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How ASYS rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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BUSINESS OUR COMPANY We provide equipment, consumables and services for semiconductor device packaging, wafer production and device fabrication.
Our products are used to fabricate and package semiconductor devices, such as graphic processing units (GPU’s) used in AI applications, silicon carbide (SiC) and silicon (Si) power devices and other optical, analog and digital devices.
We sell these products to semiconductor device packaging, electronic assembly and device fabrication companies worldwide.
Our Thermal Processing Solutions includes conveyorized reflow equipment for advanced semiconductor packaging and electronic assembly, high temperature conveyorized furnaces for power semiconductor substrate and electronic components manufacturing, and diffusion furnaces for (SIC) and (Si) power device production.
Our Semiconductor Fabrication Solutions include consumables, equipment and services for wafer polishing, dicing and cleaning.
Our strategy is to focus our efforts on fully capitalizing on advanced packaging equipment opportunities driven by AI infrastructure investments and expand our consumables and service business for semiconductor fabrication by providing exceptional service and high-quality products to underserved segments of the market.
We categorize each of our subsidiaries into one of two reportable segments, based primarily on the industries they serve: Reportable Segment % of 2025 Consolidated Net Revenue Thermal Processing Solutions % Semiconductor Fabrication Solutions % These reportable segments are comprised of the following four wholly-owned subsidiaries: Thermal Processing Solutions: • BTU, a Delaware corporation based in Westford, Massachusetts, with operations in China, Malaysia and the UK, acquired in January 2015.
Semiconductor Fabrication Solutions: • PR Hoffman, an Arizona corporation based in Carlisle, Pennsylvania, acquired in July 1997. • Advanced Compound Materials, Inc., a Delaware corporation based in Spartanburg, South Carolina, founded in 2023; • Intersurface Dynamics, a Connecticut corporation based in Bethel, Connecticut, acquired in March 2021; and • Entrepix, an Arizona corporation based in Phoenix, Arizona, acquired in January 2023.
We believe we are uniquely positioned in that our products are employed throughout the early and late stages of semiconductor and electronics manufacturing.
Our flux management system scrubs oven gases to minimize downtime, reduce defects from flux contamination and reduce environmental emissions.
Our Intersurface Dynamics products include CMP slurries and dispersants, cleaning chemicals, lubricants and cooling fluids used for semiconductor wafer and optics processing.
The current contraction cycle for mature node semiconductors is longer than the historical average, mainly attributed to a sustained decrease in demand for industrial equipment, computers, and smartphones after a period of heightened demand during the COVID pandemic, as well as reduced growth expectations for electric vehicles.
For information regarding net revenue, operating income and identifiable assets attributable to each of our two reportable segments, see Note 15 of the Notes to Consolidated Financial Statements included in “Item 8.
Unless otherwise stated, references to the years 2025 and 2024 relate to the fiscal years ended September 30, 2025 and 2024, respectively.
COMPANY STRATEGY Core Values: We believe Amtech’s core values (Safety, Customer Focus and Continuous Improvement) are critical to the success of the Company.
We continue to recognize and reward behaviors consistent with these values throughout Amtech.
Secular Growth Drivers : We believe there are three key secular trends that are important to our future growth: • Artificial Intelligence - With Artificial Intelligence (AI), we believe our reflow oven systems have leading market share with Outsourced Semiconductor Assembly and Test Services (OSATS) providers who perform advanced packaging of the AI chips. • Supply Chain Resiliency - There is a global trend of creating supply chain resiliency by expanding and/or relocating operations outside of mainland China.
We believe these factories will create demand for new equipment and services in growing regions like Southeast Asia and Mexico. • Advanced Mobility - Advanced Mobility encompasses both the development and adoption of electric vehicles and charging infrastructure, including both electric vehicle (EV) and hybrid electric vehicles (HEV), as well as advanced automotive electronics including Advanced Driver Assistance Systems (ADAS), infotainment and telematics.
Our products intersect these markets in multiple ways: CMP consumables and wafer cleaning systems for the SiC substrates used in the EV power inverters; thermal processing systems for producing EV battery cooling systems and ceramic substrates for HEV power semiconductor packaging; and reflow ovens for ADAS, infotainment and telematics component assemblies.
Customer-centric product development in R&D : We continue to invest in research and development to expand our Thermal Processing Solutions reflow equipment product-line for AI applications.
Our goal is to expand our addressable market by enabling mass production of higher density packages.
We are also investing in application development and R&D resources to accelerate growth of our Semiconductor Fabrications Solutions business by expanding our consumables product portfolio and providing exceptional technical support and service to customers.
Semi-Fabless Manufacturing Model: We have migrated to a semi-fabless manufacturing model for the majority of our capital equipment business to improve our ability to scale production and reduce fixed costs.
