Here are 1-3 brief analogies for Onto Innovation (ONTO):

• Think of them as the Keyence for semiconductor and advanced electronics manufacturing, providing the precision tools for inspection and quality control.
• They're like KLA Corporation, but with a broader focus on advanced packaging, MEMS, and specialty devices, offering critical process control and inspection solutions.

Onto Innovation (ONTO) provides the following major products and services:

• Macro Defect Inspection and Metrology Tools: Systems designed for detecting macro defects and performing precise 2D/3D optical measurements.
• Lithography Systems: Equipment used for patterning and fabricating micro-devices, including advanced packaging applications.
• Process Control Analytical Software: Software solutions for monitoring, analyzing, and optimizing manufacturing processes.
• Probe Card Test and Analysis Systems: Specialized systems for testing and analyzing the functionality of probe cards used in semiconductor manufacturing.
• Thin Film Measurement Systems: Tools for measuring the characteristics of both transparent and opaque thin films.
• Spare Parts: Components supplied for the maintenance and repair of their equipment.
• Software Licensing: Services for providing legal rights to use their proprietary software solutions.

Onto Innovation (symbol: ONTO) sells its products and services primarily to other companies. Based on the provided company description, its major customers are businesses operating within the following segments of the technology and manufacturing industries:

• Semiconductor and advanced packaging device manufacturers
• Silicon wafer manufacturers
• Manufacturers of light-emitting diodes (LEDs)
• Manufacturers of vertical-cavity surface-emitting lasers (VCSELs)
• Manufacturers of micro-electromechanical systems (MEMS)
• Manufacturers of CMOS image sensors
• Manufacturers of power devices
• Manufacturers of RF filters
• Data storage manufacturers
• Companies involved in various industrial and scientific applications

Specific names of individual customer companies are not disclosed in the provided background information.

Michael P. Plisinski, Chief Executive Officer

Michael Plisinski has over 25 years of experience in the semiconductor capital equipment industry. He became the Chief Executive Officer of Rudolph Technologies in 2015 and continued in this role after the formation of Onto Innovation through the merger of Rudolph Technologies and Nanometrics in 2019. Prior to becoming CEO, he served as Executive Vice President and Chief Operating Officer of Rudolph Technologies. Plisinski founded Counterpoint Solutions, a supplier of optical review and automated metrology equipment, and served as its president and sole founder from 1999 to 2003. Counterpoint Solutions was later acquired by August Technology.

Brian Roberts, Chief Financial Officer

Brian Roberts serves as the Chief Financial Officer of Onto Innovation, a position he assumed effective June 16, 2025. He brings over 20 years of financial leadership expertise, including 11 years as CFO for publicly traded technology companies in sectors such as medical device, software, and industrial. His prior CFO roles include Sensata Technologies, Tarveda Therapeutics, Insulet Corporation, and Digitas, Inc. Roberts also held senior financial positions at Averdo, Idiom Technologies, and Monitor Company. He was a board member of ViewRay, Inc. from 2015 to 2023, where he chaired the audit committee. He started his career at Ernst & Young LLP and is a Certified Public Accountant.

Michel Rosa, Chief Marketing Officer & Senior Vice President, Strategy

Michel Rosa is the Chief Marketing Officer and Senior Vice President of Strategy at Onto Innovation.

Ramil Yaldaei, Chief Operating Officer

Ramil Yaldaei serves as the Chief Operating Officer for Onto Innovation.

Yoon Ah Oh, Senior Vice President and General Counsel

Yoon Ah Oh is the Senior Vice President and General Counsel at Onto Innovation. She has an extensive background in corporate legal affairs, including securities, financing, and mergers and acquisitions, having practiced law at firms such as Dechert LLP and Cahill Gordon & Reindel LLP.

The key risks to Onto Innovation's business include:

1. Geopolitical Tensions and Trade Policies: Onto Innovation's global operations are significantly exposed to risks arising from geopolitical tensions, trade disputes, tariffs, and evolving export regulations, particularly between the United States and China. These factors can adversely impact the company's ability to compete in key markets, disrupt supply chains, and affect overall financial performance.
2. Intense Market Competition and Technological Disruption: The company operates within a highly competitive semiconductor market that is characterized by rapid technological advancements. This necessitates substantial and ongoing research and development investments to innovate and maintain a competitive edge against other companies, some of which may possess greater resources.
3. Customer Concentration Risk: Onto Innovation is reliant on a limited number of significant customers for a substantial portion of its revenue. This concentration creates a risk of considerable fluctuations in cash flows and revenue streams if these key customers alter their purchasing patterns.

