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PENANG/WILMINGTON - ASE Technology Holding Co., Ltd. (NYSE:ASX), a semiconductor packaging company with a $27.8 billion market capitalization, plans to purchase Analog Devices, Inc.’s (NASDAQ:ADI) manufacturing facility in Penang, Malaysia, according to a binding memorandum of understanding announced by both companies Tuesday. InvestingPro data shows ASE maintains a GOOD financial health score, with revenue growing 5.7% over the last twelve months.
The agreement includes ASE’s acquisition of 100% equity in Analog Devices Sdn. Bhd. and its Penang facility, along with a long-term supply agreement for ASE to provide manufacturing services to ADI. The companies also plan a co-investment to enhance the facility’s capabilities. With ASE’s upcoming earnings report scheduled for October 23, InvestingPro subscribers can access detailed analysis and forecasts to evaluate this strategic move’s potential impact.
Located in Bayan Lepas industrial hub, the 680,000-square-foot facility has been operational since 1994. The acquisition will expand ASE’s global network of integrated circuit packaging and testing operations.
"The proposed acquisition 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, "We are teaming up with ASE to expand the Penang factory’s capability and capacity. This strengthens our technology offering and supply chain resiliency."
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 of the Penang facility and develop it to support both ADI and other customers. The agreement aims to enhance global supply chain resilience and manufacturing diversity for both companies, according to the press release statement. ASE’s stock has shown strong momentum, delivering a 61.48% return over the past six months, reflecting investor confidence in the company’s expansion strategy.
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