Here are 1-3 brief analogies to describe FormFactor (FORM):

• The ASML for semiconductor testing.
• Applied Materials, but for indispensable chip testing tools.
• KLA Corporation, but specializing in electrical testing probes for semiconductors.

• Probe Cards: Interfaces that electrically connect automated test equipment to individual semiconductor dies on a silicon wafer for functional and parametric testing during wafer sort.
• Analytical Probers and Probes: High-precision systems and tools utilized in semiconductor research, development, and failure analysis for detailed electrical characterization at the wafer or die level.
• Device Test Solutions (e.g., Test Sockets): Provides critical electrical and thermal interfaces for testing and burn-in of packaged semiconductor devices during final manufacturing stages.

FormFactor (symbol: FORM) primarily sells to other companies within the semiconductor industry. Its major customers, representing 10% or more of its net revenue in recent years, are:

• Samsung (Samsung Electronics Co., Ltd. is a public company listed on the Korea Exchange, but does not have a commonly traded symbol on major U.S. exchanges)
• Intel (symbol: INTC)

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Michael D. Slessor, President and Chief Executive Officer

Michael D. Slessor has served as FormFactor's Chief Executive Officer since 2014 and as a Director since 2013. He was President from 2013 to 2014 and Senior Vice President and General Manager, MicroProbe Product Group from 2012 to 2013. Before joining FormFactor, he was President and Chief Executive Officer of MicroProbe from 2008 until FormFactor acquired MicroProbe in 2012. Prior to MicroProbe, he held various management, product-marketing, and applications-engineering positions in the semiconductor industry, notably with KLA. He also co-founded International Test Solutions (ITS) and led it to a successful acquisition.

Aric McKinnis, Senior Vice President & Chief Financial Officer

Aric McKinnis has served as FormFactor's Senior Vice President & Chief Financial Officer since 2025. He joined FormFactor in August 2019 and previously served as Vice President and Corporate Controller. Prior to FormFactor, he was Corporate Controller at MKS Instruments and Electro Scientific Industries, Inc. (ESI). Before ESI, he was a manager at Deloitte, where he served in external audit for publicly listed companies.

Shai Shahar, Senior Vice President and Executive Advisor

Shai Shahar has served as Senior Vice President and Executive Advisor since 2025, and previously as Chief Financial Officer from 2018 to 2025. He has over 25 years of financial leadership and management experience. Before FormFactor, he served as the Vice President of Finance & Operations at Nova Measuring Instruments. From 2014 to 2016, Shai was Vice President Finance and Corporate Controller of PMC-Sierra, Inc., where he also held the position of Vice President Finance, FP&A, from 2010 to 2014. Earlier in his career, he was Chief Financial Officer of Wintegra, Inc., until its acquisition by PMC-Sierra.

Sudhakar Raman, Senior Vice President and General Manager, Probes Business Unit

Sudhakar Raman has served as FormFactor's Senior Vice President and General Manager of the Probes Business Unit since 2024. He joined FormFactor in 2021 as Vice President/General Manager Strategic accounts, expanding his role to include all of North America Business Development and Applications Engineering. Prior to joining FormFactor, he was the Chief Operating Officer at SVXR and before that, Vice President/General Manager of Automated Metrology at Onto Innovation. He also held various management, marketing, and applications engineering positions, including expatriate experience working in Korea with Veeco and ESI (now MKS).

Aliza Scott, Chief Human Resources Officer

Aliza Scott serves as the Chief Human Resources Officer at FormFactor. Her background includes extensive experience in human resources leadership roles, focusing on talent management, organizational development, and strategic HR initiatives. Prior to FormFactor, she held key HR positions at prominent technology and semiconductor companies, contributing to workforce planning and employee engagement strategies.

The key risks to FormFactor's business include:

1. Customer Concentration: FormFactor generates a substantial portion of its revenue from a limited number of major customers. For instance, in fiscal year 2024, two customers collectively accounted for 33.5% of total revenues. A deterioration in the company's relationship with any of these significant customers could materially and adversely affect its business, financial condition, and operating results.
2. Cyclical Nature of the Semiconductor Industry: FormFactor's operating results are highly susceptible to the inherent cyclicality of the semiconductor industry. Downturns in the broader semiconductor market, such as the one experienced from the second half of fiscal 2022 through at least fiscal 2024, can lead to significant declines in demand for its products, impacting revenue and profitability.
3. Intense Competition and Rapid Technological Change: The semiconductor test equipment market is highly competitive and characterized by rapid technological advancements. Increased competition can result in price reductions, diminished gross margins, or a loss of market share. The emergence of new competitive products or technologies, whether from existing rivals or new entrants, could reduce the value and demand for FormFactor's current offerings.

