Veeco builds the specialized machines that deposit and etch ultra-thin layers onto silicon wafers, enabling chips, LEDs, and photonics devices. Think of it as the precision toolmaker for semiconductor manufacturing, not the chipmaker itself.
Revenue comes from selling these process tools to chipmakers, foundries, and OSATs. The business is lumpy and capital-intensive, with gross margins around 38% and net margins just 3-5% in recent years, reflecting high R&D and cyclical demand.
Veeco's ion beam and MOCVD technologies are deeply embedded in specific niches like hard disk drive heads and advanced packaging, where customers like TSMC and Samsung rely on proven recipes. However, Applied Materials and Lam Research are aggressively pushing
Sell (sector percentile 25) — value C+, growth C, profitability C, momentum B. Updated daily, sector-relative, identical for every user.
