ASE to Acquire Analog Devices’ Penang Facility

ASE Technology Holding Co., Ltd. has signed an MoU with Analog Devices, Inc. to acquire its 680,000-square-foot manufacturing facility in Penang, Malaysia.

Under the terms of the MoU, ASE will acquire 100% of Analog Devices Sdn. Bhd., located in the Bayan Lepas industrial zone. As part of the transaction, ADI and ASE will co-invest in upgrading the site and will enter a long-term supply agreement, allowing ASE to continue providing assembly, packaging, and test services for ADI’s analog and mixed-signal products.

Both companies emphasized that the collaboration represents more than a conventional acquisition. By retaining shared investment and supply commitments, ADI secures a stable backend manufacturing base while ASE expands its advanced packaging footprint in Southeast Asia.

Industry analysts see the move as part of a broader trend of integrated device manufacturers  collaborating with outsourced semiconductor assembly and test companies to optimize costs and maintain capacity control. Penang, long considered a key electronics hub, continues to attract multinational investments due to its skilled workforce, mature supply base, and government-backed infrastructure.

Financial terms of the acquisition were not disclosed, and completion remains subject to regulatory approvals and definitive agreements, expected to finalize in the first half of 2026.