Taiwan-based ASE Technology to buy ADI's plant in Malaysia

Taipei, Oct. 25 (CNA) ASE Technology Holding Co., the world's largest provider of IC packaging and testing services, has announced that it will acquire Analog Devices Inc.'s (ADI) manufacturing facility in Penang, Malaysia.

In a statement on Oct. 21, Taiwan-based ASE said that the deal is intended to expand its global manufacturing network and enhance its ability to meet the growing complexity of customer and supply chain demands.

According to ASE, its subsidiary ASE Electronics has signed a binding agreement with the U.S.-headquartered ADI's subsidiary Linear Technology Corp. to acquire 100 percent of Linear's Malaysian unit, Analog Devices Sdn. Bhd., which operates the Penang facility.

Established in 1994, the Penang plant in the Bayan Lepas industrial hub covers more than 680,000 square feet, ADI said.

The two companies also agreed to a long-term supply arrangement under which ASE will provide manufacturing services for ADI, with ADI and ASE jointly upgrading the Penang site's capabilities.

"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," ASE Technology Chief Operating Officer Tien Wu (吳田玉) said in the statement.

"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," Wu added.

ASE said supplementary agreements are expected to be signed in the fourth quarter of this year, with the transaction targeted for completion in the first half of 2026, subject to customary conditions and regulatory approvals.

ASE added that the acquisition will bolster its existing investments in Malaysia through its subsidiary Advanced Semiconductor Engineering Inc.

According to the subsidiary, the Bayan Lepas Free Industrial Zone facility is home to the world's largest image sensor packaging site, accounting for 90 percent of the automotive electronics market.

To meet the rising demand for artificial intelligence and automotive electronics, Advanced Semiconductor Engineering Inc. said it plans to expand the build-up area of the Penang IC assembly and testing compound from 1 million to 3.4 million square feet and the facility's workforce from 3,300 to 6,000 employees.