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WILMINGTON, Mass. - Onto Innovation Inc. (NYSE: NYSE:ONTO), a process control leader, has announced the launch of its Packaging (NYSE:PKG) Applications Center of Excellence (PACE) in Wilmington, Massachusetts. The facility is a pioneering initiative in the United States, focusing on panel-level packaging (PLP) advancements to support 2.5D and 3D chiplet architectures and AI packages.
PACE aims to unite industry leaders across various sectors, including substrate manufacturing, process equipment, and materials, to foster collaboration and innovation in PLP. Partners in the venture include ASMPT, Corning (NYSE:GLW), Evatec, Lam Research (NASDAQ:LRCX), LPKF Laser & Electronics SE, MKS Instruments (NASDAQ:MKSI), Resonac Corporation, Taiyo Ink Mfg. Co., Ltd., among others.
The center will leverage Onto's expertise in lithography, plating, thin film deposition, and laser processes to develop new materials and techniques for panel interconnects with sub-1.5µm line/space. A key focus will be on process control technologies, like the Firefly G3 system, designed to address challenges associated with glass core substrates such as detecting missing through glass vias (TGVs) and measuring their critical dimensions.
Mike Plisinski, CEO of Onto Innovation, emphasized the need for accelerated technology development to meet the demands of evolving AI and chiplet architectures. PACE is expected to play a significant role in shortening time to market for these new solutions.
The center features state-of-the-art equipment, including the JetStep X500 glass panel handling lithography system and the Discover Command Center for data analytics and AI-enabled services. It also provides secure data access for partner confidentiality.
Danielle Baptiste, VP and GM of Onto's enterprise software business, highlighted the data platform's ability to offer partners a comprehensive view of process insights while maintaining data relevance and confidentiality.
Onto Innovation's establishment of PACE underscores its commitment to advancing semiconductor packaging technologies and improving device performance and efficiency. The grand opening event is scheduled for September 30, 2024.
This article is based on a press release statement from Onto Innovation Inc.
In other recent news, Onto Innovation has reported a 15% year-over-year increase in revenues, driven by strong demand across various sectors. Needham has upgraded Onto Innovation from Hold to Buy, setting a price target of $245, highlighting the company's solid performance outside of China and its potential in AI chip packaging technologies. Similarly, Benchmark has upgraded the price target for Onto Innovation from $180 to $230, maintaining a Buy rating due to a strong sales outlook. They project a 23% year-over-year growth in earnings to $5.98 per diluted share for 2025.
Onto Innovation has also seen changes in its board of directors with the appointment of Dr. Stephen Schwartz, bringing over 25 years of leadership in high technology companies. This comes alongside the launch of a new suite of products, including the JetStep® X500 lithography system and the Firefly® G3 inspection system, aimed to support the industry's shift to glass core panels for advanced IC substrates and panel-level packaging.
These recent developments highlight Onto Innovation's progress in the semiconductor industry and its commitment to adapting to shifting market dynamics. However, this report does not make any predictions about the company's future performance.
InvestingPro Insights
Onto Innovation Inc. (NYSE: ONTO) has been making significant strides in the semiconductor industry, and its financial metrics reflect a company with a strong balance sheet and promising growth prospects. According to InvestingPro data, Onto Innovation holds a market capitalization of $9.22 billion, showing substantial market confidence in the company's future. The firm's commitment to technological advancement in semiconductor packaging is also reflected in its P/E ratio, which stands at 55.41, indicating that investors are willing to pay a premium for its earnings growth potential.
With a revenue growth of 27.1% in the last quarter, Onto Innovation is demonstrating its capability to expand in a competitive market. This growth is particularly noteworthy as it aligns with the company's strategic initiatives, such as the establishment of the Packaging Applications Center of Excellence (PACE). The gross profit margin of 51.33% over the last twelve months further highlights Onto's efficient operations and strong positioning within the industry.
InvestingPro Tips reveal that Onto Innovation is trading at a high earnings multiple, which may be attributed to its robust financial health and the market's optimistic outlook on its innovative contributions to semiconductor technology. Additionally, with more cash than debt on its balance sheet and liquid assets exceeding short-term obligations, the company appears to be well-capitalized to pursue its growth initiatives. It's also worth noting that analysts have revised their earnings upwards for the upcoming period, signaling confidence in Onto's continued success.
For readers interested in deeper analysis, there are additional InvestingPro Tips available, which provide further insights into Onto Innovation's performance and potential investment opportunities. The company's strong return over the last month, despite a recent drop in stock price, suggests a resilience and long-term value that could be of interest to investors.
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