Orbotech grows when Moore’s Law decline

10 May, 2016

Semiconductor manufacturers look for new equipment enabling the production of extreme high density PCBs and Multi Wafer Packages

Semiconductor manufacturers look for new equipment enabling the production of extreme high density PCBs and Multi Wafer Packages

Orbotech’s automated optical repair (AOR) unit

Orbotech’s Semiconductor Device (SD) division sales in Q1 2016 grew to $72.5 million compared to $62.4 million in the same quarter last year. The company’s printed board division sales increased to $68 million from $58 million in Q1 2015. Revenues for the first quarter of 2016 totaled $190 million, a moderate increase compared to $184.8 last year.

CEO Asher Levi said the acceleration of technological changes is a clear positive driver for the company”. Orbotech expects Q2 2016 revenues to increase to $190-198 million, and gross margin to be in the range of 45.0% to 45.5%. Notably, the increase in revenues was achieved thanks to two distinct divisions – the SD division, and the PCB division.

These two divisions supply products that allow manufacturers to adjust to new market demands. For example – the manufacturing of High Density Interconnect (HDI) and multilayer board (MLB) segments and the manufacturing and testing of advanced chip packages that enable to combine several wafers in a single package.

These two fields are growing due to the industry wide difficulties to adapt new production technologies and produce smaller scale chips. The semiconductor industry is facing these difficulties by adopting alternative solutions such as high density packages and high density circuit cards. In many cases, the printed circuits are integrated directly into the device package.

This trend was reflected in a number of interesting acquisitions: In Q1 2016, Orbotech sold Sigma fxP machines to Chinese TianShui Huatian Technology and JCET. The Sigma fxP is used in the production of advanced flip chip packages. According SEMI, China number 1 global customer for advanced packaging equipment, responsible for 30% of worldwide acquisitions.

Share via Whatsapp

Posted in: Electronics Industry , News