## FormFactor Strengthens Silicon Photonics Testing Portfolio Through Strategic Integration of Keystone Photonics

The semiconductor testing landscape is undergoing a significant transformation as data center demands accelerate. FormFactor Inc has moved to consolidate its capabilities in optical wafer testing by integrating Keystone Photonics, a specialized firm focused on optical probe technologies for silicon photonics and co-packaged optics applications.

### Market Momentum Driving Consolidation

The timing reflects broader industry dynamics. Silicon photonics technology, essential for next-generation AI and high-performance computing infrastructure, is experiencing remarkable market expansion. Current forecasts suggest the sector will expand at approximately 30% annually through 2029 (MarketsandMarkets, 2025), as data centers evolve to manage exponentially larger computational workloads while maintaining efficiency.

Silicon photonics and co-packaged optics represent critical infrastructure upgrades—enabling dramatically faster data transmission with reduced power requirements. These innovations have become indispensable as enterprises scale artificial intelligence systems.

### Technical Synergies and Competitive Positioning

FormFactor Inc's integration of Keystone Photonics combines two complementary strengths: advanced optical coupling capabilities paired with sophisticated probing automation. This consolidation positions the combined entity to address the intricate technical requirements of optical wafer testing at scale.

The partnership reflects the progression from laboratory development to commercial manufacturing. SiPh and CPO producers are transitioning from prototype phases toward high-volume production—a shift requiring specialized test infrastructure that delivers precision measurement with rapid throughput.

### Strategic Impact

The combination creates measurable advantages for semiconductor manufacturers ramping production. Generative AI infrastructure expansion is fundamentally reshaping data center architecture, creating urgent demand for robust, integrated testing solutions that can handle the complexity of advanced semiconductor packaging.

FormFactor Inc's extended test system portfolio now encompasses the full spectrum of advanced packaging validation—a competitive advantage as the industry navigates this transition. Keystone Photonics' technical expertise, merged with FormFactor's established infrastructure and market reach across Asia, Europe, and North America, establishes a stronger foundation for serving manufacturers navigating this rapidly evolving landscape.

The integration underscores how consolidation is reshaping the semiconductor equipment sector as technology evolution outpaces traditional market structures.