IDG Capital leads bidding for ASMPT unit valued above $1bn

IDG Capital has emerged as the leading bidder to acquire the surface mount technology (SMT) business of Singapore-headquartered ASMPT, according to a report by Reuters. The potential transaction is expected to value the electronics manufacturing equipment division at more than $1bn, though ASMPT has reportedly targeted a valuation of approximately $1.5bn. Negotiations remain ongoing, with a deal potentially being finalized within weeks.

The auction process has also drawn interest from other private equity firms. Alongside IDG Capital, buyout firms FountainVest Partners and Triton Partners have participated in discussions and expressed interest in acquiring the unit.

The SMT division provides equipment, software, and services used across the electronics manufacturing sector, serving end markets such as circuit board production for artificial intelligence servers, optical transceivers, and electric vehicles. The business has benefited from accelerating demand for AI-related manufacturing equipment. In the first half of 2026, the SMT unit's revenue grew 53.1% year-on-year to HKD3.87bn, while order intake surged 87.8% to reach a record HKD6.98bn.

ASMPT initially launched a strategic review of the SMT division in January, evaluating options including a disposal, a joint venture, a spin-off, or a public listing. A sale would reportedly allow ASMPT to concentrate on its semiconductor solutions and advanced chip packaging businesses, while offering a prospective buyer exposure to growing demand for AI infrastructure hardware.

Overall, ASMPT saw its group revenue increase 42.5% to HKD8.9bn in the first half of 2026, while adjusted net profit from continuing operations more than tripled to HKD972.7m. The company's shares have gained approximately 52% this year, lifting its market capitalization to around $6.5bn.