July 21, 2026 / SemiMedia / — Diodes Incorporated has entered into a definitive agreement to acquire automated test equipment chip supplier ElevATE Semiconductor in an all-cash transaction valued at $250 million.

ElevATE is a fabless semiconductor company based in San Diego, California. It develops low-power, high-density integrated circuits for automated test equipment, including pin electronics, parametric measurement units and device power supply products.

These ICs perform functions such as supplying power to devices under test, generating and receiving test signals, and measuring voltage and current. Higher channel density and lower power consumption allow ATE manufacturers to test more semiconductor devices in parallel while controlling equipment power consumption and cost per test.

Demand for more capable test systems is increasing as chips used in automotive, industrial, data center and artificial intelligence applications become more complex. Higher pin counts, faster interfaces and greater power requirements increase the number and sophistication of tests required during semiconductor production.

Diodes expects ElevATE to contribute approximately $50 million in revenue during the first 12 months following completion of the transaction. The acquired business is projected to deliver a revenue compound annual growth rate of more than 20% over the following four years, with gross margin significantly above Diodes’ corporate average.

Based on Diodes’ first-year revenue projection, the $250 million purchase price represents approximately five times ElevATE’s expected post-closing annual revenue. The revenue, growth and profitability figures remain forward-looking estimates and will depend on ATE demand, customer programs and the successful integration of the business.

The transaction will add specialized ATE analog and mixed-signal technology to Diodes’ existing portfolio. Diodes plans to combine ElevATE’s products with its manufacturing resources, global sales organization and broader analog and power IC lineup to increase its penetration of the semiconductor test market.

ElevATE supplies products with different levels of integration for SoC testing, memory testing, test during burn-in and in-circuit testing. Its product strategy focuses on reducing power per channel and increasing test parallelism to help equipment manufacturers lower the cost of testing increasingly complex chips.

The boards of both companies and ElevATE’s stockholders have approved the transaction. The acquisition has not yet closed and remains subject to customary closing conditions, including regulatory approvals. Diodes expects to complete the transaction during the second half of 2026.