IDG Capital Leads Bidding for ASMPT’s $1 Billion-Plus SMT Business Amid AI-Driven Growth

IDG Capital has advanced to the forefront of the bidding process for ASMPT’s electronics assembly equipment division, according to a Reuters report published on October 26, citing three people familiar with the negotiations. Other major private equity firms, including FountainVest Partners and Triton Partners, have also expressed interest and participated in discussions. Sources indicated that a transaction could be agreed upon within the coming weeks, although the final purchase price and transaction structure remain uncertain. ASMPT is targeting a valuation of approximately US$1.5 billion, but prospective buyers may offer less. The Singapore-headquartered manufacturer, listed on the Hong Kong Stock Exchange under ticker 0522, has not publicly confirmed a definitive sale agreement. The potential transaction represents a significant corporate restructuring opportunity for a company operating across the semiconductor and electronics manufacturing supply chains.

ASMPT’s SMT Solutions division specializes in advanced manufacturing equipment, software and technical services used to assemble electronic components onto printed circuit boards. Its products support high-precision printing, component placement, inspection and automated production processes, serving manufacturers across artificial intelligence servers, optical communications, electric vehicles, industrial equipment and consumer electronics. The division’s portfolio includes DEK printing systems and SIPLACE component placement platforms, alongside manufacturing execution software designed to improve production efficiency and quality control. Demand for this equipment has accelerated as technology companies expand data center infrastructure and require more sophisticated electronic systems capable of supporting AI computing workloads. Growth in high-speed optical transceivers and increasingly complex electronics assembly has further strengthened the business’s commercial prospects, making it an attractive acquisition target for investors seeking exposure to AI infrastructure beyond semiconductor chip production itself.

The SMT business has demonstrated substantial financial growth throughout 2026. According to ASMPT’s interim financial results released in July, the division generated HK$3.87 billion in revenue during the first six months of the year, representing a 53.1% increase compared with the corresponding period in 2025. New orders surged 87.8% year-on-year to a record HK$6.98 billion, primarily supported by strong demand from AI server manufacturers. Its adjusted segment profit reached approximately HK$426.7 million, up 694.5% year-on-year, while the adjusted segment profit margin improved to 11.0%. The wider ASMPT group recorded revenue of HK$8.90 billion, an increase of 42.5%, and adjusted net profit from continuing operations of HK$972.7 million, up 230.5%. These figures highlight the broader financial benefits of AI-related manufacturing investment and suggest that the SMT division enters potential acquisition negotiations with substantial commercial momentum. However, the unusually strong order growth also raises questions about the sustainability of demand as AI infrastructure investment cycles evolve.

The potential disposal forms part of ASMPT’s broader strategic transformation. In January 2026, the company formally announced an assessment of strategic alternatives for its SMT Solutions business, including a complete divestiture, joint venture, spin-off, separate public listing or continued ownership. ASMPT indicated that the review was intended to maximize long-term shareholder value while enabling greater focus on its Semiconductor Solutions division, particularly advanced semiconductor packaging and related manufacturing technologies. A successful sale could release substantial financial resources for investment in specialized semiconductor technologies such as thermo-compression bonding, photonics and next-generation chip packaging. The strategic review also follows earlier private equity interest in ASMPT itself. In 2024, several investment firms explored taking the entire company private, but those discussions ended without an agreement. Dutch semiconductor equipment company ASM International, which holds approximately 25% of ASMPT, confirmed the unsuccessful outcome of those earlier talks.

The transaction’s potential financial implications extend beyond ASMPT’s immediate restructuring. The company’s shares had risen approximately 52% in 2026 as of the October 26 Reuters report, giving it a market capitalization of roughly US$6.5 billion, according to LSEG data. A sale approaching ASMPT’s targeted US$1.5 billion valuation would represent a substantial amount relative to its overall equity value and could strengthen its capacity to finance research, development and future expansion. For IDG Capital, acquiring the SMT division would provide exposure to an established global electronics manufacturing equipment supplier with growing links to AI infrastructure, electric vehicles and advanced communications. Nevertheless, the ultimate investment case will depend on the final purchase price, the division’s ability to translate record orders into sustainable revenue and profit, and the resilience of technology-sector capital expenditure. With negotiations still active, the coming weeks may determine whether ASMPT proceeds with a divestiture or pursues another strategic alternative, potentially establishing an important valuation benchmark for businesses supplying equipment to the rapidly expanding AI manufacturing ecosystem.