Company profile
Company history
Semiconductor equipment supplier Onto Innovation (ticker: ONTO) was formed in 2019 from the merger of RTI (Rudolph Technologies, Inc.) and Nanometrics Incorporated.
In 1940, Otto Curt Rudolph established OC Rudolph & Sons, Inc. to engage in the import of microscopes and scientific instruments. In 1970, it was renamed Rudolph Research Corporation, a provider of optical equipment designed for laboratories and universities. In November 1999, Rudolph Technologies launched its initial public offering of common stock.
Founded in 1975, Nanometrics is a pioneer in the field of optical metrology. In 1984, the company became publicly traded.
Main business
The company’s products include automated defect inspection and metrology systems, probe card test and analysis systems, and photolithography step-and-repeat systems. In addition, Onto Innovation offers a wide range of software products designed to increase throughput, control processes and reduce manufacturing costs.
Benefit from advanced packaging
Special technology
The proliferation of edge processing equipment required to accommodate thinner wafers creates chips and cracks that can propagate into wafers near the wafer edge, causing costly damage to the finished wafer.
The technology possessed by Onto can provide vital guarantee for the quality assurance of foundries and IDMs that produce advanced packaging through full-surface inspection.
Typical products
Onto Innovation’s EB40 edge and back inspection module not only introduces back edge bead removal metering, but also achieves a significant change in sensitivity through a new defect detection algorithm.
This powerful tool enables customers to discover edge cracks, backside scratches, residue, wafer-level defect signatures, delamination defects, bubble defects and more.
Improve chip yield
Modern artificial intelligence chips must adopt advanced processes and rely on advanced packaging, combined with high bandwidth memory (HBM) memory, to provide higher processing efficiency for artificial intelligence processing. But because of this, increasingly advanced chip manufacturing processes will make back-end packaging and testing more and more difficult compared to previous mature processes.
Onto attaches great importance to advanced packaging, which is crucial for building artificial intelligence infrastructure. Make Onto an important part of the artificial intelligence chip supply chain. Because the technology it can provide and the company’s areas of expertise just meet such needs. During the chip design and manufacturing process, we provide yield improvement tools for high-bandwidth memory (HBM) memories necessary for advanced packaging and artificial intelligence chips.
Major customers
Nvidia (ticker: NVDA) is currently the main supplier of artificial intelligence chips; TSMC (ticker: TSM) is the main supplier of the advanced packaging market, while SK Hynix (ticker: HXSCL), Micron (ticker: MU) and Samsung (ticker: SSNLF) are currently the only three suppliers capable of producing high-bandwidth storage memory.
Capital market performance
Share price performance
Onto’s stock price has risen 40% in 2024 as of September 25, and has risen more than 67% in the past 12 months.
Geopolitical risks
Similar to Ultracoin Semiconductor (ticker: UCTT), Onto’s exposure to the Chinese market is relatively small, accounting for only about 10% of total revenue.
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