On December 15, 2025, FormFactor, Inc. (NASDAQ: FORM), a prominent semiconductor test and measurement supplier, announced a significant step in bolstering its market capabilities by acquiring Keystone Photonics. This acquisition is particularly noteworthy as Keystone is a pioneer in optical probing technology tailored for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing—technologies that are essential for the development of next-generation data centers, which are increasingly needed to support artificial intelligence (AI) and high-performance computing.

2. Addressing the Surge in Silicon Photonics Demand

The silicon photonics market is on the brink of explosive growth, with forecasts suggesting an annual growth rate nearing 30% over the next several years, as reported by MarketsandMarkets. This surge is primarily driven by the escalating demand for AI infrastructure, which necessitates advanced data communications solutions that can efficiently manage vast amounts of information while consuming significantly less power. By acquiring Keystone Photonics, FormFactor positions itself at the forefront of this burgeoning market, enhancing its integrated test system leadership in advanced semiconductor packaging.

3. Unmatched Testing Capabilities Through Innovation

The merger of FormFactor and Keystone Photonics is expected to create a powerhouse in optical wafer testing, combining industry-leading optical coupling technology with advanced probing automation. This collaboration aims to deliver unparalleled data accuracy at high test speeds, addressing the complex requirements of the semiconductor industry as it moves towards high-volume production of SiPh and CPO technologies.

Mike Slessor, FormFactor's President and CEO, expressed enthusiasm about the acquisition, stating, “We’re thrilled to welcome Keystone Photonics to the FormFactor family. Our shared vision is clear: accelerate the industry’s ramp to high-volume SiPh and CPO production. As generative AI and advanced packaging reshape data centers, customers need robust, high-productivity integrated test solutions – and that’s exactly what we deliver.”

4. Vision for Future Growth

Philipp Dietrich, CEO of Keystone Photonics, echoed Slessor's sentiments, emphasizing the potential for growth and innovation that this acquisition unlocks. He remarked, “In joining worldwide wafer test leader FormFactor, we’re unlocking the next phase of growth and charting the path in the fast-evolving world of optical test and measurement. By combining our cutting-edge technologies and deep expertise, we’re ready and energized to fuel our customers’ innovation and drive their breakthrough success.”

5. FormFactor’s Commitment to Excellence

FormFactor, Inc. is recognized as a leading provider of essential test and measurement technologies that span the entire integrated circuit (IC) life cycle. From characterization and modeling to reliability and production testing, the company’s offerings are vital for semiconductor companies aiming to enhance profitability through optimized device performance and improved yield knowledge. With a robust network of facilities across Asia, Europe, and North America, FormFactor is well-positioned to support its customers in navigating the complexities of the semiconductor landscape.

As the industry gears up for a new era of high-performance computing and AI-driven applications, FormFactor’s strategic acquisition of Keystone Photonics marks a pivotal moment in enhancing testing capabilities and driving innovation in silicon photonics technology.

Original press release