AEM Holdings Ltd. ("AEM"), a global leader in test innovation, and ASE Technology Holding Co., Ltd. ("ASE"), a leading provider of semiconductor assembly, testing, and materials services, announced a strategic partnership on March 23, 2026. The collaboration aims to combine AEM's proprietary test technologies with ASE's manufacturing scale to deliver disruptive test solutions for the rapidly expanding Artificial Intelligence (AI) and High-Performance Computing (HPC) markets.
Under the agreement, AEM will raise approximately S$12 million in gross proceeds through a private placement of 3,350,000 ordinary shares to a wholly owned subsidiary of ASE, representing 1.06% of AEM's issued share capital as of March 21, 2026. The shares are priced at S$3.591 each. Additionally, ASE will receive 28,111,856 free detachable warrants, divided into two tranches, each subject to certain ASE-attributable revenue conditions. Tranche 1 warrants have an exercise price set at 103% of the volume weighted average price (VWAP) on the signing date, while Tranche 2 warrants are priced at 105% of that VWAP. If fully exercised, the warrants would result in an additional 8.935% of the current issued share capital. The transaction is subject to conditions, including approval from the Singapore Exchange for listing and quotation of the new shares.
The proceeds from the private placement will support AEM's expansion in Taiwan and the joint integration of AEM's test technologies, including highly parallel test architectures and advanced thermal management, into ASE's manufacturing and test environments. Funds will also advance AEM's product roadmap, enhance system offerings, and accelerate joint go-to-market initiatives for next-generation AI and HPC applications.
The partnership also supports ISE Labs, a wholly owned subsidiary of ASE, in expanding AI and HPC processor development capabilities to address early-stage testing, validation, and characterization. These efforts focus on heterogeneous integration architectures, including multi-chiplet and advanced system-in-package designs, as well as optical interconnect technologies critical to next-generation compute platforms. ASE's ATM portfolio provides high-volume advanced packaging and test capabilities for production-scale deployment.
Ken Hsiang, Chief Executive Officer of ISE Labs, stated: "As compute architectures grow more complex and time-to-production continues to compress, test has become a critical enabler of performance, reliability, and manufacturability for next-generation AI and HPC systems. By combining ISE’s advanced characterization and production-readiness capabilities with AEM’s scalable, high-parallel test technologies and system-level engineering strengths, this strategic partnership enables rapid transition from validation to ASE’s high-volume deployment while addressing the increasing complexity of advanced compute testing."
Samer Kabbani, Chief Executive Officer of AEM, commented: "This partnership represents an important step in AEM’s strategy to work closely with industry leaders to advance the state of AI and HPC testing. ASE’s forward-looking approach and global scale make them an ideal partner as test requirements continue to intensify across advanced compute platforms. By combining our respective strengths, we aim to develop and deploy next-generation test solutions that help customers improve performance, scalability, and time-to-market."
For more information, visit ASE's website or AEM's press release.
