The SMT unit, which provides critical machinery and software for circuit board assembly, has become a high-value asset due to surging demand from the AI server, optical transceiver, and electric vehicle sectors. While ASMPT reportedly maintains a target valuation of $1.5 billion, bidders have yet to fully bridge that gap. Negotiations remain ongoing, and a final agreement could materialize within the coming weeks.
IDG Capital Nears $1 Billion Acquisition of ASMPT's SMT Unit
With a valuation exceeding $1 billion, IDG Capital has emerged as the frontrunner to acquire the surface mount technology business of Hong Kong-listed ASMPT. The potential sale represents a strategic pivot for the Singapore-headquartered manufacturer as it seeks to prioritize its core semiconductor and chip packaging operations.
Competition for the unit has been robust, with private equity firms FountainVest Partners and Triton Partners also engaging in discussions. The divestment follows a strategic review initiated by ASMPT in January, aimed at streamlining the company’s portfolio. The SMT business has demonstrated significant momentum, reporting a 53.1% revenue increase to HK$3.87 billion in the first half of 2026, alongside record bookings fueled by the AI sector. ASMPT shares have climbed 52% year-to-date, reflecting investor confidence in the firm's broader semiconductor strategy.
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