Cuộc họp công bố kết quả kinh doanh quý 3/2026 của Veeco (VECO): Tăng trưởng năm 2027 dự kiến đạt gần 40%

Điểm nhấn chính

• Veeco công bố doanh thu quý 3 năm 2026 đạt 209 triệu USD, nằm trong khoảng dự báo. Lợi nhuận từ hoạt động kinh doanh non-GAAP đạt 25 triệu USD và EPS pha loãng đạt 0,36 USD.
• Doanh thu mảng bán dẫn tăng 4% so với quý trước lên 135 triệu USD, nhờ các hệ thống ủ nhiệt bằng laser phục vụ các khách hàng chip nhớ và logic tiên tiến cùng các thiết bị xử lý ướt cho đóng gói tiên tiến.
• Doanh thu mảng bán dẫn phức hợp tăng 96% so với quý trước lên 40 triệu USD, chủ yếu nhờ các hệ thống MOCVD và lắng đọng chùm ion phục vụ mảng quang tử học silicon.
• Ban lãnh đạo dự báo doanh thu quý 4 đạt 230 triệu - 260 triệu USD và cập nhật dự báo doanh thu cả năm 2026 lên 790 triệu - 820 triệu USD, với EPS pha loãng non-GAAP đạt 1,32 - 1,52 USD.
• Veeco kỳ vọng tăng trưởng doanh thu năm 2027 sẽ tiệm cận cận trên của khoảng 20% - 40% được thảo luận trong cuộc họp, sau khi đã tính đến các hạn chế tiềm ẩn về nguồn cung. Ban lãnh đạo cũng nhận thấy triển vọng doanh thu cả năm 2027 có thể vượt 1 tỷ USD.
• Công ty có kế hoạch tăng hơn gấp đôi công suất sản xuất vào năm 2027 để đáp ứng nhu cầu đóng gói tiên tiến và quang tử học silicon thông qua việc mở rộng nội bộ và hợp tác với các nhà sản xuất gia công theo hợp đồng tại Đông Nam Á và Hoa Kỳ.

Dữ liệu tài chính cốt lõi

Khu vực Châu Á - Thái Bình Dương không bao gồm Trung Quốc đóng góp 45% doanh thu theo quý, Hoa Kỳ chiếm 31%, Trung Quốc chiếm 12%, khu vực EMEA và phần còn lại của thế giới chiếm 12%.

Hoạt động kinh doanh và vận hành

Đóng gói tiên tiến

Veeco cho biết các đơn hàng từ những khách hàng gia công đúc chip, chip nhớ và OSAT hàng đầu đã củng cố lượng đơn hàng tồn đọng (backlog) và tăng mức độ dự đoán rõ ràng cho năm 2027 và 2028. Ban lãnh đạo kỳ vọng doanh thu đóng gói tiên tiến sẽ tăng trưởng đáng kể vào năm 2027, trong đó mảng xử lý ướt và quang khắc đang hướng tới mức tăng gấp đôi so với các mức cao hiện tại.

Công ty đã giao thiết bị dạng tấm xử lý ướt thế hệ tiếp theo cho một xưởng đúc chip hàng đầu để kiểm định. Nhằm đáp ứng nhu cầu, Veeco đang bổ sung công suất gia công theo hợp đồng tại Đông Nam Á và Hoa Kỳ, với các lô hàng đầu tiên từ Đông Nam Á dự kiến sẽ được bàn giao vào quý 1 năm 2027.

Ủ nhiệt và chip nhớ

Nền tảng ủ nhiệt bằng xung laser của Veeco tiếp tục là công cụ sản xuất tiêu chuẩn tại cả ba khách hàng sản xuất chip logic Cấp 1. Đối với hệ thống ủ nhiệt nano giây thế hệ tiếp theo, một khách hàng đã hoàn tất quá trình đánh giá và đặt đơn hàng đem lại doanh thu, khách hàng thứ hai đang trong quá trình đánh giá, và một hệ thống đã được giao cho khách hàng thứ ba.

Ở mảng chip nhớ, thiết bị LSA của Veeco là công cụ sản xuất tiêu chuẩn tại một khách hàng sản xuất bộ nhớ băng thông cao Cấp 1. Một khách hàng DRAM Cấp 1 thứ hai đang đánh giá nền tảng này, với các đơn đặt hàng tiếp theo tiềm năng vào năm 2027 và 2028. Công ty cũng dự kiến sẽ bàn giao hệ thống LSA đầu tiên phục vụ ứng dụng NAND vào cuối năm 2026.

