
“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,” ASE chief operating officer Tien Wu (吳田玉) said in the statement.
“Today’s announcement also underscores our continued commitment to strengthen our collaboration with ADI in delivering exceptional IC packaging and testing solutions for their high-performance analog, mixed-signal and digital signal processing chips,” Wu added.
ADI executive vice president for global operations and technology Vivek Jain said assembly technology and resilient manufacturing are critical elements for fueling the company’s short- and long-term growth.
“We are teaming up with ASE to expand the Penang factory’s capability and capacity. This strengthens our technology offering and supply chain resiliency as we continue to offer best-in-class support for our customers,” Jain said in the statement.
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