Verigy … a Premier Semiconductor Test...
Transcript of Verigy … a Premier Semiconductor Test...
Verigy … a Premier Semiconductor Test Company
Barclays Global Technology ConferenceDecember 8, 2009
Judy Davies
Credit Suisse Technology Conference / December 2009
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Safe Harbor Statement
This presentation contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: unforeseen changes in demand for semiconductors and thus for our semiconductor test solutions; our dependence on independent contract manufacturers and sole source suppliers; changes in key customer relationships; new product introductions by our competitors and/or technological changes that may render our test solutions less competitive and other factors set forth in Verigy’s filings with the Securities and Exchange Commission. These and other factors that may cause actual results to differ from those projected are discussed in our most recent SEC filings.
Verigy assumes no obligation to update the information in this presentation.
Credit Suisse Technology Conference / December 2009
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Verigy: Positioning for the Future
Strong balance sheet with which to navigate the“100 year flood” scenario facing the semiconductor industry
Added four new solutions to product portfolio: V6000, Yield Learning Solution, V101, and Touchdown Technologies probe cards
These new solutions will expand our SAM by $1.3B, nearly doubling our current SAM
Increased overall RF market share to 35% in 18 months
Manufacturing transition to Jabil is on track for year end
Selected as the #1 backend company by customers – ranked #1 in 11 of 13 categories
Credit Suisse Technology Conference / December 2009
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Memory:NAND & NOR FlashMultiChip Package (MCP)DRAMWafer Sort / Final Test
System on Chip (SOC): System in Package (SIP) Specialty High Speed MemoryGDDR3/5 - XDR1/2 - DDR3
Our Business is Semiconductor Test
V93000 Platform
V101 PlatformLow Cost ICs:Lowest CostZero FootprintEasy to Set-up / useEasy Maintenance
Touchdown Technologies Probe CardsMemory:DRAMNAND & NOR FlashAdvanced MEMS Technology
V6000 Platform
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$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
2007 2008 2009 2010 2011 2012 2013
Advance Probe Cards (TdT)
Yield Learning & DFT (DfX)
SOC 100 MHz (V101)High-Speed DRAM Test
DRAM Test (V6000 & 93K)
Flash TestSOC 200 MHz +
ATE + PC TAM
$3,554
$5,258
$2,137
$3,176
$4,254
$4,884
$5,265
ATE TAM and Verigy Served Available Markets
Source: VLSI Research (June 2009)
$2,600
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Strategy to Accelerate Growth and Diversify
Strong existing products based on scalable platform strategy
Proactively developed new products to expand SAM in CY’10
– DRAM market - $400M additional SAM
– Low-end SOC market - $400M additional SAM
Recent acquisition of Touchdown Technologies adds advanced probe card solutions
– Advanced probe card market - $500M additional SAM in CY’10
Continue to assess diversification opportunities where appropriate
Source: VLSI Research (June 2009); SAM is for CY’10
Verigy SAM Doubles in CY’10
$1,230
$400$400
$500 $2,570
Former SAM DRAM Low-end Probe card Current SAM
$1,300
$400 $400 $500
$2,600$ in millions
Credit Suisse Technology Conference / December 2009
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CY 2008 Market Share
Source: VLSI Research (Apr 2009)
Overall ATE Market Share
Verigy20%
Teradyne*34%
Advantest28%
LTX-Credence7%
Other11%
* Nextest and EagleTest included in Teradyne market share data
SOC ATE Market Share
Verigy21%
Teradyne*41%
Advantest20%
LTX-Credence10%
Other8%
*Nextest and EagleTest included in Teradyne market share data**Verigy market share data excludes HSM
Verigy 16%
Teradyne*11%
Advantest52%
Yokogawa17%
Other4%
*Nextest included in Teradyne market share data** Verigy market share data includes HSM
Memory ATE Market Share
V93000 Platform
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can be tested on a SCALABLE V93000 test system
V93000 Single Scalable Platform Applications Coverage
to deliver a diverse set of end products
A wide range of devices
Analog Front EndPMIC Low End STB Optical Disk Drives AudioRF Transceiver
Integrated BB+RFCellular BBHigh-End STB
High End Graphics ChipsetsHigh-End FPGA Mobile Processors
MPUsGPUs
Logic
DDR3XDRGDDR5
High Speed Memory
