Aehr Test Systems, Inc.
Aehr Test Systems, Inc. provides test solutions for testing, burn-in, and semiconductor devices at wafer level, singulated die, and package level in the United States, Asia, Europe, and the Middle East. The company offers FOX-XP and FOX-NP systems, which are full wafer contact and singulated die/module test and burn-in systems that test, burn-in, and stabilize a range of devices, including silicon carbide-based (SIC) and gallium nitride (GAN) power semiconductors; 2D and 3D sensors used in mobile phones, tablets, and other computing devices; memory semiconductors; processors; microcontrollers; systems-on-a-chip; and photonics and integrated optical devices used in AI. It also provides the FOX-CP system, a single-wafer compact test solution for logic, memory, and photonic devices; and the FOX WaferPak Contactor, a full wafer contactor capable of testing wafers up to 300mm that enables integrated circuit manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. In addition, the company offers the FOX DiePak Carrier, which allows testing, burn-in, and stabilization of singulated bare die and modules; FOX WaferPak Aligner; and FOX DiePak Loader. Further, it provides system installation and repair, applications engineering support, spare parts inventories, customer training, and documentation services. The company sells its products in the United States, Germany, Japan, the Philippines, and Taiwan through distributors and sales representatives. It serves semiconductor manufacturers, semiconductor contract assemblies, electronics manufacturers, and burn-in and test service companies. Aehr Test Systems, Inc. was incorporated in 1977 and is headquartered in Fremont, California.
What does it do?
Aehr Test Systems makes machines that test and stress-test semiconductor chips before they go into real products. Think of it like a quality control oven — chips get pushed to their limits to weed out the ones that would fail early. Their specialty is testing silicon carbide chips, which are the power semiconductors used in electric vehicles to control how energy flows from the battery to the motor. Without testing equipment like Aehr's, EV makers risk putting faulty chips into cars, which is both dangerous and expensive to fix.
Silicon carbide chips are having a moment — every major EV maker is scrambling to use them because they make EVs more efficient and extend range. Aehr is one of the very few companies with equipment specifically designed to test these chips at scale, giving it a rare niche position in a supply chain that the entire EV industry depends on. As EV production ramps globally, the demand for Aehr's testing machines is directly tied to how fast that market grows.
How does it make money?
Aehr makes money by selling its FOX-XP and FOX-NP testing systems to chip manufacturers, primarily those producing silicon carbide semiconductors for EVs. These are big-ticket capital equipment purchases — a single system can cost hundreds of thousands of dollars. The company also earns recurring revenue from consumables and service contracts tied to machines already in the field. With around $100 million in annual revenue, the business is small but growing, and each new EV chip fab that opens is a potential customer.
Why do investors care?
The bull story is simple: EV adoption is growing, silicon carbide chip demand is growing with it, and Aehr has a near-monopoly on wafer-level burn-in testing for those chips. If EV production doubles over the next five years, chip manufacturers will need more testing capacity — and more Aehr machines. What has to go right is continued silicon carbide adoption, Aehr winning new customers, and avoiding a scenario where chip makers bring testing in-house or find a cheaper alternative.
Deep Dive
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