Advantest: Advancing Semiconductor Testing Innovation

Advantest: Advancing Semiconductor Testing Innovation
Advantest

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The semiconductor industry is home to companies engaged in designing and manufacturing semiconductors and semiconductor devices. With the projected growth from $481 billion in 2018 to $726.73 billion by 2027, the semiconductor industry offers lucrative opportunities for related companies.

Not only semiconductor designers or manufacturers can survive and thrive in the industry, but also companies involved in developing test systems for semiconductors have the potential to capture the market.

Advantest is a Japanese leading manufacturer of automatic test equipment (ATE) and measuring equipment for the semiconductor industry.

Let’s learn how Advantest was established, its mission and vision, investments, acquisitions, challenges, growth, and a lot more.

Advantest – Company Highlights

Company Name Advantest
Headquarters Chiyoda, Tokyo, Japan
Primary Industry Semiconductor
Founder Ikuo Takedo
Founded In 1954
Website Advantest.com

Advantest - About
Advantest - Founders And Team
Advantest - Startup Story
Advantest - Mission And Vision
Advantest - Business Model
Advantest - Products And Services
Advantest - Challenges Faced
Advantest - Investment
Advantest - Mergers And Acquisitions
Advantest - Patents and Trademarks
Advantest - Growth
Advantest - Awards And Achievements
Advantest - Competitors
Advantest - Future Plans

Advantest - About

Founded in 1954, Advantest is a globally recognized designer, manufacturer, and supplier of testing systems. It offers component and semiconductor test systems along with mechatronics-related products. The company’s leading-edge systems and products are integrated into technologically advanced semiconductor production lines worldwide.

The company is known for serving worldwide with its offices located across many countries, including Japan, America, Europe, Singapore, Taiwan, the Republic of Korea, and China.

Advantest - Founders And Team

Ikuo Takedo is the founder of the company. Presently, Yoshiaki Yoshida is the President and Group CEO and Douglas Lefever is the Group COO of Advantest. Moreover, it is currently employing over 6,000 employees in all its offices.

Yoshiaki Yoshida, and Douglas Lefever, Present CEO and COO - Advantest
Yoshiaki Yoshida, and Douglas Lefever, Present CEO and COO - Advantest

Advantest - Startup Story

Formerly known as Takeda Riken Industry Co. Ltd, Advantest was founded in 1954. Initially, the company was established as a maker of electronic measuring instruments. It is in 1972 that it entered the semiconductor testing business. Furthermore, the company commenced trading on Tokyo Stock Exchange in 1983 and changed its name to Advantest Corporation in 1985.

Advantest expanded its semiconductor test business by establishing its North American subsidiary in 1982 and its European operations in Munich in 1983. It entered the New York Stock Exchange market in 2001.

In 2002, Advantest emerged as one of the founding member companies to establish the Semiconductor Test Consortium (STC) – the first international, industry-wide collaboration. In 2004, the company marked its 50th anniversary and relocated its headquarters to the Shin-Marunouchi Center Building in Marunouchi, Tokyo.

It entered the mask CD-SEM business and launched the T5501 and T5588 DRAM memory test systems and the M6300 memory handler in 2005. Astronic Corporation sold its semiconductor test business to Advantest for $185 million in 2018.

Advantest - Mission And Vision

Its mission is to enable leading-edge technology. The company’s vision is to add customer value in an evolving semiconductor value chain. Therefore, Advantest strives for providing high-quality products and services to customers.

Advantest - Business Model

Advantest focuses on manufacturing automatic test and measurement equipment required to design and produce semiconductors for multiple applications, including 5G communications, IoT, AI, machine learning, autonomous vehicles, and more.

How Advantest Helps to Revolutionize 5G Technology

Moreover, it conducts R&D for addressing emerging test challenges and applications, producing scanning electron microscopes for photomask manufacturing, developing advanced test-interface solutions for wafer sort and final tests, and offering system-level test solutions and other important test-related accessories.

