Q3 2024 Nova Ltd Earnings Call

It's a bit difficult to see right now or to anticipate the actual WFE growth of next year, but we can definitely say at this point of time that it's going to be higher than the WFE growth in 2024.

Yeah, that's it.

Speaker Change: Maybe the other question, you want to touch upon China a little bit. You mentioned that your overall China contribution is similar to your peers, but your peers do have a slightly wider range right now, where depending on what they do, like for example in process control peer, the large cap,

Speaker Change: process control peers still going to see more more than 40%

Speaker Change: of the revenue coming from China, but the process peers like LAM, possibly Applied Materials, their numbers actually for this year is probably more like in the 30s.

Speaker Change: With respect to your peers, where do you land, where is your China exposure going to land for 2024? Thanks.

Speaker Change: So we still have the fourth quarter to end and give us the final number for the year. What I can say is that we are within the range of those peers.

Speaker Change: and that the growing share of advanced nodes revenue in our portfolio is going to increase next year.

Thanks, Gabby. If I may, maybe one last question.

Speaker Change: I think previously you did talk about product penetration at the U.S. IDM making good, very good progress, but the significant revenue probably more tied to their gate all-around nodes.

Speaker Change: So I can't address to a specific customer. What I can say is that we're working very closely with all GATO around customers globally. As I mentioned, we don't see a major change.

Speaker Change: and all the evaluations and plans going forward and I doubt that there will be.

Speaker Change: as being strategically important for the success of all these manufacturers. Another thing that I can also mention in that respect, because we mentioned the technologies, and this is obviously the most important thing, is that I'll give you an example of the Metreon platform, the inline sims.

Speaker Change: will be evaluated with a leading memory, with three leading memory and logic manufacturers.

Speaker Change: Dror David, Dror David, Gabriel Waisman, Dror David, Gabriel Waisman, Dror David, Gabriel

Thank you.

Speaker Change: Thanks, Gabby, for the color. I will hop back to the queue.

Thank you. Bye. Bye.

Speaker Change: Again, if you do have a question, please press star, then 1.

Speaker Change: And the next question comes from Vedvadya Schroeder with Evercore ISI. Please proceed.

Vedvadya Schroeder: Hi, thanks for taking my question. So the first one I had was, so on the Foundry logic side we understand the

Vedvadya Schroeder: inflection with gait all around. Can you highlight the inflections or the investments that are going on in the memory space which benefit you?

Speaker Change: So in the memory space right now we see a demand from DRAM and within this DRAM growth we see also

Strong demands from high bandwidth memory, which is about...

Vedvadya Schroeder: 30% of our advanced packaging business. We see regarding memory some moderate growth.

mainly fueled by DRAM capacity building related to AI devices.

Vedvadya Schroeder: A few of our VeriFlex 4 platforms have been dedicated to these kinds of processes and we believe that DRM demand should grow more in the first half of next year.

Vedvadya Schroeder: Dedicated to that these kinds of processes and we believe that the DRAM demand should grow more.

Vedvadya Schroeder: In the first half of next year.

Vedvadya Schroeder: And then.

Vedvadya Schroeder: We'll probably see some growth and recovery around the second half of next year.

Vedvadya Schroeder: We will probably see some growth in recovery around the second half of next year.

Speaker Change: Is there any activity on the flash side I don't know okay.

Speaker Change: There's obviously activity and we expect it to to grow even more in the second half of next year but definitely we see activity and momentum in that area as well.

Speaker Change: Thank you August Michigan.

Speaker Change: There's obviously activity.

Speaker Change: And we expect it to grow even more.

Speaker Change: In the second half of next year, but definitely we see activity and momentum in that area as well.

Speaker Change: I've got it. So the other question I wanted to ask was, you know, on your pipeline to, you know, getting your revenue potential to $500 million by 2026 for gate all round nodes.

Speaker Change: Okay. So the other question I wanted to ask why.

Speaker Change: On your pipeline.

Speaker Change: Getting your revenue potential due to 500 million by 2028 split gate all around noise.

Speaker Change: We're seeing that there are Foundry Logic customers who are facing issues with Git all around. Has there been any change in the conversations you have been having with the customers in terms of, you know, just how that trajectory looks?

Speaker Change: Rahim that yes, the foundry logic customized Wang speaking issuers weight gain have has there been any change in the conversations you've been having with the customer in terms of debt.

Speaker Change: How that trajectory.

going into next year and then maybe the following year.

Speaker Change: Going into next year, and then maybe the following year.

Speaker Change: Could you repeat the last part.

Speaker Change: Could you repeat the last part of the question? The trajectory of how you get to that 500 million, does that change given that you're seeing some issues on the gate or around front by the customers?

Question.

Speaker Change: That could get D of how you get there.

Speaker Change: I think 500 million does that change given that you are seeing some issues on the gateway.

Speaker Change: Thanks, Bye bye to all customers.

Speaker Change: No change and opposition remains strong and we're confident in reaching that number by the end of 2026.

Speaker Change: No change in.

Speaker Change: Our position remains strong and we're confident in reaching that number by the end of 2026.

Speaker Change: understood and on China that the last question I had it was on China it

Understood.

Speaker Change: In China. The last question I had was on China.

So all the large gap, semi-gap equipments have been

Speaker Change: So all of the large <unk> semi cap equipment has been you know.

Speaker Change: Knowing that China was that going into 2025.

Speaker Change: Yeah, <unk> got it down to 20%.

Speaker Change: And Kelly are roughly around 30% for next year, how are you thinking of that.

Speaker Change: That exposure to China in 2025, and do you see any moderation in demand going down cleaning the large foundry logic side.

Speaker Change: Do you see any moderation in the demand on the trailing node from VLogic side?

Speaker Change: So at this moment, we see continued demand and very robust business in China also entering 2025.

Speaker Change: So at this moment, we see continued demand and very robust business in China also entering 2025, obviously as a result of the faster growth in advanced nodes, we'll see some moderation in the overall share of China out of the out of our overall.

China out of the

Thank you very much.

Speaker Change: Business, although the overall product sales, but we still see the continued demand.

Speaker Change: Thank you.

Speaker Change: And this does conclude our question and answer session. At this time, I would like to turn the conference back over to Mr. Gabby Waisman for any closing remarks.

Speaker Change: And this does conclude our question and answer session. At this time I would like to turn the conference back over to Mr. Debbie Wiseman for any closing remarks.

Speaker Change: Thank you operator, and thank you all for joining our call today.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation and you may now disconnect.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.

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