ONTO's $720M Rigaku stake opens $1B X-ray metrology market

ONTO Corp. has taken a $720 million stake in Rigaku, adding X-ray process control to its semiconductor metrology portfolio and opening a roughly $1 billion market as chip structures grow more complex.

ONTO said the investment expands its portfolio into X-ray process control for semiconductor manufacturing, opening a new revenue avenue as chip geometries shrink below 5nm, according to the company's announcement.

The deal arrives as semiconductor fabs push toward 5nm and below, where sub-micron defects on wafers and photomasks require increasingly precise inspection. X-ray process control complements ONTO's existing optical metrology tools, giving the company a broader portfolio to sell into the advanced process control market. The semiconductor inspection segment is projected to grow at a CAGR of 9-11 percent through 2035, the fastest among all end-use sectors in machine vision, according to IndexBox data.

The move sets up ONTO to capture a larger share of metrology and inspection spending as fabs scale advanced packaging and 3D architectures. With semiconductor capital expenditure rising globally and fabs expanding in Asia-Pacific and the United States, the X-ray process control market could become a meaningful revenue driver for ONTO in the coming years.

X-ray fills the gap where optical inspection falls short

The acquisition comes at a time when chipmakers are wrestling with increasingly complex structures. As the industry transitions to smaller nodes and 3D NAND architectures, traditional optical inspection methods face limits in detecting defects buried beneath multiple layers. X-ray-based process control addresses this gap by penetrating deeper into the stack, catching defects that optical tools miss.

ONTO's move follows a broader trend in semiconductor metrology, where companies are consolidating complementary inspection technologies. The company's existing optical metrology tools, combined with Rigaku's X-ray capabilities, create a more complete inspection suite for fabs. This matters because chipmakers increasingly demand single-vendor solutions that can handle multiple inspection modalities across the production line.

In semiconductor metrology, KLA Corp. dominates the optical inspection market, while Applied Materials has expanded into process control through its eBeam and optical products. ONTO's entry into X-ray process control through the Rigaku stake gives it a differentiated capability that could help it compete for advanced packaging and leading-edge node inspection contracts.

Machine vision infrastructure grows 7-9% annually

The broader machine vision market supporting semiconductor manufacturing is also expanding. LED dome lights, which provide the shadow-free illumination essential for high-speed defect detection and 3D part inspection, are projected to grow at a CAGR of 7-9 percent from 2026 to 2035, according to IndexBox. Asia-Pacific accounts for over 60 percent of global demand for these precision lighting systems, driven by the concentration of electronics and semiconductor manufacturing in China, Taiwan, Japan, and South Korea.

For investors, the Rigaku stake represents a strategic bet on the growing complexity of chip manufacturing. ONTO shares could benefit if the X-ray process control market materializes as expected, particularly as fabs in the United States and Asia-Pacific ramp up advanced packaging capacity. The roughly $1 billion addressable market, while modest compared to the overall semiconductor equipment industry, offers ONTO a new growth avenue at a time when traditional metrology markets are maturing.

The deal also carries execution risk. Integrating Rigaku's X-ray technology into ONTO's product portfolio will require significant R&D investment, and competition from established players in the inspection space could limit market share gains. The company has not yet disclosed a timeline for product integration or revenue contribution from the new capability.

This article is for informational purposes only and does not constitute investment advice.