NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Veeco's WaferStorm system chosen by IBM for chip research

EditorNatashya Angelica
Published 08/14/2024, 09:56 AM
VECO
-

PLAINVIEW, N.Y. - Veeco (NASDAQ:VECO) Instruments Inc. (NASDAQ: VECO) has announced a partnership with IBM (NYSE:IBM) involving its WaferStorm Wet Processing System, which will be used in advanced packaging applications. The system is set to be installed at the Albany NanoTech Complex, New York, for research and development purposes.

The WaferStorm system is designed to support essential cleaning processes in hybrid bonding, a critical technology for the semiconductor industry. It is touted for its ability to handle multiple wafer sizes and thicknesses with minimal hardware modifications. The system's ImmJET technology, which combines multi-wafer immersion and high-pressure spray, is expected to facilitate various processes on a single platform, enhancing efficiency and cost-effectiveness.

Veeco's collaboration with IBM aims to explore the potential of wet processing technologies in advanced packaging, which is fundamental to the development of chiplet technologies. Advanced packaging is a key area of focus for IBM and its partners, who are engaged in cutting-edge research and development. This partnership underscores Veeco's commitment to supporting innovation in sectors such as cloud computing and artificial intelligence.

The WaferStorm system's flexibility makes it a preferred solution for critical wet processing applications across various markets, including advanced packaging, MEMS, RF, data storage, and photonics. Its performance in processes like metal lift-off and photoresist strip is particularly noted, alongside its low cost of ownership.

Veeco, a manufacturer of semiconductor process equipment, holds a strong position in the market with its range of technologies including laser annealing, ion beam, chemical vapor deposition (CVD), and more. The company's focus on optimizing performance, yield, and cost of ownership is reflected in its selection by IBM for this initiative.

The information about Veeco's partnership with IBM and the capabilities of the WaferStorm Wet Processing System is based on a press release statement.

In other recent news, Veeco Instruments Inc. announced a partnership with IBM to further develop advanced packaging applications for semiconductors, leveraging Veeco's WaferStorm Wet Processing System. This collaboration is expected to strengthen Veeco's presence in the semiconductor equipment market, providing versatility and cost-effectiveness in handling multiple wafer sizes and thicknesses.

In financial developments, Veeco reported its second-quarter earnings with revenues of $176 million and non-GAAP EPS of $0.42, matching previously issued guidance. The company's semiconductor business demonstrated strength, achieving record revenues in laser annealing and showing a positive outlook for advanced logic and memory segments.

Veeco has also revised its revenue guidance for 2024 and provided expectations for the year, anticipating high single-digit to low double-digit growth in the semiconductor market. However, the company noted some bearish indicators, including a decrease in customer deposits in the data storage sector.

On the bullish side, Veeco recently placed two ion beam deposition systems and one laser annealing system in the field, indicating potential growth in the memory market. These are the recent developments in Veeco Instruments Inc.

InvestingPro Insights

Veeco Instruments Inc. (NASDAQ: VECO) has recently been in the spotlight for its strategic partnership with IBM, and its financial metrics are just as intriguing. With a market capitalization of $2.09 billion, the company stands as a notable player in the semiconductor equipment industry. According to InvestingPro data, Veeco has a Price-to-Earnings (P/E) ratio of 24.84, which is slightly above the industry average, indicating that investors may expect higher earnings growth in the future compared to peers.

The company's revenue has shown healthy growth, with a 9.49% increase over the last twelve months as of Q2 2024, reflecting its ability to expand its business in a competitive sector. Moreover, Veeco's gross profit margin stands strong at 43.66%, showcasing its efficiency in managing production costs relative to its revenue.

InvestingPro Tips highlight that Veeco's net income is expected to grow this year, which aligns with the company's profitable performance over the last twelve months. This is a positive sign for investors looking for companies with a track record of profitability. Moreover, Veeco's liquid assets exceed its short-term obligations, providing financial stability and the ability to invest in future growth opportunities, such as the recent collaboration with IBM.

For those considering an investment in Veeco, there are 11 additional InvestingPro Tips available at https://www.investing.com/pro/VECO, offering deeper insights into the company's financial health and market position. With these resources, investors can make more informed decisions backed by comprehensive data and expert analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.