Aehr Test Systems (NASDAQ:AEHR) executives used a William Blair conference presentation to highlight the company’s expanding focus on semiconductor burn-in testing, with President and CEO Gayn Erickson saying artificial intelligence and data center applications are now consuming much of the company’s attention.
Erickson, presenting alongside Chief Financial Officer Chris Siu, described Aehr as a long-time participant in semiconductor testing, specifically in burn-in, a reliability screening process used to identify devices likely to fail early in their useful life. He said burn-in has historically been important in military, automotive and other mission-critical markets, but is becoming more relevant as semiconductor content grows in applications where reliability is critical.
Wafer-Level Burn-In Remains Core Message
Erickson emphasized Aehr’s wafer-level burn-in approach, which tests die before they are assembled into advanced packages. He said this can be especially valuable for heterogeneous integration, where processors, high-bandwidth memory and other components are combined into expensive packages. If a failure is found after packaging, Erickson said, the whole package may be discarded.
“The cost is significant,” he said. “Our value proposition of why don’t you move it to wafer-level all of a sudden really rings true.”
Aehr’s wafer-level system uses proprietary WaferPak contactors, which Erickson said are designed specifically for a given wafer and are protected by patents in North America, Europe, Asia, Japan and China. He said Aehr does not currently license the technology and has built its approach around providing a turnkey solution.
Erickson said the company has added automation to its wafer-level platform, including a fully integrated aligner that allows wafers to be loaded into cartridges without manual handling. He said silicon photonics and AI customers have moved toward “hands-free” operation, including use of automated guided vehicles.
Incal Acquisition Adds Package-Level Capability
Erickson said Aehr’s acquisition of Incal added package-level burn-in capability at a timely moment. He said Incal had been involved in qualification work for AI processors, CPUs, GPUs, TPUs, ASICs and network processors, giving Aehr visibility into roadmaps for devices that were not necessarily being burn-in tested in production.
According to Erickson, one lead hyperscaler has moved into production using Aehr’s package-level systems, has ordered follow-on systems and is expected to pursue a multi-year ramp. He said Aehr is now engaged with multiple hyperscalers, with discussions often covering both package-level and wafer-level burn-in.
The company has also redesigned the acquired package-level tool to make it more robust for high-volume manufacturing and added a handler for full automation, Erickson said. He said Aehr recently brought up a manufacturing line in Southeast Asia for package-level systems, with the first four systems built last month and a goal of reaching capacity of 20 systems per month.
AI Processor Benchmark Cited as Milestone
Erickson highlighted progress with a major AI processor customer in wafer-level burn-in. He said Aehr began a production evaluation around September and worked through design issues tied to differences between wafer-level and package-level testing.
“What I’ll tell you right now is we have majorly or have completed the wafer-level benchmark,” Erickson said. “The data looks amazing.”
He said Aehr expects to provide a broader public update on July 14 during its earnings report, if possible. Erickson also said Aehr is already in production with another AI processor company at wafer level and is working on that customer’s next-generation device.
During the question-and-answer session, Erickson said Aehr’s systems are not intended to replace testers from companies such as Advantest or Teradyne. He said those systems conduct high-performance testing, often one device at a time, while Aehr’s systems perform extended burn-in. “We coexist,” he said.
Silicon Photonics and Memory Opportunities Discussed
Erickson said silicon photonics has moved from a future opportunity to a current one, citing activity from companies including NVIDIA, Intel, Marvell, AMD, Lumentum and Coherent. He said Aehr has six customers working in silicon photonics and that the market is “great business” for the company right now.
On memory, Erickson said Aehr has been engaged with multiple flash manufacturers for several years and has more recently discussed DRAM opportunities. He said the company sees potential advantages around high-bandwidth memory interfaces, though he noted Aehr has not yet recorded revenue from flash or DRAM engagements.
Automotive Lessons and Reliability Focus
In response to a question from William Blair analyst Jed Dorsheimer about lessons from silicon carbide, Erickson said electric vehicles remain an important market and that burn-in continues to be required for silicon carbide devices. He said burn-in times have not declined as expected and, in some cases, have increased as automotive manufacturers seek better reliability.
Erickson said Aehr’s broader pitch is that every burn-in design should provide certainty that devices were properly screened. He said that message has resonated with customers in markets where device failures can be costly or disruptive.
“One of the critical things that we have positioned ourselves as, when we do these wafer-level applications or we do these burn-in, we’re focused on the critical burn-in requirements,” Erickson said.
About Aehr Test Systems (NASDAQ:AEHR)
Aehr Test Systems develops, manufactures and sells semiconductor test and burn-in equipment used by device manufacturers to ensure quality and reliability of integrated circuits. Its products are designed for wafer-level reliability assessment, functional test and stress screening of memory devices, system-on-chips, optical components and power semiconductors. By focusing on wafer-level burn-in and testing processes, the company helps reduce cost and improve yield for high-volume semiconductor production.
The company’s product portfolio includes FOX series wafer probe test and burn-in systems as well as ABTS burn-in ovens.
