Applied Materials has entered into a definitive agreement to acquire the NEXX business from ASMPT Limited, integrating its large-area advanced packaging deposition operations. The transaction, subject only to customary closing conditions, is expected to complete within the next several months without requiring regulatory approvals.

NEXX’s panel-level electrochemical deposition (ECD) technology will be incorporated into Applied’s existing portfolio of digital lithography, physical vapor deposition, chemical vapor deposition and etch systems. This addition enhances Applied’s capability to deliver co-optimized solutions for fine-pitch I/O wiring across larger panel form factors up to 510 × 515 mm.

With AI workloads driving demand for larger 2.5D and 3D chiplet-stacked packages, the shift from 300 mm wafers to panel substrates enables higher energy-efficient performance. The enlarged portfolio positions Applied to capture growth in the advanced packaging segment by offering end-to-end solutions for AI accelerators integrating GPUs, HBM and I/O chips.

Following deal closure, the NEXX team will join Applied’s Semiconductor Products Group and continue operations in Billerica, Massachusetts. Applied plans to leverage NEXX’s talent and customer relationships to accelerate customer co-innovation and expand its served addressable market.