1. FORM acquired Keystone Photonics, enhancing optical probing technology. 2. The silicon photonics market is expected to grow nearly 30% annually. 3. This acquisition strengthens FORM's leadership in advanced semiconductor packaging. 4. High-performance computing demand drives the need for robust testing solutions. 5. Combined expertise aims to accelerate production for next-gen data centers.
FAQ
Why Very Bullish?
The acquisition enhances FORM's competitive position in a rapidly growing market, similar to historical successes seen with strategic acquisitions in the tech sector, such as Intel's buyouts during early 2000s that significantly boosted their market share.
How important is it?
The strategic significance of the acquisition, combined with market growth projections, indicates a strong potential for long-term price appreciation and market leadership.
Why Long Term?
This acquisition positions FORM to capitalize on the booming silicon photonics market, similar to how companies like NVIDIA strategically expanded their capabilities over years to dominate the AI infrastructure sector.
LIVERMORE, Calif., Dec. 15, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ:FORM), a leading semiconductor test and measurement supplier, announced today the acquisition of Keystone Photonics, a pioneer in optical probing technology for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing. These technologies are key for next-generation data centers powering AI and high-performance computing – accelerating data communications to handle massive information loads with dramatically lower power consumption.
Driven by demand for AI infrastructure, the silicon photonics market is forecasted to surge at nearly 30% annual growth rate (MarketsandMarkets, 2025, Silicon Photonics Market – Global Forecast to 2029). The acquisition of Keystone Photonics, a long-term partner, strengthens FormFactor's position at the forefront of this explosive growth, extending its integrated test system leadership for advanced semiconductor packaging and leveraging its unique lab-to-fab position as SiPh and CPO manufacturers leap from concept to high-volume production.
The combined companies are perfectly prepared to tackle the complexity of optical wafer testing, joining the industry's foremost optical coupling technology with powerful probing automation to deliver unmatched data accuracy at high test speed.
"We're thrilled to welcome Keystone Photonics to the FormFactor family," said Mike Slessor, FormFactor President and CEO. "Our shared vision is clear: accelerate the industry's ramp to high-volume SiPh and CPO production. As generative AI and advanced packaging reshape data centers, customers need robust, high-productivity integrated test solutions – and that's exactly what we deliver."
Keystone Photonics CEO Philipp Dietrich added, "In joining worldwide wafer test leader FormFactor, we're unlocking the next phase of growth and charting the path in the fast-evolving world of optical test and measurement. By combining our cutting-edge technologies and deep expertise, we're ready and energized to fuel our customers' innovation and drive their breakthrough success."
About FormFactor:
FormFactor, Inc. (NASDAQ:FORM), is a leading provider of essential test and measurement technologies along the full IC life cycle - from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor's products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company's website at www.formfactor.com.
Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com
Source: FormFactor, Inc.
FORM-F
