AEM Holdings Ltd. and ASE Technology Holding Co., Ltd. (TWSE: 3711, NYSE: ASX) announced a strategic partnership to develop test solutions for artificial intelligence and high-performance computing markets.

Under the agreement, AEM will raise approximately S$12 million through a private placement of 3.35 million ordinary shares to an ASE subsidiary at S$3.591 per share, representing 1.06% of AEM's issued share capital. ASE will also receive 28.1 million free detachable warrants divided into two tranches, with exercise prices set at 103% and 105% of AEM's volume weighted average share price. If fully exercised, the warrants would represent an additional 8.935% of current issued share capital.

The transaction requires approval from the Singapore Exchange for listing and quotation of new shares. Proceeds will support AEM's expansion in Taiwan and integration of its test technologies into ASE's manufacturing environments.

The partnership will combine AEM's test technologies, including parallel test architectures and thermal management capabilities, with ASE's manufacturing scale. The collaboration will support ISE Labs, ASE's wholly owned subsidiary, in expanding AI and HPC processor development capabilities for testing, validation, and characterization of heterogeneous integration architectures.

"By combining ISE's advanced characterization and production-readiness capabilities with AEM's scalable, high-parallel test technologies and system-level engineering strengths, this strategic partnership enables rapid transition from validation to ASE's high-volume deployment," said Ken Hsiang, Chief Executive Officer of ISE Labs.

AEM Chief Executive Officer Samer Kabbani stated the partnership represents an important step in the company's strategy to work with industry leaders to advance AI and HPC testing capabilities.

ASE operates as a semiconductor assembly, testing and materials services provider with global manufacturing presence. AEM provides semiconductor and electronics test solutions with operations across Asia, Europe, and the United States.