Onto Innovation (ONTO) The Citigroup Global TMT Conference summary

Market participation and growth drivers

• Expanded portfolio through merger, now serving front-end, advanced nodes, bare wafer, and advanced packaging markets.

• Benefited from EUV and AI waves, with significant orders from substrate manufacturers and HBM memory.

• Synergistic portfolio in inspection, metrology, and software supports process control across value chains.

• Inspection is currently over half of the business, with advanced nodes and packaging as key end markets.

• Advanced packaging and panel-level packaging are major growth areas, with panel packaging expected to accelerate.

Competitive landscape and technology differentiation

• Competes with KLA in leading-edge front-end and Camtek in packaging; KLA has small positions in packaging.

• Advanced packaging recognized as a technical enabler, with investments in lithography and process development.

• Differentiation in back-end inspection through noise reduction, wafer handling, and multi-functional tools.

• Dragonfly tool offers unique 3D sensor capabilities for shrinking bumps and high-volume inspection.

Market outlook and industry trends

• Second half of the year expected to show growth from advanced nodes, memory, logic, packaging, and power semiconductors.

• Intel CapEx cuts have uncertain impact, but advanced nodes and packaging expected to benefit.

• No negative impact seen from NVIDIA Blackwell; process control intensity is increasing.

• AI packaging dip attributed to facility constraints, with re-acceleration expected as new capacity comes online.

• HBM demand continues to rise, with no major overcapacity concerns for 2025.