ASE Technology Holding Co., Ltd. and Analog Devices, Inc. have announced a new strategic collaboration in Penang, Malaysia, marked by the signing of a binding Memorandum of Understanding.
Under the proposed agreement, ASE plans to acquire 100 percent of the equity of Analog Devices Sdn. Bhd., including its manufacturing facility in Penang. Following the acquisition, the two companies intend to enter into a long-term supply partnership, with ASE providing manufacturing services for Analog Devices. Both companies also plan to co-invest in developing the skills and capabilities of the Penang workforce.
The Penang facility, established in 1994 and located in the Bayan Lepas industrial hub, spans more than 680,000 square feet. Once the acquisition is complete, ASE will integrate the site into its global network of IC packaging and testing operations. The move is expected to enhance ASE’s ability to meet increasing customer and supply chain demands while offering new opportunities for investment and innovation.
According to ASE Chief Operating Officer Tien Wu, the acquisition is a key step in expanding the company’s global manufacturing reach and flexibility. He said the agreement reflects ASE’s continued commitment to collaborate closely with Analog Devices in delivering advanced IC packaging and testing solutions for analog, mixed-signal, and digital signal processing products. Wu added that ASE looks forward to welcoming the Penang team and combining the strengths of both organizations to drive growth and innovation.
Vivek Jain, Executive Vice President of Global Operations & Technology at Analog Devices, emphasized that advanced assembly technology and resilient manufacturing are vital for the company’s long-term success. He said the partnership with ASE will expand the Penang factory’s capabilities and capacity, enhancing Analog Devices’ technology offerings and supply chain resilience while continuing to support customers and provide career growth opportunities for employees.
Both parties expect to finalize definitive agreements in the fourth quarter of 2025, with the transaction anticipated to close in the first half of 2026, pending customary closing conditions and regulatory approvals. After completion, ASE will take over operations at the Penang site, supporting both Analog Devices and other customers as part of its expanding global network.
Original – Analog Devices