Hai hệ thống IBD300 đang được các khách hàng sản xuất DRAM hàng đầu đánh giá cho các ứng dụng bao gồm kim loại hóa đường bit. Ban lãnh đạo cho biết các khách hàng hiện đang tìm kiếm thêm thiết bị nhằm hỗ trợ các chương trình dây chuyền thử nghiệm và HBM, với các đợt giao hàng tiềm năng vào năm 2027.

Quang tử học silicon và bán dẫn phức hợp

Quang tử học silicon tiếp tục là động lực tăng trưởng cốt lõi. Veeco đã nhận được nhiều đơn đặt hàng Lumina và Lumina+ từ các khách hàng trong lĩnh vực quang tử học và đang mở rộng sang mảng epitaxy laser indi photphua, xử lý ướt và lớp phủ bề mặt laser.

Ban lãnh đạo ước tính những cơ hội hợp tác trong mảng quang tử học silicon này đại diện cho tiềm năng thị trường ít nhất 2 tỷ USD trong vài năm tới. Tuy nhiên, công ty cho biết việc nâng công suất dòng sản phẩm Lumina mới hơn lên quy mô sản xuất lớn hơn sẽ cần thời gian, điều này làm hạn chế một phần mức tăng trưởng năm 2027 và dịch chuyển việc gia tăng thị phần rộng lớn hơn sang cuối năm 2027, 2028 và sau đó.

Đối với công nghệ GaN-on-silicon, Veeco đã nhận được một đơn đặt hàng sản xuất quy mô lớn dự kiến giao vào năm 2027 để hỗ trợ dây chuyền thử nghiệm của khách hàng. Ban lãnh đạo kỳ vọng hoạt động này có thể bắt đầu trong nửa cuối năm 2027 và có tiềm năng tăng tốc mở rộng vào năm 2028, tùy thuộc vào nhu cầu của khách hàng.

Lưu trữ dữ liệu

Doanh thu mảng lưu trữ dữ liệu đạt 20 triệu USD trong quý 3. Veeco kỳ vọng mảng này sẽ tăng gần gấp đôi so với cùng kỳ năm trước vào năm 2026 và tăng trưởng khoảng 20% vào năm 2027, nhờ việc áp dụng công nghệ HAMR cùng nhu cầu từ điện toán đám mây và các trung tâm dữ liệu AI. Khả năng dự đoán đơn hàng đã kéo dài sang năm 2028.

Ban lãnh đạo cho biết mảng kinh doanh này không bị hạn chế về nguồn cung, nhưng các tín hiệu nhu cầu hiện tại từ khách hàng chưa cho thấy dấu hiệu quay trở lại các mức đỉnh trước đây.

Dự báo của ban lãnh đạo

Triển vọng quý 4 được xây dựng dựa trên giả định sản lượng cải thiện và cơ cấu sản phẩm thuận lợi hơn. Veeco dự kiến doanh thu mảng bán dẫn cả năm 2026 sẽ tăng khoảng 10% đến 15%, trong khi doanh thu bán dẫn phức hợp và lưu trữ dữ liệu dự kiến đều sẽ tăng xấp xỉ gấp đôi so với năm 2025.

Đối với năm 2027, ban lãnh đạo kỳ vọng mức tăng trưởng trên toàn công ty sẽ tiệm cận 40%, bao gồm cả các tác động dự kiến từ hạn chế nguồn cung. Doanh thu mảng bán dẫn cũng dự kiến tăng khoảng 40%, dẫn đầu bởi mảng đóng gói tiên tiến, trong khi tổng doanh thu bán dẫn và bán dẫn phức hợp dự kiến sẽ tăng nhanh hơn mức trung bình của công ty.

Rủi ro và các yếu tố cần theo dõi

• Veeco đang gặp phải tình trạng thời gian giao hàng từ nhà cung cấp kéo dài hơn và thiếu hụt một số linh kiện nhất định. Công ty đang đặt hàng sớm hơn, thẩm định các nhà cung cấp thay thế và sử dụng hình thức thanh toán trước để đảm bảo nguồn cung.
• Biên lợi nhuận gộp quý 3 chịu áp lực từ chi phí chuỗi cung ứng tăng, cơ cấu sản phẩm và việc trì hoãn ghi nhận doanh thu đối với một hệ thống LFA đang được chính phủ Hoa Kỳ thẩm xét xuất khẩu.
• Công ty dự kiến mảng kinh doanh ủ nhiệt bằng laser tại Trung Quốc sẽ tiếp tục giảm trong năm 2027, khiến Trung Quốc chiếm tỷ trọng nhỏ hơn trong cơ cấu kinh doanh.
• Việc nâng công suất sản xuất quy mô lớn hơn đối với nền tảng Lumina MOCVD vẫn bị hạn chế bởi thời gian cần thiết để mở rộng quy mô một sản phẩm mới hơn.
• Thương vụ sáp nhập Axcelis vẫn phụ thuộc vào các điều kiện hoàn tất giao dịch thông thường, bao gồm việc phê duyệt theo quy định tại Trung Quốc. Ban lãnh đạo dự kiến thương vụ sẽ hoàn tất vào cuối quý 1 năm 2027.

