Onto Innovation Inc. (NYSE: ONTO) has announced the successful qualification of its Dragonfly G5 system for both new and existing applications in 2.5D advanced packaging, a key segment supporting the rapid growth of AI-driven semiconductor technologies.
The qualification marks a significant milestone in the commercialization of the Dragonfly G5 platform, with initial shipments expected to begin in June. The system incorporates proprietary optics, advanced illumination techniques, and AI-driven algorithms designed to improve inspection sensitivity and throughput. These enhancements aim to deliver higher performance while reducing the overall cost of ownership for semiconductor manufacturers.
The development comes at a time when demand for AI-enabled devices is accelerating, driven in part by innovations in advanced packaging technologies. Industry analysts estimate that demand in this segment could grow by approximately 30% annually over the next two years. As chip architectures become more complex, particularly in 2.5D and fan-out packaging, process control requirements have become increasingly stringent, necessitating more precise inspection and measurement capabilities.
Onto Innovation stated that the Dragonfly G5 system has demonstrated strong performance across multiple process layers, particularly in fan-out packaging applications. The platform’s flexibility allows manufacturers to adapt to evolving package sizes, architectures, and process flows, which are becoming more diverse as AI workloads scale.
Ido Dolev, executive vice president of product solutions at Onto Innovation, said the system’s combination of proprietary optics and AI-enhanced software enabled rapid adjustments across different process challenges. He noted that the platform is designed to support future transitions in semiconductor packaging while expanding into new market segments.
Chief Executive Officer Mike Plisinski added that the Dragonfly G5 represents a step forward in delivering higher sensitivity at a lower cost. He said the platform has already generated increased customer interest, with demand for Dragonfly systems expected to grow by more than 50% in 2026 compared to the previous year.
Alongside the product update, the company also provided a preliminary financial outlook. Onto Innovation expects first-quarter 2026 revenue to reach approximately $292 million, exceeding its earlier guidance range of $275 million to $285 million. For the second quarter, the company has set revenue guidance between $320 million and $330 million, reflecting an upward revision of about 8% from prior expectations.
