Orbotech Ltd. (Nasdaq: ORBK) has announced that SPTS Technologies, an Orbotech company and supplier of advanced wafer processing solutions for the global semiconductor and related industries, has received orders totaling approximately $57 million in value for multiple Sigma fxP PVD systems from a global manufacturer of packaged die.
The systems will deposit under bump metals and redistribution layers (RDL) for Fan-Out Wafer Level Packaging (FOWLP) production. System deliveries and revenue recognition are expected to commence in the fourth quarter of 2015 and continue throughout the first half of 2016.
Orbotech says that its fourth quarter and full year 2015 revenue guidance included the initial revenues expected to be recognized from these orders during this period. The guidance for the fourth quarter is for revenue of $184-192 million.
The systems were developed by British company SPTS, which Orbotech bought for $370 million cash last year. "This groundbreaking multi-PVD system order, the first from any semiconductor manufacturing company for FOWLP is a milestone moment for advanced packaging," said Kevin Crofton, president of SPTS and corporate vice president at Orbotech, "It marks the beginning of an industry-wide transition of FOWLP from a niche packaging technique for small devices such as RFID and power management ICs to mainstream architecture for high value chips. We expect FOWLP to become the leading low cost, high density packaging format."
Orbotech, managed by Asher Levy, produces inspection systems for electronic devices, chiefly for printed circuits and flat-screen displays. It has a market cap on Nasdaq of $895 million, following a 50% rise in its share price so far this year.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2015
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