Penang: 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 released on October 21, Taiwan-based ASE emphasized that the acquisition aims to expand its global manufacturing network and improve its ability to address the growing complexity of customer and supply chain demands.
According to Focus Taiwan, ASE’s subsidiary, ASE Electronics, has signed a binding agreement with 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 spans more than 680,000 square feet.
The companies also reached a long-term supply arrangement under which ASE will provide manufacturing services for ADI. Both companies will collaborate to upgrade the Penang site’s capabilities. ASE Technology Chief Operating Officer, Tien Wu, stated that the acquisition is a strategic move to broaden ASE’s global manufacturing capabilities and achieve greater operational flexibility and scale. Wu also highlighted the importance of strengthening collaboration with ADI to deliver IC packaging and testing solutions.
ASE anticipates signing supplementary agreements in the fourth quarter of this year, with the transaction expected to be completed in the first half of 2026, pending customary conditions and regulatory approvals. The acquisition aims to bolster ASE’s existing investments in Malaysia through its subsidiary, Advanced Semiconductor Engineering Inc.
According to the subsidiary, the Bayan Lepas Free Industrial Zone facility houses the world’s largest image sensor packaging site, which accounts for 90 percent of the automotive electronics market. To meet rising demand for artificial intelligence and automotive electronics, Advanced Semiconductor Engineering Inc. plans to expand the Penang IC assembly and testing compound from 1 million to 3.4 million square feet and increase the workforce from 3,300 to 6,000 employees.