Onto Innovation (ONTO) operates in several addressable markets related to semiconductor manufacturing and process control. The market sizes for their main products and services are as follows:

• The global semiconductor metrology and inspection equipment market is estimated at USD 11.01 billion in 2025, with a projected compound annual growth rate (CAGR) of 5.2% during the forecast period of 2025 to 2030.
• The total addressable market (TAM) for process control, encompassing macro defect inspection, metrology, and lithography systems, is projected to expand significantly from $4.2 billion in the "Mobility Era" to $12.3 billion in the "AI Era". This market is considered global, given Onto Innovation's global operational footprint.
• For metrology products, the Served Available Market (SAM) is estimated at $1.1 billion. This includes planar films metrology, 3D OCD metrology, integrated metrology, and opaque film metrology.
• The Served Available Market (SAM) for inspection and acoustic metrology is reported to be $850 million.
• New inspection applications, particularly those addressed by the Dragonfly G5 inspection system, represent a serviceable available market of more than $500 million.

Expected Drivers of Future Revenue Growth for Onto Innovation (ONTO) over the Next 2-3 Years:

1. Growth in Advanced Packaging: Onto Innovation anticipates substantial revenue growth driven by increasing demand in advanced packaging, particularly from 2.5D packaging customers and for High-Bandwidth Memory (HBM) applications in the AI era. The company expects revenue from 2.5D packaging customers to nearly double, fueled by strong demand for its DragonFly systems. Furthermore, advanced packaging revenue is projected to grow over 30% in 2026, with a significant volume purchase agreement from an HBM customer valued at over $240 million through 2027.
2. Increased Demand in Advanced Nodes: The company foresees improved revenue from increased spending in advanced nodes, including DRAM and logic. Organic growth in 2026 is expected, particularly in the second half, driven by increased tool demand and an improved outlook for Wafer Fabrication Equipment (WFE), supported by momentum in leading-edge foundry, logic, DRAM, and NAND sectors. Advanced nodes revenue is expected to grow at least in line with WFE, which management anticipates could range from 10% to 20% year-over-year.
3. New Product Launches and Expansion of Recently Launched Products: Onto Innovation's pipeline of new products and the ramp-up of recently launched ones are significant growth drivers. The next-generation DragonFly system, with its first shipments and preliminary discussions for volume needs in 2026, is a key example. Additionally, the 3Di technology has successfully completed full qualification processes at HBM customers, and new inspection and metrology capabilities like EchoScan™ for hybrid bonding and the JetStep® lithography system for panel-level packaging are addressing emerging technological needs.
4. Integration of AI and Machine Learning: The strategic integration of Artificial Intelligence (AI) and Machine Learning (ML) into Onto Innovation's offerings aims to enhance defect reduction and manufacturing efficiency. This integration is expected to boost profit margins as these AI-enhanced solutions gain wider market adoption. The rapid expansion of AI applications, with AI server growth projected at a 42% compound annual growth rate, directly fuels demand for Onto's specialized metrology and inspection tools.
5. Contribution from Semilab Acquisition: The acquisition of Semilab, which was expected to close in late 2025, is anticipated to be accretive to both revenue and earnings in 2026. While power semiconductor revenue (which includes Semilab) is expected to see a seasonal decline in the first quarter of 2026 and an overall decline of around 10% for 2026 based on weakening demand in EVs and slowing infrastructure spending, the acquisition is still projected to contribute positively to the company's financial performance.

Share Repurchases

• In May 2024, Onto Innovation announced a new share repurchase program authorizing up to $200 million of its common stock.
• As of March 31, 2025, the company had repurchased $83.60 million worth of shares.
• A $100 million share repurchase authorization was approved in November 2020, replacing a prior authorization, with approximately $52 million in shares repurchased during 2020.

Share Issuance

• In connection with the acquisition of Semilab International's materials analysis business, Onto Innovation agreed to issue 706,215 shares of its common stock in June 2025, later adjusted to 641,771 shares in October 2025.

Inbound Investments

• Institutional investors hold a significant majority of Onto Innovation's stock, approximately 95.79% as of July 2025, reflecting strong market confidence.
• Major institutional shareholders include prominent firms such as BlackRock, Inc. and Vanguard Group Inc.

Outbound Investments

• In November 2025, Onto Innovation completed the acquisition of key product lines from Semilab International's materials analysis business, valued at approximately $495 million, enhancing its capabilities in inline wafer contamination monitoring and materials characterization.
• Onto Innovation acquired Lumina Instruments, Inc. in October 2024 to strengthen its inspection portfolio with laser scattering technology, expecting to expand its served addressable market by over $250 million.
• The company also acquired the lithography business from Kulicke and Soffa Industries, Inc. in November 2024, gaining patents and expertise to advance its JetStep® panel lithography roadmap.

Capital Expenditures

• From 2020 to 2024, Onto Innovation generated sufficient cash flow from operations to cover its capital expenditures.
• The company anticipates increased capital expenditures in the semiconductor sector, driven by global AI investment, particularly in metrology and advanced packaging.
• Onto Innovation secured a volume purchase agreement valued at over $240 million with a leading high bandwidth memory (HBM) manufacturer for Dragonfly® 2D inspection and 3D bump metrology, supporting expansion plans through 2027.