Amtech Systems (ASYS) investor relations material

Business overview and industry trends

• Benefiting from significant infrastructure investments in AI, driving strong demand for advanced packaging equipment.

• Two main segments: thermal processing solutions (70% of revenue) and semiconductor fabrication solutions (30%).

• Equipment production scaled from 4–5 units/week to 9+/week with maintained lead times, leveraging a semi-fabless model.

• TrueFlat technology is a key differentiator, ensuring high yields in chip packaging by preventing substrate deformation.

• Strong demand from high-value sectors like CPUs, automotive, defense, and medical, with AI and global capacity expansion as major tailwinds.

Market dynamics and growth drivers

• Enterprise board assembly demand is robust, especially for large, high-value boards used in data centers.

• Chip packaging is now a performance enabler as Moore’s Law slows, with increasing complexity and size in new chip generations.

• Next-generation equipment needed for tighter interconnects and larger packages, expected to command higher price points.

• Major growth from these trends anticipated to impact demand meaningfully by late 2027–2028.

Strategic initiatives and operational transformation

• Mature node business faces headwinds from soft demand and increased Chinese competition.

• Specialty chemicals and CMP foundry services combined to build recurring consumables revenue, with 15% YoY growth.

• Aftermarket refurb and service business for older tools grew 40% YoY, supporting cost-sensitive customers.

• Shifted to contract manufacturing, reducing factories from seven to four, improving gross margins from 15–20% to over 40%.

• Asset-light model enables scalability, with capital needs under $1 million annually and improved free cash flow.