FormFactor Expands Partnership with Advantest

Rhea-AI Summary

FormFactor (NASDAQ: FORM) has announced an expanded technology partnership with Advantest (TSE: 6857), including a share purchase agreement. The partnership builds on their existing collaboration, which includes FormFactor's 2020 acquisition of Advantest's probe-card assets and their recent partnership in developing wafer-level test cells for silicon photonics integrated circuits.

The collaboration focuses on advancing wafer-level test capabilities, particularly important for high-performance-compute devices used in generative-AI applications. Advantest will purchase approximately 335,000 FormFactor shares at $44.78 per share, though this transaction is not expected to materially impact FormFactor's financial statements.

The partnership aims to accelerate the delivery of integrated test solutions by combining FormFactor's probe cards expertise with Advantest's Automated Test Equipment (ATE) capabilities to meet customers' demanding timelines in advanced semiconductor manufacturing.

Positive

• Strategic expansion of partnership with major industry player Advantest
• Investment commitment from Advantest through share purchase
• Enhanced capabilities in high-growth markets (AI, advanced packaging)
• Strengthened position in wafer-level testing solutions

Negative

• None.

Insights

Semiconductor Industry Analyst

FormFactor's expanded partnership with Advantest represents a strategic move in the advanced semiconductor testing space. The strategic share purchase of 335,000 shares at $44.78 per share by Advantest, while not materially impacting financials, signals a deeper commitment to joint innovation. This collaboration is particularly significant given the rising demand for wafer-level testing in advanced packaging and AI applications. The partnership addresses a critical industry bottleneck in testing high-performance compute devices, especially those used in generative AI applications. By combining FormFactor's probe card expertise with Advantest's ATE capabilities, the companies are positioning themselves to capture growing market share in the rapidly expanding silicon photonics and advanced packaging segments. This strengthened alliance enhances their competitive position against rivals like Teradyne and Cohu.

Technology Integration Specialist

The technical synergy between FormFactor's probe cards and Advantest's automated test equipment creates a comprehensive testing solution that's important for next-generation semiconductor manufacturing. The focus on silicon photonics integrated circuits testing is particularly noteworthy, as this technology is becoming increasingly vital for high-speed data centers and AI applications. The partnership addresses the growing complexity in semiconductor testing, where the integration of different test components must be seamless to maintain accuracy at higher speeds and densities. The collaboration will likely accelerate test solution development cycles, reducing time-to-market for their customers' advanced semiconductor products. This is especially critical in the AI chip market, where testing requirements are becoming exponentially more complex with each generation.

Investment Research Analyst

The equity investment, though relatively small at approximately $15 million (335,000 shares × $44.78), strengthens the strategic alignment between both companies. This deal structure, combining technology partnership with equity investment, creates a stronger commitment mechanism than a mere commercial agreement. The partnership positions both companies to benefit from the explosive growth in AI chip testing market, estimated to grow significantly over the next five years. The focus on advanced packaging and high-performance compute testing solutions directly aligns with major semiconductor industry trends, particularly the shift toward heterogeneous integration and chiplet-based designs. While the immediate financial impact is minimal, the long-term strategic value could be substantial as the partnership captures market share in emerging test requirements for AI and high-performance computing applications.

Builds on a multi-year collaboration to accelerate industry innovation in enabling advanced packaging and high-performance-compute

LIVERMORE, Calif., Jan. 07, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ: FORM), a leading supplier of electrical test and measurement solutions for the semiconductor industry, announced today that it has entered into technology partnership and share purchase agreements with Advantest Corporation (TSE: 6857). The expanded partnership and purchase of FormFactor shares by Advantest build upon a multi-year collaboration between the companies, including FormFactor’s 2020 purchase of Advantest’s probe-card assets and the recent announcement to partner in developing wafer-level test cells for high-volume manufacturing of silicon photonics integrated circuits.

With the adoption of advanced packaging, wafer-level test is increasingly important for leading-edge semiconductor manufacturing, especially for the high-performance-compute devices powering generative-AI applications. Close collaboration between suppliers of test-cell components like probe cards and Automated Test Equipment (ATE) has become critical to reliably delivering high-performance test solutions to the companies’ shared customers’ aggressive timelines. This expansion of the already-strong relationship between Advantest and FormFactor is designed to accelerate the delivery of these test solutions that will enable the next generation of semiconductor industry innovation.

The issuance of approximately 335,000 shares at $44.78 per share under the share purchase agreement is not expected to have a material impact on FormFactor’s financial statements.

About FormFactor
FormFactor, Inc. (NASDAQ: FORM) is a leading provider of essential test and measurement technologies along the full IC life cycle – from characterization, modeling, reliability, and design debug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including statements regarding the Company’s expectations as to opportunities for the technology partnership between Advantest and it, and the expected benefits of expansion of the ongoing collaboration. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: unanticipated technological and other difficulties arising in connection with the performance of the parties under the collaboration; failure of the share-purchase transaction to close when expected or at all; changes in demand for the products of the Company or Advantest; changes in anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

Investor Contact
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com

FAQ

How many shares is Advantest purchasing from FormFactor (FORM) in 2025?

Advantest is purchasing approximately 335,000 shares of FormFactor at $44.78 per share.

What is the focus of FormFactor's (FORM) expanded partnership with Advantest?

The partnership focuses on developing and delivering wafer-level test solutions for advanced packaging and high-performance-compute devices, particularly for generative-AI applications.

Will the Advantest share purchase impact FormFactor's (FORM) financial statements?

No, the share purchase is not expected to have a material impact on FormFactor's financial statements.

What was FormFactor's (FORM) previous collaboration with Advantest?

Previous collaborations include FormFactor's 2020 purchase of Advantest's probe-card assets and a partnership to develop wafer-level test cells for silicon photonics integrated circuits.