Onto Innovation : January 2025 Investor Update
ONTO
Investor Update
New Products and New Opportunities
JANUARY 2025
Onto Innovation 2024 Snapshot
High tech capital equipment company specializing in optical process solutions for semiconductor and related markets
OUTPERFORMING WFE 70%
REVENUE $983 MILLION (UP +20% Y/Y)
EPS (Non-GAAP) $5.24 (UP +40% Y/Y)
OPERATING CASH FLOW ~$250 MILLION (~25% of revenue)
4 NEW PRODUCTS LAUNCHED
2 BUSINESSES ACQUIRED
WFE ONTO
Note: 2024 data is based on nine months actuals and mid-point of Q4 guidance; 2024 Estimated GAAP EPS of
Three-year CAGR (2021-2024F)
$4.20 which includes the impact of the following Non-GAAP items - Amortization of intangibles ($1.06); M&ASource: TechInsights, Inc. 2024 related ($0.05); Restructuring ($0.19) and Net tax provision adjustments (-$0.26).
3
Onto Benefits from Multiple Global Market Tailwinds
Onto Innovation has strong position at nearly all leaders in every market
HIGH
2.5D
GATE ALL
POWER SEMI
BANDWIDTH
PACKAGING
AROUND
MEMORY
HBM content up
Capacity increase
Capacity ramp
Market to grow at
50-100% every
>2x in 2025
toward HVM in
10% CAGR
generation of AI
2025-2026
through 2028
processors
AI PACKAGING
Source: Nvidia, AMD, TSMC, Yole Group
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Onto AI Packaging Revenue Expands with Volume and Complexity
2D Packaging
2.5D/3D Packaging
Key Industry Trends in AI Packaging
ONTO RISING TO THE CHALLENGE
300%
Metrology for AI
Packaging
158%
Dragonfly
Revenue Growth
DIE TO DIE
INTERCONNECT
L/S
9/12μm
to
<1μm
BUMPS
PER WAFER
>3x
Smaller
>30x more
DIES PER PACKAGE
>5x
more
dies
PROCESS
STEPS
>3X
more steps
2023 2024F
PROCESS CONTROL REVENUE GROWTH ('23-'24)
Source: Yole Group and Onto Corp. Marketing Estimates
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AI Packaging Complexities Create New Product Opportunities and Growth
Onto launches four new products for packaging
AI PACKAGING SAM
NEW PRODUCTS ADD
$1
~$300M
IN SAM BY 2026
NEW PRODUCTS MORE THAN DOUBLE
GROWTH OPPORTUNITY
IN AI PACKAGING
$ BILLION
SAM
GROWTH
FOR
CURRENT
PRODUCTS
$0
2024
2026
"Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us. Customers are gearing up to deploy Blackwell at scale."
- Nvidia, Nov 2024
SUBSURFACE
UNPATTERNED
INSPECTION
INSPECTION
2.5D / 3D Logic &
Power / Panel /
Memory
Wafer / Packaging
BUMP METROLOGY
VOID DETECTION
2.5D / 3D Packaging
Hybrid Bonding
Source: TechInsights and Onto Corp. Marketing Estimates
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3D Interconnect Roadmap Expectation
Flip Chip
3D Chip Stacking
40μm-25μm
25µm
10-15µm
HBM2
HBM3/3E <10µm
HBM4
<5µm
Future
Increased adoption in logic, HBM and 3D DRAM and NAND
MICRO BUMP 3D STACKING
And/Or
HYBRID
BONDING
ONTO SOLUTIONS:
3Di Technology
EchoScan Inspection
Bump count <10M / wafer
Interconnect count >300M / wafer
Source: Prismark and Onto Corp. Marketing Estimates
7
Denser Smaller Bumps Create New Challenges in AI Packaging
TODAY'S SOLUTION USES
ONTO SOLUTION:
INCOHERENT TECHNOLOGY
COHERENT TECHNOLOGY
3Di Technology
LASER
Light scattering reduces signal
and precision
✓ Small spot size
✓ Noise suppression
✓ Measure bump diameter <5µm ✓ High throughput
✓ Integrated Discover® analytics
Relying on shadows, unable to
measure within small pitch
BROAD APPEAL for 3Di
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New EchoScan Technology Enables Hybrid Bonding Interconnect Yields
Void detection (≥1µm) between bond pads is critical for hybrid bonding
applications
ONTO SOLUTION!
VOID DETECTION
SAM
C-SAM
Wafer Stack
in Water
Medium
EchoScan
$300
$200
$100
•
>10µm sensitivity
✓ Down to 1µm void detection
•
Contamination and peeling
✓
Water free measurement
through water
✓
Defect traceability & classification
$-
2025 2026 2027 2028
Source: Yole Group and Onto Corp. Marketing Estimates
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DRAM Growth Beyond HBM in 2025
Capacity Reduced Due to HBM Conversion
HBM as % of Total
DRAM Capacity
14%>10%
12%
10%
8%
6%
4%
2%
0%
2023 2024 2025
Demand Has Improved Since 2022
DRAM Bit Demand
Growth Y/Y
20%
15%
10%
5%
0%
2022 2023 2024 2025
-5%
NEW
$69M VPA to
Support DDR5
Expansion
Source: TrendForce, 2024
Source: Gartner and Onto Corp. Marketing Estimates
10
Disclaimer
Onto Innovation Inc. published this content on January 15, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 15, 2025 at 14:50:05.825.