Taiwanese chip packaging and test services ASE Technology Holding Co., Ltd. (ASE) and U.S. chip company Analog Devices, Inc. (ADI) announced Tuesday (Oct. 21, 2025) entering a strategic collaboration that will lead to ASE acquiring ADI’s subsidiary, including its manufacturing facility, in Penang, Malaysia.

In addition, the agreement also includes long-term supply agreement for ASE to supply manufacturing services for ADI. Nonetheless, ADI still plans to co-invest with ASE in upskilling the Penang facility.

Expanding Capability, Capacity

Tien Wu, Chief Operating Officer at ASE said the acquisition of ADI’s Penang facility aims to broaden the company’s global manufacturing capabilities, operational flexibility, and scale.

“(The acquisition) 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,” said Wu.

On the other hand, Vivek Jain, Executive Vice President of Global Operations & Technology at ADI said the joint effort will foster growth of technology and manufacturing in the Penang facility. “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.”

Established in 1994, Analog Devices Sdn. Bhd. Is located in Bayan Lepas with a build-up area of over 680,000 sq.ft. Therefore, this will expand ASE’s global network of IC packaging and testing operations.

According Analog Devices Malaysia’s LinkedIn post, the Malaysian subsidiary employs about 2,300 workforce and produces management solutions, amplifiers, processors, and technologies for data conversion and signal processing.

The parties expect to sign the agreements in Q4 of 2025 with the transaction likely concluding in the first calendar half of 2026, subject to the satisfaction of regulatory requirements.

22 October 2025