Điểm nhấn phần hỏi đáp với các nhà phân tích

• Tăng trưởng năm 2027 và các hạn chế nguồn cung: Ban lãnh đạo cho biết triển vọng tăng trưởng gần 40% đã tính đến các điểm nghẽn tiềm ẩn về linh kiện và rủi ro thực thi. Veeco đã đặt hàng cho các nhu cầu của cả năm 2027 và đang mở rộng quan hệ hợp tác gia công sản xuất theo hợp đồng.
• Công suất đóng gói tiên tiến: Công ty kỳ vọng doanh thu mảng đóng gói tiên tiến sẽ hướng tới mức tăng gấp đôi vào năm 2027. Việc bổ sung các nhà sản xuất gia công theo hợp đồng nhằm giảm bớt hạn chế về không gian tại nhà máy hiện tại của Veeco.
• Thời điểm triển khai GaN-on-silicon: Một hệ thống phục vụ dây chuyền thử nghiệm của khách hàng dự kiến được giao vào năm 2027. Ban lãnh đạo cho biết hoạt động này có thể bắt đầu vào nửa cuối năm 2027 và có khả năng tăng tốc mở rộng vào năm 2028, tùy thuộc vào nhu cầu cuối cùng của khách hàng.
• Mức độ đón nhận IBD300: Phản hồi từ khách hàng nhấn mạnh chất lượng màng mỏng và điện trở thấp. Veeco cho biết tiến độ gần đây trong việc chứng minh độ ổn định của hệ thống đang hỗ trợ các cuộc thảo luận cung cấp thêm thiết bị cho dây chuyền thử nghiệm và HBM vào năm 2027.
• Màng pellicle EUV: Veeco đang mở rộng ra ngoài khách hàng gia công đúc chip hiện tại để hợp tác với các nhà cung cấp màng pellicle phục vụ các khách hàng lớn khác, chủ yếu trong các ứng dụng chip logic.

Toàn văn biên bản cuộc họp công bố kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Greetings, and welcome to the Veeco Third Quarter 2026 Earnings Call. [Operator Instructions] It is now my pleasure to introduce your host, Alex Delacroix, Head of Investor Relations. Thank you. You may begin.

Alex Delacroix

Thank you, and good afternoon, everyone. Joining me on the call today are Bill Miller, Veeco's Chief Executive Officer; and John Kiernan, our Chief Financial Officer. The earnings release and slide presentation to accompany today's webcast is available on the Veeco website. To the extent that this call discusses expectations for future revenues, future earnings, the timing and expected benefits of the proposed transaction with Axcelis, market conditions or otherwise make statements about the future. These forward-looking statements are based on management's current expectations and are subject to the risks and uncertainties that could cause actual results to differ materially from the statements made.

These risks are discussed in detail in our Form 10-K, annual report and other SEC filings. Veeco does not undertake any obligation to update any forward-looking statements, including those made on this call to reflect future events or circumstances after the date of such statements. Management will address certain non-GAAP financial results. We encourage you to refer to our reconciliation between GAAP and non-GAAP results, which you can find in our press release and at the end of the earnings presentation. Please note that we will not be addressing questions related to our pending merger with Axcelis. We urge you to read the joint proxy statement relating to the transaction with Axcelis. With that, I would now like to hand the call over to our CEO, Bill Miller.

William Miller

Thank you, Alex, and thank you, everyone, for joining us today. Across the semiconductor industry, AI infrastructure investment is driving a broad wave of technology transitions, including more advanced logic and memory architectures, greater packaging complexity and increasing requirements for high-speed optical connectivity. These trends are creating significant tailwinds across our differentiated portfolio of ion beam deposition, annealing, advanced packaging and epitaxy technologies. With strong customer engagement and increasing orders, we believe these opportunities position us for sustainable long-term growth and provide a clear path to exceed $1 billion in revenue for the full year 2027.

Four key takeaways from the third quarter are: first, we delivered solid financial results in the third quarter. Revenue was $209 million within our guidance range. Non-GAAP operating income was $25 million, and non-GAAP diluted earnings per share was $0.36. Second, we continue to experience significant order wins in front-end semiconductor, advanced packaging and silicon photonics areas. Our recent wins continue to strengthen our backlog and reinforce our confidence in our revenue growth. Third, we continue to advance our market-leading ion beam deposition technology, which spans our major business areas of semiconductor, silicon photonics and data storage. We are pleased with the progress of our next-generation IBD300 program and see a path toward commercial adoption.

