VEECO INSTRUMENTS INC. Investor
Presentation
May 2024
Safe Harbor
This presentation contains "forward-looking statements", within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, as amended, that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar
expressions are intended to identify forward-looking statements. Forward-looking statements include, but are not limited to, those
regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, our investment and growth strategies, our development of new products and technologies, our business outlook for current and future periods, our ongoing transformation initiative and the effects thereof on our operations and financial results; and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation:
global trade issues, including the ongoing trade disputes between the U.S. and China, and changes in trade and export license policies; the
level of demand for our products; global economic and industry conditions; global conflicts; our dependency on third-party suppliers and outsourcing partners; the timing of customer orders; our ability to develop, deliver and support new products and technologies; our ability to expand our current markets, increase market share and develop new markets; the concentrated nature of our customer base; cybersecurity attacks and our ability to safeguard sensitive information and protect our intellectual property rights in key technologies; the effects of regional or global health epidemics; our ability to achieve the objectives of operational and strategic initiatives and attract, motivate and retain key employees; the variability of results among products and end-markets, and our ability to accurately forecast future
results, market conditions, and customer requirements; the impact of our indebtedness, including our convertible senior notes and our
capped call transactions; and other risks and uncertainties described in our SEC filings on Forms 10-K,10-Q and 8-K, and from time-to- time in our other SEC reports. All forward-looking statements speak only to management's expectations, estimates, projections and assumptions as of the date of this presentation. The Company does not undertake any obligation to update or publicly revise any forward- looking statements to reflect events, circumstances or changes in expectations after the date of this presentation.
2 Investor Presentation
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Contents
Overview
Veeco at a Glance
Who is Veeco?
Strategy & SAM Opportunities
Investment Strategy
SAM Opportunities
Financials
Historical Revenue
2024 Outlook
Customers, Resource Alignment, Veeco Team & ESG
Backup & Financial Tables
3 Investor Presentation
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Veeco at a Glance
Global provider of
semiconductor capital
equipment
Differentiated technologies with opportunities to expand served available markets
Patents
>350
Employees
~1,200
2023 Revenue
$666M
Solving customers high value
materials challenges
Financial strength and flexibility
4 Investor Presentation
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Who is Veeco?
Semiconductor | Strong History | ||
Solving materials challenges | |||
Data Storage | Compound Semiconductor | 2019- Today | |
2010 - Today | Differentiated Laser | ||
1990's - Today | MOCVD Technology Fabricated | Annealing & Ion Beam | Growth Focus |
Ion Beam Technologies for | 70%+ of LED's globally | Deposition technologies | Semiconductor & Compound Semiconductor |
enabling most advanced | |||
manufacturing of 100% of | |||
chips on the planet | |||
HDD heads | |||
Well Positioned
Leading edge customers drive growth
5 Investor Presentation
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Strategy & SAM
6 Investor Presentation
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Investment Strategy Enabling SAM Expansion
Technologies
Driving Growth
TODAY
SAM Expansion
Driving FUTURE
Growth
Evaluation Program
Anchors Growth
Strategy
Future
- LSA gaining share in advanced logic due to performance benefits
- EUV Mask Blank Business well-positioned for High NA adoption
- Strength in Wet processing driven by High-Bandwidth Memory
- Laser Annealing SAM to grow above 1.0B from $600M
- LSA penetrating new memory customers
- Nanosecond Annealing for 3D devices, backside power, & material modification in logic & memory
- IBD for Front End Semi growing from $0 to $350M
- Low resistance metals applications in memory & logic
- Compound Semi opportunities in Power Electronics and Photonics
- NSA & IBD programs progressing well
- Targeting LSA shipment to 2nd leading Memory customer in late 2024
- Compound Semi program advancing
7 Q1 2024 Financial Results Conference Call
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
LSA - Laser Spike Annealing | IBD - Ion Beam Deposition |
NSA - Nanosecond Annealing | SAM - Served Available Market |
EUV - Extreme Ultraviolet |
Available Market
Veeco's Served Available Market to grow to ~4.3B
Semiconductor opportunity expected to grow to ~$2.0B driven by Laser Annealing, Nanosecond Annealing and Ion Beam Deposition equipment
Compound Semiconductor opportunity expected to grow to ~$1.8B driven by equipment for Power Electronics (SiC & GaN) and Photonics
8 Investor Presentation
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Total Veeco SAM
~$4.3B
Projected CAGR ~15%
~$2.4B
2024 | 2028 |
Semiconductor
Compound Semiconductor
Data Storage
Scientific & Other
SAM - Served Available Market SiC - Silicon Carbide GaN - Gallium Nitride
* Veeco Served Available Market based on TrendFocus, Gartner, Yole Group and internal analysis
Semiconductor SAM Growth
Key Drivers of SAM Growth (Systems Only) | 2024 | 2028 | ||
Laser Spike | • | PTOR at three Tier 1 logic and one Tier 1 memory | ||
Annealing | ~$600M | ~$750M | ||
customers' advanced nodes |
Total SAM
~$2.0B
Projected ~20% CAGR
(LSA) | ||||
Nanosecond | • | Under evaluation at two Tier 1 logic customers | ||
New Annealing | • | Ideal for new advanced node 3D device applications, | ~$0M | ~$450M |
~$1.0B
IBD300
IBD EUV
NSA
Ion Beam
Deposition
(NSA) | including backside power delivery | ||
IBD | |||
EUV Mask | • PTOR for EUV mask blank deposition | ~$50M | ~$100M |
Blanks |
Ion Beam
Deposition
LaserLSA
Annealing
20242028
Laser
Annealing
IBD300
New Front End
Semi
- Under evaluation at two Tier 1 memory customers
• | IBD differentiates vs. traditional PVD for deposition of | ~$0M | ~$350M |
high-density films requiring low resistivity | |||
• | Key applications are memory bit-line & logic wiring |
Laser Annealing
Nanosecond Annealing
IBD EUV
IBD300
Advanced Packaging
Services
Laser Annealing, Nanosecond Annealing and IBD300 to drive growth in Semiconductor market
Source: Veeco Served Available Market based on TrendFocus, Gartner, Yole Group and internal analysis | EUV - Extreme Ultraviolet | ||
9 | Investor Presentation | ||
IBD - Ion Beam Deposition | PTOR - Production Tool of Record | ||
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved. | |||
PVD - Physical Vapor Deposition | Amounts may not calculate precisely due to rounding. | ||
Nanosecond Annealing Opportunity
Temperature (°C)
2000
1000
100
NSA | Future | |
(nanosecond) | ||
LSA | Traditional | |
Lamp Based | ||
(sub millisecond) | (sub second) | |
Time
• Device scaling challenges driving the need for new annealing |
capabilities |
• NSA broadening Laser Annealing adoption to new Logic and |
Memory applications |
• Shallow anneal enabling backside power delivery and 3D |
devices |
• Material Modification steps to improve performance by |
changing device structure and properties |
Illustration of Wafer Cross Section
• Potential for initial logic HVM orders in 2025 & strong pull from |
Heating Depth
Very
shallow
Heats full
wafer
NSA
10nm-100nm
LSA
~100 μm
Traditional
Lamp based
Full wafer
memory customers |
Nanosecond Annealing to enable a broad range of advanced logic and memory applications
HVM - High Volume Manufacturing | NSA - Nanosecond Annealing | |
10 | Q1 2024 Financial Results Conference Call | LSA - Laser Spike Annealing |
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved. |
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Veeco Instruments Inc. published this content on 05 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 June 2024 13:21:08 UTC.
