Investing.com -- FormFactor Inc (NASDAQ: FORM) shares rose 3.6% in after-hours trading Monday following the announcement of a strategic technology collaboration with Teradyne Inc (NASDAQ: TER) and a $300 million equity investment from the automated test equipment provider.

The partnership brings together FormFactor's probe technologies and interface solutions with Teradyne's automated test platforms to address semiconductor testing challenges. The collaboration will focus on advancing test architectures for high-performance compute, advanced packaging, high-bandwidth memory, and silicon photonics applications.

Under the agreement, Teradyne will purchase $300 million in FormFactor common stock. The transaction is subject to customary closing conditions and regulatory approvals.

FormFactor, based in Livermore, California, provides semiconductor test and measurement technologies. The company's expertise includes probe technologies, interface solutions, test engineering, and device characterization.

"The semiconductor industry is entering a period where test performance, scalability, and time-to-market are becoming decisive competitive advantages," said Mike Slessor, Chief Executive Officer of FormFactor. "By combining FormFactor's deep expertise in device characterization, probing, interfaces, and production test solutions with Teradyne's test platforms, we can help customers accelerate innovation and move more efficiently from technology development to high-volume manufacturing."

Gregory Smith, President and Chief Executive Officer of Teradyne, commented: "The most demanding test challenges in advanced packaging, silicon photonics, and memory can't be solved by a single company. By investing in FormFactor and combining our leading-edge test platforms with FormFactor's probe and interface expertise, we're building a more complete, validated path to production for our shared customers, and reinforcing our commitment to an open, interoperable ecosystem."

The companies said the collaboration will support joint customer engagement and address demand for advanced computing and AI infrastructure.

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