Onto Innovation Announces Over $100 Million in Orders for Systems Supporting Advanced Packaging for AI

Onto Innovation Inc. (NYSE: ONTO) (“Onto Innovation,” “Onto,” or the “Company”) today announced finalizing over $100 million in orders for the Dragonfly G3 inspection system with deliveries scheduled through the first quarter of 2024, plus new orders now extending into the second half of 2024. This represents an increase from the previously estimated customer demand reflecting the critical role the Dragonfly G3 system plays in support of advanced packaging for the expanding AI device market. The orders are from leading logic and memory manufacturers for heterogeneous integrated (HI) packages that combine a graphics processor (GPU) and numerous high bandwidth memory (HBM) devices to create an AI GPU in a single package. The Company expects additional orders in 2024 to support expansions in the AI GPU market, which is estimated to grow at an annual average rate of 40% over the next four years, according to International Data Corporation and JP Morgan.

This year, several companies have announced accelerated demand for AI GPUs to supply both hyperscalers and corporate enterprises with specialized parallel computing platforms to meet the growing demand for large language model applications. “The Dragonfly G3 system is a versatile integrated inspection and metrology solution that supports manufacturers with their goal of using only known good die to create both HBM and chip-on-wafer GPU packages,” says Mayson Brooks, vice president and general manager of Onto’s inspection business. “The system’s range of high-performance optical capabilities enables it to monitor multiple parameters at high throughput. Specifically, our unique Clearfind technology is in demand by several customers to detect non-visual organic residue on chip-to-chip connections to ensure long-term package reliability and to maintain integrity of the power and data lines.”

In addition to Clearfind technology, the Dragonfly G3 system offers sub-micron 2D defect detection and metrology, measuring the depth of through silicon vias and height of redistribution layers with a visible thickness and shape sensor while infrared (IR) technology detects edge cracks that also can adversely affect device reliability. The system is tightly integrated with control and leading automated defect classification software for real-time analysis and review.