IDG Capital Frontrunner to Acquire ASMPT’s SMT Unit in $1 Billion Deal
IDG Capital leads the bidding for ASMPT's surface mount technology unit. The potential $1 billion deal highlights growing demand for AI server hardware.
POLICY WIRE — Hong Kong, China — IDG Capital has positioned itself as the primary contender to purchase the electronics assembly equipment division of Hong Kong-listed firm ASMPT. According to three individuals familiar with the ongoing negotiations, the potential transaction could carry a valuation exceeding $1 billion.
ASMPT, a prominent manufacturer specializing in chip-packaging and electronics-assembly tools, initiated a strategic review of its surface mount technology (SMT) unit earlier this year. The division has experienced significant revenue expansion, largely fueled by robust demand from manufacturers of artificial intelligence servers and electric vehicles.
While IDG Capital currently leads the race, other private equity firms have also expressed interest in the business. ASMPT has reportedly aimed for a valuation closer to $1.5 billion following the unit’s recent growth trajectory.
Sources indicate that while a final agreement could be reached within the coming weeks, the specific terms of the deal remain subject to change. The move reflects ASMPT’s broader corporate pivot toward focusing on specialized AI packaging technologies.
Reporting by Policy-Wire (PW)
