Aehr Test Systems

Aehr sells to semiconductor manufacturers, semiconductor contract assemblers, electronics manufacturers, and burn-in/test service companies. A large part of demand comes from customers that need high-reliability screening for power devices, AI-related processors, and other chips where early failure is costly. Independent test and burn-in labs use the systems for outsourced reliability testing, while large IC makers may buy systems for in-house production lines or through affiliated suppliers. The company also notes that some customers are concentrated and that sales can be lumpy, with relatively small numbers of high-value transactions driving results. End markets mentioned in the filings include electric vehicles, EV charging, solar and wind power, computing, data and telecommunications infrastructure, and solid-state memory/storage.

Aehr’s strategy is centered on expanding its installed base of semiconductor reliability test systems and increasing content per customer through wafer-level, die-level, and packaged-part offerings. The Incal acquisition broadened the portfolio into high-power packaged-part burn-in, giving the company exposure to AI accelerators, GPUs, HPC processors, and other high-power devices. Management is also emphasizing markets where device reliability requirements are rising, including EVs, charging infrastructure, renewable energy, computing, data centers, and telecommunications. Because the business is concentrated and project-based, customer support, applications engineering, and close field relationships are part of the competitive strategy, not just after-sales service. Aehr also relies on distributors and regional subsidiaries to extend reach while keeping final assembly and key manufacturing control in Fremont.