Camtek Secures $31M Order from Global OSAT; Q1 Bookings from OSATs Exceed $90M

Camtek recently won a major $31 million order for its CoWoS packaging inspection equipment from a global OSAT, bringing total Q1 orders from OSATs to over $90 million.

This order highlights a key industry trend: the AI boom is causing bottlenecks in advanced packaging, forcing leaders like TSMC to outsource more work to OSATs, which in turn drives demand for inspection equipment.

The strong Q1 bookings have significantly boosted Camtek's revenue visibility for 2026, already covering about 16% of the annual sales forecast, confirming the company's strong market position.

CAMT

Camtek has secured a significant $31 million order from a major global OSAT, signaling a structural shift in the semiconductor backend market.

The core driver behind this trend is the explosive growth in AI infrastructure. First, massive investments by Big Tech in AI, spurred by innovations like NVIDIA's Blackwell GPUs, are creating unprecedented demand for High-Bandwidth Memory (HBM) and advanced packaging solutions like CoWoS (Chip-on-Wafer-on-Substrate). This demand is growing so rapidly that it's creating a production bottleneck.

Second, TSMC, the primary manufacturer of CoWoS packages, is struggling to keep up. Despite plans to aggressively expand its capacity by over 60% annually through 2026, the demand still outstrips supply. This has forced TSMC to change its strategy and offload a portion of its advanced packaging workload to external partners.

This is where OSATs (Outsourced Semiconductor Assembly and Test) come in. These companies are now playing a crucial role in alleviating the industry's packaging bottleneck. As OSATs like Amkor and ASE ramp up their own capacity to handle this overflow from TSMC, they need to invest heavily in new equipment. This directly benefits Camtek, whose inspection and metrology systems, such as the Eagle G5 and Hawk series, are essential for ensuring the quality of these complex 2.5D/3D packages.

This single $31 million order represents over 6% of Camtek's entire 2025 revenue. More impressively, the cumulative $90 million in orders from OSATs in the first quarter alone already covers 16% of the consensus revenue forecast for all of 2026. This provides strong revenue visibility for the year. Interestingly, despite the positive news, Camtek's stock fell over 7% on the day of the announcement. This was likely not due to the news itself, but rather a reaction to the stock's already high valuation after a strong rally, suggesting the good news was largely priced in.

OSAT (Outsourced Semiconductor Assembly and Test): A company that provides third-party semiconductor assembly, packaging, and testing services.
CoWoS (Chip-on-Wafer-on-Substrate): An advanced 2.5D packaging technology developed by TSMC, used to integrate multiple chips, like processors and HBM, onto a single interposer for high performance.

Camtek Secures $31M Order from Global OSAT; Q1 Bookings from OSATs Exceed $90M

Camtek recently won a major $31 million order for its CoWoS packaging inspection equipment from a global OSAT, bringing total Q1 orders from OSATs to over $90 million.

The strong Q1 bookings have significantly boosted Camtek's revenue visibility for 2026, already covering about 16% of the annual sales forecast, confirming the company's strong market position.

CAMT

Camtek has secured a significant $31 million order from a major global OSAT, signaling a structural shift in the semiconductor backend market.

OSAT (Outsourced Semiconductor Assembly and Test): A company that provides third-party semiconductor assembly, packaging, and testing services.
CoWoS (Chip-on-Wafer-on-Substrate): An advanced 2.5D packaging technology developed by TSMC, used to integrate multiple chips, like processors and HBM, onto a single interposer for high performance.