Aehr Test Systems Completes Acquisition of Incal Technology

Rhea-AI Summary

Aehr Test Systems (NASDAQ:AEHR) has completed its acquisition of Incal Technology, a manufacturer of packaged part reliability/burn-in test solutions used by leading AI semiconductor manufacturers. This acquisition expands Aehr's product portfolio and positions the company to capitalize on the rapidly growing AI semiconductor market.

The combination brings together Incal's high-power capabilities with Aehr's wafer level test and reliability solutions, creating a turn-key provider of reliability and testing solutions for AI semiconductors. The acquisition addresses the unique challenges of testing high-power AI devices, which can reach power levels of 1,000 watts or more.

Aehr sees a significant opportunity in the AI semiconductor market for both wafer level burn-in using their new high-power FOX multi-wafer production system and packaged part reliability screening.

Positive

• Acquisition expands Aehr's addressable market in the rapidly growing AI semiconductor sector
• Combination of Incal's high-power capabilities and Aehr's wafer level solutions creates a unique, comprehensive offering
• Acquisition provides access to Incal's customer base, which includes significant AI industry leaders
• Positions Aehr to address the growing demand for testing ultra-high-power AI accelerators, GPUs, and HPC processors

Negative

• None.

Insights

Financial Analyst

Aehr Test Systems' acquisition of Incal Technology marks a strategic move to expand its footprint in the burgeoning AI semiconductor market. This acquisition is highly synergistic, combining Aehr's expertise in wafer-level testing with Incal's prowess in high-power packaged part testing.

The deal positions Aehr as a one-stop solution provider for semiconductor testing across the entire production cycle, from engineering to high-volume manufacturing. This vertical integration could potentially lead to increased market share and higher profit margins.

Financially, while specific terms weren't disclosed, the acquisition's rapid closure suggests a smooth transaction. The positive feedback from stakeholders indicates potential for seamless integration and minimal disruption to ongoing operations.

Investors should note the expanded addressable market, particularly in the high-growth AI sector. With AI chips consuming up to 1,000 watts, Aehr is now uniquely positioned to meet the unprecedented testing demands of these high-power devices.

However, the lack of financial details in this announcement makes it challenging to assess the immediate impact on Aehr's balance sheet or earnings. Investors should look for more concrete financial guidance in upcoming earnings calls to gauge the acquisition's true value.

Tech Expert

Aehr's acquisition of Incal Technology is a technological coup in the semiconductor testing industry. This merger addresses a critical gap in testing capabilities for next-generation AI chips, which are pushing the boundaries of power consumption.

The integration of Incal's ultra-high-power testing solutions with Aehr's wafer-level systems creates a comprehensive testing ecosystem. This is important as AI chips evolve, with some reaching power levels of 1,000 watts or more - a threshold that demands specialized testing solutions.

From a technical standpoint, this acquisition enables Aehr to offer:

• Wafer-level burn-in for early-stage testing
• Packaged part reliability testing for final product verification
• Ultra-high-power testing capabilities for AI accelerators, GPUs and HPC processors

This end-to-end testing capability is a significant differentiator in the market. It allows semiconductor manufacturers to streamline their testing processes, potentially reducing time-to-market and improving overall product reliability.

The emphasis on both engineering qualification and production reliability screening suggests Aehr is positioning itself to support the entire lifecycle of AI chip development. This could lead to deeper, more strategic relationships with leading AI semiconductor manufacturers.

However, the rapid pace of AI chip development means Aehr must continue to innovate quickly to maintain its competitive edge in this fast-evolving market.

FREMONT, CA / ACCESSWIRE / August 1, 2024 / Aehr Test Systems (NASDAQ:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced it has completed its acquisition of Incal Technology, Inc., a Fremont, California-based, privately held manufacturer of packaged part reliability/burn-in test solutions used by a significant number of leading Artificial Intelligence (AI) semiconductor manufacturers. The acquisition was announced in a press release on July 16, 2024 that may be accessed here.

Gayn Erickson, President and CEO of Aehr Test Systems, commented, "We are very pleased to have closed this acquisition so quickly and seamlessly and to have received such positive feedback on this combination from customers, vendors, shareholders and employees from both companies. We are excited to now bring the combined strengths of both companies to market as we begin engaging with Incal's customers, which include a significant number of AI industry leaders. This unique combination strongly positions Aehr to capitalize on the significant opportunity within the AI semiconductor market, and expands our addressable market substantially."