Our manufacturing partners provide a cost-effective alternative to in-house production and help mitigate the financial impact of variable demand that is inherent to the capital equipment business.
We believe the accelerated investments in Artificial Intelligence (AI) infrastructure and increased investments in defense and aerospace applications will help drive future growth.
Increasingly complex and dense packaging requirements and high energy demand for AI data centers may also create additional opportunities to expand addressable markets.
Although the semiconductor market has experienced significant growth over the past fifteen years and has recently experienced significant growth driven by AI GPUs, it remains cyclical by nature.
We believe the continued expansion of our consumable and after-market product offerings, primarily in our Semiconductor Fabrication Solutions segment, will enable us to partially offset some of these cyclical effects.
THERMAL PROCESSING SOLUTIONS PRODUCTS Our reflow equipment and furnaces are manufactured in our facility in China and by contract manufacturing partners located in China, Canada and Singapore.
The following paragraphs describe the products that comprise our current product lines in our Thermal Processing Solutions business: Continuous Thermal Processing Systems.
We design, produce and sell thermal processing systems used in the solder reflow processes used in advanced semiconductor packaging including 2.5D and flip-chip and printed circuit board assembly.
These products utilize forced impingement convection technology to transfer heat to the substrate.
These products are manufactured at our ISO 9001:2015 certified facility in Shanghai, China and by a contract manufacturing partner in Singapore.
We also design, produce and sell high-temperature belt furnaces that operate at temperatures up to 1180°C and are capable of processing in controlled atmospheres, such as nitrogen, argon, and hydrogen.
These furnaces are manufactured at our ISO 9001:2015 certified facility in Shanghai, China and by a contract manufacturing partner in Canada.
These furnaces are manufactured in North America.
The OnTrak system is commonly used in post polishing steps, prime silicon/silicon carbide cleaning, epitaxial silicon deposition processes, and general wafer cleaning needs.
Entrepix offers a comprehensive range of replacement parts for chemical mechanical planarization (CMP) and cleaning equipment, supporting both current and legacy platforms.
Entrepix provides engineered solutions to address obsolescence and increase tool reliability, including reverse-engineered assemblies and custom upgrades.
Their capabilities extend to wafer carriers, cleaning modules, motor drivers, sensors, and control systems, with in-house prototyping and fabrication enabling rapid development of parts tailored to OEM or customer specifications.

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BUSINESS OUR COMPANY We provide equipment, consumables and services for semiconductor wafer fabrication and device packaging.
Our products are used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon (Si) power devices, digital and analog devices, power electronic packages, advanced semiconductor packages and electronic assemblies.
We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe.
The focus of our strategy is to expand our consumables and service business for semiconductor wafer fabrication and to capitalize on opportunities for thermal processing equipment in advanced packaging and power electronic applications.
We categorize each of our subsidiaries into one of two reportable segments, based primarily on the industries they serve: Reportable Segment % of 2024 Consolidated Net Revenue Thermal Processing Solutions % Semiconductor Fabrication Solutions % These reportable segments are comprised of the following five wholly-owned subsidiaries: Thermal Processing Solutions (formerly called Semiconductor): • BTU, a Delaware corporation based in Westford, Massachusetts, with operations in China, Malaysia and the UK, acquired in January 2015.
Semiconductor Fabrication Solutions (formerly called Material and Substrate): • PR Hoffman, an Arizona corporation based in Carlisle, Pennsylvania, acquired in July 1997; • Advanced Compound Materials, Inc., a Delaware corporation based in Spartanburg, South Carolina, founded in 2023; • Intersurface Dynamics, a Connecticut corporation based in Bethel, Connecticut, acquired in March 2021; and • Entrepix, an Arizona corporation based in Phoenix, Arizona, acquired in January 2023.
Amtech is uniquely positioned in that our products are employed throughout the early and late stages of semiconductor and electronics manufacturing.
Our flux management system scrubs oven gasses to minimize downtime, reduce defects from flux contamination and reduce environmental emissions.
We are currently in a longer-than-historical-average contraction cycle, which we believe is due primarily to a prolonged downturn in demand for industrial equipment, computers and smartphones following a spike in demand for these products during the COVID pandemic and a decline in growth expectations for electric vehicles.
Our Intersurface Dynamics products include lubricants, cooling fluids and cleaning chemicals used for semiconductor wafer and optics processing and dispersants for CMP slurries.
For information regarding net revenue, operating income and identifiable assets attributable to each of our two reportable segments, see Note 16 of the Notes to Consolidated Financial Statements included in “Item 8.
Unless otherwise stated, references to the years 2024, 2023 and 2022 relate to the fiscal years ended September 30, 2024, 2023 and 2022 , respectively.
