The acquisition will expand Diodes’ analog and mixed-signal offerings
Diodes Incorporated has announced a definitive agreement to acquire San Diego-based fabless semiconductor company ElevATE Semiconductor in an all-cash deal valued at $250 million, strengthening its presence in the automated test equipment (ATE) market.
The acquisition combines ElevATE’s expertise in low-power, high-density integrated circuits for ATE with Diodes’ analog and mixed-signal portfolio, global manufacturing capabilities, and worldwide sales network. The transaction is expected to close in the second half of 2026, subject to customary regulatory approvals and closing conditions.
Diodes expects the acquisition to be immediately accretive to its revenue, gross margin, and earnings per share. The company anticipates the deal will contribute approximately $50 million in revenue during the first 12 months after closing, with revenue projected to grow at a compound annual growth rate (CAGR) of more than 20% over the following four years. The acquired business is also expected to deliver gross margins significantly above Diodes’ corporate average.
The acquisition will expand Diodes’ analog and mixed-signal offerings while enabling the company to introduce advanced products for ATE applications. The move is aimed at capitalising on rising demand for semiconductor testing driven by the increasing complexity of chips used in automotive, industrial, AI, and data centre applications.
“The explosive growth, increasing complexity, and higher performance requirements of ICs used in automotive, industrial, data center, and AI applications are driving greater semiconductor production volumes, and in turn, increasing demand for automated test equipment,” said Gary Yu, President and CEO of Diodes. He added that the acquisition would strengthen the company’s position in the ATE market, broaden its customer solutions, and support the launch of new advanced product lines.
Jan Gaudestad, CEO of ElevATE Semiconductor, said the combination brings together complementary technologies and shared quality-focused cultures. He noted that integrating ElevATE’s high-density, low-power ATE ICs with Diodes’ analog and power IC portfolio and global manufacturing footprint would expand customer offerings, accelerate product development, and enhance the combined company’s global reach.
Founded in San Diego, California, ElevATE Semiconductor develops integrated circuits designed to reduce power consumption, increase density, and lower the cost of semiconductor testing. The company focuses on addressing complex challenges in the ATE industry through advanced IC solutions.