Fourth, we remain focused on executing against the increasing demand through investments in our supply chain with contract manufacturing partners, along with expanding our internal manufacturing capacity. We remain highly optimistic about the growth opportunities created by AI infrastructure and high-performance computing. With strong execution, increasing customer engagement and strategic investments underway to support industry demand, we believe Veeco is well positioned to capitalize on these secular trends.

Before diving in deeper, I'll briefly touch on the merger with Axcelis. The transaction continues to progress with shareholders' approvals secured and progress on customary closing conditions, including China regulatory review. We continue to work constructively with China to obtain clearance. We expect the transaction to close by the end of the first quarter of 2027. In parallel, our integration teams continue to plan for a seamless close and remain focused on realizing the potential fundamental long-term value creation we believe will be unlocked from this combination.

Moving to the next slide. I'll highlight our critical role in semiconductor manufacturing and our served available market opportunity through 2030. AI-driven investment and increasing device complexity are accelerating technology transitions across advanced packaging, leading logic and memory customers. These trends align well with our differentiated portfolio and are creating multiple opportunities to expand our served available market and drive long-term growth.

I'll begin with advanced packaging, which continues to be a major growth area for our wet processing and lithography tools. Throughout the year, we have received significant orders from leading foundry, memory and OSAT customers, strengthening our backlog and increasing our visibility for 2027 and into 2028. Beyond the strong order momentum, our pipeline continues to expand as customers evaluate our technology for next-generation advanced packaging applications. For example, we are engaged with a Tier 1 foundry on the qualification of a next-generation wet processing panel tool. Advanced packaging is becoming an increasingly meaningful contributor to our growth as we gain share in a growing market that we project will approach $1 billion by 2030.

To meet anticipated customer requirements, we intend to more than double our manufacturing capacity in 2027 through both in-house expansion and strategic outsourcing partnerships in Southeast Asia and the United States, providing additional scale and flexibility as we prepare for higher customer volumes. In the front-end manufacturing process, we serve advanced logic and foundry as well as memory customers. In logic and foundry, our annealing solutions continue to be a market leader. Our laser spike annealing product remains production tool of record at all 3 Tier 1 logic customers, driving ongoing business. We continue to advance our next-generation nanosecond annealing system, addressing critical low thermal budget applications. We have successfully engaged all 3 Tier 1 logic customers and made significant progress advancing NSA over the past several months.

One customer has completed its evaluation and placed a revenue order. A second continues to make progress towards completing its evaluation and we recently shipped an evaluation system to the third customer. Customers are seeing great results and are accelerating their adoption of our NSA system. We see potential for additional orders in the coming months, supporting their pilot lines and high-volume manufacturing needs.

Turning to memory. We are in the early stages of building this business as customers begin adopting laser annealing technologies. We see significant runway for growth as adoption expands, supported by AI-driven demand for DRAM and NAND technologies. We continue to make progress with leading memory customers, including our LSA tool serving as the production tool of record at a Tier 1 high-bandwidth memory customer that accelerated their investment in 2026. We are advancing an LSA evaluation system at a second Tier 1 DRAM customer with potential follow-on orders in 2027 and 2028. And our engagement with a third DRAM customer could lead to an evaluation agreement in 2027. Our opportunity is also expanding into NAND. Several customers are exploring applications for our LSA and NSA platforms, and we expect to ship our first LSA system for a NAND application to a leading customer by year-end. As 3D NAND manufacturers increase layer counts and device complexity, controlling thermal exposure becomes increasingly critical.

Together, these opportunities support our confidence in an annealing SAM of approximately $1.3 billion by 2030. Beyond annealing, we see another meaningful opportunity to expand our presence in memory through our IBD300 platform. Two systems are currently under evaluation at leading DRAM customers for advanced memory applications, including bitline metallization where low-resistance films are increasingly critical. These evaluations are progressing with strong customer engagement and program expansion in 2027.

Lastly, we continue to be a market leader in ion beam deposition for EUV mask blanks, working closely with major customers to enable their technology road maps. Demand is supported by AI-driven scaling, increasing EUV layer counts at leading-edge logic nodes and the expanding adoption of EUV and high-bandwidth memory applications. Our technology is a critical enabler of the multilayer mirrors used in EUV mask blanks, and we are deeply engaged with customers and industry leaders as they advance their road maps toward high-NA lithography and larger format masks. This close collaboration positions us at the forefront of enabling the industry's next generation of EUV technology. We are also expanding our EUV-related opportunity into pellicle applications where we continue to win production business at a Tier 1 foundry and engage with new customers. Taken together, we see our ion beam deposition SAM in the front-end semiconductor market to be approximately $500 million by 2030.

