FormFactor (FORM) Announces the Acquisition of Keystone Photonics, Here’s What You Need to Know

FormFactor, Inc. (NASDAQ:FORM) is among the Best Performing Quantum Computing Stocks in 2025. On December 15, FormFactor, Inc. (NASDAQ:FORM) announced the acquisition of Keystone Photonics to expand its capabilities in silicon photonics and co-packaged optics, used in wafer testing.

Management noted that this is a strategic move to target the rising demand from the AI data center, which calls for faster data communication with lower power utilization. Keystone is a tech company that specializes in optical probing technology and has also been a long-term partner of FormFactor, Inc. (NASDAQ:FORM). The acquisition will help the company by complementing its probing automation for high-speed, accurate optical wafer testing.

Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.

According to the press release, management expects the silicon photonics to surge at a CAGR of 30% to 2029. This acquisition positions FormFactor, Inc. (NASDAQ:FORM) attractively to support SiPh and CPO manufacturers transitioning from labs to high-volume production. The financial terms of this deal were not disclosed by the company.

That said, Wall Street also maintains a positive outlook on the stock. On December 16, Christian Schwab from Craig-Hallum reiterated a Buy rating on the stock without disclosing any price targets. Earlier, on December 10, Craig Ellis from B. Riley Securities also reiterated a Buy rating on the stock and raised the price target from $66 to $78.

FormFactor, Inc. (NASDAQ:FORM) provides essential test and measurement technologies for the semiconductor lifecycle, from early research and design debugging to high-volume production testing. The company also offers a range of cryogenic test and measurement solutions to quantum engineers.

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Disclosure: None. This article is originally published at Insider Monkey.