Veeco receives order for 300mm GaN epitaxy system from power chip maker

PLAINVIEW, N.Y. - Veeco Instruments Inc. (NASDAQ:VECO) has received an order for its Propel 300 system from a major power semiconductor manufacturer for gallium nitride (GaN) epitaxy on 300mm silicon wafers, the company announced Wednesday. The equipment manufacturer, currently valued at approximately $1.75 billion, has seen its shares trading near its InvestingPro Fair Value, with a strong 49.5% price return over the past six months.

The system will be used for producing GaN-on-silicon wafers for power devices, enabling the transition from 200mm to 300mm wafers. This shift allows manufacturers to produce 2.3 times more chips per wafer while utilizing existing 300mm production lines, potentially reducing device costs. According to InvestingPro data, Veeco maintains a strong financial position with more cash than debt on its balance sheet, providing flexibility to invest in advanced technologies like the Propel 300 system. InvestingPro offers additional insights through its comprehensive Pro Research Report, available for Veeco and 1,400+ other US equities.

"Qualifying Propel 300 for 300mm GaN-on-Si epitaxy for power devices is a significant achievement in the path to widespread adoption of GaN technology," said Anil Vijayendran, Vice President of MOCVD Product Line Management at Veeco.

GaN technology is gaining traction in power semiconductor manufacturing due to its high efficiency and superior thermal and switching properties. According to data cited in the company’s press release, the GaN device market is projected to grow at a 35% compound annual growth rate from $555 million in 2025 to $2.5 billion in 2030.

The Propel 300 system features Veeco’s MOCVD TurboDisc technology, combining automated wafer handling with thickness and doping uniformity capabilities. The system is designed to offer low defectivity and high productivity without requiring in-situ cleaning.

The growing demand for GaN devices is being driven by applications in automotive, industrial, and data center sectors, particularly as AI workloads increase power consumption requirements and necessitate more efficient power supplies.

Veeco manufactures semiconductor process equipment including laser annealing, ion beam, MOCVD, single wafer etch and clean, and lithography technologies.

In other recent news, Veeco Instruments Inc. reported impressive second-quarter 2025 earnings, surpassing expectations with an earnings per share of $0.36, significantly above the forecasted $0.24. The company also exceeded revenue projections, reporting $166 million compared to the anticipated $153.87 million. In a strategic move, Veeco has announced a merger with Axcelis Technologies, which could potentially create the fourth largest U.S. semiconductor capital equipment company. However, this merger has prompted analyst firms like Northland and Needham to downgrade Veeco’s stock, citing valuation concerns and merger risks, respectively. Veeco also addressed new U.S. export restrictions impacting its business in China, indicating that these changes are not expected to materially affect its operations. Additionally, Veeco has secured multiple orders for its advanced semiconductor systems, with deliveries planned to begin in the first quarter of 2026. These developments highlight the company’s proactive approach in navigating industry challenges and opportunities.

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