Onto Innovation Announces Growing $500 Million Order Backlog, Including Solutions for Heterogeneous Packaging

Over $100 million in orders encompass solutions for 2.5D, 3D packaging and hybrid bonding applications

Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or the “Company”) today announced a total order backlog of $500 million comprised of more than $100 million for its lithography and inspection products in support of the emerging heterogeneous packaging sector, which covers technology designed for 2.5D and next-generation 3D packages and those using hybrid bonding as a method of connecting stacked chips.

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Illustrative example of the hybrid bonding technology showing a CIS chip connected to an ISP chip. (Graphic: Business Wire)

Heterogeneous packaging is expected to be the fastest growing segment within the advanced packaging market, driving a growth rate of 11% CAGR for advanced package substrates over the next four years and reaching an estimated $13 billion in revenue in 2025, according to TechSearch International. The rise in heterogeneous packaging as a new industry standard will be broad and industry-transforming, delivering the increased performance needed for data center processors, edge compute and mobile processors, as well as advanced specialty packages needed for the next-generation RF and image sensors used in mobile devices and demanded by expanding 5G technology.

“The key to this market is the ability to increase interconnect density while simultaneously achieving high yields. The Company has received orders of nearly $100 million for its new JetStep^® X500 lithography system for shipment in 2022 and 2023 to support 2.5D heterogeneous packaging on advanced substrate panels,” said Elvino DaSilveira, vice president and lithography business manager. “Onto Innovation’s lithography, inspection and software product suite provides an integrated solution that enables our customers to achieve the necessary precision and repeatability required to bring these technologies from R&D to high-volume production.”

Onto Innovation also received over $12 million in orders for its Dragonfly^® G3 inspection system. This leading-edge inspection system offers the sub-micron metrology resolution needed for advanced packages using the new hybrid bonding technology. Hybrid bonding is a key element in the next-generation of heterogeneous packaging and allows for true 3D die-to-die stacking. Early adopters of this packaging technology include a leading-edge manufacturer of a high-definition CIS device, which is bonded directly to a logic chip produced by a top-tier foundry.

“We are partnering with our customers to move beyond providing them with the most precise data streams for process control. We are now offering them analytics across fabs through our Discover^® software, which enables higher yield bonding between chips from different fab locations,” said Ju Jin, senior vice president and general manager of the inspection business. “This is another example of Onto Innovation’s leadership in delivering flexible, high-performance products spanning the entire manufacturing process across factories in the value chain.”

About Onto Innovation Inc.

Onto Innovation is a leader in process control, combining global scale with an expanded portfolio of leading-edge technologies that include: Un-patterned wafer quality; 3D metrology spanning chip features from nanometer scale transistors to large die interconnects; macro defect inspection of wafers and packages; metal interconnect composition; factory analytics; and lithography for advanced semiconductor packaging.

Our breadth of offerings across the entire semiconductor value chain helps our customers solve their most difficult yield, device performance, quality, and reliability issues. Onto Innovation strives to optimize our customers’ critical path of progress by making them smarter, faster and more efficient.

Headquartered in Wilmington, Massachusetts, Onto Innovation supports customers with a worldwide sales and service organization.

Additional information can be found at www.ontoinnovation.com.

Forward Looking Statement

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) which include: statements related to the order backlog; Onto Innovation’s business momentum and future growth; the benefit to customers of Onto Innovation’s products; Onto Innovation’s ability to both deliver products and services consistent with our customers’ demands and expectations and strengthen its market position; as well as other matters that are not purely historical data. Onto Innovation wishes to take advantage of the “safe harbor” provided for by the Act and cautions that actual results may differ materially from those projected as a result of various factors, including risks and uncertainties, many of which are beyond Onto Innovation’s control. Such factors include, but are not limited to, the length, severity and potential business impact of the COVID-19 pandemic; the Company’s ability to leverage its resources to improve its position in its core markets; its ability to successfully integrate acquired businesses and technologies; its ability to weather difficult economic environments; its ability to open new market opportunities and target high-margin markets; the strength/weakness of the back-end and/or front-end semiconductor market segments; fluctuations in customer capital spending and any potential impact as a result of the novel coronavirus situation. Additional information and considerations regarding the risks faced by Onto Innovation are available in Onto Innovation’s Form 10-K report for the year ended December 26, 2020 and other filings with the Securities and Exchange Commission. As the forward-looking statements are based on Onto Innovation’s current expectations, the Company cannot guarantee any related future results, levels of activity, performance or achievements. Onto Innovation does not assume any obligation to update the forward-looking information contained in this press release.

Source: Onto Innovation Inc.

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