FormFactor Expands Silicon Photonics Test Capabilities With Acquisition of Keystone Photonics

Rhea-AI Summary

FormFactor (NASDAQ: FORM) announced on December 15, 2025 the acquisition of Keystone Photonics, a specialist in optical probing for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing.

The deal is positioned to expand FormFactor’s lab-to-fab integrated test systems for next‑generation data center and AI infrastructure, combining Keystone’s optical coupling technology with FormFactor’s automated probing and wafer test scale. The release highlights expected benefits for high‑volume SiPh and CPO production and cites a near‑30% annual SiPh market growth forecast to 2029.

No purchase price or financial terms were disclosed in the announcement.

Positive

• Acquisition announced on Dec 15, 2025
• Adds optical probing technology for SiPh and CPO wafer testing
• Extends FormFactor’s lab-to-fab integrated test system capabilities
• Positions company to serve AI/data center infrastructure growth

Negative

• Purchase price and deal terms not disclosed
• No quantified revenue, cost, or synergy projections provided

Key Figures

Forecast horizon 2029 End year of cited silicon photonics market forecast report

Market Reality Check

$56.26 Last Close

Volume Volume 878,272 is above the 20-day average of 659,384, indicating elevated trading activity ahead of this acquisition news. normal

Technical Shares at $55.44 are trading above the 200-day MA of $35.90 and about 9.3% below the 52-week high of $61.10.

Peers on Argus

FORM fell 4.63% while key peers also traded lower: KLIC -1.54%, ACLS -2.85%, IPGP -6.69%, CAMT -3.80%, and AMBA -3.26%. The move occurred without momentum scanner confirmation of a broad sector swing.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 04	Investor conference	Neutral	+0.1%	NYC Summit participation with materials posted for investors.
Nov 24	Conference appearance	Neutral	+3.3%	UBS tech conference presentation and investor outreach.
Nov 12	Capacity expansion	Positive	-1.8%	New Texas advanced manufacturing site with <b>$140M</b> 2026 capex plan.
Oct 30	Conference appearance	Neutral	+24.2%	Midwest 1x1 conference participation in meeting-only format.
Oct 29	Earnings report	Positive	+12.5%	Q3 2025 beat with <b>$202.7M</b> revenue and stronger cash flow.

Pattern Detected

Recent news with clear financial or strategic content (Q3 earnings, Texas expansion) drew strong moves, while routine conference participation often produced modest or occasionally outsized reactions.

Recent Company History

Over the last few months, FormFactor has combined financial execution with strategic expansion. Q3 2025 results on Oct 29 showed revenue of $202.7M and sparked a 12.49% gain, while a new Texas manufacturing facility with planned $140M 2026 capex saw a small pullback. Multiple conference appearances in late October and November generated mixed but sometimes strong price responses. Today’s silicon photonics acquisition continues the theme of positioning around AI and data center demand.

Market Pulse Summary

This announcement highlights FormFactor’s push deeper into silicon photonics and co-packaged optics testing by acquiring Keystone Photonics. It follows Q3 2025 results with revenue of $202.7M and a separate plan for a Texas facility with $140M 2026 capex, underscoring a broader AI and data center strategy. Investors may watch for integration updates, design wins, and how these capabilities translate into segment growth and margins over time.

Key Terms

silicon photonics technical

"a pioneer in optical probing technology for silicon photonics (SiPh) and co-packaged optics"

Silicon photonics is the technology that uses tiny structures etched into silicon chips to generate, control and detect light for moving data and sensing, essentially putting optical fiber functions onto a computer chip. For investors, it matters because it can dramatically increase data speed and energy efficiency in data centers, telecom networks and advanced sensors, potentially lowering costs and enabling new products much like replacing many metal wires with faster, low-power optical highways.

co-packaged optics technical

"optical probing technology for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing"

Co-packaged optics are optical components—lasers and fiber interfaces—physically packaged together with a network switch’s main processing chip so light-based data links sit much closer to the chip instead of traveling over long electrical traces. For investors, this matters because it can dramatically cut power use, boost data speed and density, and lower system costs in large data centers and telecom equipment, much like moving a power outlet next to a heavy appliance to avoid long, inefficient extension cords.

AI-generated analysis. Not financial advice.

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

FAQ

What did FormFactor (FORM) announce on December 15, 2025?

FormFactor announced the acquisition of Keystone Photonics, a specialist in optical probing for silicon photonics and co-packaged optics wafer testing.

How will the Keystone Photonics acquisition affect FormFactor’s SiPh test capabilities?

The acquisition adds Keystone’s optical coupling technology to FormFactor’s automated probing, expanding lab-to-fab integrated test solutions for SiPh and CPO.

Does the FormFactor press release disclose the purchase price for Keystone Photonics?

No — the announcement does not disclose the purchase price or financial terms.

What market growth does the announcement cite for silicon photonics?

The release cites a near‑30% annual growth forecast for the silicon photonics market through 2029.

When is FormFactor expected to integrate Keystone Photonics technology into its products?

The announcement states the companies will combine technologies to support high‑volume production ramps but does not provide a specific integration timeline.

What should investors in FORM consider after this acquisition news?

Investors should note the strategic fit for AI/data center testing capabilities and that the deal lacks disclosed financial terms or quantified revenue impact.