FREMONT, CA – Aehr Test Systems (NASDAQ:AEHR), a global supplier of semiconductor test and fit equipment, announced today that it has secured an initial production order from a leading automotive semiconductor supplier for its FOX-XP™ wafer level and burn-in testing system with integrated FOX WaferPak™ Aligner. This system is designed to test gallium nitride (GaN) power semiconductor devices and is ready to ship immediately. According to InvestingPro data, Aehr maintains strong financial health with a robust current ratio of 6.03, indicating excellent operating liquidity. The company’s solid gross margin of 50.48% reflects effective cost management in manufacturing operations.
Aehr Test Systems President and CEO, Gayn Erickson, said the company has been working with the customer for over a year to support their GaN power semiconductor evaluation and qualification process. Erickson expressed excitement about the initial purchase order, which indicates the customer’s transition to mass production wafer-level embedding of their GaN devices using Aehr’s FOX-XP platform.
The customer previously used the FOX-NP system for production qualification and reliability testing, along with Aehr’s proprietary WaferPak full wafer contactors, to successfully qualify various types of GaN devices for multiple applications including the industrial, solar, data center and automotive markets.
Aehr’s FOX-XP system enables a seamless transition from device qualification to high-volume, fully automated multi-wafer testing. It can test up to nine wafers in parallel and is designed to handle high-voltage and high-temperature stress tests, essential for power semiconductors such as GaN and silicon carbide (SiC).
GaN MOSFETs are known for their higher power conversion efficiency compared to silicon and are becoming increasingly popular for automotive power converters and data center power applications. Industry experts predict that GaN will eventually replace silicon in power conversion, especially for photovoltaic applications.
Yole Group and Frost & Sullivan market research predicts significant growth for GaN technology, with annual device sales expected to reach $2.5 billion by 2029, and GaN semiconductors to account for more than 10% of the power semiconductor industry by 2028. These projections highlight significant growth opportunity for Aehr’s wafer-level test and burn-in solutions.
Aehr Test Systems, headquartered in Fremont, California, is known for its semiconductor device test solutions in various formats and has installed numerous systems worldwide. The company’s products meet the increasing needs for quality, reliability, safety and security of semiconductors used in a variety of applications, including electric vehicles, energy infrastructure, computing and data infrastructure. With the company’s next earnings report due in 6 days, InvestingPro subscribers can access real-time analysis and detailed financial indicators to make informed investment decisions. The company’s market capitalization is $499.28 million, and analysts maintain a positive outlook on its growth prospects.
This announcement is based on a press release from Aehr Test Systems.
In other recent news, Aehr Test Systems reported a significant development. The company’s first-quarter fiscal 2025 financial results revealed revenue of $13.1 million and net income on a standard-book basis of $2.2 million, both numbers exceeding consensus estimates. Despite the year-over-year decline, Aehr Test Systems reaffirmed its fiscal 2025 revenue guidance of at least $70 million, with a significant portion, 85%, expected to come from wafer-level burnup.
The company also postponed its second quarter 2025 earnings release and conference call to January 13, 2025 due to the National Day of Mourning for former President Jimmy Carter. Aehr Test Systems has demonstrated strong profitability with a 50.5% gross margin and maintains a healthy balance sheet with more cash than debt.
Additionally, Aehr Test Systems recently completed the acquisition of Incal Technology, enhancing its high-power test capabilities for AI semiconductors. This strategic move has already resulted in the company receiving its first mass production orders for Incal’s Sonoma ultra-high power semiconductor test solution.
At Aehr Test Systems’ annual meeting, shareholders elected six directors to the board of directors and ratified BPM LLP as the company’s independent registered public accounting firm for the upcoming fiscal year. These are the latest developments for Aehr Test Systems, a company that continues to advance the semiconductor testing industry.
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