Veeco logs $35 million in lithography system orders

PLAINVIEW, N.Y. - Veeco Instruments Inc. (NASDAQ: VECO), a semiconductor process equipment provider with a market capitalization of $1.1 billion, has received orders exceeding $35 million for its AP300™ Lithography systems. According to InvestingPro data, the company currently trades below its Fair Value, suggesting potential upside opportunity. The orders, placed over recent quarters by a diverse group of Integrated Device Manufacturers (IDMs) and Outsourced Semiconductor Assembly and Test (OSAT) customers, are slated for delivery throughout 2025.

These orders support capacity expansions in response to growing demands from various end markets, notably artificial intelligence (AI) and high-performance computing sectors. While Veeco anticipates its Advanced Packaging Lithography business to achieve significant year-over-year growth in 2025, InvestingPro data shows the company has maintained strong fundamentals with $717.3 million in revenue and a healthy 42.4% gross margin over the last twelve months. Get access to 12+ additional exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.

The company’s AP300™ Lithography systems are tailored for Advanced Packaging applications and are recognized for their high performance, reduced total cost of ownership, exceptional uptime, and versatile process capabilities. Despite the stock’s 34% decline over the past six months, analysts maintain a positive outlook with price targets ranging from $22 to $31. Customers have increasingly opted for Veeco’s lithography solutions to meet the intricate requirements of next-generation advanced packaging processes. These include applications such as copper pillar for 2.5/3D packaging, flip chip bumping, fan-out wafer-level packaging (FOWLP), and high-density fan-out packaging.

Adrian Devasahayam, Ph.D., Senior Vice President of Product Line Management at Veeco, highlighted the systems’ ability to satisfy a broad spectrum of advanced packaging needs with top-tier process capabilities and low ownership costs. Devasahayam emphasized the AP300 platform’s role in setting industry benchmarks for challenging advanced packaging processes necessary for high-performance, next-generation devices.

Veeco’s product portfolio includes laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies, which are integral to the fabrication and packaging of advanced semiconductor devices.

The company’s forward-looking statements about its future performance are subject to various risks and uncertainties that could cause actual outcomes to differ materially. Veeco has stated that it does not intend to update any forward-looking statements to reflect events or circumstances that may arise after the date of such statements.

This news article is based on a press release statement from Veeco Instruments Inc.

In other recent news, Veeco Instruments has been the focus of multiple analyst updates and financial projections. The company reported fourth-quarter results for 2024 that exceeded investor expectations by one cent, with the Semiconductor segment achieving a 13% year-over-year growth. However, Veeco’s guidance for the first quarter of 2025 indicates lower results, with similar sales anticipated for the second quarter. Benchmark has adjusted its price target for Veeco to $31 from $38, maintaining a Buy rating, while Needham reduced its price target from $35 to $29, also keeping a Buy rating. Both analysts cite mixed factors affecting the company’s outlook, with Veeco’s management expecting a 35% decline in China revenue in 2025 but optimistic about growth in advanced packaging and gate-all-around sectors. Northland maintains an Outperform rating with a $30 target, highlighting the potential $300 million annual revenue from Veeco’s evaluation systems. The company’s earnings projection for 2025 is set at $1.52 per diluted share, with varying expectations across different business segments. Investors are closely watching the company’s ability to convert evaluation systems into confirmed orders, which could significantly impact Veeco’s revenue and market position.

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