Back to top

Image: Shutterstock

FormFactor (FORM) Boosts Probe Card Efforts With New Facility

Read MoreHide Full Article

FormFactor (FORM - Free Report) is leaving no stone unturned to expand semiconductor wafer probe card production.

This is evident from the recent opening of the company’s new probe card manufacturing facility in Livermore, CA.

The latest facility covering an area of 90,000 square feet provides manufacturing space for wafer probe cards and equipment required to test semiconductor chips as well as meet the rising demand for advanced packaging.

The recent move bodes well for FORM’s commitment to invest $70-$80 million in expanding manufacturing capacity in 2021.

Apart from the new facility, Formfactor operates three more probe card manufacturing facilities located in Carlsbad, CA, Baldwin Park, CA and Beaverton, OR.

Prospects to Aid FormFactor

With the latest initiative, FormFactor strives to strengthen the probe card segment and expand its presence in the booming probe card market.

The probe card market is witnessing significant growth worldwide, owing to the growing usage of probe cards in manufacturing electronic products. Also, the development of newer technologies is creating growth opportunities in this market.

According to a report by The Insight Partners, the underlined market is expected to hit $3.4 billion by 2028 from $2.2 billion in 2021, witnessing a CAGR of 6.7% during the 2021-2028 period.

Further, the global probe card market is likely to touch $2.2 billion by 2026, progressing at a CAGR of 4% between 2021 and 2026, per 360 Research Reports.

Bottom Line

The recent move is in sync with the company’s growing efforts toward gaining further momentum across the semiconductor manufacturing space on the back of its expanding portfolio.

Further, FormFactor’s strong initiatives toward maintaining accuracy, speed and frequency of the probe card remain a positive.

Apart from the recent effort, the company previously collaborated with Northrop Grumman (NOC - Free Report) for developing a new probe system that operates at 4 Kelvin and below. This increased the scale of production required for developing superconducting compute applications.

It is worth mentioning that the partnership with NOC has expanded FormFactor’s portfolio of probe systems and boosted its presence in the cryogenic test and measurement space.

These initiatives are expected to continue contributing positively to the company’s top-line growth in the upcoming period.

Zacks Rank & Stocks to Consider

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

Investors interested in the broader technology sector can consider stocks like Advanced Micro Devices (AMD - Free Report) and Mimecast Limited , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices has gained 51.2% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 46.2%.

Mimecast has gained 39% on a year-to-date basis. The long-term earnings growth rate for the stock is currently projected at 35%.

Published in