FormFactor, Inc. (NASDAQ: FORM), a 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.”
