Advanced Energy Industries (AEIS) KeyBanc Capital Markets Technology Leadership Forum summary

Company overview and strategy

• Focuses on technology leadership, new product execution, and manufacturing excellence to gain market share in high-end markets, including semiconductor, data center, industrial, and medical.

• Maintains high R&D investment during slow periods to drive innovation and future growth.

• Emphasizes a culture of continuous improvement and urgency, leveraging demanding customers to enhance performance.

• Operates in a $10 billion TAM with $1.7 billion in revenue, targeting high-end, synergistic markets.

Semiconductor segment and product innovation

• Launched eVoS and eVerest power supplies for advanced semiconductor nodes, with all customers actively evaluating and many moving to qualification.

• Over 200 units of eVoS/eVerest and 50 NAVX units to be shipped this year, with revenue impact expected to start in H2 2025 and ramp in 2026-2027.

• Products enable greater process control in etch and deposition, addressing challenges in new node transitions.

• Anticipates multiple points of market share gain over five years, translating to profitable revenue.

• Service revenue exceeds $40 million per quarter, expected to grow with installed base.

Market trends and outlook

• Inventory issues in 2023-2024 expected to resolve by year-end, shifting focus to demand in 2025.

• Positioned for growth as etch and deposition intensity rises with new architectures like Gate-All-Around.

• Mature node demand has softened due to inventory, but service and legacy product sales continue.

• Direct China exposure is low and has decreased further post-export controls; indirect exposure remains via customers.