#Japan #Semiconductor #Akishima #Rigaku #Onto Innovation

Rigaku and Onto Innovation: Strengthening Semiconductor Solutions

Rigaku Holdings, a leader in X-ray analysis technology, announced a significant strategic partnership with Onto Innovation, a Massachusetts-based company specializing in semiconductor process control. This collaboration marks Onto Innovation's acquisition of a 27% stake in Rigaku, aimed at accelerating advancements in semiconductor technology and aligning with Rigaku’s growth strategy in process control.

Objectives of the Partnership

The primary goal of this alliance is to merge Rigaku's advanced X-ray technology with Onto Innovation's optical measurement and AI analysis software, thereby enhancing measurement solutions tailored for next-generation semiconductors. As the semiconductor industry faces increasingly complex manufacturing challenges, this partnership is set to address heightened customer demands and evolving market conditions.

Key highlights of the partnership include:

• - Alignment with Growth Strategy: The collaboration directly fortifies Rigaku's semiconductor process control business, which is pivotal for its overall growth strategy.
• - Technological Synergy: The complementary strengths of Rigaku's X-ray technology and Onto Innovation's optical measurement systems facilitate mutual enhancement and lead to innovative solutions.
• - Strategic Market Positioning: By capitalizing on the evolving needs of customers and the complexities in semiconductor fabrication, the partnership aims to establish a robust market position in semiconductor process control.
• - Competitive Advantage: The alliance seeks to create a new niche within the semiconductor field, enabling both companies to elevate their standing in a competitive landscape.

Ongoing Collaborative Development

Currently, the two companies are working on a combined hybrid measurement system that integrates Rigaku's CD-SAXS with Onto Innovation's analysis software. This collaboration will progress further through the new partnership, strengthening their joint efforts in developing state-of-the-art measurement solutions.

Specific Initiatives

• - Hybrid Metrology: By integrating X-ray and optical measurement techniques, the partnership aims to enhance compatibility with the miniaturization and three-dimensional structures of logic and memory semiconductors.
• - Expansion into Advanced Packaging: There will be an acceleration of business efforts in inspection and measurement within emerging areas of advanced semiconductor packaging.
• - Creation of New Markets: The collaboration is projected to aim for at least $300 million in new market generation through Rigaku products by 2030.
• - Incorporation of Software and AI: The merger of Rigaku's technical capabilities with Onto Innovation's software is intended to create an integrated solution encompassing measurement, analysis, and yield management across customer processes.
• - Enlargement of Customer Base: Leveraging Onto Innovation’s extensive global customer framework, the partnership aims to expedite the market expansion of Rigaku’s products.

Overview of the Capital Investment

Onto Innovation has reached a final agreement to acquire 61,123,436 shares of Rigaku, accounting for 27% of the latter’s outstanding shares (excluding treasury stock). This transaction is designed to develop a long-term strategic partnership between the two companies, fostering collaboration and mutual growth.

Governance Structure

Post-partnership, Rigaku will maintain its autonomy and independence as a publicly-listed company. Restrictions will be in place regarding the transfer and additional acquisition of shares to ensure a stable partnership relationship. For more detailed insights, stakeholders can refer to the timely disclosures available on Rigaku's or the Tokyo Stock Exchange's website.

About Onto Innovation Inc.

Onto Innovation Inc. leads the semiconductor process control sector, boasting a global presence and cutting-edge technology portfolio. Their offerings include non-patterned wafer quality evaluation, 3D measurements of chip structures from nanoscale transistors to large-scale die interconnections, macro-defect inspections of wafers and packages, and factory analytics. Headquarters are located in Wilmington, Massachusetts. For more information, visit Onto Innovation.

About Rigaku Group

Since its inception in 1951, Rigaku Group has been at the forefront of advanced analytical technology driven by X-ray analysis. With a robust client base spanning across 136 countries, Rigaku continues to evolve, now holding a significant market share in Japan while generating approximately 70% of its revenue from international markets. The application areas of Rigaku’s technology expand daily, from semiconductors and electronic materials to battery technology, environmental energy, and life sciences. Over 2,000 employees globally are dedicated to innovation aimed at changing the world through sight. Learn more at Rigaku Holdings.