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Advantest - Products And Services

It is recognized for offering SoC test systems, memory test systems, device interfaces, test handlers, SSD test systems, SEM metrology/review, Terahertz systems, electronic measuring instruments, leading-edge products, system level test systems, cloud testing service, test cell and automation solutions, and related products.

When it comes to global services, the company offers consulting services, uptime services, equipment leasing services, and customer support services.

Advantest - Challenges Faced

Advantest faces multiple challenges in its businesses, such as increased pressure from its targeted customers for developing semiconductor and component test systems, mechatronic systems that could reduce testing costs, and catering to the customers that have already come up with internal test solutions.

Advantest - Investment

Advantest has made 3 investments and the most recent one was made on September 23, 2021, when proteanTecs raised a total of $50 million.

Date Funding Round Organization Name Money Raised Lead Investor
September 23, 2021 Series C proteanTecs $50 million -
November 7, 2007 Series A D2S $9.2 million -
May 11, 2007 Series A D2S $4 million -

Advantest - Mergers And Acquisitions

The company has made 4 acquisitions by spending more than $1.10 billion and 2 investments. Its latest acquisition was R&D Altanova which was made in October 2021. The other three companies acquired are Essai (January 2020), W2BI (April 2013), and Verigy (December 2010).

Advantest - Patents and Trademarks

The company’s intellectual property currently includes 1,938 registered patents, primarily in the category of ‘Testing.’ Furthermore, it has 29 registered trademarks categorized into the ‘scientific and electric apparatus and instruments’ class.

Advantest - Growth

The estimated revenue of the company in 2022 is $3.88 billion per year, which increased by 13.92% last year. Moreover, the market capitalization of Advantest as of February 2023 is reported to be at $14.16 billion which makes it the world’s 1165th most valuable company.

Advantest - Awards And Achievements

Advantest has garnered a myriad of prestigious awards over 69 years and the recent ones are:

  • Gold medal in the 2022 Gomez IR Site Rankings by Broadband Security Co. Ltd
  • Director-General’s Award for Factory Greening by Kanto Bureau of Economy, Trade, and Industry
  • Laser Industry Award for TAS7500 Terahertz Spectroscopic Imaging System as an Excellent Product
  • IR Good Visual Award
  • Recognized as the World’s #1 ATE Supplier and the Best large Supplier of Chip Making Equipment in the Annual Customer Satisfaction Survey
  • Supplier Excellence Award by iTest Inc

Advantest - Competitors

Its primary competitors in the semiconductor and component test system and mechatronics system-related market include:

  • Teradyne inc.
  • Cohu Inc.
  • YIK Corporation
  • UniTest Inc.
  • Exicon Ltd.
  • TechWing Inc.
  • Hon Precision Inc.

Advantest - Future Plans

Advantest is looking forward to expanding its business domains beyond developing and selling semiconductor volume production test systems to include adjacent markets, including semiconductor design, evaluation processes and product, and system-level test processes.

For achieving the same, the company will engage in five strategic issues, including investing strategically, reinforcing core businesses, seeking operational excellence, pioneering new business fields, exploring value to reach a higher level, and promoting ESG initiatives. It is also seeking ways to minimize the environmental impact on the planet and communities.

FAQs

What products and services does Advantest offer in the semiconductor testing industry?

Advantest offers semiconductor testing solutions such as test systems, handlers, probes, and measurement instruments, along with consulting, maintenance, and training services to ensure quality and reliability of semiconductor devices.

What kinds of semiconductor devices can be tested using Advantest's solutions?

Advantest's semiconductor testing solutions can be used to test a wide range of devices, including microprocessors, memory chips, system-on-chip (SoC) devices, power management ICs, and other types of specialized integrated circuits.

What is Advantest's main business focus?

Advantest provides advanced semiconductor testing solutions and services to ensure quality and reliability of semiconductor devices before they are shipped to customers.

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