Onto Innovation Inc. (NYSE: ONTO)

Onto Innovation Inc. is a worldwide leader in the design, development, manufacture and support of metrology and inspection tools for the semiconductor industry. The company provides process control tools that perform optical metrology on patterned and unpatterned wafers, wafer macro defect inspection including both 2D and 3D features, wafer substrate and panel substrate lithography systems, and process control analytical software. Its systems measure critical dimensions, device structures, topography, shape and various thin film compositions, delivering critical yield enhancing and actionable information to microelectronic device manufacturers. Onto Innovation also offers automated and integrated metrology systems, as well as an advanced process control software portfolio that supports standalone tools, groups of tools and factory wide or enterprise wide environments. The company backs its products with worldwide customer service and applications support, helping clients improve yield and time to market for next generation devices.

Onto Innovation generates revenue primarily from the sale of its systems and software, spare parts and related services. Systems and software revenue includes the sale of metrology and inspection tools, optical metrology systems, macro defect inspection equipment, lithography systems and analytical software. Parts revenue comes from spare components and consumables needed to maintain and operate the installed base of tools. Services revenue encompasses installation, maintenance, repair, training and support contracts that help customers maximize tool uptime and performance. For the nine months ended September 27, 2025, systems and software revenue totaled $619.5 million, representing 84% of total revenue, while parts revenue was $61.9 million (8%) and services revenue was $57.0 million (8%). In the three months ended September 27, 2025, revenue was $218.2 million, with systems and software contributing $173.8 million, parts $23.9 million and services $20.5 million. The company's customers span the semiconductor manufacturing ecosystem, ranging from raw silicon wafer producers to front end integrated circuit fabs and back end advanced packaging facilities, as well as makers of specialty devices such as power semiconductors, sensors and communication chips.

Onto Innovation holds a leading position in the global semiconductor metrology and inspection market. The company competes with other major equipment suppliers and differentiates itself through a broad portfolio of standalone and integrated tools, proprietary process control software and a worldwide service network that provides rapid response and application support. Continuous investment in research and development, which totaled $95.8 million for the nine months ended September 27, 2025, enables Onto Innovation to introduce new products that address advancing technology nodes and emerging materials such as silicon carbide and gallium nitride. This focus on innovation helps the company maintain a reputation for delivering yield enhancing and actionable data to semiconductor manufacturers, supporting their efforts to improve production efficiency and device performance.

The company serves a diverse customer base that includes silicon wafer manufacturers, front end integrated circuit fabricators, back end advanced packaging assemblers, and producers of specialty devices such as LEDs, VCSELs, MEMS, CMOS image sensors, silicon carbide and gallium nitride power devices, analog chips, RF filters and data storage components. While specific customer names are not disclosed in the filing, the breadth of these segments shows that Onto Innovation's tools are used across multiple stages of semiconductor production and in related advanced technology markets. This wide exposure reduces reliance on any single sector and allows the company to benefit from growth in various end markets, including automotive electronics, communications and consumer devices.