Following the announcement of a strategic acquisition on Tuesday, shares of Aehr Test Systems (NASDAQ: AEHR) displayed robust performance on the US stock charts. As of the latest check during the after-hours session, AEHR stock had surged by 13.42%, reaching $19.10, after already experiencing a 2.50% rise during the regular trading session, closing at $16.84.

Details of the Acquisition

Aehr Test Systems signed a stock purchase agreement to buy all of Incal Technology, Inc.'s outstanding capital shares. The acquisition deal, valued at $21 million, consists of $14 million in cash and 552,355 shares of Aehr common stock priced at $12.673 per share.

This strategic acquisition will enable Aehr to enhance its product portfolio with Incal's highly regarded test solutions, particularly their ultra-high-power capabilities essential for AI accelerators, GPUs, and high-performance computing (HPC) processors.

Strategic Market Positioning

This move transforms Aehr into a turn-key provider, offering comprehensive reliability and testing solutions from engineering stages to high-volume production. The artificial intelligence semiconductor market, still in its nascent stages, presents significant opportunities for Aehr Test Systems.

Their new high-power FOX multi-wafer production system is particularly poised to address the wafer-level burn-in requirements of this sector. Furthermore, the unique challenges associated with testing high-power AI processors necessitate extensive engineering qualification and process development, presenting a substantial new opportunity for production reliability screening at the packaged part level.

Technological and Commercial Advantages for AEHR

Incal's ultra-high-power solutions offer notable technological and commercial benefits over existing alternatives, allowing Aehr Test Systems to potentially secure a larger share of the AI semiconductor test market. Additionally, Incal's close relationships and deep understanding of the needs of AI industry leaders position Aehr favorably within the market.

Incal's systems are currently being deployed by a diverse range of companies and their subcontract manufacturing and test houses for reliability testing of AI, GPU, network, and HPC processors. Many of these companies are anticipating a shift towards high-volume, production-level burn-in of these devices, further highlighting the significance of this acquisition for Aehr Test Systems.