Could you walk us through the basics of Onto Innovation and how you are best serving the semiconductor industry?
At the core, Onto Innovation focuses on process control across the entire value chain, which sets us apart from most of our peers. Traditionally, companies would target only front-end manufacturers like Intel or Samsung, but we've extended our expertise to advanced packaging and specialty device markets like power semiconductors. This broader focus has been a growth driver for us over the past 20 years, helping us support the various waves of growth in the semiconductor industry. By combining a broad market approach with a synergistic process control portfolio, we've stayed unique in the industry. Our ability to anticipate advances and incorporate them into R&D has allowed us to serve this evolving space efficiently, whether it's CMOS image sensors, MEMS, or power devices during the mobile market boom.
In an industry that requires such expertise, how do you maintain such a high bar across many components like lithography, defect inspection, and metrology?
Our high standards across a broad portfolio come from leveraging shared core technologies, mainly in software and optics. All our products rely on these competencies, which are crucial for optimal performance. Optics is a specialized skill set we apply across metrology, inspection, and lithography. Software plays an equally vital role. For instance, in lithography, advanced modeling and algorithms help optimize the process and achieve near-perfect results despite environmental variables. Our expertise in both optics and software allows us to innovate efficiently, even in advanced technologies like gate-all-around at the two-nanometer level, which has significantly improved process speed and yield.
Tell us about your new technologies, like the JetStep lithography and Firefly G3 inspection systems, and their relevance in today's AI-driven world.
In AI, two key things are happening: the integration of die and chiplet architectures and the push for smaller interconnects for better performance. JetStep addresses these by offering large-field optics at high resolution, making it ideal for handling larger packages as die sizes increase in AI-driven applications. We also foresee a shift to glass panels for packaging, allowing for higher resolutions and stability compared to current substrate technologies. This shift, driven by AI's growing demands, is supported by technologies like Firefly G3 and JetStep, which are designed to meet these emerging needs and push the industry forward.
Can you talk about the Packaging Application Center of Excellence and where you think the industry is headed, particularly with regards to chiplets?
The Packaging Application Center of Excellence was established to drive innovation in advanced packaging, where we see glass panels playing a key role. This will allow chiplets to have smaller interconnects—down to 1-2 microns—critical for AI and high-performance computing. Glass also offers better thermal properties, reducing the strain on interconnects caused by varying thermal expansions in different substrates. We’ve invited collaborators to help solve challenges in glass processing, from etching to metrology, with the aim of speeding up the adoption of glass in packaging. This shift will support tighter interconnects and larger packages, necessary for the next generation of AI-driven devices and high-performance computing.
With Onto Innovation’s rapid growth, what drove you to sell some of your shares earlier this year?
It was a simple diversification move. If you look at my track record, you’ll see that I hardly ever sell shares, and most of my net worth is tied to Onto Innovation. At a certain point, it made sense to diversify a little for financial prudence. My belief in the company, however, remains as strong as ever.
What keeps you up at night as Onto Innovation continues to grow?
The biggest concern is ensuring we continue to innovate and meet customer demands at the pace the market requires. We’re positioned in the right markets with great technology and a talented team, but the challenge is to stay efficient and productive, especially as competition intensifies. Geopolitical shifts and the nationalization of semiconductor supply chains are other factors to monitor, but the primary focus is on executing effectively and staying ahead of the curve.
Could you give us any insight into where your R&D dollars will be focused?
Right now, gate-all-around technology is a major focus, particularly as TSMC and others move to two-nanometer processes. This transition is significant, and we’re investing heavily to support it. We’re also focusing on chiplet architectures and panel processing, where our Firefly and JetStep systems play crucial roles. These areas represent the future of semiconductor innovation, and our R&D investments are aimed at ensuring we lead in these spaces.
What are some key milestones for 2025 that Onto Innovation is looking forward to?
We have several exciting milestones, including the commercial release of a new high-resolution lithography platform in 2025.
Additionally, we’re working on void inspection for 3D packaging, ensuring the reliability of future chip designs. Our ability to inspect down to one micron is critical for the next wave of innovation in stacking chips with hybrid bonding. Beyond that, there are more innovations in the pipeline, but those are the key milestones we’ve been open about.