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Scalable Platform vs. Multiple Point Solutions
Integra FLEX Fusion CXT2000 T8571Eagle Test ETS 600/300
J750Ex
T6535A
J750
Diamond 10
Fusion MX
ASL-1000IP750 Ex
D750Ex
Eagle Test ETS 200
T5383
V6000
V101
Eagle Test ETS 88
V93000HSM HSM tester
M3670
T6577
T5781T5782
T5588
T5761
T5377
T5593
T5385 T5503
SOCUltra FLEX
7722T6373
MemoryMagnum IIMagnum
V93000
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Power of the Scalable Platform
Flexibility across applicationsMCU to Highly Integrated Baseband + RFHigh Speed Memory - DDR3 to GDDR5Flash and DRAM on the same tester
Ability for OSATs to keep systems loadedHigher Utilization -> Better ROICSystems can be used for multiple upstream customer and devices
Customers purchase upgrades instead of new systems as technology needs change
V101 Platform
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V101 Addresses the Growing Low-cost IC Market
4, 8 and 16–bitLow Pin Count
Devices
V101 is Designed to Meet Low-cost Testing Requirements
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Low Cost Devices Dominate MCU Market
0
4000
8000
12000
16000
20000
CY2006
CY2007
CY2008
CY2009
CY2010
CY2011
CY2012
CY2013
4/8/16-bit 32-bit
Low cost devices dominate global MCU market because of low prices, improving performance, and extensive application fields:
Global MCU Market
Mill
ions
of
Uni
ts
Source: IC Insights, 2009
Worldwide MCU Unit History and Forecast
32 Bit CAGR: 13.6%4/8/16 bit CAGR: 10.0%
2009-2012
0
1
2
3
4
5
2007 2008 2009 2010 2011 2012
8-bit MCU 16-bit MCU 32-bit MCU
Worldwide MCU Unit Price History and Forecast
ASP Changes(2007-2012)
32-bit MCU - 24.8%16-bit MCU - 38.4%
8-bit MCU - 24.9%
Extreme Pressure to Lower Cost of Test
for Low Cost Devices
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Highly integrated hardware with the latest technologies – Higher performance at lower cost
Increased parallel test – True 1,024 pins with DC and DPS
resources enabling more parallel tests
Optimized for MCU test – All test resources on the same board
Optimized for Wafer Sort– Integrated direct probing design
Simplified Service and Support Model– Easy installation, setup and maintenance
Shorter Program Development Time– Awarding winning easy-to-use STIL-based
software
A Platform of Choice for MCU & Low-End IC Markets
LowersCOT
LowersCOT
LowersCOT
LowersCOT
LowersCOO
Speeds TTM
V101: Designed to reduce cost of test by up to 50%
V6000 Platform
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Test Flash, DRAM and MCP At the Price of a Flash Tester!
V6000eEngineering
V6000 WSWafer Sort
V6000 FT Final Test
Redefining Memory Test V6000 Series
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Extended Useful Life With 6th Generation of Tester-Per-Site Architecture
COMPATIBLE Site Module Hardware
• Test Site Controller
• APG (Algorithmic Pattern Generator)
• ECR (Error Capture RAM)
• Pin Electronics
• NEW Active Matrix Technology
COMPATIBLE Software
• Station PC OS: Windows
• System Software
• C Program/APG Language
• Leverage test programs into production
COMPATIBLE Probe Cards
• V6000 WS probe cards are compatible as you upgrade performance and parallelism
Engineering Scalable Architecture Production
V6000eEngineering
V6000 WSWafer Sort
V6000 FT Final Test
Up to 880 MbpsUp to 18K PinsUp to 4K PPS
MCPs
Full pin count NAND & NOR
DRAM
Reducedpin countNAND & NOR
SRAM
The RIGHT Architecture
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Delivering a Compelling Memory Test Solution V6000 Key Differentiators and Value to Customers
Device Flexibility– Tests NOR & NAND Flash, DRAM, and SRAM– Serves all test strategies/modes, including performance specification test,
design for test, and even BIST
Configuration Flexibility– Optimizes to customer needs (channels, power
supplies, data rates, Redundancy Analysis)– Configures to over 18,000 channels at 880
Mbps and 4,000 device power supplies– Configures for Engineering, Wafer Sort, and
Final Test– Extends platform life with upgradeability and
future growth path
Low Cost of Ownership– Delivers lowest cost per test channel/DPS (< $200 per channel)– Enables lowest cost of ownership (power consumption, factory floor space,
consumables (wafer sort probe cards and final test load boards)
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History of Touchdown Technologies
Focused since early 2003 on leveraging MEMS knowledge to create a next- generation probe card company.
