Onto Innovation Sets New Quarterly Revenue Record Amid Strong Demand in Advanced Packaging Markets
Onto Innovation, a leading provider of solutions for advanced semiconductor manufacturing, has reported a new quarterly revenue record of $264 million in its fourth quarter 2024 earnings release. The company's growth was driven by strong demand in the specialty and advanced packaging markets, with AI packaging being a significant contributor to this growth.
According to Michael Plisinski, CEO of Onto Innovation, the company capped off 2024 with its sixth consecutive quarter of growth, led by strong AI packaging demand. The specialty devices and advanced packaging markets grew a healthy 30% for the calendar year, with AI packaging being the largest market in the quarter.
The company's financials also showed improvement, with gross margins increasing to nearly 55% in the fourth quarter. Onto Innovation is committed to continuing its focus on driving gross and operating margin improvements throughout 2025.
In terms of business highlights, Onto Innovation saw significant growth in its AI packaging market, driven by strong shipments to support 2.5D logic packaging. Orders from HBM declined after a record third quarter, but the company is seeing a pickup in demand to support the growth of 2.5D logic packaging.
The full year inspection revenue for AI packaging more than doubled and was split nearly equally between 2.5D Logic and HBM. Additionally, customers are adopting more of Onto Innovation's front-end metrology tools to improve control in both 2.5D Logic and HBM processes. The company's metrology revenue in Advanced Packaging exceeded $50 million for the year, more than triple that of 2023.
Onto Innovation is also seeing growing interest in the panel market, particularly for the use of glass panels for enterprise server and AI applications. In the quarter, Firefly was adopted at 2 leading panel manufacturers for applications in glass and advanced IC substrates. This adoption creates potential opportunities for future cross-selling and the adoption of integrated solutions like StepFAST used in panel level fan-out applications.
Finally, revenue from power devices set another record and was the second largest market in the fourth quarter behind 2.5D packaging. The company's portfolio of solutions and applications experience contributed to yield improvements for its customers during the year.
