Trio-Tech International (NASDAQ: TRT) has secured a three-year production burn-in contract with a new global automotive semiconductor customer. The agreement carries minimum billings of about $4.7 million. Its value could reach $6 million if the program scales.
The customer is a leading global integrated device manufacturer (IDM). The program supports a major electric vehicle (EV) semiconductor application across Europe and North America.
Trio-Tech will provide production burn-in services for the automotive semiconductor product. The company will use a customized burn-in system designed for the customer’s requirements.
The contract marks Trio-Tech’s second EV semiconductor customer for production burn-in services. It also expands the company’s presence in the automotive semiconductor market.
Automotive chips face strict requirements for reliability, qualification and traceability. Burn-in testing helps manufacturers identify potential reliability issues before products enter the market. These requirements are becoming increasingly important as vehicles rely on more semiconductor content.
The shift toward software-defined vehicles, advanced driver-assistance systems and electrification is driving demand for automotive semiconductors. Autonomous technologies are also increasing the number of electronic systems used in vehicles.
S.W. Yong, chairman and CEO of Trio-Tech, said the contract provides multiyear revenue visibility. He also said the award strengthens the company’s relationship with global semiconductor manufacturers.
The program adds to Trio-Tech’s automotive customer base. It also gives the company another production opportunity with a global IDM.
Trio-Tech said its burn-in capabilities, proprietary systems and operating presence in Asia could support further opportunities in automotive semiconductors. The company expects demand for reliability testing to grow as semiconductor content in vehicles increases.