Incal's high-power capabilities, combined with Aehr's industry-leading lineup of wafer level test and reliability solutions, uniquely positions Aehr to capitalize on this rapidly growing opportunity within the AI semiconductor market as a turn-key provider of reliability and testing that span from engineering to high volume production.

The acquisition expands Aehr's product portfolio to include Incal's highly acclaimed test solutions, particularly its ultra-high-power capabilities for AI accelerators, GPUs, and high-performance computing (HPC) processors. AI semiconductors are among the highest power consumption devices in the entire semiconductor industry, with power levels of recent devices reaching 1,000 watts or more, well beyond any existing devices. These previously unseen power levels require new, unique test solutions that Aehr will now provide.

The rapidly growing artificial intelligence semiconductor market is still in the early stages, and we see a significant opportunity in this market for wafer level burn-in using our new high-power FOX multi-wafer production system. In addition, given the unique challenges of testing very high-power devices related to AI processors, there is a very real need for a significant amount of engineering qualification and process development as well as a significant new opportunity for production reliability screening at the packaged part level.

About Aehr Test Systems
Headquartered in Fremont, California, Aehr Test Systems is a leading provider of test solutions for testing, burning-in, and stabilizing semiconductor devices in wafer level, singulated die, and package part form, and has installed thousands of systems worldwide. Increasing quality, reliability, safety, and security needs of semiconductors used across multiple applications, including electric vehicles, electric vehicle charging infrastructure, solar and wind power, computing, data and telecommunications infrastructure, and solid-state memory and storage, are driving additional test requirements, incremental capacity needs, and new opportunities for Aehr Test products and solutions. Aehr has developed and introduced several innovative products including the FOX-P^TM families of test and burn-in systems and FOX WaferPak^TM Aligner, FOX WaferPak Contactor, FOX DiePak^® Carrier and FOX DiePak Loader. The FOX-XP and FOX-NP systems are full wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize a wide range of devices such as leading-edge silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets, and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The FOX-CP system is a low-cost single-wafer compact test solution for logic, memory and photonic devices and the newest addition to the FOX-P product family. The FOX WaferPak Contactor contains a unique full wafer contactor capable of testing wafers up to 300mm that enables IC manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. The FOX DiePak Carrier allows testing, burning in, and stabilization of singulated bare die and modules up to 1024 devices in parallel per DiePak on the FOX-NP and FOX-XP systems up to nine DiePaks at a time. For more information, please visit Aehr Test Systems' website at www.aehr.com.

Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Aehr's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern Aehr's expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, future requirements and orders of Aehr's new and existing customers; Aehr's ability to receive orders and generate revenue in the future, as well as Aehr's beliefs regarding the factors impacting the foregoing, including the growth of the markets referred to herein; Aehr's ability to integrate Incal efficiently; the timing and extent to which the acquisition is accretive; the closing of the acquisition; and the growth of the markets referred to herein. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Aehr's recent Form 10-K, 10-Q and other reports filed from time to time with the Securities and Exchange Commission. Aehr disclaims any obligation to update information contained in any forward-looking statement to reflect events or circumstances occurring after the date of this press release.

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CONTACTS:
Aehr Test Systems
Chris Siu
Chief Financial Officer
csiu@aehr.com

MKR Investor Relations Inc.
Todd Kehrli or Jim Byers
Analyst/Investor Contact
(323) 468-2300
aehr@mkr-group.com

SOURCE: Aehr Test Systems

View the original press release on accesswire.com

FAQ

What company did Aehr Test Systems (AEHR) acquire?

Aehr Test Systems (NASDAQ:AEHR) acquired Incal Technology, Inc., a Fremont, California-based manufacturer of packaged part reliability/burn-in test solutions.

How does the Incal Technology acquisition benefit Aehr Test Systems (AEHR)?

The acquisition expands Aehr's product portfolio, provides access to AI industry leaders as customers, and positions the company to capitalize on the growing AI semiconductor market with comprehensive testing solutions for high-power devices.

What is the significance of high-power capabilities in AI semiconductor testing?

AI semiconductors can reach power levels of 1,000 watts or more, requiring unique test solutions. The acquisition of Incal Technology provides Aehr with ultra-high-power testing capabilities for AI accelerators, GPUs, and HPC processors.

How does the Incal acquisition impact Aehr's (AEHR) market position in semiconductor testing?

The acquisition positions Aehr as a turn-key provider of reliability and testing solutions spanning from engineering to high volume production, uniquely addressing the needs of the AI semiconductor market.