Plano-based Diodes Incorporated is acquiring San Diego’s ElevATE Semiconductor, expanding its footprint in the automated test equipment chip market. [Image: Diodes Incorporated]
Plano-based Diodes Incorporated announced its plans to acquire ElevATE Semiconductor Inc. for $250 million.
ElevATE is a fabless semiconductor company based in San Diego. Its focus is on designing low-power, high-density integrated circuits for the automated test equipment industry, known as ATE. Chipmakers use ATE to test semiconductors during production, so demand for this type of integrated circuit, or IC, has been booming.
“The explosive growth, increasing complexity and higher performance requirements of ICs used in automotive, industrial, data center and AI applications are driving greater semiconductor production volumes, and in turn, increasing demand for automated test equipment,” Diodes President and CEO Gary Yu said in a statement announcing the definitive agreement.
Yu added CEO to his president title in May 2025 as part of the company’s long-term succession plan.
The all-cash transaction is expected to close in the second half of 2026, pending regulatory approval. The boards of both companies and ElevATE’s stockholders have already signed off.
Diodes said the acquisition should be immediately accretive to its revenue, gross margin and earnings per share. The company forecasts ElevATE will add approximately $50 million in revenue during the first 12 months after closing. It reported $1.5 billion in net sales in 2025.
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