How is Onto Innovation Capitalizing on Advanced Packaging Demand? - TradingView

Onto Innovation Inc. (ONTO) is capitalizing on the rising demand for advanced packaging by expanding its inspection and metrology portfolio. During its recent earnings call, management highlighted tha... Read original →

Onto Innovation’s rapid adoption of the Dragonfly G5 signals that advanced packaging inspection has shifted from optional to essential. The proliferation of chiplet-based AI chips demands unprecedented metrology precision in 2.5D/3D integration, forcing OSATs and IDMs to upgrade process control—directly accelerating demand for high-sensitivity, multi-sensor optical systems. This cascades upstream, pressuring dielectric material suppliers to enhance planarity specs, and downstream, compelling packaging lines to re-engineer workflows. Geopolitically, U.S. export controls on equipment shipments to Taiwan, China and Hong Kong, China could inflate delivery timelines and compliance costs. While KLA pushes electron-beam solutions and Applied Materials dominates hybrid bonding, Onto carves a defensible niche via panel-level packaging and surface charge metrology. Over the next 18 months, as HBM4 and 3nm AI accelerators ramp, advanced packaging capex may exceed 25% of total fab investment—positioning Onto as a critical enabler if it secures deeper design wins with NVIDIA.