Aehr Test Systems (AEHR)

History and Background

Aehr Test Systems was founded in 1977. It initially focused on burn-in test equipment for semiconductors and has since expanded into wafer-level test solutions for silicon carbide (SiC) and other advanced devices.

Core Business Areas

• Wafer Level Test Systems: Designs, manufactures, and sells wafer-level test and burn-in systems used to test and screen integrated circuits (ICs) at the wafer level.
• Die and Module Test Systems: Supplies test solutions for singulated bare die and multi-die modules/packages, often used in automotive, mobility, and high reliability applications.
• Test Fixtures and Consumables: Offers test fixtures, probe cards, and other consumables required for their test systems, providing a recurring revenue stream.

Leadership and Structure

Gayn Erickson is the CEO. The company has a typical corporate structure with departments for engineering, sales, marketing, operations, and finance.

Key Offerings

• FOX-XP Wafer Level Test System: A multi-wafer test and burn-in system for SiC power devices, memory, and other ICs. Market share data is not publicly available, but it is a leading solution in SiC wafer testing. Competitors include Teradyne and Advantest, though these address a broader market.
• FOX-CP Die and Module Test System: A production test system for singulated die and modules. Market share data is not publicly available. Focuses on final test with high throughput. Teradyne and Advantest are also competitors here.

Industry Overview

The semiconductor test equipment industry is experiencing growth driven by the increasing complexity of ICs, especially in automotive, 5G, and data centers. SiC testing is a particularly fast-growing segment.

Positioning

Aehr is positioned as a key player in wafer-level and singulated die/module test solutions, particularly for SiC power devices. It has a strong focus on high-volume manufacturing and reliability.

Total Addressable Market (TAM)

The total addressable market for wafer-level test equipment is estimated to be in the billions of dollars. Aehr is well-positioned to capture a significant share of the SiC testing portion of this TAM as SiC adoption increases.

Key Competitors

• TER
• ADTN

Competitive Landscape

Aehr is a smaller player compared to Teradyne and Advantest but has a competitive advantage in SiC testing and burn-in. They offer specialized solutions focused on specific market niches. A major advantage comes from the company's FOX-XP and FOX-CP system which is very unique to the high power semiconductor/module test and burn-in space.

Historical Growth: Aehr Test Systems has experienced strong revenue growth in recent years driven by demand for SiC testing solutions.

Future Projections: Analysts project continued revenue growth as SiC adoption expands. Profitability is expected to remain strong. Growth rates are expected to moderate towards the high teens range.

Recent Initiatives: Aehr has focused on expanding its customer base and developing new test solutions for advanced devices.

Aehr Test Systems is a growing company specializing in wafer-level test and burn-in equipment, particularly for SiC devices. The company's strong revenue growth and improving profitability are positive signs. Key areas to watch include increasing competition and macroeconomic conditions. Overall the company is solid but needs to diversify their customer base and product offerings.

Data Sources:

• Company Filings (10-K, 10-Q), Analyst Reports, Industry Reports

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market share data is estimated and may not be precise.