PLAINVIEW - Veeco (NASDAQ:VECO) Instruments Inc. (NASDAQ: VECO), a provider of semiconductor process equipment, has announced a partnership with IBM (NYSE:IBM) to further develop advanced packaging applications for semiconductors. The collaboration involves Veeco's WaferStorm Wet Processing System, which will be utilized at IBM's facilities within the Albany NanoTech Complex, New York.
The WaferStorm system is designed for crucial hybrid bonding cleaning processes, including resist strip, temporary bonding strip, and pre-bond cleaning. It boasts low defectivity thresholds at 40nm and 60nm and utilizes ImmJET multi-wafer immersion and high-pressure spray technology. This allows the system to handle multiple wafer sizes and thicknesses with minimal hardware modifications, providing flexibility and cost-effectiveness.
Mathew Abraham, Vice President of Wet Processing Products at Veeco, highlighted the company's commitment to collaborating with industry leaders like IBM, which is renowned for its R&D in advanced packaging and chiplet technologies. He emphasized Veeco's innovative high throughput platform and proprietary technology that supports a wide range of wet processing applications.
Veeco's WaferStorm system is recognized in the industry for its versatility, supporting various processes such as metal lift-off, photoresist and flux clean, scrubber, and TSV cleaning. Its performance record and low cost of ownership make it a preferred choice for customers focused on innovation in advanced packaging, MEMS, RF, data storage, and photonics markets.
The partnership with IBM is expected to strengthen Veeco's presence in the semiconductor equipment market, leveraging its technologies that play a crucial role in the fabrication and packaging of advanced semiconductor devices. The company's portfolio includes laser annealing, ion beam, chemical vapor deposition (CVD), metal organic chemical vapor deposition (MOCVD), single wafer etch and clean, and lithography technologies.
Veeco's announcement is based on a press release statement and represents the company's ongoing efforts to align with technological advancements and industry needs in semiconductor manufacturing.
In other recent news, Veeco Instruments Inc. reported its second-quarter earnings, matching previously issued guidance with revenues of $176 million and non-GAAP EPS of $0.42. The company's semiconductor business demonstrated strength, achieving record revenues in laser annealing and showing a positive outlook for advanced logic and memory segments.
Emphasizing its commitment to growth, Veeco is investing in laser annealing, ion beam deposition, and compound semiconductors to address Tier 1 customer challenges.
Veeco has also revised its revenue guidance for 2024 and provided expectations for the third quarter and full year. The company anticipates high single-digit to low double-digit growth in the semiconductor market and expects China to account for about a third of its business this year. Revenue from the data storage sector is projected to grow by 5% to 10% year-over-year.
However, Veeco has noted some bearish indicators, including a decrease in customer deposits in the data storage sector and lower expectations for the systems business in the first half of 2025. On the bullish side, the company has recently placed two ion beam deposition systems and one laser annealing system in the field and sees potential growth in ion beam deposition technology for low-resistance metals in the memory market. These are the recent developments in Veeco Instruments Inc.
InvestingPro Insights
Veeco Instruments Inc. (NASDAQ: VECO) has recently captured the attention of the semiconductor industry through its strategic partnership with IBM, aimed at advancing semiconductor packaging technologies. As investors consider Veeco's market position and future prospects, certain metrics and insights from InvestingPro become particularly relevant.
According to InvestingPro, Veeco's market capitalization stands at a robust $2.09 billion, reflecting investor confidence in the company's potential for growth. The company's Price-to-Earnings (P/E) ratio is currently at 24.84, which, when adjusted for the last twelve months as of Q2 2024, sits slightly higher at 25.15. This valuation metric suggests that investors are willing to pay a premium for Veeco's earnings, likely due to the company's innovative technologies and strategic partnerships like the one with IBM.
Veeco's revenue growth is also a positive sign, with a 9.49% increase over the last twelve months as of Q2 2024. This growth is consistent with the company's focus on developing high-demand technologies for semiconductor processing. Moreover, Veeco's gross profit margin stands at a healthy 43.66%, indicating that the company is effectively managing its cost of goods sold and maintaining profitability.
InvestingPro Tips highlight a mix of caution and optimism for Veeco. While four analysts have revised their earnings expectations downwards for the upcoming period, the company is expected to see net income growth this year. This dichotomy may stem from the dynamic nature of the semiconductor industry, where rapid innovation can lead to variable short-term forecasts.
Moreover, Veeco's stock has experienced significant volatility, with a strong return over the last week but a poor performance over the last month. Investors looking to leverage these insights and explore additional tips can find more on InvestingPro, which lists an additional 10 tips for Veeco, providing a comprehensive analysis of the company's financial health and market potential.
Veeco's collaboration with IBM is a testament to the company's commitment to remaining at the forefront of semiconductor technology. With a solid financial footing and a strategic vision for growth, Veeco appears poised to continue making waves in the industry. For investors seeking to make informed decisions, the insights and data from InvestingPro offer a valuable resource for evaluating Veeco's investment potential.
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