Key insights
- Applied Materials (AMAT) is acquiring NEXX from ASMPT to expand its advanced packaging technology portfolio, particularly in panel-level processing for AI accelerators. This move addresses the growing demand for larger chiplet-based designs and the transition to larger panel form factors. The acquisition strengthens AMAT's position in the advanced packaging market and could positively influence its future revenue and market share.
SANTA CLARA, Calif. - Applied Materials Inc. (NASDAQ:AMAT) announced Sunday it has entered into a definitive agreement to acquire the NEXX business from ASMPT Limited (HKEX:0522), a supplier of large-area advanced packaging deposition equipment for the semiconductor industry. ASMPT, a prominent player in the Semiconductors & Semiconductor Equipment industry, has seen strong momentum recently with its stock trading near its 52-week high and delivering strong returns over the past three months.
The acquisition will expand Applied Materials’ portfolio of panel-level advanced packaging technologies used in manufacturing AI accelerators. The NEXX business specializes in panel-level electrochemical deposition technology for fine-pitch input-output wiring in semiconductor packaging.
The transaction addresses growing demand for larger chiplet-based designs that integrate multiple graphics processing units, high-bandwidth memory stacks and input-output chips in single packages. The industry is transitioning from 300-millimeter silicon wafers to panel form factors as large as 510 by 515 millimeters to accommodate larger AI chip packages with 2.5D and 3D chiplet stacking architectures.
Applied Materials currently supplies advanced packaging technologies including digital lithography, physical vapor deposition, chemical vapor deposition, etch systems, and eBeam metrology and inspection equipment. The addition of NEXX’s electrochemical deposition technology will expand the company’s served addressable market in advanced packaging.
"Having NEXX join Applied Materials complements our leadership in advanced packaging, particularly in panel processing," said Dr. Prabu Raja, President of the Semiconductor Products Group at Applied Materials.
Jarek Pisera, President of ASMPT NEXX, stated the companies can "accelerate the computing industry’s adoption of large-format advanced packaging technologies."
According to InvestingPro data, ASMPT has maintained dividend payments for 35 consecutive years, demonstrating long-term financial stability. Investors seeking deeper insights can access 14 additional InvestingPro Tips, along with comprehensive financial metrics and Fair Value analysis.
The transaction is expected to close within several months and does not require regulatory approvals, according to the press release statement. Following the close, the NEXX team will be incorporated into Applied’s Semiconductor Products Group and will remain based in Billerica, Massachusetts.
Financial terms of the acquisition were not disclosed.
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