Stifel 2024
Cross Sector
Insight Conference
June 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 Stifel 2024 Cross Sector Insight Conference Presentation Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Contents
Overview
Veeco at a Glance
Who is Veeco?
Served Available Market (SAM)
Semiconductor SAM
Nanosecond Annealing
Ion Beam Deposition
Artificial Intelligence
Compound Semiconductor SAM
Financials
Revenue By End Market
Historical Financials
Executing Today & Well-Positioned for Long-Term Growth
3 Stifel 2024 Cross Sector Insight Conference 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
Employees
~1,200
2023 Revenue
$666M
Solving customers high value
materials challenges
Financial strength and flexibility
4 Stifel 2024 Cross Sector Insight Conference 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 Stifel 2024 Cross Sector Insight Conference Presentation Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
Served Available Market
Veeco's Served Available Market to grow to ~4.3B
Semiconductor opportunity expected to grow to ~$2.0B driven by Laser Spike 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)
6 Stifel 2024 Cross Sector Insight Conference 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 | ||||
• Under evaluation at two Tier 1 memory customers | ||||
New | IBD300 | • Ion Beam Deposition differentiates vs. traditional | ||
Front End | technologies for high-density films requiring low | ~$0M | ~$350M | |
Semi | resistivity |
• Key applications are memory bit-line & logic wiring
Ion Beam
Deposition
LaserLSA
Annealing
20242028
Laser Annealing
Nanosecond Annealing
IBD EUV
IBD300
Advanced Packaging
Services
Laser
Annealing
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 | |
IBD - Ion Beam Deposition | ||
7 | Stifel 2024 Cross Sector Insight Conference Presentation | |
PTOR - Production Tool of Record | ||
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved. | ||
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 | |
8 | Stifel 2024 Cross Sector Insight Conference Presentation | LSA - Laser Spike Annealing |
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved. |
IBD300- 300mm Front End Semi Opportunity
Micrograph of grain size distribution*
TODAY
Incumbent Technology
Non-uniform, randomly oriented grains of small size = higher resistivity
FUTURE
IBD | • Industry leader in Ion Beam Technology |
• Lower resistance metals essential for improved device | |
performance & customer scaling | |
• IBD achieving superior thin film properties vs incumbent | |
technologies, including lower resistivity | |
• Ideal for advanced applications where low resistance is | |
critical | |
• Potential for initial memory HVM orders in 2025 |
Uniformly oriented large grains = lowest resistivity
IBD achieving superior thin film properties versus incumbent technologies for advanced applications
9 | Stifel 2024 Cross Sector Insight Conference Presentation | IBD - Ion Beam Deposition |
*Micrograph by Electron-Back-Scatter-Diffraction (EBSD) - technique for | ||
Copyright © 2024 Veeco Instruments Inc. All Rights Reserved. | measuring grain size & distribution |
Veeco Growth Technologies for Artificial Intelligence
CPU/GPU
Current PTOR
- Laser-SpikeAnnealing (LSA)
- IBD for EUV mask blanks
Additional Future Opportunities
- Nanosecond Annealing (NSA)
- IBD300 for low resistivity metals
CPU /
Illustration of typical AI chip
10 Stifel 2024 Cross Sector Insight Conference Presentation Copyright © 2024 Veeco Instruments Inc. All Rights Reserved.
High-Bandwidth Memory (HBM) DRAM
Current PTOR
- Laser-SpikeAnnealing (LSA)
Additional Future Opportunities
- Nanosecond Annealing (NSA)
- IBD300 for low resistivity metals
PTOR - Production Tool of Record
TSV - Through Silicon Via
CPU - Central Processing Unit
GPU - Graphics Processing Unit
EUV - Extreme Ultraviolet
IBD - Ion Beam Deposition
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Disclaimer
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 12:33:06 UTC.