Production shipments since 2006, and have production cards in US, Taiwan, Japan, and Singapore
Focused on world class design and manufacturing of advanced MEMS-based probe cards for testing semiconductors.
Initial focus is on memory (NOR, DRAM and NAND), a $500M market in 2010 and $800M in 2013
Sales
Sal
es
Sales
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Advanced MEMS Manufacturing Facility
Located in Southern California
Houses MEMs fabrication, assembly & test clean-rooms, sales, engineering and administration
Approximately $100M+ already invested in Touchdown technology development and infrastructure prior to Verigy acquisition
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Delivering a Compelling Technology Advantage
Unique 3D MEMS Probe Architecture
Torsional-based probe provides superior mechanical properties than cantilever
Enables higher probe counts and increased density
Allows individual probe replacement
ACCUTORQTM Probe
Td300 Probe Card300mm Full Wafer Architecture MEMS fab tooled for full 300mm substrate processing Single (monolithic) MEMS probe head
– Accurate scrub mark position– Improved thermal performance (Z position & stability
time)
– Tip placement accuracy of <+/-10 µm across 300mm
Lower cost architecture than competition (multi-tiled substrates)
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Verigy and Touchdown Technologies Synergies
Both Companies…
Share the same customer base
Focus on lowering the cost of test
Extend their leadership position in memory test at wafer probe
Nurture culture of innovation and technology leadership
Touchdown expands Verigy’s SAM by $500M in CY’10
Achievements in Q4’09 – the first full quarter as “a Verigy company”
Received multiple orders for memory probe cards, including full wafer, single touchdown probe cards
300mm Flash probe card is in qualification at a major customer
300mm DRAM probe card is being built for another customer
Financial Highlights
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Q4’09: Better-than-Expected
Fourth Quarter Revenue of $97M and Net Loss of ($0.20) Per Share
– Sequential revenue increase of 11% and within the guidance range provided– Non-GAAP net loss was ($0.12) compared to ($0.24) last quarter
Third Consecutive Quarter of Bookings Growth– Orders were $109 million compared to $93 million last quarter– Book-to-bill of 1.12
Positive Signs in SOC and Memory Markets– No seasonality– Utilization rate climbed to 90%– Largest order quarter ever for Port Scale RF– Multiple system orders for SOC, HSM, Flash/DRAM, and probe cards
Operating Leverage Improved– Cost base reduced by over $120 million– Approximately two-thirds derived by permanent reductions
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P&L Highlights
Q4’09 FY’09 Q3’09 Q4’08 FY’08
Orders $109M $323M $93M $82M $603M
Revenue $97M $323M $87M $150M $691M
Book-to-Bill 1.12 1.00 1.07 0.55 0.87
Gross Margin % 43% 33% 40% 36% 44%
Gross Margin % (non-GAAP) 46% 36% 42% 46% 47%
Op Margin % (10%) (34%) (23%) (7%) 7%
Op Margin % (non-GAAP) (7%) (27%) (15%) 3% 9%
EPS ($0.20) ($2.17) ($0.36) ($0.60) $0.47
EPS (non-GAAP) ($0.12) ($1.49) ($0.24) $0.14 $1.19
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Q4’09 Q3’09 Q4’08
Cash & Marketable Securities $439M $442M $411M
Accounts Receivable $54M $35M $74M
DSO 50 days 36 days 44 days
Inventory $55M $64M $78M
Inventory Days 92 days 117 days 92 days
Total Assets $711M $705M $734M
Cap Ex $3M $2M $4M
Depreciation $4M $8M* $4M
Balance Sheet Highlights
* Includes $4M for Touchdown Technologies IP R&D
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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Quarterly Revenue by Business
FY’06 FY’07
$170
$192
$214$202
$165
$183
$204 $209$200
FY’08
$162
$179
$150
$68
FY’09
$71
Memory
SOC
S&S
$87$97
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