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FormFactor (FORM) Expands Product Portfolio Via New Alliance

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FormFactor, Inc. (FORM - Free Report) has unveiled a fully automated cryogenic wafer probe system in a bid to strengthen key offerings in the semiconductor industry.

Notably, the company has joined forces with Northrop Grumman Corporation (NOC - Free Report) to develop the new probe system that operates at 4 Kelvin and below. This has increased the scale of production, which in turn makes it ideal for speeding up the development process of superconducting compute applications.

The latest move has expanded FormFactor’s portfolio of probe systems, which is likely to boost its reach in the cryogenic test and measurement space.

Expanding Cryogenic Equipment Market

The cryogenic equipment market is growing in recent times due to increasing demand for industrial gases and growing investments in liquefied natural gas infrastructure.

According to a report by The Expresswire mentioned in the MarketWatch, the global cryogenic equipment market is expected to hit $21 billion by 2027, witnessing a CAGR of 3.8% between 2021 and 2027.

Moreover, per RESEARCHANDMARKETS report, this particular market is likely to reach $18 billion by 2027, registering a CAGR of 6.1% during the period of 2020-2027.

FormFactor remains well poised to capitalize on the aforementioned prospects by delivering products enabling cryogenic test and measurement.

Apart from the latest move, the company introduced High Precision Devices IQ1000 scanning superconducting quantum interference device microscope, an automated cryogenic system for the quantum computing market development.

Growing Probe Card Market Leveling Up Competition

The global probe card market is witnessing a significant rise, thanks to increasing wafer size and investment in fabs.

According to a 360 Research report the global probe card market is anticipated to reach $2 billion by 2026, progressing at a CAGR of 4% between 2021 and 2026.

Also, a report by Technavio mentioned in a businesswire release reveals that this particular market is likely to hit $505 million by 2024, witnessing a CAGR of more than 5% during the period of 2020-2024.

On account of the abovementioned prospects, FormFactor is facing intense competition in the probe card market from other players including Advantest Corporation (ATEYY - Free Report) , MPI Corporation, Micro Square Technology and Feinmetall GmbH.

Nevertheless, FormFactor’s growing initiatives toward maintaining accuracy, speed and frequency of the probe card will continue to give it a competitive edge.

Zacks Rank & Stock to Consider

Currently, FormFactor carries a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Advanced Micro Devices (AMD - Free Report) , carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Advanced Micro Devices is currently projected at 35%.

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