On the next slide, I'll discuss our compound semiconductor market and projected SAM through 2030. AI infrastructure is driving greater demand for high-speed optical connectivity and power-efficient semiconductor devices, creating attractive growth opportunities across our portfolio. In silicon photonics, we project a $700 million SAM by 2030, primarily driven by indium phosphide lasers for high-speed optical connectivity. We are gaining momentum across the laser manufacturing process with multiple Lumina and Lumina+ orders year-to-date, a market leader position in wet processing and our differentiated Spectra IBD technology for laser facet coatings. I'll discuss this opportunity in greater detail on the next slide.

In other photonics, we project a $550 million SAM by 2030, including applications in space-based solar, micro-LED displays and other emerging photonics technologies. And in GaN power, we project a $250 million SAM by 2030, supported by AI data center power requirements, electrification and other high-power density applications. Our Propel 300-millimeter GaN on silicon platform continues to progress with a leading power semiconductor customer as we work toward completing technical qualifications for future capacity expansion. Collectively, these opportunities position Veeco to benefit from the growing requirements for advanced connectivity and power efficiency as AI infrastructure continues to scale.

Next, I'll dive deeper into our role in silicon photonics. Within the compound semiconductor market, silicon photonics remains one of our most compelling AI-driven growth areas. As AI clusters scale, higher bandwidth requirements are accelerating the shift from copper to optical connectivity. This transition is driving adoption of advanced indium phosphide lasers across higher-speed pluggable transceivers and longer term, near package and co-packaged optics. Veeco is uniquely positioned across 3 critical steps in the indium phosphide laser manufacturing process, epitaxy, wet processing and laser plastic coatings. Given our customer engagements, we continue to believe this represents at least a $2 billion opportunity over the next several years.

In MOCVD, momentum continues to build for our Lumina and Lumina+ platforms. We have received multiple orders year-to-date from leading photonics customers. We are installing systems at existing customers, pursuing additional expansion opportunities and engaging with prospective customers across epitaxy applications. We continue to win business supported by competitive advantages of our platform, including differentiated productivity, reduced cleaning requirements and larger batch processing. In wet processing, our wafer etch and wafer storm platforms provide critical etching, cleaning and surface preparation solutions for laser manufacturing. And in ion beam deposition, our Spectra tool addresses the critical laser facet coating step. As lasers move to higher power, the requirements for tighter film quality and greater reliability become increasingly stringent, playing directly to the strengths of our differentiated IBD technology.

Together, these capabilities give us broad exposure to the continued scaling of optical connectivity. We're investing to more than double capacity in 2027 to support our customers' unprecedented demand and capture this multiyear growth opportunity. With that, I'll turn the call over to John to review our financial results.

John Kiernan

Thank you, Bill. Revenue came in at $209 million within our guidance range. For the third quarter, our semiconductor revenue was $135 million, an increase of 4% from the prior quarter and comprising 65% of revenue. It was largely driven by laser annealing systems to leading edge foundry logic and memory customers, along with wet processing systems for advanced packaging. For the full year 2026, we expect semiconductor revenue to grow by low to mid-teens compared to the prior full year. This performance is driven primarily by additional sales to leading memory, foundry logic and EUV customers serving AI and high-performance computing applications. In 2027, building on this momentum, we expect revenue growth to meaningfully accelerate led by advanced packaging. Compound semiconductor revenue for the third quarter totaled $40 million, a 96% increase from the prior quarter, totaling 19% of revenue.

For the full year 2026, we expect compound semiconductor revenue to approximately double versus full year 2025. Growth was predominantly driven by our MOCVD and IBD systems for silicon photonics. Looking ahead in 2027, we expect revenue growth to accelerate driven by the significant backlog for these tools.

Turning to data storage. Revenue for the third quarter was $20 million, representing 10% of revenue. We expect revenue to approximately double in data storage year-over-year in 2026. Demand continues to increase driven by cloud computing and AI data centers. We have order visibility for 2027 and extending into 2028. We are aligned closely with our customer road maps as they adopt HAMR, increasing the need for our Ion Beam technology. Lastly, in Scientific and Other, the third quarter revenue was $14 million, representing 6% of revenue.

Turning to the quarterly revenue by region. Revenue from Asia Pacific region, excluding China, was 45%, an increase from the previous quarter. Revenue from the U.S. accounted for 31% of revenue, an increase from the previous quarter, primarily from advanced semiconductor customers. Our China portion was 12% of revenue, a decrease from the previous quarter. EMEA and the rest of the world accounted for 12% of revenue as well. Turning to the third quarter non-GAAP operating results. Gross margin came in at 39%, below expectations due to higher supply chain costs, product mix and the timing of revenue recognition on an LFA system under U.S. government export review. Operating expenses totaled approximately $57 million and income tax expense was $3 million, resulting in an effective tax rate of approximately 12%. Net income was $24 million and diluted EPS was $0.36 on 66 million shares.

