Aehr Test Systems partners with ISE Labs for AI chip testing

FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR) announced Monday a strategic partnership with ISE Labs to provide wafer-level test and burn-in services for high-performance computing and artificial intelligence applications. The semiconductor testing company, with a market capitalization of approximately $780 million, has seen its stock surge 115% over the past year despite its high volatility profile with a beta of 2.48.

The collaboration aims to deliver solutions for detecting semiconductor defects early in production, which the companies say is critical for maximizing device yields and controlling costs in advanced chip manufacturing.

ISE Labs, a subsidiary of semiconductor assembly and test provider ASE, Inc., will combine its engineering and manufacturing expertise with Aehr’s wafer-level burn-in technology. The partnership builds on previous collaborations between the two companies, including ISE Labs’ adoption of Aehr’s Sonoma systems and FOX-NP system for silicon photonics devices.

"Our collaboration with ISE represents a unique model in the industry," said Gayn Erickson, President and CEO of Aehr Test Systems, in a press release statement.

Vijay Israni, Vice President of New Product Introduction at ISE Labs, added that the partnership would bring "breakthrough capabilities to the HPC and AI markets."

The companies highlighted the growing demand for chip-on-wafer-on-substrate technology and the importance of delivering known good die for advanced semiconductor applications. Production burn-in testing remains essential for ensuring device performance and long-term reliability in high-performance computing applications.

Aehr Test Systems provides semiconductor test and burn-in solutions, while ISE Labs offers semiconductor engineering services including test program development, environmental testing, and failure analysis.

The announcement comes as semiconductor manufacturers face increasing quality and reliability requirements for chips used in artificial intelligence processors, electric vehicles, and data infrastructure.

In other recent news, Aehr Test Systems reported its Q1 fiscal 2026 earnings, exceeding expectations with an earnings per share (EPS) of $0.01, significantly higher than the forecasted $0.0033. Despite this positive EPS surprise of 203.03%, the company’s revenue was below projections, coming in at $10.97 million compared to the anticipated $11.48 million. In another development, Craig-Hallum downgraded Aehr Test Systems from Buy to Hold, setting a price target of $24.00. The downgrade was attributed to the recent increase in the stock’s price relative to its valuation target. Craig-Hallum also noted that the company’s near-term business dynamics have not changed since the previous quarter. Aehr Test Systems continues to expect growth in various markets, including AI, silicon photonics, and silicon carbide, with revenue expectations for fiscal year 2026 still focused on the latter half. These developments provide investors with important insights into the company’s current financial performance and market positioning.

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