IDG leads race for ASMPT's SMT unit valued at over $1 billion, sources say

By Kane Wu and Yantoultra Ngui

HONG KONG, Oct 26 (Reuters) - IDG Capital has emerged as the most advanced bidder to buy the electronics assembly equipment business of Hong Kong-listed ASMPT 0522.HK, in a deal that could value the unit at over $1 billion, three people with knowledge of the matter said.

The surface mount technology (SMT) unit sells machines, software and services that help electronics makers print, inspect and place components on circuit boards, according to ASMPT's website.

Its main end markets are AI servers, optical transceivers and electric vehicles, the website showed.

A deal could be reached in coming weeks, although terms are not finalised and uncertainty remains, said one of the people.

Private equity firms FountainVest Partners and Triton Partners had also expressed interest in the unit and engaged in discussions, the people said. They spoke on the condition of anonymity because the information was confidential.

ASMPT is targeting a valuation of $1.5 billion in the sale, said two of the people, adding potential buyers may fall short of the expectation.

The Singapore-headquartered company did not immediately respond to multiple requests seeking comment.

IDG and FountainVest also did not immediately respond to Reuters requests for comment. London-based Triton declined to comment "as a matter of policy."

ASMPT, which makes hardware and software for semiconductor and electronics manufacturing, announced a strategic assessment of its SMT Solutions business in January.

The assessment considered options such as a sale, joint venture, spin-off, public listing or retaining and supporting the business, ASMPT said at the time.

The company said the review could support SMT's long-term growth while allowing ASMPT to focus more on expanding its semiconductor solutions business and its chip packaging operations.

ASMPT's SMT business posted a 53.1% jump in revenue to HK$3.87 billion ($493.5 million) in the first half of 2026 from a year earlier, according to its filing in July. SMT's bookings rose 87.8% to HK$6.98 billion, a new record for the period, driven largely by demand from AI server makers, it said.

ASMPT's adjusted net profit from continuing operations more than tripled to HK$972.7 million in the first half of this year, while revenue jumped 42.5% to HK$8.9 billion, driven by AI demand, according to the filing.

The company forecast third-quarter revenue of $630 million to $690 million.

Shares of ASMPT have jumped 52% year-to-date, giving it a market capitalization of $6.5 billion, LSEG data showed.

In 2024, a number of private equity firms had discussed a potential take-private of ASMPT, in which Dutch chip equipment maker ASM International holds 25%.

The talks didn't result in a deal, ASM International said in November 2024.

($1 = 7.8416 Hong Kong dollars)