Breaking Down SÜSS MicroTec SE Financial Health: Key Insights for Investors

From a family-founded workshop in Garching in 1949 to a global semiconductor equipment player, SÜSS MicroTec SE's journey - rebranded in 1999 and rejoining the TecDAX on 18 March 2024 - underscores a focused pivot toward advanced backend and photomask systems that today support customers from Garching and Sternenfels to Hsinchu; with roughly 1,498 employees and 2024 revenue of €446.1 million, the company combines targeted R&D, partnerships with research institutes and a commitment to sustainability to drive technologies like 3D integration and nanoimprint lithography, while its business model-split into Advanced Backend Solutions and Photomask Solutions-turns equipment sales and customized process solutions into cash (order book: €325.8 million as of 30 June 2025; Q2 2025 intake: €78.7 million), supported by a net cash position of €122 million and free cash flow of €96.1 million in 2024, and targets sales of €750-€900 million by 2030 with R&D rising to 11% of sales to sustain margins and drive global expansion.

SÜSS MicroTec SE (0Q3C.L): Intro

• Founded in 1949 as Karl Süss GmbH & Co. KG by Karl Süss in Garching near Munich, Germany, focusing on equipment and process solutions for the semiconductor industry.
• Rebranded to Süss MicroTec in 1999 to reflect an expanded focus on microstructuring technologies for semiconductor manufacturing.
• Removed from the TecDAX index in 2016; rejoined TecDAX on March 18, 2024, recognizing improved business performance and technological significance.
• In 2024, sold its micro-optics division to Focuslight Technologies to streamline operations and focus on core semiconductor equipment and processes.

• Concentrate on semiconductor equipment and process solutions that enable microstructuring, lithography, wafer handling, and process integration.
• Streamline portfolio to core competencies following the divestiture of micro-optics in 2024.
• Maintain global production footprint to serve regional wafer fabs and advanced packaging customers.

• Photolithography and mask alignment systems for semiconductor patterning.
• Wafer bonding and handling equipment for 3D integration and advanced packaging.
• Process modules and metrology-related tooling that integrate into fab production lines.
• After-sales services: maintenance, upgrades, spare parts and process support.

• Equipment sales: capital equipment for fabs and packaging operations (primary revenue driver).
• Service and spare parts: recurring revenue from installed base support and upgrades.
• Process development and custom solutions: engineering services and customer-specific process integration.
• Licensing, software and consumables (where applicable) tied to equipment lifecycle.

• Global operations with production in Germany (Garching, Sternenfels) and Taiwan (Hsinchu) to serve Asian, European and North American customers.
• Customer base comprised of semiconductor manufacturers, MEMS producers, foundries, and advanced packaging houses.

SÜSS MicroTec SE (0Q3C.L): History

• Primary listings: SDAX and TecDAX (Germany).
• Core product areas: wafer bonding, photolithography and metrology solutions, deposition and lithography mask aligners.
• Global footprint: manufacturing, R&D and service operations supported by subsidiaries in Thailand, Japan, Taiwan, China and Korea.

• Management board (executive): CEO Burkhardt Frick, CFO Dr. Cornelia Ballwießer, COO Dr. Thomas Rohe.
• Supervisory board (oversight): chaired by David Dean.

• Corporate governance: diversified shareholder base with institutional anchors and a supervisory board ensuring alignment with shareholder interests.
• International operations: subsidiaries across Asia to serve local semiconductor ecosystems and provide on-site service and sales.

SÜSS MicroTec SE (0Q3C.L): Ownership Structure

• Mission and Values: committed to advancing semiconductor manufacturing with precision, reliability and customer-focused innovation.
• Collaboration: close partnerships with research institutes and industry players to drive technologies such as 3D integration and nanoimprint lithography.
• Sustainability: emphasis on energy‑efficient products and environmentally responsible manufacturing processes.
• People & Culture: continuous improvement, employee development, operational excellence, integrity and transparency.

• Product lines: lithography systems, wafer bonding and handling equipment, metrology and mask aligners, and nanoimprint systems.
• Revenue model: sale of capital equipment (largest share), spare parts & consumables, service contracts, retrofits and customized process solutions.
• Customers: semiconductor manufacturers, MEMS and sensor makers, advanced packaging companies, R&D centers and universities.

• Shareholder mix: combination of institutional investors, strategic long‑term holders and free float on public markets; management and supervisory board hold minority stakes aligned with corporate governance norms.
• Corporate governance: two‑tier German board system (Management Board and Supervisory Board) emphasizing transparency and stakeholder engagement.
• Strategic partners: strong ties with research institutes and industrial consortiums to co‑develop processes and tools for advanced packaging and lithography.

