FormFactor, Inc. Announces Purchase of New Manufacturing Facility

Rhea-AI Summary

FormFactor (NASDAQ: FORM) has acquired a manufacturing facility in Farmers Branch, Texas for $55 million. The site features four structures including 50,000 square feet of clean room space. CEO Mike Slessor highlighted that the facility, located in a lower-cost region, is one of few U.S. facilities with existing clean room infrastructure suitable for their manufacturing needs. The purchase aligns with FormFactor's strategic response to increasing test intensity driven by advanced packaging technologies, particularly evident in their growing High Bandwidth Memory (HBM) probe-card revenue. The company expects this strategic acquisition to provide operational flexibility and cost-effective capacity to meet anticipated long-term demand growth.

Positive

• Strategic acquisition of rare clean room facility for $55M in lower-cost region
• 50,000 square feet of clean room space provides significant manufacturing capacity
• Facility is equipped with necessary infrastructure, reducing setup costs and time
• Location in lower-operating cost region should improve operational efficiency
• Positions company to meet growing demand in HBM probe-card segment

Negative

• Significant capital expenditure of $55M impacts cash reserves
• Additional investments may be needed to customize facility for specific needs
• Integration and operational ramp-up could impact short-term efficiency

Insights

Semiconductor Manufacturing Expert

FormFactor's $55M Texas facility acquisition strategically positions them to meet growing advanced packaging demand with lower operating costs.

FormFactor's $55 million acquisition of the Farmers Branch manufacturing facility represents a significant strategic move that addresses several key operational challenges. The 50,000 square feet of clean room space is particularly valuable in the current semiconductor landscape, where suitable manufacturing facilities with clean room capabilities are increasingly scarce and expensive to build from scratch.

What makes this acquisition especially noteworthy is the timing. The semiconductor industry is experiencing a fundamental shift toward advanced packaging technologies like High Bandwidth Memory (HBM), which are driving increased test intensity. These complex packages require more sophisticated and numerous test touchpoints, directly benefiting FormFactor's probe-card business. The company has already seen rapid growth in HBM probe-card revenue, indicating this trend is materializing in real financial results.

From a competitive standpoint, securing this facility in a lower-cost region provides FormFactor with significant operational flexibility. The existing infrastructure means FormFactor can avoid the 18-24 month timeframe typically required to build and qualify a new semiconductor manufacturing facility. This gives them the ability to respond more quickly to market demands while maintaining cost discipline.

The $55 million purchase price appears competitive in today's market for semiconductor manufacturing space, particularly for a facility with existing clean room infrastructure. This acquisition creates valuable optionality for FormFactor's manufacturing footprint as they position themselves to capitalize on the structural growth in advanced packaging technologies that's reshaping the semiconductor test landscape.

Fit-for-purpose Facility Will Provide Significant Operational Flexibility as the Company Continues to Execute on its Long-Term Growth Strategy

LIVERMORE, Calif., June 02, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ: FORM), a leading provider of test and measurement technologies for the semiconductor industry, today announced that it has purchased a manufacturing site in Farmers Branch, Texas. The site, which comprises four structures and includes 50,000 square feet of clean room space, was purchased for $55 million dollars.

Commenting on the purchase, Mike Slessor, CEO of FormFactor, Inc., said, “FormFactor’s purchase of the Farmers Branch, Texas manufacturing facility enables us to acquire a scarce, fit-for-purpose asset that aligns with our strategic roadmap and provides significant operational flexibility. Located in a lower-operating cost region, it is one of a handful of existing facilities in the U.S. that has a clean room and comes equipped with the infrastructure to meet our future manufacturing needs.”

Slessor added, “As we’ve said for some time, we are seeing increased test intensity driven by the adoption of advanced packaging technologies, which is in turn driving increased demand for FormFactor’s probe-card products. This is evident in the recent rapid growth of our High Bandwidth Memory, or HBM, probe-card revenue, and we expect this advanced-packaging driven growth to continue.”.

“The purchase of this facility, for a competitive price, creates optionality for us in cost-effectively meeting this anticipated increasing long-term demand, and it will be an important step forward as we refine our operational strategy.”

About FormFactor:

FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product 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.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, market trends, conditions in and the growth of the semiconductor industry and the Company's performance, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and "prospect," and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com

FAQ

What did FormFactor (FORM) purchase in Texas?

FormFactor purchased a manufacturing facility in Farmers Branch, Texas, comprising four structures with 50,000 square feet of clean room space for $55 million.

Why did FormFactor acquire the new manufacturing facility?

FormFactor acquired the facility to meet increasing demand for probe-card products, particularly in High Bandwidth Memory (HBM), and to gain operational flexibility in a lower-cost region.

How much did FormFactor pay for the Texas facility?

FormFactor paid $55 million for the manufacturing facility in Farmers Branch, Texas.

What are the key features of FormFactor's new Texas facility?

The facility includes four structures, 50,000 square feet of clean room space, and comes equipped with necessary infrastructure in a lower-operating cost region.

How will the new facility benefit FormFactor's operations?

The facility provides operational flexibility, supports growing demand for probe-card products, and offers cost advantages due to its location in a lower-operating cost region.