Camtek Ltd Analyst Day 2026

Thank you everybody for coming. Welcome all of you. Is everybody okay. Welcome all of you to Camtek's Investor and Analyst Breakfast, which we're holding in conjunction with SEMICON West. Today is October 14th. I know you all have packed schedules, so we appreciate you coming. My name is Kenny Green. I am part of the investor relations team at Camtek. I want to remind everybody that we are webcasting this event live, and it will also be recorded, and the recording will be available following the event in the next day or two on Camtek's website. Earlier today, we released a press release pre-announcing the Q3 revenues as well as guidance for 2026 and 2027, which we will also cover today in our presentation. In addition, we have also filed this presentation, which you can find on Camtek's website, as well as through the SEC filings.

I just want to refer you all to the safe harbor statement, which I am not going to read, but I will summarize. Statements made today by management will contain forward-looking statements within the meaning of the federal securities laws. Those statements are subject to a range of changes, risks, and uncertainties that may cause the actual events and results to vary materially. For more information regarding the risk factors, please review Camtek's SEC filings and specifically the sections covering forward-looking statements. Other such risk factors can also be viewed in Camtek's most recent annual report, filed with the SEC in Form 20-F in March 2026. I note that Camtek does not undertake the obligation to update forward-looking statements in light of new information or future events.

Today's discussion of financial results will also be typically presented on a non-GAAP financial basis, and a detailed reconciliation can be found at the end of the presentation. Just to introduce everyone. Today we have Lior Aviram, Executive Chairman, Rafi Amit, Camtek's CEO, Mr. Moshe Eisenberg, Camtek's CFO, Ramy Langer, Camtek's President and COO, and Eyal Segev, Director of Marketing. Over the next hour or so, all five will present, and following that, we will open it up for a question and answer session. We will probably have about 20, 25 minutes for Q&A. With that, I would like to hand over to Rafi Amit, Camtek's CEO.

Good morning, everyone. On behalf of the entire Camtek team, I would like to welcome you to our Investor Day here in San Francisco. Thank you all for joining us today. We are delighted to have you with us. I would like to open today's Investor Day with the important announcement we made earlier this morning regarding our forecast for Q3, for Q4, and the outlook for 2027. Revenue expected in Q3 is $160 million to $161 million. Revenue guidance for Q4 is $180 million. Revenue look for 2027 is more than $800 million. Until now, we have not been in a position to provide revenue guidance a full year in advance, simply because our customer visibility and forecast typically extended only a few months ahead.

However, the exceptional demand for computing power driven by AI applications is creating a level of demand for our equipment unlike anything we have experienced before. This extraordinary market environment is giving us something we have never had before, visibility approximately one year ahead. For the first time, this increased visibility allows us to share with you our revenue expectation for 2027. This is an exceptional moment, an important milestone for Camtek. The semiconductor industry is experiencing an extraordinary acceleration in growth driven by the AI revolution. Just a year ago, most industry forecasts projected a semiconductor market of approximately $1 trillion by 2030. Today, those expectations have changed dramatically. Recent forecasts range from approximately $1.7 trillion in 2026 to $3 trillion by 2030. This is not just another growth cycle. We are witnessing a fundamental transformation in the semiconductor industry, creating a great opportunity for Camtek.

Looking further ahead, assuming that demand for computing power and physical AI continues to grow in line with current market forecast, we believe we have the potential to double our annual revenue within three years. Compared to 2026, reaching $1.2 billion, representing a CAGR above 26%. Importantly, this target is based on organic growth without factoring in any potential contribution from substantial M&A. Do not get me wrong, we are dedicating significant resources and management efforts to pursuing M&A opportunities. At the same time, we are being extremely careful not to divert management attention from what we see as a once in a generation opportunity to grow our core business organically at about 26% annually over the coming year. We are aware that we are taking an ambitious target. We recognize that we have set a highly ambitious goal, but we plan to work very hard to achieve it.

One of the fastest-growing segments of the semiconductor industry is the advanced packaging, which is Camtek's core business. We see three major growth engines driving this market, HBM, 2.5D and 3D integration, and photonics. Each of these segments is experiencing rapid technological advancement, increasing manufacturing complexity, and growing demand for advanced inspection and metrology solutions. Later in today's presentation, we will take a closer look at the technological development in each of these areas and explain how they are creating significant growth opportunity for Camtek. Later today, we also will explain in greater detail why we are confident in our ability to achieve $1.2 billion in annual revenue within the next three years. First, let me briefly highlight a few of our key strengths that support this confidence.

