AXCELIS TECHNOLOGIES INC

We are primarily a producer of ion implantation equipment used in the fabrication of semiconductor chips in the United States, Europe, and Asia. In addition, we provide extensive worldwide aftermarket service and support, including spare parts, equipment upgrades and maintenance services to the semiconductor industry. Our product development and manufacturing activities currently occur primarily in the United States and South Korea. Our equipment and service products are highly technical and are sold through a direct sales force in the United States, Europe, and Asia. Consolidation and partnering within the semiconductor manufacturing industry has resulted in a small number of customers representing a substantial portion of our business. Our ten largest customers accounted for 47.4% of total revenue for the six months ended June 30, 2024.

The first six months of 2024 exhibited continued strong demand for our capital equipment. The overall mature process segment represented 98% of our shipped systems revenue, with 1% of shipments to advanced logic and 1% of shipments to dynamic random-access memory (“DRAM”). Power device shipments comprised 59% of total systems revenue with the general mature segment representing 36%, and image sensors at 4%. Looking ahead, we expect demand from silicon carbide customers within the power segment to remain healthy in the second half, while in general mature, we may see some moderation in revenue in the second half, dependent on the macroeconomic environment and its impact on our customers’ spending patterns. In addition, we expect DRAM customers to start adding capacity as we exit 2024 and into 2025, while “NAND” spending is expected to begin picking up in 2025.

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