WILMINGTON, Mass. - Onto Innovation Inc. (NYSE: NYSE:ONTO) has introduced a new suite of products for panel-level packaging and advanced IC substrates (AICS), aiming to support the industry's shift to glass core panels. The suite includes the JetStep® X500 lithography system and the Firefly® G3 inspection system, both designed to meet the demands of manufacturing highly advanced heterogeneous integration (HI) chiplet packages.
The company's lithography system, JetStep X500, is equipped with hybrid substrate handling capabilities, enabling it to process both glass core panels and conventional copper-clad laminate (CCL) based organic substrates.
This versatility is crucial as the market transitions to glass substrates due to their stability for applications in AI, high-performance computing, and cloud computing. The system offers sub-1.5µm l/s RDL resolution and can expose panel areas of up to 250mm x 250mm in a single shot.
The Firefly G3 inspection system complements the lithography system with its ability to perform sub-micron automatic metrology. It can identify defects such as cracks and chips in glass substrates and perform through glass via (TGV) metrology, a critical aspect of glass substrate processing. The system's 3D metrology sensors also allow for precise dielectric thickness measurements, which are essential for achieving uniform copper plating heights for RDLs.
Onto Innovation's vice president and general manager of the lithography business, Jason Robinson, emphasized the company's commitment to advancing its product portfolio to align with technological progress. Similarly, Mayson Brooks, vice president and general manager of Onto's inspection business, highlighted the Firefly G3 system's versatility and broad customer base.
The advanced packaging market, including panel-level packaging, is poised for growth, with the AICS market expected to see a compound annual growth rate of 10% from 2023 to 2028, according to Prismark.
The announcement of these new systems comes at a time when the semiconductor industry is facing challenges with organic substrate RDLs and is looking towards more stable alternatives like glass. Onto Innovation's new offerings are positioned to tap into these market opportunities and address the evolving needs of semiconductor manufacturers.
This news is based on a press release statement from Onto Innovation Inc.
In other recent news, Onto Innovation has been the focus of positive developments. Benchmark has raised the price target for Onto Innovation shares to $230 from $180, maintaining a Buy rating due to a strong sales outlook. The firm's analyst cited Onto's reported results for the June quarter, which exceeded expectations, and the company's guidance indicating higher sales for the second half of 2024.
Onto Innovation also reported robust financial results for the first quarter, with revenues hitting the upper limit of their guidance, marking a 15% year-over-year increase. The company projects an increase in gross margins and revenue growth driven by strong demand in various sectors, including AI compute devices and enterprise solid-state drives.
Benchmark's analyst anticipates that the company's surge in Power sales and an increase in Advanced Node sales will contribute to a robust financial outlook for the company in 2025. The firm estimates a 23% year-over-year growth in earnings to $5.98 per diluted share for 2025.
InvestingPro Insights
Onto Innovation Inc. (NYSE: ONTO) is capturing attention with its advanced lithography and inspection systems designed for the semiconductor industry's transition to glass core panels. As Onto Innovation positions itself to leverage the growing advanced packaging market, its financial health and market performance provide additional insight into the company's potential.
InvestingPro Data indicates a Market Cap of 11.45B USD, reflecting the company's significant presence in the industry. With a Price / Book ratio of 6.43 as of Q1 2024, the company's stock is trading at a premium, suggesting that investors have confidence in Onto Innovation's asset value and future growth prospects. Moreover, the company's Revenue Growth for Q1 2024 at 14.9% indicates a positive trajectory in sales, aligning with the company's strategic product launches and market positioning.
InvestingPro Tips highlight that Onto Innovation holds more cash than debt on its balance sheet, underscoring a strong financial position that could support continued innovation and expansion. Additionally, three analysts have revised their earnings upwards for the upcoming period, signaling optimism regarding the company's future financial performance.
For those interested in deeper analysis and more InvestingPro Tips, Onto Innovation currently has 17 additional tips listed on InvestingPro, which can be accessed at https://www.investing.com/pro/ONTO. Readers looking to explore these insights can benefit from an exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Onto Innovation's strategic moves in the semiconductor industry, coupled with its solid financial metrics and positive analyst revisions, suggest that the company is well-positioned to capitalize on the growth of advanced IC substrates and panel-level packaging.
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