How is Onto Innovation Capitalizing on Advanced Packaging Demand? - The Globe and Mail

Onto Innovation is capitalizing on the growing demand for advanced packaging by expanding its inspection and metrology portfolio, strengthening its market position in high-performance AI compute appli... Read original →

Advanced packaging has shifted from a supporting process to the linchpin of AI chip performance scaling, positioning Onto Innovation at a strategic inflection point with its high-precision metrology and inspection tools. Technically, TSMC’s ramp of sub-3nm nodes and CoWoS drives co-evolution across materials, EDA, and equipment—especially demanding sub-micron alignment and defect control. Geopolitically, tightening U.S. export controls compel Onto to reconfigure its global support footprint, raising compliance costs. Competitively, KLA and ASML are likely to accelerate integration of optical and e-beam metrology to challenge Onto’s early lead in hybrid bonding inspection. Over the next 12–24 months, as NVIDIA’s Blackwell platforms scale, advanced packaging equipment spending will exceed 15% of fab CapEx. If Onto secures deep integration with packaging capacity in Taiwan, China and U.S. domestic OSATs, it could achieve a structural profitability inflection by 2026.