ASE to acquire Analog Devices' Penang facility
ASE Technology Holding and Analog Devices (ADI) have announced a strategic collaboration that includes ASE’s planned acquisition of ADI's manufacturing facility in Penang, Malaysia.
Under a binding Memorandum of Understanding signed on October 21, ASE intends to purchase 100% of the equity of Analog Devices Sdn. Bhd., which operates ADI's Penang plant. The companies also plan to enter a long-term supply agreement under which ASE will provide manufacturing services for ADI. Both parties said they will co-invest to upgrade and expand the Penang site’s capabilities.
The facility, established in 1994 and located in Bayan Lepas, covers more than 680,000 square feet. Following the transaction, ASE plans to integrate the site into its global network for IC packaging and testing.
“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, in a press release.
ADI Executive Vice President of Global Operations and Technology Vivek Jain said the collaboration would strengthen the company’s supply chain resilience and support future 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. 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,” said Vivek Jain.
Definitive agreements are expected to be signed in the fourth quarter of 2025, with closing anticipated in the first half of 2026, subject to customary regulatory approvals. After completion, ASE will take over Penang operations and continue to provide manufacturing services for ADI and other customers.
