AEM Holdings Ltd., a global leader in test innovation, announced a strategic partnership with ASE Technology Holding Co., Ltd., the leading provider of semiconductor assembly, testing and materials services. The collaboration aims to deliver disruptive test solutions tailored for the rapidly expanding Artificial Intelligence and High-Performance Computing markets by combining AEM's proprietary test technologies with ASE's world-class manufacturing scale.
Aligned with the partnership, AEM will raise approximately S$12 million through a private placement of 3,350,000 ordinary shares to a wholly owned subsidiary of ASE, representing 1.06% of AEM's issued share capital. ASE will also receive 28,111,856 free detachable warrants, which if fully exercised would result in an additional 8.935% of the current issued share capital. The transaction remains subject to certain conditions, including approval from the Singapore Exchange.
Proceeds from the private placement will support AEM's continued expansion in Taiwan and the joint integration of AEM's test technologies into ASE's manufacturing and test environments. The funds will advance AEM's product roadmap, enhance its system offerings, and accelerate joint go-to-market initiatives aimed at supporting next generation AI and HPC applications. This integration includes highly parallel test architectures and advanced thermal management capabilities critical for complex computing systems.
The strategic partnership also supports ISE Labs, a wholly owned subsidiary of ASE, as it expands AI and HPC processor development capabilities to address early-stage testing, validation, and characterization requirements. These efforts focus on heterogeneous integration architectures, including multi-chiplet and advanced system-in-package designs as well as optical interconnect technologies critical to next-generation compute platforms. ASE's ATM portfolio further strengthens these initiatives with high-volume advanced packaging and test capabilities, enabling production-scale deployment as global demand accelerates.
Ken Hsiang, Chief Executive Officer of ISE Labs, stated that as compute architectures grow more complex and time-to-production continues to compress, test has become a critical enabler of performance, reliability, and manufacturability for next-generation AI and HPC systems. He emphasized that combining ISE's advanced characterization and production-readiness capabilities with AEM's scalable, high-parallel test technologies enables rapid transition from validation to ASE's high-volume deployment while addressing increasing complexity in advanced compute testing.
Samer Kabbani, Chief Executive Officer of AEM, commented that this partnership represents an important step in AEM's strategy to work closely with industry leaders to advance the state of AI and HPC testing. He noted that ASE's forward-looking approach and global scale make them an ideal partner as test requirements continue to intensify across advanced compute platforms. By combining respective strengths, the companies aim to develop and deploy next-generation test solutions that help customers improve performance, scalability, and time-to-market.
The partnership addresses critical challenges in semiconductor testing as AI and HPC systems become increasingly complex, requiring sophisticated testing solutions that can handle heterogeneous integration, thermal management, and high-volume production demands. This collaboration positions both companies to capture growing market opportunities in advanced computing while addressing the technical barriers that could otherwise slow innovation and deployment of next-generation technologies.
