August 11, 2026 / SemiMedia / — Diodes Incorporated has entered into a definitive agreement to acquire automated test equipment IC supplier ElevATE Semiconductor in an all-cash transaction valued at $250 million.

Based in San Diego, California, ElevATE is a fabless semiconductor company specializing in integrated circuits for the automated test equipment market. Its products focus on high-density, low-power solutions designed to reduce semiconductor testing costs.

The acquisition will combine ElevATE’s ATE IC technology with Diodes’ analog, mixed-signal and power semiconductor portfolio, as well as its manufacturing capabilities, global sales network and customer reach.

Diodes expects ElevATE to contribute approximately $50 million in revenue during the first 12 months following completion of the transaction. The acquisition is also expected to be immediately accretive to Diodes’ revenue, gross margin and earnings per share.

ElevATE’s revenue is projected to grow at a compound annual rate of more than 20% over the following four years, while its gross margin is expected to remain significantly above Diodes’ corporate average.

Increasing semiconductor production volumes and the greater complexity of chips used in automotive, industrial, data-center and artificial-intelligence applications are driving demand for more advanced testing equipment.

Diodes said the acquisition will establish a new advanced product line and increase the value of its semiconductor content in ATE applications. The companies also see opportunities to offer ElevATE customers a broader range of analog and power-management products.

The boards of Diodes and ElevATE, along with ElevATE’s stockholders, have approved the transaction. The acquisition remains subject to regulatory approvals and other customary closing conditions and is expected to close during the second half of 2026.