Teradyne to Invest $300 Million in FormFactor
The automated-test maker is pairing its platforms with FormFactor’s probe and interface work to speed AI and high-performance-compute test from wafer to data center.
Teradyne, Inc. (TER), a designer of automated test equipment and advanced robotics, agreed to a $300 million all-cash strategic equity investment in FormFactor, Inc. (FORM), a provider of semiconductor test and measurement technologies, and to enter a technology collaboration covering probe, interface, and test work for next-generation devices.
Under a securities purchase agreement dated October 6, 2026, FormFactor agreed to issue 2,234,887 shares of common stock, $0.001 par value, for aggregate cash consideration of approximately $300.0 million in a private placement exempt from Securities Act registration under Section 4(a)(2). The transaction is expected to close in the fourth quarter of fiscal 2026, subject to customary closing conditions.
The collaboration is aimed at accelerating development, validation, and high-volume production of semiconductor devices for AI and high-performance compute. Together, the companies will work on test architectures, test infrastructure, and production readiness for high-performance compute, advanced packaging, high-bandwidth memory, and silicon photonics.
Gregory Smith, president and chief executive officer of Teradyne, said: “By investing in FormFactor and combining our leading-edge test platforms with FormFactor’s probe and interface expertise, we’re building a more complete, validated path to production for our shared customers, and reinforcing our commitment to an open, interoperable ecosystem.”
Smith also said the most demanding test challenges in advanced packaging, silicon photonics, and memory can’t be solved by a single company.
Mike Slessor, chief executive officer of FormFactor, said the semiconductor industry is entering a period when test performance, scalability, and time to market are becoming decisive competitive advantages. He said combining FormFactor’s device characterization, probing, interfaces, and production test solutions with Teradyne’s test platforms can help customers move more efficiently from technology development to high-volume manufacturing.
The companies believe the collaboration will accelerate innovation across the semiconductor test ecosystem from wafer to data center, expand joint customer engagement, and support demand for advanced computing, AI infrastructure, and next-generation semiconductor technologies.
FormFactor serves customers through facilities in Asia, Europe, and North America. Teradyne’s semiconductor and electronics test solutions span the full AI device supply chain, from wafer to data center, and its robotics business deploys automation across manufacturing, logistics, and data center operations.