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• Veeco is like a specialized Applied Materials, making the high-tech machinery essential for manufacturing semiconductors and advanced electronic devices.
• Think of Veeco as being in a similar vein to Lam Research, providing critical equipment for creating a wide range of microelectronic components.

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• Laser Annealing: Equipment utilizing lasers for precise material modification and activation in semiconductor manufacturing.
• Ion Beam Deposition and Etch: Systems employing ion beams to accurately deposit or remove materials at an atomic scale.
• Metal Organic Chemical Vapor Deposition (MOCVD): Equipment designed for depositing thin films of various materials using gas-phase chemical precursors.
• Single Wafer Wet Processing and Surface Preparation: Systems for cleaning, etching, and preparing individual semiconductor wafers using wet chemical processes.
• Molecular Beam Epitaxy (MBE): Advanced deposition technology used for growing ultra-thin, high-quality crystalline layers under vacuum.
• Atomic Layer Deposition (ALD) and other deposition systems: Tools for depositing ultra-thin, conformal films one atomic layer at a time, alongside other general material deposition technologies.
• Packaging Lithography Equipment: Systems utilized to pattern materials specifically during the final packaging stages of semiconductor devices.

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Veeco Instruments Inc. (VECO) primarily sells its specialized process equipment systems to other companies and institutions within the microelectronics industry, rather than to individuals. Based on the company's descriptions and public disclosures, its major customers are categorized as:

• Integrated Device Manufacturers (IDMs) and Foundries
• Outsourced Semiconductor Assembly and Test (OSAT) Manufacturers
• Hard Disk Drive (HDD) Manufacturers
• Photonics Manufacturers
• Research Centers and Universities

Veeco does not publicly disclose the specific names of individual customer companies, as is common practice for business-to-business suppliers in this industry, particularly when no single customer accounts for a significant portion of its revenue. Therefore, specific company names and their corresponding public symbols cannot be provided.

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William J. Miller, Ph.D. Chief Executive Officer

Dr. William J. Miller was appointed Chief Executive Officer of Veeco in October 2018. He previously served as the company's President since January 2016. Before becoming President, Dr. Miller held executive-level roles at Veeco, leading strategic growth initiatives for the company's etch and deposition product lines, MOCVD and data storage businesses, as well as engineering and global operations. Prior to joining Veeco in 2002, he worked for Advanced Energy and Exxon in various engineering and operations leadership positions. Dr. Miller holds a Bachelor of Science in Engineering, Master of Science in Engineering, and Doctor of Philosophy in Mechanical Engineering from the University of Pennsylvania.

John P. Kiernan Senior Vice President and Chief Financial Officer

Mr. John P. Kiernan was appointed Senior Vice President and Chief Financial Officer in January 2020, with responsibility for Finance, Tax, Treasury, and Investor Relations. He joined Veeco in 1994 and has held a variety of financial leadership roles of increasing responsibility, including leading the controller, financial planning and analysis, tax, and treasury functions. Mr. Kiernan also has significant operational experience, including international assignments. Before joining Veeco, he was a senior manager at Ernst & Young LLP. Mr. Kiernan is a CPA and holds a Bachelor of Science in Accounting from Long Island University.

Adrian Devasahayam, Ph.D. Senior Vice President, Product Line Management

Dr. Adrian Devasahayam serves as Senior Vice President, Product Line Management at Veeco.

Susan Wilkerson Senior Vice President, Global Sales & Services

Ms. Susan Wilkerson is the Senior Vice President, Global Sales & Services at Veeco.

Peter Porshnev, Ph.D. Senior Vice President, Unified Engineering

Dr. Peter Porshnev holds the position of Senior Vice President, Unified Engineering at Veeco. He has been Senior Vice President and General Manager of Ultratech at Veeco Instruments Inc. Veeco acquired Ultratech in 2017.

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1. Geopolitical Risks and Trade Policy Changes

   Veeco Instruments Inc. faces significant risks from geopolitical tensions and evolving trade policies, particularly concerning U.S.-China relations. These factors can lead to increased export controls, tariffs, and restrictions on the company's ability to sell and service its products in the substantial Chinese market, directly impacting revenue and market access. Furthermore, the ongoing merger with Axcelis Technologies Inc. is subject to regulatory approvals, including from China, which introduces additional geopolitical and execution risks that could delay or even prevent the completion of the transaction.

2. Highly Cyclical Semiconductor Industry and Intense Competition

   Operating within the semiconductor and data storage industries exposes Veeco to highly cyclical market conditions characterized by rapid technological changes and fluctuating demand. This inherent volatility can lead to reduced product demand, pricing pressures, and increased competition. The company must continuously invest significantly in research and development to keep pace with technological advancements and maintain its competitive edge against larger, well-funded competitors with deeper R&D budgets.

3. Dependence on a Concentrated Customer Base and Supply Chain Vulnerabilities

   Veeco's business model involves a reliance on a concentrated customer base, meaning that the loss of key customers or any economic difficulties they face could materially and adversely affect Veeco's financial condition and operating results. Additionally, the company is dependent on outsourcing partners and a limited number of suppliers for the manufacture of several of its systems. This reliance introduces supply chain risks, including potential disruptions or failures of these partners to perform, which can be exacerbated by the global nature of Veeco's operations and ongoing geopolitical tensions.

