ASE, Analog Devices Announce Strategic Collaboration
October 21, 2025 | BUSINESS WIREEstimated reading time: 2 minutes
ASE Technology Holding Co., Ltd., and Analog Devices, Inc., announced strategic joint efforts in Penang, Malaysia with the signing of a binding Memorandum of Understanding.
Subject to the execution of the definitive transaction documents, ASE intends to purchase 100% of the equity of Analog Devices Sdn. Bhd. and consequently its manufacturing facility in Penang. In addition, ADI and ASE intend to enter into a long-term supply agreement for ASE to provide manufacturing services for ADI. ADI plans to co-invest with ASE in upskilling the Penang facility.
Established in 1994 and located in the prime industrial hub of Bayan Lepas, the ADI Penang facility has a build-up area of over 680,000 square feet. The completion of the proposed acquisition of ADI Penang will further expand ASE’s global network of IC packaging and testing operations, offering further investment opportunities as well as support of the ever-increasing complexity of customer and supply chain 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. We look forward to welcoming the ADI Penang team into the ASE family, and leveraging the strengths of both companies to drive future growth and innovation.”
“Assembly technology and resilient manufacturing are critical elements for fueling ADI’s short- and long-term growth,” said Vivek Jain, Executive Vice President of Global Operations & Technology at ADI. “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. The joint effort will leverage the companies’ expertise to foster growth of technology and manufacturing in the Penang facility and enable continued career opportunities for employees.”
The parties expect to enter into definitive agreements in the fourth calendar quarter of 2025 and the transaction is expected to close in the first calendar half of 2026, subject to the satisfaction or waiver of customary closing conditions as agreed under the definitive transaction documents and applicable regulatory approvals. Upon completion of the sale, ASE will assume the Penang operations and further develop the site to support ADI as well as other customers.
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