Turning to the next slide to review the balance sheet and cash flow highlights. We ended the quarter with cash and short-term investments of $483 million, an increase of $53 million from the prior quarter. From a working capital perspective, our accounts receivable increased by $6 million to $154 million. Inventory increased by $16 million to $308 million and accounts payable increased by $11 million to $68 million. Importantly, customer deposits increased by $58 million to $169 million, reflecting strong customer commitment and demand. Cash flow from operations totaled $58 million and CapEx totaled $4 million during the quarter.

Lastly, I'll review our fourth quarter and updated full year 2026 non-GAAP outlook. Demand across our key markets remains strong, and we continue to make deliberate investments to support our future growth. This includes adding capacity and expanding our supply chain to ensure we are well positioned to meet customer needs as these opportunities scale. While there are certain industry-wide component constraints, we're actively working with our suppliers to address them. Fourth quarter revenue is expected to be between $230 million and $260 million. Gross margin is expected to be between 43% and 44%, reflecting improved volume and more favorable product mix. We expect OpEx between $64 million and $66 million, net income between $34 million and $47 million and diluted EPS between $0.50 and $0.70 on 66 million shares.

We are updating our full year revenue guidance to be between $790 million and $820 million and expect our non-GAAP diluted earnings per share between $1.32 to $1.52 based on 66 million shares. Our third quarter performance and updated full year outlook demonstrate our continued focus on delivering strong financial results while investing deliberately for the future. With a solid foundation, we remain well positioned to fund our capacity expansion, support our customers and execute on the opportunities ahead. With that, we'll now open the call for questions.

Operator

As a reminder, everybody, given the pending merger with Axcelis, Veeco management will not be addressing questions related to the transaction. Thank you. [Operator Instructions] And your first question comes from Charles Shi from Needham.

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Yu Shi

John, I think I heard you talk a little bit about the supply chain component constraints before you gave the outlook. But wondering if you can provide a little bit of additional color on how the supply chain situation looks like for you guys right now. And I noticed that you gave some early view into '27 as well, but we all know you have very strong backlog, semi, compound semi accelerating, but there's still a little bit of range of possibility there. Demand -- unconstrained demand is one question. And assuming you're still going to have some component constraint into next year, what is the more realistic expectation for next year? Hopefully, you can help us from that angle, demand versus supply constraint.

John Kiernan

Sure. I'll handle part of that question. I'll turn part of the question over to Bill as well to talk about demand for next year. So I would say, Charles, similar to what peer company has been reporting, we have seen supply chain challenges increasing. We've experienced longer lead times and certain component shortages. Our supply chain organization is working closely with suppliers. We're placing orders earlier, qualifying alternative suppliers and making use of advanced payments to secure supply. And as you mentioned, we've been working to align supply with higher demand outlook and providing our suppliers with greater forward visibility, placing orders against our '27 requirements for the full year 2027 at this point and expanding our relationships with contract manufacturers there as well.

So while there are constraints, and execution risk, we believe we've identified the key bottlenecks and have actions in place to address them and believe our ability to ramp supply chains to support the demand as we move through 2027.

William Miller

And the second half of your question, Charles, this is Bill, was are those demand constraints limiting your outlook for '27. I would say, as you just said, that we continue to see incredible demand just driven by AI infrastructure, et cetera. And I would say, if I look at where people are kind of targeting WFE in '27 in kind of the range of 20% to 40% growth year-over-year in '27. I would say, and this includes view of the supply constraints, which is your question, we see -- across the whole corporation, all key segments, we see our '27 growth at the higher range of those WFE estimates kind of closer to that 40% range.

Yu Shi

Maybe, Bill, a quick follow-up, right? So let's say, you grow close to that 40%, would that be a potential -- I mean, is that a possible range still with some of the supply constraints that you're probably going to have in mind? Or that's really just an unconstrained demand number right now.

William Miller

No, no. That's a view that takes into account potential supply constraints and bottlenecks and is our kind of current estimate, factoring all that in.

Yu Shi

Well, that's very good color. So maybe a follow-up question on maybe 2 product level -- small product level questions. One, people have been expecting this GaN silicon repeat orders from your top customers. Wondering -- because you do have a long lead time, right, wondering what's the latest on when you think the volume ramp is going to happen, when the repeat order is going to come? That's one. The other, there is this hard disk drive demand and I did hear you talk about visibility extending now already into '28. Wondering if you can provide a little bit more help that rather than just year-on-year, but on the quarterly run rate, where we are heading -- where are we heading to?

