Key Highlights

● Teradyne will make a $300 million equity investment in FormFactor.

● The companies will collaborate on semiconductor test architectures and production readiness.

● Target applications include high-performance computing, advanced packaging, memory and silicon photonics.

● FormFactor will release third-quarter results on Wednesday 28 October 2026.

The Teradyne investment

FormFactor, Inc. (NASDAQ:FORM), a supplier of probe cards and test equipment to semiconductor makers, announced on 12 October 2026 a strategic collaboration with Teradyne Inc. (NASDAQ:TER), under which Teradyne will make a $300 million equity investment in FormFactor and buy its common stock. The release does not give the number of shares, the price per share or the resulting percentage stake. The deal is subject to customary closing conditions and regulatory approvals, and no closing date was stated.

The collaboration

The companies said they will work on semiconductor test architectures, test infrastructure optimisation and production readiness. Target applications include high-performance computing, advanced packaging, high-bandwidth memory and silicon photonics. FormFactor contributes probe technologies, interface solutions, test engineering and device characterisation; Teradyne contributes its automated test platforms.

FormFactor chief executive Mike Slessor said test performance, scalability and time-to-market are becoming decisive competitive advantages. Teradyne chief executive Gregory Smith said the most demanding test challenges in advanced packaging, silicon photonics and memory cannot be solved by a single company.

Latest reported results

For the quarter ended 27 June 2026, FormFactor reported revenue of $258.2 million, up 31.9 per cent from $195.8 million a year earlier, and net income of $56.2 million, compared with $9.1 million. Earnings per share were $0.71, against $0.12.

Revenue in the preceding quarter was $226.1 million, so growth has been sequential as well as annual, up about 14 per cent quarter on quarter by simple calculation. On the same arithmetic, net income was roughly 22 per cent of revenue, against about 5 per cent a year earlier.

Third-quarter results will be released on Wednesday 28 October 2026, with a webcast at 1:25 pm Pacific, according to the company.

Terms not yet disclosed

An equity investment by a strategic partner can raise questions about dilution, governance and independence from other customers, none of which the release addresses. A strategic holder that also supplies test platforms to the same end markets may add commercial alignment, but the extent of any exclusivity, standstill or board rights has not been disclosed.

Teradyne agreement and test demand

The collaboration rests on demand for advanced packaging and memory test, areas the companies themselves cite. The investment is the larger of the two numbers in play: $300 million against quarterly revenue of $258.2 million.