How is Onto Innovation Capitalizing on Advanced Packaging Demand? - Yahoo Finance

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

Onto Innovation’s surge stems from AI-driven advanced packaging demands pushing metrology from peripheral to pivotal. Chiplet architectures now hinge on 3D inspection for yield control, forcing OSATs and IDMs to re-engineer flows. Dragonfly G5’s rapid adoption by a leading 2.5D logic client signals that NVIDIA-class AI chipmakers view packaging yield as the new bottleneck—accelerating metrology’s migration into front-end fabs. Geopolitically, while U.S. export controls boost near-term domestic orders, overreliance on one market heightens supply chain fragility, especially as Taiwan, China and mainland China fast-track HBM3/4 ecosystems. Competitors like KLA and ASM Pacific will counter with multi-sensor platforms, but Onto’s early leads in panel-level packaging and surface charge metrology create defensible moats. Within 18 months, advanced packaging equipment spending could exceed 30% of front-end capex; if Onto secures two HBM Tier-1 partnerships, its market share may leap from 15% to over 25%.