Applied Materials has entered into a definitive agreement with ASMPT Limited to acquire its NEXX business, a supplier of large-area advanced packaging deposition equipment for the semiconductor industry. The deal expands Applied Materials’ panel-level advanced packaging technologies, designed to help chipmakers and systems companies build larger-body AI accelerators with higher energy-efficient performance. Financial terms of the transaction were not disclosed.
The acquisition comes as increasing AI workloads demand larger chiplet-based designs integrating more GPUs, high-bandwidth memory stacks, and I/O chips within a single advanced package. As AI chip packages scale toward more complex architectures such as 2.5D and 3D chiplet stacking, the industry is transitioning from 300-millimeter silicon wafers to panel form factors as large as 510 by 515 millimeters. That shift enables designers to build larger AI chips and achieve substantially higher output, creating significant demand for interposers and advanced substrates that support those architectures.
Applied Materials already holds a position in advanced packaging technologies, with a portfolio spanning digital lithography, physical vapor deposition, chemical vapor deposition, etch, and eBeam metrology and inspection systems. The addition of NEXX’s panel-level electrochemical deposition technology is intended to fill a gap in that lineup, allowing Applied Materials to develop co-optimized solutions for fine-pitch input-output wiring and accelerate advanced packaging roadmaps for AI customers. The NEXX team will be incorporated into Applied’s Semiconductor Products Group and will continue to operate out of Billerica, Massachusetts, following the close of the transaction.
The deal is expected to close within the next several months and is subject to customary closing conditions, with no regulatory approvals required. NEXX was previously a business unit of ASMPT Limited, a Hong Kong-listed semiconductor equipment company. The transaction broadens Applied Materials’ served addressable market at a pivotal moment in the industry’s push toward panel-level processing as a foundation for next-generation AI chip manufacturing.
KEY QUOTES:
“Having NEXX join Applied Materials complements our leadership in advanced packaging, particularly in panel processing — an area where we see tremendous opportunities for customer co-innovation and growth in the years ahead.”
“We look forward to welcoming NEXX’s talented team to Applied and collaborating with our combined customer base on this exciting new chapter in advanced packaging technology.”
Dr. Prabu Raja, President, Semiconductor Products Group, Applied Materials
“We are excited for NEXX to be a part of Applied Materials because together, we can accelerate the computing industry’s adoption of large-format advanced packaging technologies.”
“NEXX’s products are already strong, and we intend to build on our success as part of Applied Materials with a continued focus on innovation, quality and excellent customer service.”
Jarek Pisera, President, ASMPT NEXX
