FormFactor Targets Revenue Doubling by 2030 on AI Chip Testing Boom

Key Points

• FormFactor said it aims to double revenue to $1.6 billion by 2030 and more than double non-GAAP EPS, driven by growth in high-performance computing, advanced packaging, HBM and co-packaged optics.
• The company’s probe card business is expected to be a major growth engine as AI chips and HBM become more complex, increasing test intensity, test time and demand for advanced MEMS probe technology.
• FormFactor also highlighted co-packaged optics as a key systems opportunity, with a new Triton test platform and its Farmers Branch expansion expected to support margin improvement and future production scale.

FormFactor NASDAQ: FORM laid out a plan to double revenue by 2030 during an investor day presentation at the Nasdaq market site in Times Square, with executives pointing to growth in high-performance computing, advanced packaging, high-bandwidth memory and co-packaged optics as the primary drivers.

President and Chief Executive Officer Mike Slessor said the company plans to double revenue by 2030 and “more than double” non-GAAP earnings per share through operating leverage. Chief Financial Officer Aric McKinnis later detailed a target model of $1.6 billion in revenue, 55% gross margin, operating expenses equal to 23% of revenue and non-GAAP earnings of $5 per share by 2030.

McKinnis said FormFactor’s previous target model, set in 2020, included approximately $850 million in revenue, 47% gross margin and $2 in non-GAAP EPS. He said the company has now demonstrated achievement of that model, including in recent quarterly results and on a trailing twelve-month basis when including the company’s latest guidance for Q2 2026.

Company Points to HPC and Advanced Packaging

Slessor said FormFactor is positioned at the intersection of high-performance computing and advanced packaging, two trends he described as among the most powerful in the semiconductor industry. He said the company’s probe cards are used to test chips before they are assembled into advanced packages, helping customers reduce yield loss as packages become more complex.

Using high-bandwidth memory as an example, Slessor said stacking more dies increases the financial impact of defects. He said moving from earlier four-high HBM2 stacks to 16-high HBM4 stacks raises the importance of testing each die before assembly, because both the probability and the cost of scrap increase. He said this dynamic is driving higher “test intensity” and “test complexity,” meaning longer test times, more probe cards and broader testing across speeds and thermal conditions.

Slessor said FormFactor is the world’s No. 1 probe card supplier and is the only supplier of scale in both foundry and logic and DRAM probe cards. He said that breadth creates technology and operational synergies, particularly as custom HBM combines logic and memory functions.

Probes Business Targets Revenue Doubling

Sudhakar Raman, senior vice president and general manager of the probes business, said FormFactor plans to double probes revenue by 2030 by advancing its MEMS probe technology and delivering products at scale. Raman said the advanced probe card market is expected to grow from about $2.8 billion to $4 billion by 2030, driven by GPUs, custom ASICs, networking, HBM and DRAM.

Raman said probe cards are highly engineered, design-specific consumables that interface with automated test equipment and connect electrons and photons to wafers. He said FormFactor probe cards can include tens of thousands to as many as 150,000 to 200,000 pins, with probes roughly the size of a human hair.

He said increasing power, thermal and speed requirements in GPUs and custom ASICs are pushing more applications toward advanced MEMS probe technology. Raman also said HBM transitions from HBM3 and HBM3E to HBM4, HBM4E and HBM5 are increasing test intensity by roughly 25% to 30% as stack heights rise and more insertions are required.

Co-Packaged Optics Seen as Systems Growth Engine

Jens Klattenhoff, senior vice president and general manager of the systems business unit, said FormFactor plans to double revenue in the systems segment by 2030, with co-packaged optics as the “engine” of growth. He said silicon photonics and co-packaged optics represent a multi-hundred-million-dollar opportunity by 2030.

Klattenhoff said FormFactor has installed more than 160 silicon photonics test systems globally since deploying its first 300-millimeter semi-automatic probe station for the market in 2017. He said the company acquired Keystone Photonics in 2025, adding scalable optical probing technology and relationships with leading co-packaged optics customers.

The company highlighted Triton, a production-ready test cell developed through a strategic partnership with Advantest and Tokyo Electron. Klattenhoff said FormFactor has already deployed several Triton systems and saw initial revenue impact from qualification and niche production in 2025, with stronger growth expected in 2026 and beyond as co-packaged optics moves toward high-volume manufacturing.

Operations Focus on Farmers Branch Expansion

Aasutosh Dave, chief commercial officer, said FormFactor’s strategy starts with customers and is built around lifecycle partnerships, global support and co-development. He said customers increasingly view FormFactor as a co-development partner rather than only a supplier, especially as test architectures change in high-performance computing, HBM and advanced packaging.

Missy Figueroa, senior vice president of global operations, said FormFactor has unified its global operations team under one operating model and has delivered measurable improvements in yield, cycle times and efficiency over the last three quarters. She said those improvements have supported better margins, more predictable output and reduced working capital needs.

Figueroa also detailed the company’s Farmers Branch, Texas, expansion, calling it a next-generation operations hub designed for performance and scale. She said the company is expanding its MEMS fab from Livermore into Farmers Branch and consolidating its Carlsbad assembly and test line into the site. FormFactor expects both the MEMS fab line and assembly and test site to be qualified by December, with initial production ramp starting in 2027.

Financial Model and Capital Allocation

McKinnis said FormFactor expects its served market to grow from approximately $3.1 billion today to $4.5 billion by 2030, representing an estimated 8% compound annual growth rate. He said FormFactor plans to grow at about twice that rate through market growth and market share gains in areas including GPUs, custom ASICs, co-packaged optics and high-bandwidth memory.

He said the company expects a 1,400-basis-point gross margin improvement from its 2025 baseline, with roughly 600 basis points from volume, 500 basis points from operational excellence and 400 basis points from innovation. McKinnis said Farmers Branch is a major enabler of that margin roadmap.

On capital allocation, McKinnis said the company’s near-term priority is funding Farmers Branch, while continuing to invest in research and development, pursue strategic acquisitions where appropriate and repurchase shares primarily to offset dilution from stock compensation programs.

About FormFactor NASDAQ: FORM

FormFactor, Inc NASDAQ: FORM is a leading provider of advanced test and measurement solutions for the semiconductor industry. The company specializes in the design, development and manufacture of high-performance wafer-level and package-level test interfaces used in wafer sort, characterization, reliability and failure analysis applications. By leveraging precision microelectromechanical systems (MEMS) and photolithographic processes, FormFactor delivers probe cards, analytical probes and test sockets that enable device makers to validate next-generation integrated circuits across logic, memory, RF, analog and power applications.

FormFactor's product portfolio includes custom probe cards for wafer probers, TEM-based analytical probes for material and device characterization, and socket solutions for burn-in and final test of packaged devices.

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