Focus Semiconductor Equipment: Why do you gain momentum for innovation (on)

The semiconductor industry is the core of technology progress by fueling artificial intelligence (AI) and 5G as an unprecedented demand. As chip manufacturers increase production, cutting -edge process control and inspection solutions are increasing.

In innovation ()The core player in the semiconductor equipment sector is increasing the driving force due to the industry toward the industry for high -end nodes and packaging solutions. The expertise of the company’s measurement, inspection and lithography tools is in a powerful position to enjoy these industrial changes. In addition, as governments around the world invest in semiconductor supply chain elasticity, policy -based incentives for innovation can strengthen long -term growth potential.

Recent industry trends

Including major semiconductor manufacturers Taiwan Semiconductor Manufacturer (TSM),,, Intel Corporation (INTC)And Samsung promised record capital expenditures to meet the demand for rising chips. According to SEMI, global sales of semiconductor manufacturing equipment of Original Equipment Manufacturers (OEM) are expected to reach. $ 121 billion in 2025, $ 139 billion in 2026Emphasize powerful growth trajectory. This investment requires accurate and efficient manufacturing process due to continuous demand for high -performance computing, car chips and cloud infrastructure.

This surge provides direct advantages to innovation that provides high -end process control solutions that are important to improve the yield and efficiency of chip production. As the investment in 2.5D and 3D packaging increases, TO solutions are not more essential. As more industries integrate AI -based solutions, demand for high -performance semiconductors will grow and amplify the necessity of state -of -the -art inspection and measurement technology.

The semiconductor sector is moving to heterogeneous integration and advanced packaging to solve the need for performance and power efficiency. To to Innovation has recently launched a packaging Applications Center of Excellence (PACE) to promote cooperation in cutting -edge solutions for 2.5D and 3D architecture. This initiative strengthens the market position as manufacturers adopt these technologies. The ability to coordinate solutions to demands that work closely and evolve with the company’s customers offers a few competitive advantage to provide this.

In the competitive advantage of innovation

Innovation’s product line includes measurement and inspection solutions that guarantee semiconductor manufacturing precision. The company’s DRAGONFLY® platform sets a record for inspection revenue so that chip manufacturers can achieve excellent process control. In addition, TO’s Metrology Solutions accommodates both front end and backend semiconductor processes to ensure comprehensive quality assurance. A wide range of portfolios can provide a variety of semiconductor manufacturers, ranging from legacy chip producers to state -of -the -art AI drive chips.

The company has expanded its partnership in major semiconductor manufacturers, especially high -end nodes and power semiconductors. In particular, the profits of power semiconductor customers have reached a record high in recent quarter. As the demand for efficient and high -performance chips accelerate, strong customer relationships strengthen their growth prospects. In addition, cooperation with research institutes and emerging semiconductor players guarantees long -term sustainability in the market, which is ahead of technology development and competition becomes fierce.

Financial performance

In the third quarter of 2024, a report on innovation was reported. $ 225 million revenueA solid reflection of 21.7%year -on -year. The company’s GAAP total margin was 54%and the total margin, not GAAP, reached 55%and showed strong profitability. This steady expansion emphasizes the company’s ability to utilize market trends while maintaining operational efficiency.

Net profit surged to $ 53 million based on GAAP and $ 66 million on non -GAAPs, up from the previous year. The weekly income (EPS) reached $ 1.07 (GAAP) and $ 1.34 (GAAP) at the upper end of the instructions. Strong sales growth combined with disciplinary expenses management allowed you to maintain impressive profit margins despite macroeconomic conditions.

Innovation, the cash flow, which accounts for 27%of the company’s record, has generated $ 67 million. This strong cash generation provides flexibility in additional investments in R & D, acquisition and shareholder revenue. Through a strong loan control, the company allows the company to take advantage of strategic opportunities by expanding to a new market or further innovation of semiconductor tests and measurement technologies.

Despite strong basics, innovation transactions for innovation are discounted compared to larger colleagues. KLA Corporation (KLAC) and ASML retention (ASML). The company’s forward non -GAAP Peg suggests a potential rise if the growth trajectory continues compared to 1.13 times 1.13 times ASML and 1.64X for KLAC.

Investment Outlook: Purchase or Surveillance?

Strong financial achievements, strong industrial tails and technological adoption have been well deployed for further growth of innovation in innovation. Investors should consider the potential purchases for long -term semiconductor exposure. The company’s strong income records and strong industrial status are attractive for those who want to take advantage of the ongoing semiconductor boom.

However, if market volatility is given, it is still important to closely monitor the trend of semiconductor demand throughout the industry. The designated risk of semiconductor demand, the interruption of supply chain and periodic stagnation can affect short -term inventory performance. Investors who prefer careful approaches can choose to monitor innovation before they commit, and people with high appetite can be seen as an opportunity for purchasing industry players.