• Capital equipment cycle: demand tied to semiconductor investment cycles, foundry and advanced packaging spend.
• Recurring revenue: service, parts and upgrades help stabilize margins between new equipment cycles.
• R&D intensity: sustained R&D investment to maintain technological edge in nanoimprint and 3D integration support long‑term growth.
• Sustainability initiatives: energy‑efficient product designs and greener manufacturing can reduce lifecycle costs for customers and strengthen ESG profile.

SÜSS MicroTec SE (0Q3C.L): Mission and Values

• Operational structure: two core divisions - Advanced Backend Solutions and Photomask Solutions - addressing complementary steps in the semiconductor value chain.
• Advanced Backend Solutions: supplies wafer bonding, lithography for wafer‑level packaging, precision metrology and alignment tools required for advanced packaging, 3D integration and heterogeneous integration.
• Photomask Solutions: delivers systems for photomask production, inspection and mask cleaning that are critical inputs to photolithography in front‑end wafer fabrication and advanced node production.
• Global footprint: production sites in Germany and Taiwan, with announced capacity expansion plans to support rising demand from advanced packaging and photomask markets.

• Capital equipment sales: primary revenue from sale of systems (wafer bonders, mask writers/cleaners, metrology units) to semiconductor fabs, OSATs (outsourced semiconductor assembly and test), and mask shops.
• Aftermarket and services: recurring revenue from spare parts, maintenance contracts, retrofits, process upgrades and field service agreements.
• Process solutions and customer engineering: paid development projects, co‑development and process qualification services that accelerate customer adoption and lock in long‑term equipment purchases.
• Order book as demand indicator: strong backlog - €325.8 million as of June 30, 2025 - supporting multi‑quarter equipment deliveries and service streams.

• R&D intensity: target allocation of approximately 11% of sales to research and development by 2030 to sustain technological leadership in bonding, alignment, mask handling and metrology.
• Capacity and geographic strategy: manufacturing capacity centered in Germany and Taiwan to serve European and Asian customers with localized production and quicker time‑to‑market.

• Order backlog: €325.8 million (as of June 30, 2025), reflecting sustained multi‑quarter demand for both backend and mask equipment.
• R&D commitment: targeted ~11% of sales invested into R&D by 2030 to maintain product roadmap and compete on precision, throughput and integration capabilities.
• Geographic production: dual production sites in Germany and Taiwan to optimize supply chains and serve major semiconductor clusters.

SÜSS MicroTec SE (0Q3C.L): How It Works

• Selling capital equipment: mask aligners, coaters/developers, bonders and lithography tools to OEMs, foundries and advanced packaging providers.
• Customized solutions and process integration: tailored systems and process recipes for customer-specific applications (MEMS, sensors, photonics, LED, advanced packaging).
• Aftermarket revenue: spare parts, consumables, upgrades, service contracts and field support that generate recurring revenue.
• Software and metrology: process control, alignment/inspection software and metrology add-ons that enhance tool value and create additional revenue streams.

• Two business divisions: Advanced Backend Solutions (ABS) and Photomask Solutions (PS), each targeting specific stages of the value chain.
• Standard product platforms complemented by customized modules and integration services for specific customer processes.
• Global manufacturing and service footprint with targeted investments (e.g., new production site in Taiwan) to increase local production capacity and shorten customer lead times.
• Strong order intake management and project execution to convert orders into serial shipments and recurring aftermarket sales.

• Equipment sales drive large, project-based revenue spikes when customers ramp capacity; aftermarket and service sales provide recurring, higher-margin streams.
• ABS contributes heavily through advanced packaging tools and bonders; PS drives revenue via photomask-related lithography and mask aligner sales and services.
• Customized solutions and integration projects increase lifetime value per customer and frequently lead to follow-on aftermarket contracts.

SÜSS MicroTec SE (0Q3C.L): How It Makes Money

• Core product lines: lithography systems, wafer bonding equipment, cleaning and metrology tools.
• Recurring revenue: spare parts, service, software upgrades and consumables.
• Project/turnkey sales: customized systems and integration for high-volume manufacturing.

• Market position: recognized as a leader in select niche process tools and advanced packaging equipment, benefiting from strong IP and engineering expertise.
• Strategic initiatives: capacity expansion, targeted R&D spending, modular platform development, and expanded global service footprint to capture aftermarket revenue.
• Profitability focus: shift toward higher-margin systems and recurring service contracts to achieve 20-22% EBIT by 2030.