FormFactor and Teradyne announce semiconductor test partnership
Teradyne will buy 2,234,887 shares for approximately $300.0 million, and the two companies will collaborate on semiconductor test technology.
Key takeaways
- FormFactor Inc. (FORM) agreed on Oct. 6 to sell 2,234,887 shares of common stock to Teradyne Inc. for approximately $300.0 million in a private placement, according to a regulatory filing. The companies also announced a technology collaboration on semiconductor test. The transaction is expected to close in the fourth quarter of fiscal 2026, subject to closing conditions and regulatory approvals.
FormFactor Inc. (FORM) agreed on Oct. 6 to sell 2,234,887 shares of common stock to Teradyne Inc. for approximately $300.0 million, a regulatory filing showed.
The shares are being sold in a private placement, exempt from registration under the Securities Act of 1933 in reliance on Section 4(a)(2).
The company said in a press release on Monday that the two companies have also entered into a broad technology collaboration.
The collaboration aims to speed the development, validation and high-volume production of next-generation semiconductor devices.
Teradyne, which designs, develops and manufactures automated test equipment and advanced robotics systems, will combine its test platforms with FormFactor's probe, interface and test expertise.
The companies named advanced packaging, silicon photonics, high-bandwidth memory (HBM) and high-performance compute (HPC) as target areas.
“The semiconductor industry is entering a period where test performance, scalability, and time-to-market are becoming decisive competitive advantages,” said Mike Slessor, Chief Executive Officer of FormFactor.
The release said Teradyne has agreed to make a $300 million strategic equity investment in FormFactor.
“By investing in FormFactor and combining our leading-edge test platforms with FormFactor's probe and interface expertise, we're building a more complete, validated path to production for our shared customers,” said Gregory Smith, President and Chief Executive Officer of Teradyne.
The release said the collaboration is intended to help shared customers address growing semiconductor complexity.
The release said the companies will work on test architectures, test infrastructure and production readiness for existing and emerging applications.
The companies said the collaboration is expected to expand joint customer engagement and support rising demand for AI infrastructure.
The companies believe the collaboration will accelerate innovation across the semiconductor test ecosystem, from wafer to data center.
FormFactor provides test and measurement technologies across the full IC life cycle, from characterization and modeling to qualification and production test.
The transaction is expected to close in the fourth quarter of fiscal 2026, subject to customary closing conditions.
The release adds that regulatory approvals are also required before the investment can close.
The filing does not state a price per share for the sale.
The company furnished the press release under Regulation FD and said it is not deemed filed under the Securities Exchange Act.
Both companies are listed on Nasdaq, under the tickers FORM and TER.