Aehr Test Systems (NASDAQ:AEHR) Q2 2024 Earnings Call Transcript

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Gayn Erickson: I mean I don’t want to get too much into it, but on DRAM, there’s a couple of other things that need to happen with DRAM to be able to cost-effectively do a wafer-level burn-in. And we’ve had some conversations related to those DFT nodes and what will be needed. Fundamentally, I mean, the HPM device can have a thousand pins on it. Let’s say you have 1000 die on a wafer, that’d be a 1 million-pin wafer pack. You couldn’t build one of those. Okay? And if you could, it wouldn’t be very cost-effective. So the net here is, that’s not the right answer. The answer has to do more with the DFT modes of something like the flash memory that I’m familiar with. And so there’s some other things that need to happen, and we’re looking to help enable that.

Flash memory is probably the leading edge of this instead. It’s easier to get there, but it’s pretty specific, Larry. But I mean DRAM would be I’d say probably the most impactful to the financials of those companies, and so they would have the vested interest to make those changes to their devices. Let me leave it at that, okay?

Larry Chlebina: Okay, that’s all I had. Take care, you guys.

Gayn Erickson: Thanks, Larry.

Chris Siu: Thank you.

Operator: Thank you. This does conclude today’s call. I will now turn the call back to Aehr Test management team for closing remarks.

Gayn Erickson: All right, thank you. I actually wrote myself a couple of comments here I just wanted to do just make sure to summarize because I mean candidly this is the first time we’ve come in and lowered and so we’ve tried to do our best to ensure that all of our shareholders, our customers, our employees understand that where we’re at. We’re not in DEFCON 5 position here, we lowered our growth expectations but believe that they’re going to recover as we go forward. Aehr Test has spent a lot of time selecting and focusing on some really incredible markets some of those selected us if you will and we believe we’re going to give us the opportunity to have more than our fair share of growth in the semiconductor capital equipment market.

We’re actually growing faster than semis and semiconductor capital equipment this year, right? So that — there is a little interesting, people don’t put in perspective. We’re focused on production wafer level test and burn-in of silicon carbide, gallium nitride. We’ve talked about the growth and electrification worldwide infrastructure, electric vehicle traction inverters, infrastructure, data centers, solar, numerous industrial application and we’re candidly focused on engaging with mobile companies in the silicon photonics, okay? And we talked about the large companies that have roadmaps that are heading in a direction if you will where we have gotten to a place where they’re coming towards us, okay? We also talked about memories and I think as memory goes towards things like heterogeneous integration for graphics, AI processors, et cetera, long term, that’s going to make sense for this as well.

There’s these large macro trends that are going on, semiconductors are going to double in the next seven, eight years. More semiconductors are less reliable, compound semiconductors, smaller line widths et cetera, and more and more semiconductors are going into applications that really matter like automotive applications and sensors and things like this, and the heterogeneous integration, which is the result of the end of Moore’s law, people are having to put more chips together in the same package to be able to continue to meet the technical roadmaps and when they do that, burning them in in the package or module form doesn’t make sense. These are all things that are aiming towards us for our solution and candidly, we think we have a unique — integrated a unique technology and solution for providing a one-stop shop for the systems, contactors, applications, test programs, and have the ability and the capacity and the lead times to meet the customer needs.

So we’re going to focus on market share, and we’re going to focus on maintaining and growing profitably, right? If we can maintain a high market share in these new exciting growth markets, we think we can achieve strong growth in a healthy profitable manner and that’s going to reward our shareholders, employees, and our customers. And so with that, I really thank everyone for attending and we look forward to providing you all with an update at our next quarterly conference call. Take care.

Operator: Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

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