Kulicke & Soffa Introduces New Vertical Wire Solutions to Expand Market Leadership

Rhea-AI Summary

Kulicke & Soffa (NASDAQ: KLIC) has launched ATPremier MEM PLUS, a new vertical wire technology solution for high-volume memory applications. The innovative wafer-level packaging solution targets at-the-edge AI applications, which are expected to grow at a >25% compound annual growth rate over the next five years.

The technology breaks barriers in DRAM and NAND assembly density, featuring proprietary ProVertical and ProCascade Loop processes. ATPremier MEM PLUS offers an alternative to traditional copper pillar technology by removing two-dimensional packaging limitations, reducing complexity and costs while supporting advanced assembly requirements.

Key features include Response Based Processes, Advanced Optical System with inspection features, and Factory Automation Integration. The company also announced the concurrent launch of Asterion®-PW, an ultrasonic pin welding solution for power semiconductor applications. Both products will debut at SEMICON China 2025 in Shanghai.

Positive

• New vertical wire technology enables higher density DRAM and NAND assembly
• Technology addresses growing at-the-edge AI market with >25% CAGR
• Solution reduces complexity and costs compared to traditional copper pillar technology
• Expansion potential beyond memory into broader high-volume semiconductor markets

Negative

• None.

Insights

Semiconductor Technology Expert

Kulicke & Soffa's introduction of the ATPremier MEM PLUS represents a significant technological advancement in wafer-level packaging. The vertical wire technology directly addresses a critical industry bottleneck – increasing memory density without relying exclusively on expensive transistor shrinks. This is particularly relevant as Moore's Law economics become increasingly challenging.

What makes this technology noteworthy is its ability to move beyond two-dimensional packaging constraints through proprietary processes like ProVertical and ProCascade Loop. These enable vertical and cascade wire interconnects – essentially allowing memory chips to build upward rather than just outward, increasing density without proportionally increasing footprint.

For memory applications, especially in edge AI deployments where power efficiency and form factor are critical constraints, this represents a meaningful alternative to established copper pillar technology. The solution potentially offers semiconductor manufacturers a more cost-effective path to increasing memory density while maintaining thermal performance.

The simultaneous launch of Asterion-PW for power semiconductor applications demonstrates K&S's strategic expansion beyond their traditional expertise. This diversification into power applications, which are experiencing rapid growth due to electrification trends, indicates the company is leveraging its core interconnect technology across multiple high-value segments.

The versatility of these technologies to extend beyond their initial target applications could significantly expand K&S's addressable market, particularly as specialized computing architectures for AI continue to proliferate and demand increasingly sophisticated packaging solutions.

Investment Analyst

This product launch strategically positions Kulicke & Soffa at the intersection of two critical semiconductor industry trends: the rising complexity of packaging technologies and the explosive growth of edge AI applications (cited at 25% CAGR over five years). The timing is particularly advantageous as the industry faces mounting costs for traditional node shrinks, driving demand for alternative approaches to density improvement.

K&S's vertical wire technology creates a compelling value proposition by addressing memory manufacturers' need to increase capacity and performance without the capital intensity of bleeding-edge lithography. This approach could potentially expand the company's serviceable available market by enabling them to capture value in advanced packaging – a segment growing faster than the broader semiconductor equipment market.

The dual product launch strategy (memory-focused ATPremier MEM PLUS and power-focused Asterion-PW) demonstrates intelligent diversification, reducing reliance on any single semiconductor end-market while leveraging core technical capabilities across multiple applications. This mitigates potential cyclical impacts and expands growth opportunities.

While revenue impact timeframes aren't specified, the emphasis on high-volume applications suggests K&S aims to transition these technologies from niche to mainstream adoption. The technology's applicability beyond memory into broader high-volume semiconductor markets represents substantial upside potential if successful.

For investors, this represents a meaningful expansion of K&S's growth narrative beyond their traditional packaging equipment portfolio, potentially enabling them to capture more value in the semiconductor manufacturing process flow.

Elevating Memory Density with ATPremier MEM PLUS™

SINGAPORE, March 25, 2025 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa", "K&S", "we" or the "Company") announced the launch of ATPremier MEM PLUS, serving high-volume memory applications.

The innovative ATPremier MEM PLUS™ is a cutting-edge wafer level packaging solution, deploying innovative vertical wire technology to address emerging advanced memory applications within today's fast-paced semiconductor market. Engineered for high-volume, at-the-edge AI applications, K&S' vertical wire technology has broken barriers to enable a new level of transistor-dense DRAM and NAND assembly.

The Company anticipates advanced process capabilities, such as ProVertical and ProCascade Loop, to enable emerging memory applications as well as high-density applications in high-volume semiconductor markets outside of the memory market.

