Key Takeaways
- • IDG Capital has emerged as the frontrunner to acquire ASMPT's surface mount technology (SMT) business in a potential transaction valuing the unit at more than $1bn, according to Reuters.
- • ASMPT is reportedly targeting a valuation of approximately $1.5bn for the SMT business, though prospective buyers may offer less.
- • FountainVest Partners and Triton Partners have also reportedly expressed interest and taken part in discussions; no deal has been finalised, though an agreement could be reached within weeks.
- • The SMT unit benefited from AI-related demand, with first-half 2026 revenue up 53.1% year-on-year to HKD3.87bn and orders up 87.8% to a record HKD6.98bn.
- • ASMPT launched a strategic review of the division in January, weighing a disposal, joint venture, spin-off or public listing, with a sale expected to let the group focus on semiconductor solutions and advanced chip packaging.
Summary
IDG Capital has emerged as the most advanced bidder for the surface mount technology (SMT) business of Singapore-headquartered ASMPT, in a potential transaction valuing the electronics manufacturing equipment unit at more than $1bn, according to Reuters. The private equity firm is understood to be leading the sale process, with an agreement potentially reached within weeks, although negotiations are ongoing and no deal has been finalised.
Fellow private equity firms FountainVest Partners and Triton Partners have also reportedly expressed interest and participated in discussions. ASMPT is reportedly targeting a valuation of approximately $1.5bn for the business, although prospective buyers may offer less.
The SMT division supplies equipment, software and services used in electronics manufacturing, including production of circuit boards for AI servers, optical transceivers and electric vehicles. The unit has benefited from accelerating demand for AI-related manufacturing equipment, with revenue rising 53.1% year-on-year to HKD3.87bn in the first half of 2026 and orders climbing 87.8% to a record HKD6.98bn.
ASMPT initiated a strategic review of the division in January, considering a disposal, joint venture, spin-off or public listing. A sale would reportedly allow the group to concentrate on its semiconductor solutions and advanced chip packaging businesses, while giving a buyer exposure to growing AI infrastructure hardware demand. Group-level results were strong: adjusted net profit from continuing operations more than tripled to HKD972.7m in the first half, and group revenue rose 42.5% to HKD8.9bn. The company's shares have risen roughly 52% this year, giving it a market capitalisation of around $6.5bn.
Fellow private equity firms FountainVest Partners and Triton Partners have also reportedly expressed interest and participated in discussions. ASMPT is reportedly targeting a valuation of approximately $1.5bn for the business, although prospective buyers may offer less.
The SMT division supplies equipment, software and services used in electronics manufacturing, including production of circuit boards for AI servers, optical transceivers and electric vehicles. The unit has benefited from accelerating demand for AI-related manufacturing equipment, with revenue rising 53.1% year-on-year to HKD3.87bn in the first half of 2026 and orders climbing 87.8% to a record HKD6.98bn.
ASMPT initiated a strategic review of the division in January, considering a disposal, joint venture, spin-off or public listing. A sale would reportedly allow the group to concentrate on its semiconductor solutions and advanced chip packaging businesses, while giving a buyer exposure to growing AI infrastructure hardware demand. Group-level results were strong: adjusted net profit from continuing operations more than tripled to HKD972.7m in the first half, and group revenue rose 42.5% to HKD8.9bn. The company's shares have risen roughly 52% this year, giving it a market capitalisation of around $6.5bn.
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