Applied Materials acquires ASMPT’s NEXX business to scale AI chip packaging

Applied Materials (NYSE:AMAT) has reached a definitive agreement to acquire the NEXX business from ASMPT, a move designed to significantly bolster its leadership in the rapidly growing advanced packaging sector.

The acquisition brings NEXX’s specialized large-area electrochemical deposition (ECD) technology and expert team under the Applied Materials umbrella.

The strategic focus of the deal is "panel-level" packaging.

As artificial intelligence (AI) accelerators grow in size and complexity, traditional silicon wafer form factors are becoming a bottleneck.

NEXX’s tools are designed to handle massive panel form factors—up to approximately 510x515 mm—allowing for the integration of more chips and high-bandwidth memory into a single, high-performance package.

By integrating NEXX’s ECD capabilities, Applied Materials is positioning itself to address the scaling challenges of the AI era.

Panel-level processing allows chipmakers to increase productivity and create larger "systems-on-a-package," which are essential for the massive computational requirements of generative AI and large language models.

The NEXX business and its employees will be integrated into Applied’s Semiconductor Products Group.

The operations will remain centered in Billerica, Massachusetts, which will serve as a hub for the company's expanded advanced packaging R&D and manufacturing efforts.

The transaction is expected to close within the next several months, subject to customary closing conditions.

Notably, the deal does not require any regulatory approvals, suggesting a streamlined path to integration.