IDG Capital has emerged as the frontrunner to acquire ASMPT’s surface mount technology (SMT) business, in a potential transaction valuing the electronics manufacturing equipment unit at more than $1bn, according to a report by Reuters.
The private equity firm is understood to be the most advanced bidder in the sale process, with an agreement potentially reached within weeks, although negotiations remain ongoing and no deal has been finalised.
Fellow private equity firms FountainVest Partners and Triton Partners have also reportedly expressed interest and participated in discussions.
ASMPT is reportedly targeting a valuation of approximately $1.5bn for the business, although prospective buyers may offer less.
The SMT division supplies equipment, software and services used in electronics manufacturing, including the production of circuit boards for AI servers, optical transceivers and electric vehicles.
The business has benefited from accelerating demand for AI-related manufacturing equipment. Revenue increased 53.1% year-on-year to HKD3.87bn in the first half of 2026, while orders rose 87.8% to a record HKD6.98bn.
ASMPT initiated a strategic review of the division in January, considering options including a disposal, joint venture, spin-off or public listing.
A sale would reportedly allow the Singapore-headquartered group to concentrate on its semiconductor solutions and advanced chip packaging businesses, while providing a prospective buyer with exposure to growing demand for AI infrastructure hardware.
ASMPT’s adjusted net profit from continuing operations more than tripled to HKD972.7m in the first half, with group revenue increasing 42.5% to HKD8.9bn.
The company’s shares have risen approximately 52% this year, giving it a market capitalisation of around $6.5bn.
