Semiconductor process technology equipment maker Veeco Instruments Inc. has acquired Solid State Equipment Holdings LLC (SSEC) in an effort to boost its compound semiconductor and microelectromechanical systems (MEMS) equipment portfolio.
Veeco, which supplies equipment for the manufacturing of LEDs, flexible OLEDs displays, MEMS and wireless chips, said the deal will extend the companies compound chip and MEMS footprint as well as give Veeco a foothold in the advanced packaging market. The acquisition was for $150 million in cash and Veeco expects to see $65 million in revenues from the deal next year.
John R. Peeler, chairman and CEO of Veeco, said in a statement that SSEC was a “great strategic fit with Veeco” and that its soak and spray technology is a synergistic technology with Veeco that “will drive growth and profitability.”
Veeco said that consumer demand for smaller, faster, lower power devices across the handset, computer and consumer markets is being driven by 3D stacked memory, 3D system-on-chip and MEMS. Furthermore, with shipments of smartphones and wearables on the rise, MEMS growth will be a key factor for growth moving forward. Veeco said because of this it believes its served available markets for advanced packaging, compound semiconductor and MEMS are expected to see double-digital compound annual growth rates (CAGR) in the coming years.
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