I think your bottom level was kind of like $10 million per quarter, right? That's purely service or data storage, but you are now run rating just -- maybe you're going to the $25 million per quarter, but wondering if we can ever get back to the prior peak level, which I believe exceeded probably $50 million per quarter. I want to get some thoughts on how you think about the ramp of data storage as well. That's the 2 questions rolled into one.

William Miller

I'll try to keep me honest here, Charles. On GaN on silicon, we do have an eval at a large IDM for 300-millimeter GaN on silicon. Our understanding from close engagement with the customer is the machine is operating well. It's producing high-quality epitaxy. It's being used to provide parts to their customers for qualification. We have -- we did announce, I believe, that we are in receipt of a kind of an HVM order for shipment in 2027 to support our customers' pilot line. So I think it probably will be starting in the back half of '27. And depending on how their customer demand evolves, that would probably ramp in '28. That's Bill's guess of the customer's view.

So if there's no questions on GaN Power, I'll move to data storage. I would say you're right that the kind of $10 million run rate is kind of a service only, and we have effectively doubled the business in 2026, up to kind of $80 million rate. And we do have visibility into '27 and into '28. I think the challenge that makes answering your question on a quarterly basis challenging is that the ASPs of these tools are kind of in the $5 million, $8 million, $10 million each. So a tool moving around between one quarter and another doesn't really justify it. But I would say, if I look at '27 in totality, I would say it's probably going to grow in about the 20% range, probably half the rate of the rest of the company. But we do have very good visibility of that business.

Yu Shi

All right. So it sounds like the HDD side of the business, I mean, compare with, let's say, the 2021 peak, previous cycle peak is still pretty constrained at this point?

John Kiernan

I don't know that it's constrained, Charles. This is John, constrained or this is what the customer telling us demand is, right? They're saying capital intensity is like 4% to 6% of their revenues. We wouldn't be capacity constrained going into this level of business. So I don't think that the demand is there right now for going back to sort of peak levels our customers are giving us. I think, as you know, we've been working with these customers for a long period of time on a build-to-order model. They're giving us their requirements for 2027 and highlighting sort of the beginning of 2028 at this point. And none of those demand signals from the customers would indicate we'd be going back to peak level for those customers.

Now that could change if their demand signals change, but we're not receiving those types of demand signals from the customer. And we are not supply constrained in this area given the full lead time that we have visibility that we have.

Operator

And your next question comes from David Duley from Steelhead.

David Duley

I guess my first question is on your MOCVD business for indium phosphide laser production. I think you're kind of the low market share guy there. And could you talk about -- you seem to have indicated some progress on the conference call about winning customers, broadening out your customer base, shipping more tools to current customers. Could you just talk about what your goals are for market share of that business and kind of where you're at now? And what sort of growth would we expect for that part of the -- for MOCVD in 2027?

William Miller

David, I would say, as I think you know, we've developed the Lumina and the Lumina+ product line and recently launched it. And what we're seeing in the marketplace, whether that's in indium phosphide lasers or space-based solar applications or micro LEDs, the product is being broadly accepted, and it seems that it's a pretty capable product in the marketplace. And so we are winning business in this year and growing that business on a number of fronts, but specifically to your question, indium phosphide as well. And so we are working very closely with a few of the leaders. We're doing demos with others, and we're knocking on the doors of others to try to get in. And so I would say some of the challenges that we face is because this is a new product, ramping it to high volume will take a little bit of -- higher volume will take a little bit of time. So this is an area where we are constrained a bit in terms of our growth in '27. But I would expect to start gaining a bit more share in kind of the late '27, '28 and beyond time frames.

David Duley

And then you mentioned your LSA revenue in 2027, I think, is going to be a significant grower. Could you kind of highlight both foundry/logic and for memory, how much you think you can grow next year in relationship to the growth rate you've given for the segment, I guess, the past?

William Miller

Yes. In LSA, in '26, our advanced logic business has really ticked up with the Tier 1s. And the other thing is we've won one memory customer for high-bandwidth memory, and they've grown substantially. So our memory segment has grown substantially in 2026. The headwind we have in '26 is that our China business, as we've been forecasting continues to decline. So our mix of kind of front-end or leading-edge trailing edge has kind of flipped back to more traditional kind of 2/3, 1/3 during 2026 for LSA. When I look at this year, I would -- I think that -- I'm sorry, when I look at '27, I would say, if I'm looking specifically at LSA, I would say that business will continue to grow in the Advanced segment as it has in '26. And we are expecting decline in '27 in China. So we expect China to become less relevant.