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Veeco Instruments (NASDAQ: VECO) operates in several high-growth addressable markets for its semiconductor and thin film process equipment. The company's overall served available market (SAM) is projected to grow from approximately $2.5 billion in 2025 to $4.4 billion by 2029, representing a 16% compound annual growth rate (CAGR) from 2025 to 2029.

Here are the addressable markets for Veeco's main products and services:

• Laser Annealing: This segment is anticipated to double in 2025. In fiscal year 2024, revenue from Gate-All-Around (GAA)-related Laser Spike Annealing (LSA) tools contributed approximately $50 million. Veeco's Laser Spike Annealing Platform has been chosen as the Production Tool of Record by two leading logic manufacturers for new GAA node applications.
• Ion Beam Deposition (IBD): Veeco is a leader in ion beam deposition equipment for the production of EUV mask blanks. The global Ion Beam Based Deposition market is projected to reach approximately $2.69 billion, growing at an 8.2% CAGR during the forecast period of 2026-2034. Specifically, the Ion Beam Sputtering Equipment Market Size is expected to exceed $2.94 billion by 2033, with a CAGR of 9.65% from 2023 to 2033.
• Metal Organic Chemical Vapor Deposition (MOCVD): The global MOCVD systems market was valued at $447 million in 2025 and is projected to reach $806 million by 2034, demonstrating a CAGR of 8.7%. Veeco Instruments, alongside AIXTRON, holds a significant global market share, collectively over 60%, in this market.
• Single Wafer Wet Processing and Surface Preparation: Veeco secured more than $50 million in orders for its wet processing systems in 2024, with deliveries expected in early 2025. These systems are crucial for advanced packaging applications such as 3D stacking and hybrid bonding, and support High-Bandwidth Memory (HBM) production.
• Packaging Lithography Equipment: The global Semiconductor Advanced Packaging Lithography System market is projected to reach an estimated $3.5 billion by the end of 2024, with a significant CAGR of 9.2% over the forecast period. Another estimate indicates this market will grow from approximately $265 million in 2024 to exceed $500 million by 2033, with an 8.8% CAGR. Veeco announced over $35 million in advanced packaging lithography orders in the first quarter of 2025, anticipating strong year-over-year growth for this business in 2025.
• Atomic Layer Deposition (ALD): The global atomic layer deposition market size was estimated at $1.70 billion in 2021 and is projected to reach $4.70 billion by 2030, growing at a CAGR of 12.3% (global). Veeco is recognized as a key player in this market for its innovative ALD toolsets.

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Here are the expected drivers of future revenue growth for Veeco Instruments (VECO) over the next 2-3 years:

1. Increased Demand from AI and High-Performance Computing (HPC) in the Semiconductor Market: Veeco anticipates robust growth driven by accelerating demand for its semiconductor equipment, particularly laser annealing and advanced packaging tools, from customers involved in AI and high-performance computing. This is evidenced by accelerated bookings and an expanding backlog.
2. Growth in Advanced Packaging Technologies: The company's advanced packaging business is a significant growth driver, with revenue from wet processing and lithography tools expected to double from 2024 to 2025 due to AI-related demand, heterogeneous integration, and 3D packaging.
3. New and Differentiated Laser Annealing and Ion Beam Deposition Technologies: Veeco is expanding its market opportunities by introducing new technologies such as nanosecond annealing, securing orders for advanced DRAM and logic devices with its laser annealing systems, and advancing its Ion Beam Deposition technology for defect-free EUV mask blanks and low-resistance metals in advanced semiconductor manufacturing.
4. Expansion in the Compound Semiconductor Market: New product introductions, including the Propel 300mm GaN-on-silicon system for GaN power and micro-LEDs, and LuminaPlus Arsenide Phosphide for photonics and solar end markets, are gaining traction and are expected to contribute significantly to revenue growth, particularly in the second half of 2026.
5. Rebound in the Data Storage Market: After experiencing some softness, Veeco has secured new orders for its ion beam and wet processing equipment in the data storage market in the second half of 2025, with expectations for this segment to double its revenue in 2026.

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Capital Allocation Decisions (2021-2025) for Veeco Instruments (VECO)

Share Repurchases

• Veeco Instruments did not report any significant share repurchases for the trailing twelve months ended September 2025.
• Following its planned all-stock merger with Axcelis Technologies, the combined company anticipates executing a share repurchase program.

Share Issuance

• In May 2023, Veeco completed a private offering of $205 million aggregate principal amount of 2.875% Convertible Senior Notes due 2029, yielding net proceeds of approximately $198.9 million.
• A portion of the proceeds from the 2023 convertible notes offering was used to exchange existing convertible senior notes due 2025 and 2027. This involved exchanging approximately $106.0 million of 2025 notes for cash and approximately 0.7 million shares of common stock, and approximately $100.0 million of 2027 notes for cash and approximately 3.8 million shares of common stock.
• As of Q4 2025, Veeco Instruments had 60 million shares outstanding, representing a slight increase of 0.4% from the prior quarter.

Outbound Investments

• There were no significant outbound investments or acquisitions by Veeco Instruments reported within the last 3-5 years.

Capital Expenditures

• Veeco's capital expenditures totaled $16 million for the full year 2025.
• In Q4 2025, capital expenditures amounted to $3.3 million.
• The company continues to invest strategically in next-generation technologies to support future growth, aligning with accelerating demand from AI and high-performance computing, particularly in advanced packaging solutions.