ASM Pacific to buy TEL NEXX amid consolidation in the packaging tool biz.
Tokyo Electron Ltd. (TEL) has signed a definitive agreement to sell its packaging equipment unit, TEL NEXX, to ASM Pacific Technology.
With the proposed deal, ASM Pacific enters some new markets. ASM Pacific sells wire bonders, pick-and-place systems, leadframes and other products.
Established in 2001, TEL NEXX sells electrochemical deposition (ECD) and physical vapor deposition (PVD) systems for IC packaging. This new business acquisition will be placed under the backend equipment group at ASM Pacific.
Others are also expanding their efforts in the arena. The move follows KLA-Tencor’s proposed move to acquire Orbotech for approximately $3.4 billion. With that deal, KLA-Tencor gains an entry into several markets, including PVD for packaging applications. Applied Materials competes in the PVD packaging equipment market. Applied and Lam Research compete in the ECD packaging equipment area.
Meanwhile, the boards of both TEL and ASM Pacific have approved the transaction. The closing of the transaction is pending approval and review by regulators. The companies expect the transaction to close in late 2018. Terms of the deal were not disclosed.
In a statement, Toshiki Kawai, president and CEO of TEL, said, “TEL believes that NEXX will benefit from greater synergies with ASMPT’s outsourced assembly and test customers.”
ASM Pacific’s CEO Lee Wai Kwong added: “This strategic acquisition complements our current offerings in advanced packaging applications and establishes ASMPT as a premier interconnect technology company.”
“With the demand for semiconductor devices at a historical high, we are looking forward to an increased global customer footprint with ASMPT, as well as expanded sales and service capabilities for our customers,” said Tom Walsh, president of NEXX.
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