And when I look at the semi segment, including advanced packaging and all the other elements, I would say our semi segment will grow at about 40%, similar to what I said earlier, company-wide average. That being said, David, I think it's important for everyone to understand that silicon photonics, where we are seeing significant growth sits in our compound semi segment, not in our semi segment. So if you were to add the compound semi with the semi, it would be growing faster than the company average.

David Duley

And then I signed on just like a couple of minutes late and you're talking about doubling your capacity for advanced packaging, I believe, and talked about a panel level win. I just was wondering kind of when you just take a step back, what you kind of think -- I imagine your co-op business grew quite substantially here in 2026 with all the wafer starts that are being added, but there's a lot of wafer starts being added next year, too. So maybe just talk parse what you kind of think the co-op advanced packaging kind of revenue outlook is? And is doubling capacity enough to meet demand in 2027?

William Miller

Yes. I would say, David, as you know, in '25, we doubled the business on the back of advanced packaging, really on in our wet processing business. And in '26, and that was for a lot of co-op capacity that you're now seeing wafer starts in '26. So that capacity was put in '25 for '26. That business continues at an elevated level. And I would say it's probably flattish to maybe up a little bit in '26. But when I look at advanced packaging in '27, we're definitely seeing that business grow substantially based on our backlog, not only in wet processing, but also in lithography for -- heading towards doubling from these kind of elevated levels that we're operating at now.

So to that end, I'm not sure how much you caught on the call, but we are adding 2 contract manufacturers. We pretty much run out of space in our current factory. And we're adding a contract manufacturer in Southeast Asia. There, first shipments will be in -- coming online in Q1 and a domestic contract manufacturer that's been building subassemblies is now going to start building whole systems for us. But the majority, I would think, is heading towards Southeast Asia.

David Duley

And then just inside that question was a commentary about panel. Panel adoption.

William Miller

Yes. So we have shipped a panel tool to a leading foundry. And just given the size of these packages and die that -- a lot more die fit on a square than fit on a circle effectively. And so with not a large change in footprint, but geometry, our customer can add substantially more output of devices. So that's been progressing. It's doing well. And we're -- I think we're in a very strong position there for -- in wet processing for that panel tool.

Operator

And your last question comes from Gus Richard from Northland.

Auguste Richard

Just real quick on the IDD opportunity at the DRAM guys. Could you talk a little bit about what you need to finish to get one of these customers over the line to order tools?

William Miller

Yes. Sure, Gus. Yes, as you know, we have 2 evals at leading DRAM customers. I would say we've been making a lot of progress. The team has been making a lot of progress this last quarter or so. And our feedback from the customer has always been, wow, these are very high-quality films. The resistance is really spectacular. We really love the film quality. But what we've been able to do is to really make some substantial progress in demonstrating to our customers the robustness of the system, which is really kind of what's been holding us back. And so our expectation is we're going to expand our program in 2027. And what I mean by that is customers are pulling for additional tools now to support their pilot line, HBM that we expect to ship in 2027. So we're kind of in early stages of discussion of that, and we're working through what that looks like and how we execute that.

Auguste Richard

And then you mentioned you've got an opportunity in pellicles beyond your initial customers. Just wondering if you could talk about that logic? Is it memory? Is it multiple customers? Is the existing customer going to order more? Sort of what's the state of that piece of the IBD business?

William Miller

Yes. So what we've said is we have one foundry customer who are in the pellicle business for their own business. And then what we're seeing is the ecosystem is such that some -- a lot of customers don't want to make pellicles and so they're working with their suppliers. And so now we're not only working with this foundry customer. But other -- another level down in the supply chain to help them as well, to work with them as well to support the other major customers. And I would say, largely, those are more logic customers today.

Auguste Richard

And just to clarify, that would be like a mask blank vendor or someone that makes pellicle for IBD?

William Miller

Exactly. Exactly. The existing supply chain, yes.

Operator

At this time, we have no further questions. I would like to turn the call back over to Mr. Bill Miller for closing remarks.

William Miller

Thank you. Veeco delivered another solid quarter, and we continue to build momentum across our key growth areas. AI investment and increasing chip complexity are driving strong customer engagement, order momentum and greater visibility into 2027 and beyond. We're investing to support this growth while advancing our differentiated technologies, including IBD300 to capitalize on our long-term growth opportunities.

We also continue to progress toward completing our merger with Axcelis and remain confident in the compelling value creation potential of the combination. We're poised to benefit from the significant tailwinds within the industry and remain focused on execution. Thanks to our shareholders for your continued support and to the entire Veeco team for your hard work and dedication. Have a great evening.

Operator

Ladies and gentlemen, this concludes your conference call for today. We thank you very much for your participation, and you may now disconnect. Have a great day, everyone.