Applied Materials has entered into a definitive agreement to acquire ASMPT Limited’s NEXX business, a leading supplier of large‑area advanced packaging deposition equipment. The transaction will add NEXX’s panel‑level electrochemical deposition technology to Applied Materials’ existing suite of digital lithography, physical vapor deposition, chemical vapor deposition, etch, and eBeam metrology tools, creating a more comprehensive set of panel‑level solutions for fine‑pitch I/O wiring and large‑format AI accelerators.
The acquisition is strategically timed to meet the growing demand for AI accelerators that integrate GPUs, high‑bandwidth memory stacks, and I/O chips in a single package. By combining NEXX’s expertise in electrochemical deposition with Applied Materials’ advanced packaging platform, the company can offer co‑optimized solutions that accelerate customer development cycles and support the shift from traditional 300‑mm wafers to larger panel form factors. This move positions Applied Materials to capture a larger share of the advanced packaging market as AI workloads scale.
ASMPT is divesting the NEXX business to sharpen its focus on core back‑end packaging and reallocate resources to strategic priorities. NEXX, headquartered in Billerica, Massachusetts, is a leading supplier of deposition equipment used in wafer‑level packaging, 2.5/3D integrated circuits, fan‑out, and embedded die processes. The sale is expected to result in a net gain for ASMPT and provides NEXX with the resources to accelerate innovation under Applied Materials’ ownership.
Applied Materials’ Q1 2026 earnings report showed a $2.38 per share EPS beat of $0.17, exceeding the $2.21 consensus, and revenue of $7.01 billion beat the $6.88 billion estimate. The company guided for Q2 2026 revenue of $7.15 billion to $8.15 billion and EPS of $2.44 to $2.84, above the $2.29 estimate. The strong earnings performance and optimistic guidance underscore the company’s confidence in its AI‑related growth and the added value of the NEXX acquisition.
Management highlighted the complementary nature of the deal. Dr. Prabu Raja, President of the Semiconductor Products Group, said, “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.” Jarek Pisera, President of ASMPT NEXX, added, “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.”
The transaction is expected to close within the next several months and does not require regulatory approvals. The acquisition aligns with Applied Materials’ broader AI strategy, including its $5 billion EPIC Center for R&D and its leadership in Gate‑All‑Around transistors and backside power delivery, further strengthening its position in the semiconductor equipment market.
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