ASE Technology, Analog Devices announce strategic joint efforts in Malaysia

ASE Technology (ASX), and Analog Devices (ADI) 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. 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.