Larry Chlebina

Larry Chlebina (Chlebina Capital Management) inquired about the potential impact of the AMD/OpenAI collaboration on Aehr Test Systems' evaluation process for its second AI processor. He also asked if the optical I/O opportunity would primarily involve new machines or upgrades, and if the company would eventually run out of machines to upgrade. Additionally, Chlebina sought clarification on whether the high-bandwidth flash (HBF) opportunity was with a new company or an existing one, and if HBF would supersede the original enterprise flash application.

Answer

CEO Gayn Erickson stated that good news for the processor market generally benefits Aehr Test Systems, confirming ongoing conversations with all top AI suppliers, including AMD. For optical I/O, he indicated that the forecast includes both new machines and upgrades, noting that existing systems can be upgraded with automation features like the fully integrated wafer pack aligner. Erickson confirmed that the HBF opportunity is with the same existing company, representing evolving requirements. He suggested that HBF presents an enormous opportunity that might 'trump' the original enterprise flash application, as the new system configuration is a superset of older requirements, and existing tools are incompatible with HBF, which is favorable for Aehr.

Larry Chlebina (Chlebina Capital Management) inquired about the potential impact of the AMD/OpenAI collaboration on Aehr Test Systems' evaluation process for its second AI processor. He also asked if the optical I/O opportunity would primarily involve new machines or upgrades, and if the company would eventually run out of machines to upgrade. Additionally, Chlebina sought clarification on whether the high-bandwidth flash (HBF) opportunity was with a new company or an existing one, and if HBF would supersede the original enterprise flash application.

Answer

CEO Gayn Erickson stated that good news for the processor market generally benefits Aehr Test Systems, confirming ongoing conversations with all top AI suppliers, including AMD. For optical I/O, he indicated that the forecast includes both new machines and upgrades, noting that existing systems can be upgraded with automation features like the fully integrated wafer pack aligner. Erickson confirmed that the HBF opportunity is with the same existing company, representing evolving requirements. He suggested that HBF presents an enormous opportunity that might 'trump' the original enterprise flash application, as the new system configuration is a superset of older requirements, and existing tools are incompatible with HBF, which is favorable for Aehr.

Larry Chlebina of Chlebina Capital Management sought confirmation on the status of its first AI customer, the number of distinct AI customers, the booking of an 18-wafer silicon carbide system, the future of high-voltage SiC systems, and the timeline for an HBM memory evaluation.

Answer

President & CEO Gayn Erickson confirmed the first AI customer is pleased and that more orders are expected this fiscal year. He clarified they are engaged with three distinct AI customers. The 18-wafer SiC system upgrade was shipped and booked in the quarter, and he expects most future SiC systems will include the premium high-voltage option. On HBM, Erickson noted that the new fine-pitch WaferPak technology developed for flash memory now makes an HBM evaluation technically feasible, positioning it as a future opportunity.

Larry Chlebina asked about the installation timing for the first AI processor system, Q3 packaged part revenue, the motivation for the flash memory customer's interest, whether the new fine-pitch WaferPak opens the DRAM market, and the opportunity with a customer's 3D packaging facility.

Answer

CEO Gayn Erickson confirmed the first AI system is now running at the customer's OSAT, with the full initial order to be installed by quarter-end. CFO Chris Siu stated packaged part revenue was over 20% in Q3. Erickson explained that new technologies like hybrid bonding in flash memory are driving the need for Aehr's wafer-level solution to improve yields. He agreed the fine-pitch WaferPak technology opens opportunities in DRAM, particularly for HBM. Regarding the 3D packaging facility, Erickson acknowledged the significant opportunity for burn-in solutions in multi-chip modules without confirming customer specifics.

Larry Chlebina inquired about the installation timing for the first AI processor XP system, Q3 packaged part revenue, the technical motivations for the flash memory engagement, and whether new WaferPak technology opens the DRAM market. He also asked about opportunities with a customer's 3D packaging facility.

Answer

CEO Gayn Erickson confirmed the AI system is now running at the customer's OSAT. CFO Chris Siu stated packaged part revenue was over 20% of total revenue. Erickson explained the flash memory opportunity is driven by technology shifts like hybrid bonding that necessitate wafer-level burn-in to improve yields. He agreed the new fine-pitch technology opens possibilities for DRAM, especially HBM. He also acknowledged the significant opportunity in providing burn-in solutions for complex multi-chip modules to improve yields before final assembly.

Larry Chlebina of Chlebina Capital explored the scale of the AI processor and HBM testing opportunities, asking if the potential market is much larger than stated and if Aehr has the manufacturing capacity to meet such a surge in demand.

Answer

Executive Gayn Erickson acknowledged the AI-related opportunities are very large and that the motivation for wafer-level burn-in for components like HBM has dramatically increased. He assured that Aehr has significant and scalable manufacturing capacity, utilizing subcontract manufacturers, and is well-prepared to handle a substantial increase in demand.