What's Happening?
ASE Technology Holding Co., Ltd. and Analog Devices, Inc. have announced a strategic collaboration involving the acquisition of Analog Devices' manufacturing facility in Penang, Malaysia. ASE plans to purchase 100% of the equity of Analog Devices Sdn.
Bhd., enhancing its global supply chain resilience and manufacturing diversity. The collaboration includes a long-term supply agreement where ASE will provide manufacturing services for Analog Devices. This partnership aims to expand the Penang facility's capabilities, supporting the increasing complexity of customer and supply chain demands.
Why It's Important?
This collaboration is significant for both companies as it strengthens their positions in the semiconductor industry. For ASE, acquiring the Penang facility broadens its manufacturing capabilities, offering greater operational flexibility and scale. For Analog Devices, the partnership ensures a resilient supply chain and supports its growth in high-performance analog, mixed-signal, and digital signal processing chips. The deal reflects a strategic move to enhance technological offerings and supply chain resilience, crucial for meeting the demands of a rapidly evolving semiconductor market.
What's Next?
The parties expect to finalize definitive agreements by the fourth quarter of 2025, with the transaction closing in the first half of 2026, subject to regulatory approvals. Upon completion, ASE will assume operations at the Penang site, further developing it to support both Analog Devices and other customers. This collaboration is expected to foster growth and innovation, providing career opportunities for employees and strengthening the companies' market positions.
