Teradyne Commits $300 Million Equity Stake in FormFactor Under New Semiconductor Test Alliance

Teradyne has agreed to acquire USD 300 million worth of FormFactor common stock as part of a wide-ranging technology partnership between the two semiconductor test companies, the firms announced.

A USD 300 Million Vote of Confidence

The equity purchase, described as a strategic investment, remains contingent on customary closing conditions and regulatory approvals. Unites FormFactor, Inc. (Nasdaq: FORM), which supplies semiconductor test and measurement technologies, with Teradyne, Inc. (Nasdaq: TER), a maker of automated test equipment and advanced robotics.

Technology Collaboration Targets Advanced Applications

Beyond the investment, the companies are launching a collaboration intended to speed the development, validation, and high-volume production deployment of next-generation semiconductor devices.

The partnership will draw on FormFactor's probe technologies, interface solutions, test engineering, and device characterization capabilities, combined with Teradyne's automated test platforms, to help customers manage rising semiconductor complexity.

The two firms said they will jointly advance semiconductor test architectures, optimize test infrastructure, and improve production readiness across both existing and emerging applications. Areas singled out in the announcement include high-performance compute, advanced packaging, high-bandwidth memory, and silicon photonics.

According to the companies, the collaboration is expected to accelerate innovation across the semiconductor test ecosystem from wafer to data center, broaden joint customer engagement opportunities, and support growing demand for advanced computing, AI infrastructure, and next-generation semiconductor technologies.

CEOs Point to Test Challenges Beyond Any Single Vendor

Gregory Smith, Teradyne's President and Chief Executive Officer, said certain test problems require more than one company's technology. "The most demanding test challenges in advanced packaging, silicon photonics, and memory can't be solved by a single company," Smith said.

"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, and reinforcing our commitment to an open, interoperable ecosystem."

FormFactor Chief Executive Officer Mike Slessor described the industry as entering a period in which test performance, scalability, and time-to-market are becoming decisive competitive advantages. "By combining FormFactor's deep expertise in device characterization, probing, interfaces, and production test solutions with Teradyne's test platforms, we can help customers accelerate innovation and move more efficiently from technology development to high-volume manufacturing," Slessor said.

Terms of the Equity Deal Left Undisclosed

The press release offered few specifics on the investment itself. It did not reveal how many FormFactor shares Teradyne agreed to buy, the price per share, the ownership stake Teradyne would hold, or when the transaction is expected to close. The disclosure was limited to the USD 300 million figure and the statement that the deal is subject to customary closing conditions and regulatory approvals.

Who the Two Companies Are

FormFactor positions itself as a leading provider of essential test and measurement technologies across the full integrated circuit life cycle, from characterization, modeling, reliability, and design de-bug through qualification and production test. Its products and services help semiconductor companies optimize device performance and advance yield knowledge, and it operates facilities in Asia, Europe, and North America.

Teradyne develops and manufactures automated test equipment and advanced robotics systems. Per the announcement, its semiconductor and electronics test solutions cover the full AI device supply chain, spanning wafer to data center, to help customers meet quality and reliability standards for the AI era. Its robotics division supplies intelligent automation for manufacturing, logistics, and data center operations. Both firms trade on the Nasdaq exchange under the tickers FORM and TER.