Teradyne to invest $300 million in FormFactor, pairing test platforms with probe technology
Teradyne will buy 2,234,887 FormFactor shares in a private placement expected to close in the fourth quarter of fiscal 2026
Published
Teradyne has agreed to make a $300 million strategic equity investment in FormFactor, part of a broader collaboration between the two semiconductor equipment makers. Teradyne will purchase 2,234,887 shares of FormFactor common stock in a private placement, subject to customary closing conditions and regulatory approvals, with the deal expected to close in the fourth quarter of fiscal 2026.
The companies described the tie-up as a combination of FormFactor's work in device characterization, probing and interfaces with Teradyne's automated test platforms. "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," said Mike Slessor, FormFactor's Chief Executive Officer.
The investment gives FormFactor a capital cushion beyond what its probe-card business typically generates on its own, and links its roadmap to Teradyne's test platforms rather than leaving the two companies as separate vendors chasing the same customers. That kind of backing matters for a smaller supplier whose growth case depends on demand for advanced packaging, high-bandwidth memory and silicon photonics test tied to AI compute buildouts.
FormFactor shares jumped roughly 6.7% in pre-market trading on the news, while Teradyne fell about 4.7%, a split that reflected dilution concerns weighing on Teradyne against the funding and partnership boost for FormFactor.