Diodes announced it has entered into a definitive agreement to acquire ElevATE Semiconductor in an all-cash transaction valued at $250 million. ElevATE is a fabless semiconductor company based in San Diego, California, that specializes in integrated circuits for the Automated Test Equipment industry, designing low-power, high-density solutions aimed at delivering the lowest possible cost of test.
The deal combines ElevATE’s ATE IC technology leadership with Diodes’ broad product portfolio, manufacturing scale, and global sales reach to increase penetration of the ATE market. The transaction is expected to be immediately accretive to Diodes’ revenue, gross margin, and earnings per share, adding approximately $50 million of revenue in the first twelve months post-close. Revenue from the acquired business is expected to grow at a compound annual growth rate of more than 20% over the next four years, with gross margin significantly higher than Diodes’ corporate average.
The acquisition expands Diodes’ analog and mixed-signal product offerings and gives the company a stronger foothold in applications tied to the ATE market, which is seeing rising demand as growth in automotive, industrial, data center, and AI applications drives greater semiconductor production volumes. The Boards of both companies and ElevATE’s stockholders have already approved the transaction, which remains subject to customary closing conditions, including regulatory approvals, and is expected to close during the second half of 2026.
Diodes Incorporated delivers semiconductor products to leading companies across the automotive, industrial, computing, consumer electronics, and communications markets, leveraging an expanded portfolio of analog and power solutions alongside a flexible hybrid manufacturing model.
KEY QUOTES:
“The explosive growth, increasing complexity, and higher performance requirements of ICs used in automotive, industrial, data center, and AI applications are driving greater semiconductor production volumes, and in turn, increasing demand for automated test equipment. This acquisition positions Diodes to capture accelerated growth opportunities across the ATE market with an expanded analog and mixed-signal portfolio. It also enhances our ability to provide broader solutions to customers and launch a new advanced product line that will drive increased dollar content in ATE applications. We look forward to welcoming the talented ElevATE team into the Diodes family.”
Gary Yu, President and Chief Executive Officer of Diodes
“ElevATE and Diodes share a performance-driven culture and an uncompromising focus on quality, making this an ideal combination. By uniting our high-density, low-power semiconductor IC solutions with Diodes’ broad analog and power IC portfolio along with a global manufacturing footprint, we emerge as a powerful new force in the ATE IC market. This union significantly expands our capabilities, instantly offering our customers a much larger portfolio to elevate their tester performance. Together, we are uniquely positioned to increase our global reach, accelerate our product roadmap, and deliver next-generation chip innovations at scale that will define the future of semiconductor testing.”
Jan Gaudestad, Chief Executive Officer of ElevATE