ACQUISITION On January 17, 2023 we acquired 100% of the issued and outstanding capital stock of Entrepix, an Arizona based manufacturer of chemical mechanical polishing (“CMP”) technology for a cash purchase price of $39.2 million.
Entrepix’s CMP technology portfolio and water cleaning equipment complements our existing substrate polishing and wet process chemical offerings.
Entrepix's results of operations are included in our Semiconductor Fabrication Solutions segment from the date of acquisition.
Growth and Investment Strategy We believe there are three key secular trends that are key to our future growth: • Advanced Mobility - Advanced Mobility encompasses both the development and adoption of electric vehicles and charging infrastructure, including both EV and HEV, as well as advanced automotive electronics including Advanced Driver Assistance Systems (ADAS), infotainment and telematics.
Our products intersect these markets in multiple ways: CMP consumables and wafer cleaning systems for the SiC substrates used in the EV power invertors; thermal processing systems for producing EV battery cooling systems and ceramic substrates for HEV power semiconductor packaging; and reflow ovens for ADAS, infotainment and telematics component assemblies. • Supply Chain Resiliency - There is a global trend of creating supply chain resiliency by expanding and/or relocating operations outside of mainland China.
We believe these facilities will create demand for new equipment and services in growing regions like Mexico and Southeast Asia. • Artificial Intelligence - With Artificial Intelligence ("AI"), our reflow oven systems are the favored choice for Outsourced Semiconductor Assembly and Test Services ("OSATS") providers who perform advanced packaging of the AI chips.
We continue to invest in research and development, including the introduction of our next-generation reflow platform, Aurora, in 2023.
Historically, we have grown our business primarily through acquisitions, including the businesses that currently comprise our two reportable segments in the Thermal Processing Solutions and Semiconductor Fabrication Solutions industries: BTU, PR Hoffman, Intersurface Dynamics and Entrepix.
Our 2023 acquisition of Entrepix bolstered our offerings in the CMP technology space and incorporated wafer cleaning into our existing capital equipment product lines.
We will continue to pursue acquisitions to supplement organic growth and have added market development resources globally to accelerate organic growth.
Grow consumables revenue to reduce vulnerability to semiconductor business cycles.
The semiconductor industry is highly cyclical, and the conditions of this industry remain volatile.
We are currently in a longer-than-historical-average contraction cycle, which we believe is due to the capacity that was pulled in during COVID as demand for consumer electronics spiked during the pandemic and reduced expectations for EV growth rates.
While all industry participants have been impacted by these fluctuations in demand, they can be particularly problematic for equipment suppliers who rely on capacity expansion to drive orders for their equipment.
These sharp business cycles not only impact short-term financial results but can also weaken the strength of suppliers as they right-size their organizations to align with the reduced production demand.
Our line of consumables products, including templates, carriers, polishing-related chemicals and spare parts, generates continuous revenue streams regardless of capacity expansions as they are used in equipment already in service.
In an effort to minimize both the financial shortfalls and organizational harm of these business cycles, we are seeking to increase the consumables portion of our business.
Our initial focus is on aggressively growing the consumable business in our Semiconductor Fabrication Solutions segment, which was approximately 32% of our consolidated revenue in fiscal 2024.
In addition, we are working to transform the aftermarket sales business in our Thermal Processing Solutions division, leveraging the strength of our expansive installed base to increase higher-margin sales of replacement parts and services.
Increase the portion of our product line portfolio tied to high-growth, megatrend end markets such as EV and HEV.
We believe the opportunity for organic growth through strategic alignment to projects tied to megatrends is an opportunity that exists across all our divisions.
In the Semiconductor Fabrication Solutions segment, processing of SiC substrates is directly tied to the production of power modules used in electric vehicles and in other green technology applications such as wind and solar power.
Our Thermal Processing Solutions segment has multiple intersections with EV and HEV production, including the use of our diffusion furnaces and surface-mount technology reflow products to manufacture power semiconductors and our high-temp furnaces used in DBC applications used in HEV power modules.
In order to increase the portion of our business tied to these high-growth megatrends, we are employing multiple tactics and strategies, including strategic selling and customer-centric product development.
Customer-centric product development in R&D.
In order to both increase the output of our development teams and mitigate the risk associated with the introduction of new products, we are emphasizing and prioritizing customer-centric product development in all of our divisions.
For example, the development and roll out of the Aurora reflow system for BTU employed direct customer input in the manufacturing requirements, and the new systems were first deployed as beta units to customers in multiple regions for validation.
In addition, development of equipment and aftermarket solutions at Entrepix has focused on eliminating customer pain points, often in areas overlooked by the industry.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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