FormFactor Inc
NASDAQ:FORM
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FormFactor Inc
NASDAQ:FORM
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FormFactor Inc
FormFactor makes the tools chipmakers use to test silicon wafers before they are turned into finished chips. Its main products are probe cards, which are precision interfaces that touch tiny contact points on a wafer and help identify defects or verify performance. The company also sells test and measurement systems used to inspect memory chips, logic chips, and other advanced semiconductors during development and production. Its customers are semiconductor manufacturers, chip designers, and outsourced test and assembly companies that need reliable wafer-level testing. FormFactor makes money by selling this equipment, and in some cases by servicing, supporting, and upgrading it over time. Because chipmakers must test more complex wafers with ever-smaller features, the company sits in an important niche between chip design and final chip packaging. What makes FormFactor different is that its products must work at extremely fine precision and often need to be customized for specific chip types and manufacturing processes. That gives it a technical role in the semiconductor supply chain rather than a mass-market hardware role. In simple terms, FormFactor helps determine whether a chip is good enough to move forward before the expensive final steps of production.
FormFactor makes the tools chipmakers use to test silicon wafers before they are turned into finished chips. Its main products are probe cards, which are precision interfaces that touch tiny contact points on a wafer and help identify defects or verify performance. The company also sells test and measurement systems used to inspect memory chips, logic chips, and other advanced semiconductors during development and production.
Its customers are semiconductor manufacturers, chip designers, and outsourced test and assembly companies that need reliable wafer-level testing. FormFactor makes money by selling this equipment, and in some cases by servicing, supporting, and upgrading it over time. Because chipmakers must test more complex wafers with ever-smaller features, the company sits in an important niche between chip design and final chip packaging.
What makes FormFactor different is that its products must work at extremely fine precision and often need to be customized for specific chip types and manufacturing processes. That gives it a technical role in the semiconductor supply chain rather than a mass-market hardware role. In simple terms, FormFactor helps determine whether a chip is good enough to move forward before the expensive final steps of production.
Record quarter: FormFactor said Q2 revenue, gross profit and EPS were all-time records, with revenue of $258.2 million and non-GAAP EPS of $0.82, both above its outlook.
Margin strength: Non-GAAP gross margin reached 53.3%, but management said the sustainable baseline is closer to 51% at current volumes and mix before Farmers Branch ramps.
Outlook up: Q3 revenue is guided to $270 million, plus or minus $10 million, with non-GAAP EPS of $0.86, plus or minus $0.09, and management expects another record quarter.
HBM and DDR: DRAM demand stayed strong, led by HBM4, but Q3 mix should shift meaningfully toward DDR as customers chase better pricing in a constrained supply environment.
CPO accelerating: Co-packaged optics is ramping faster than expected, with 2026 revenue now expected to exceed $20 million, ahead of the original $10 million to $20 million range.
Farmers Branch: The new manufacturing site remains on track to ramp in Q4 and through 2027, and management said it should be accretive to gross margin once fully ramped.
AI-driven demand: Foundry and logic strength was tied to data center CPUs, GPUs, custom ASICs and hyperscaler demand, reinforcing FormFactor’s diversification strategy.
