Taiwan’s ASE Technology Holding agreed to acquire Analog Devices’ manufacturing facility in Penang, Malaysia, though the companies declined to disclose financial terms of the transaction.
The deal includes ASE purchasing all equity in Analog Devices Sdn. Bhd. and signing a long-term supply arrangement to provide manufacturing services back to the U.S. chipmaker. ADI will co-invest with ASE to enhance the facility’s capabilities.
The 680,000-square-foot Penang site was established in 1994 in the Bayan Lepas industrial area. ADI operates testing facilities in the Philippines, Thailand and Malaysia, making the Penang sale part of a broader manufacturing realignment.
The arrangement allows ASE to expand its outsourced semiconductor assembly and test footprint while ADI maintains access to production capacity without ownership costs. ASE holds a market capitalization of $27.8 billion.
The parties aim to finalize definitive agreements in the fourth quarter with closing expected in the first half of 2026, subject to regulatory approvals. After completion, ASE plans to serve both ADI and other customers from the facility.
The lack of disclosed deal terms makes it difficult to assess whether ASE is paying a premium for the Malaysian operations or if ADI is simply offloading manufacturing obligations while securing long-term capacity through the supply agreement.