FormFactor (FORM) participates in several addressable markets within the semiconductor industry, primarily focusing on wafer test and measurement technologies. These markets are generally global in scope.

• The total addressable market for FormFactor's three segments is as follows:
  • Wafer Fabrication Equipment: $85 billion (global)
  • Wafer Test and Measurement Equipment: $2.8 billion (global)
  • Wafer Assembly and Final Test Equipment: $3.5 billion (global)
• More specifically, the global market for probe cards, a core product for FormFactor, is valued at approximately $2.5 billion and is projected to grow to $2.7 billion by 2028 with a compound annual growth rate (CAGR) of 10%. The market for advanced probe cards is forecasted to exceed $3.1 billion by 2026, growing at a 7% CAGR from 2021. FormFactor holds a significant share in this niche, around 26% to 28%.
• FormFactor also addresses the thermal management market with its thermal products (heaters, chillers, and custom solutions). This market was valued at $15.8 billion globally in 2024 and is expected to reach $22.4 billion by 2029.

FormFactor (FORM) anticipates several key drivers for its revenue growth over the next two to three years:

1. Accelerated Demand for High-Bandwidth Memory (HBM) and AI-Related Applications: FormFactor expects significant revenue growth to be fueled by the increasing demand for High-Bandwidth Memory (HBM), which is a critical component in generative AI systems and data center applications. The company's probe cards are essential for testing HBM, and this segment has shown record-setting revenue growth.
2. Increased Adoption of Advanced Packaging Technologies: The semiconductor industry's shift towards advanced packaging techniques, where single chips are divided into smaller, optimized chiplets, is a crucial driver. This trend leads to higher test intensity, as each chiplet requires thorough testing, thereby increasing demand for FormFactor's probe card products.
3. Expansion and Diversification within Foundry & Logic and Systems Segments: FormFactor is focused on expanding and diversifying its market presence. This includes qualifying new customers in client PC and server applications within the Foundry & Logic segment and developing new products for high-performance compute (GPU) applications. Additionally, the Systems segment is seeing growth driven by complex electro-optical test and measurement, particularly for technologies like silicon photonics, which are vital for reducing power consumption and increasing bandwidth.
4. Strategic Capacity Expansion and Operational Enhancements: Strategic investments in manufacturing capabilities are expected to support future revenue growth. FormFactor has acquired a new manufacturing facility in Farmers Branch, Texas, to increase capacity and improve operational flexibility, especially to meet the growing demand for HBM probe cards. Furthermore, the acquisition of a minority interest in FICT Limited, a key supplier of advanced probe card components, ensures access to critical technologies and supports the company's long-term growth strategy.

Share Repurchases

• In May 2022, FormFactor authorized a $75 million stock repurchase program, expiring in May 2024, primarily to offset dilution from stock-based compensation.
• An additional $75 million share repurchase program was authorized in October 2023, with an expiration date of October 30, 2025, also aimed at offsetting potential dilution.
• FormFactor announced another $75 million stock repurchase authorization in April 2025, set to expire on April 23, 2027.

Share Issuance

• For the six months ended June 28, 2025, proceeds from the issuance of common stock totaled $21.576 million.
• During the same period, tax withholdings related to net share settlements of equity awards amounted to $3.619 million.

Outbound Investments

• In February 2025, FormFactor, in partnership with MBK Partners, completed the acquisition of FICT Limited.
• FormFactor invested approximately $60 million for a 20% non-controlling stake in FICT, securing access to essential technologies for advanced probe cards and strengthening the semiconductor test supply chain.

Capital Expenditures

• Capital expenditures as a percentage of revenue decreased from 8.4% in fiscal 2023 to 5.0% in fiscal 2024, with a target of 3.5%-4.0%.
• In June 2025, the company purchased a manufacturing facility in Farmers Branch, Texas, for $55 million, which includes 50,000 square feet of clean room space. The purpose of this acquisition is to provide operational flexibility and meet anticipated long-term demand for probe-card products, particularly for advanced packaging technologies like High Bandwidth Memory.
• For the six months ended June 28, 2025, capital expenditures (acquisition of property, plant, and equipment) were $84.840 million.