At-the-edge AI applications are demanding unprecedented advancements in memory technology and are anticipated to grow above a 25% compound annual growth rate over the coming five years. Larger capacities, higher performance, greater power efficiency, and more compact formfactor are increasingly essential, given that the historic approach of driving package density through transistor shrink continues to be prohibitively expensive for most high-volume semiconductor applications.

This ongoing dynamic has created the need for increasingly complex advanced semiconductor packaging solutions, and K&S' ATPremier MEM PLUS™ vertical wire solution and APTURA™ Fluxless Thermo-Compression (FTC) solution are both extremely well positioned to directly support future at-the-edge AI, memory and high computing needs.

The ATPremier platform is built to support advanced assembly requirements and provides an alternative to traditional copper pillar technology by removing the limitations of two-dimensional packaging. With capabilities to support next-generation memory devices, including in consumer mobile, this novel technology is enabling high-density advanced packaging without compromise. ATPremier reduces complexity, costs, and addresses the increasingly advanced needs of the high-volume semiconductor market.

ATPremier MEM PLUS™ delivers cutting-edge, memory-specific wafer-level packaging capabilities, empowering customers to stay ahead in the intensely competitive memory landscape. Key features include:

• Response Based Processes
  Technologies which are proprietary to K&S, including ProVertical and ProCascade Loop, would meet the precision wire bonding requirements of vertical and cascade wire interconnects, thereby ensuring optimal performance for memory applications.
• Advanced Optical System and Inspection Features
  Equipped with state-of-the-art optical systems and yield-enhancing inspection tools, safeguarding product quality at every stage.
• Factory Automation Integration
  With the capability to integrate Auto Wafer Handlers or EFEM systems, ATPremier MEM PLUS supports seamless factory automation, improving efficiency and throughput in high-volume environments.

"By addressing critical challenges in Memory capability, the ATPremier MEM PLUS™ technology demonstrates a leap forward in efficiency and performance, offering our customers new opportunities to enhance the speed, capacity, and energy efficiency of memory products. This vision extends far beyond its initial use in DRAM. With inherent flexibility and scalability, the solution is positioned to deliver significant impact across broader IC applications, marking a future of high-performance devices at optimized costs," said Ivy Qin, Kulicke & Soffa's Vice President and General Manager of Ball Bonding.

Asterion^®- PW – another revolutionary K&S solution for Power Semiconductor Applications

K&S has separately announced the concurrent launch of Asterion^®-PW, extending its leadership in power device applications with a fast and precise ultrasonic pin welding solution. This advanced solution sets a new standard for pin interconnect capability – redefining efficiency, precision, and reliability.

Visit K&S at SEMICON China 2025

Together with K&S' broad portfolio of solutions, the ATPremier MEM PLUS™ and Asterion^®- PW will debut at the SEMICON China Trade Show in Shanghai, from March 26 through March 28, 2025, at Hall N3 Booth #3431. 

About Kulicke & Soffa

Founded in 1951, Kulicke and Soffa Industries, Inc. specializes in developing cutting-edge semiconductor and electronics assembly solutions enabling a smarter and more sustainable future. Our ever-growing range of products and services supports growth and facilitates technology transitions across large-scale markets, such as advanced display, automotive, communications, compute, consumer, data storage, energy storage and industrial.

Contacts

Kulicke & Soffa
Marilyn Sim
Public Relations
+65-6880 9309
msim@kns.com

Kulicke & Soffa
Joseph Elgindy
Investor Relations
+1-215-784-7500
investor@kns.com

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SOURCE Kulicke & Soffa Industries, Inc.

FAQ

What is the expected growth rate for at-the-edge AI applications targeted by KLIC's new memory solution?

The at-the-edge AI applications are anticipated to grow at over 25% compound annual growth rate over the next five years.

What are the key features of KLIC's ATPremier MEM PLUS technology?

Key features include Response Based Processes with ProVertical and ProCascade Loop technologies, Advanced Optical System with inspection features, and Factory Automation Integration capabilities.

How does KLIC's ATPremier MEM PLUS differ from traditional packaging solutions?

It provides an alternative to traditional copper pillar technology by removing two-dimensional packaging limitations, reducing complexity and costs while enabling higher density packaging.

When and where will KLIC showcase its new ATPremier MEM PLUS technology?

The technology will debut at SEMICON China Trade Show in Shanghai, from March 26-28, 2025, at Hall N3 Booth #3431.

What markets is KLIC targeting with the new vertical wire technology?

The technology targets high-volume memory applications, DRAM, NAND assembly, and at-the-edge AI applications, with potential expansion to other high-density semiconductor markets.