Camtek is a market leader with a strong and well-established position in advanced packaging, particularly in 2D inspection and metrology. Regarding our technological strengths, over the years, we have developed exceptional technologies in our optical systems, along with hundreds of innovative features and customized solutions for our advanced packaging customers. We continue to develop unique capabilities to address the increasingly complex requirements of emerging advanced packaging technologies. More recently, we have integrated into our system advanced AI capabilities, which is redefining the inspection and metrology capabilities. Further strengthening our competitive advantage while creating new opportunity to expand our software portfolio and generate additional software revenue streams. Regarding our operation, we are expanding our manufacturing capacity and strengthening our supply chain to support the next phase of growth. Our manufacturing partners who produce our core systems have already increased their production capacity to meet our anticipated demand.

We have built longstanding relationship with all the leading customers in our industry. We work closely with them and are involved from the early stage of developing their next generation technologies. This close collaboration gives us early insight into their future requirement and enables us to develop and integrate advanced inspection and metrology solution into our system tailored to their evolving needs. This combination of market leadership, technological excellence, and deep customer relationships gives us the confidence in our ability to achieve our target. I will hand over to Eyal, who will elaborate on the latest technological development and market trend.

Eyal, please. Okay. Good morning.

I am Eyal Segev, Director of Marketing, and I will talk about Camtek organic growth strategy and begin with the market analysis and growth potential analysis for Camtek. Technology trends are mostly driven by AI and AI data centers requirements and challenges. These challenges are best-in-class computing power, extremely high memory capacity, efficient power consumption, and high bandwidth for massive data transfer. For these challenges, the advanced packaging evolves with high-end technology. First, the 2.5D interposer, which enables the combination or the integration of the GPUs together with the memory on a single interposer. Then interconnect that becomes smaller and denser to accommodate this high data transfer, at smaller distances to improve the power efficiency. Hybrid bonding, which even takes this interconnect dynamics further. Then photonics that enables the communication between packages at a very high transfer rate.

When looking beyond AI data centers that we all know, the next phase or the next wave for implementing AI is the edge devices or what we call edge AI or physical AI. In fact, AI will be inferenced at the edge. Computers like autonomous cars, humanoids, PCs, and mobile phones, as well as wearables, will require smaller and more energy-efficient variation of logic and memory compared to what we have today with data centers. These actually would be data centers building blocks that we know today, but they will be scaled for usage on the edge devices. Smaller spec HBM structures, for example, HBA or HBC, other variations of high-bandwidth memory. Altogether, these existing advanced packaging technologies that we know today, like 2.5D, 3D IC, and fan-out, will all still be utilized on this next wave of edge AI and the physical AI.

Having seen this silicon demand for AI data centers, the technology trends, and future outlook of edge AI, it is clear that the semiconductor wafer fabrication experiencing significant growth in the past and for the foreseeable future. In this chart, we can see the percentage of wafers that are undergoing advanced packaging as portion of the entire semiconductor wafers. Note that this chart is presented in wafer count, which is more relevant to us because we inspect wafer. We see that the growth rate of these advanced packaging wafers is almost doubling the pace of the growth rate of the entire semiconductor industry. This is significant to us because advanced packaging is our main business. Taking another step or zooming in. We saw that advanced packaging is growing faster than the total semiconductor market.

Now, we take the advanced packaging market and segment it into two segments. One would be the standard advanced packaging, and the other would be the high-end advanced packaging. These would be packaging technologies of 2.5 interposers, 3D IC, sometimes fan-out. The important thing is that these are packaging technologies which are mostly related to silicon packages for AI data centers, components for data centers. Thus, it's not surprising to see that this growth rate of the high-end advanced packaging segment is, again, almost twice faster than the advanced packaging segment. This is even more significant for us because 60%-70% of our business is right there at the high-end advanced packaging segment. So when referring to the semiconductor market growth, I'd like to discuss a few growth engines for advanced packaging and naturally for Camtek.