Highlights

  • ASE plans to acquire 100% equity of Analog Devices Sdn. Bhd. and its Penang facility.
  • Long-term supply and co-investment agreement set to enhance manufacturing capabilities.
  • Transaction expected to close in H1 2026, subject to regulatory approvals.

ASE Technology Holding Co., Ltd. (NYSE:ASX, TAIEX: 3711) and Analog Devices, Inc. (NASDAQ: ADI) have announced a strategic collaboration in Penang, Malaysia, formalized through a binding Memorandum of Understanding. The agreement outlines ASE’s intention to acquire 100% of Analog Devices Sdn. Bhd., including its manufacturing facility in Penang.

The partnership will also include a long-term supply agreement for ASE to provide manufacturing services for ADI, while both companies plan to co-invest in upskilling the Penang site.

Facility Overview and Expansion

Established in 1994 in the industrial hub of Bayan Lepas, the ADI Penang facility spans over 680,000 square feet. Completion of the proposed acquisition will expand ASE’s global network of integrated circuit packaging and testing operations. The move is intended to enhance ASE’s operational flexibility and scale, while addressing increasing complexity in supply chain and customer demands.

“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. “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.”

Vivek Jain, Executive Vice President of Global Operations & Technology at ADI, added, “Assembly technology and resilient manufacturing are critical elements for fueling ADI’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.”

Timeline and Next Steps

The parties aim to finalize definitive agreements in the fourth quarter of 2025, with the transaction expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. Upon completion, ASE will assume operations of the Penang facility and further develop the site to support ADI and other customers.

About ASE Technology and ADI

ASE Technology Holding Co., Ltd. is a leading provider of semiconductor manufacturing services, offering IC assembly, test, materials, and system designs globally. Analog Devices, Inc. is a semiconductor company bridging analog, digital, and software technologies to advance intelligent edge solutions across industries.