FormFactor, Inc. (FORM): History, Ownership, Mission, How It Works & Makes Money

Ever wonder how the chips inside your devices are tested to ensure they work flawlessly? FormFactor, Inc. (FORM) stands as a critical player in the semiconductor industry, providing essential test and measurement technologies. With a 15.2% increase in revenue for fiscal year 2024, reaching $764 million, driven significantly by the growth in High Bandwidth Memory (HBM), how has FormFactor evolved to become a leader in this space, and what makes its solutions so indispensable?

This article dives into the history, ownership, mission, and operational mechanics of FormFactor, offering a comprehensive understanding of its significance in the semiconductor ecosystem. Learn about the company's strategic focus on end-to-end testing solutions and its global presence with facilities across Asia, Europe, and North America. Keep reading to explore how FormFactor is shaping the future of semiconductor technology.

FormFactor, Inc. (FORM) History

[Company's] Founding Timeline

Year established

The company was established in 1993.

Original location

The company was originally located in Livermore, California.

Founding team members

The founding team members included:

• Igor Khandros
• Sergey Savastiouk

Initial capital/funding

The initial funding for the company came from friends and family, totaling approximately $2 million.

[Company's] Evolution Milestones

[Company's] Transformative Moments

Several transformative moments have significantly shaped the company's trajectory:

• Strategic Acquisitions: The acquisitions of Cascade Microtech and FRT GmbH were pivotal. The Cascade Microtech acquisition in 2016 broadened the company's product range and significantly boosted its market share in the probe card market. Similarly, the acquisition of FRT GmbH in 2019 enhanced its metrology capabilities, which are crucial for surface inspection in advanced semiconductor manufacturing.
• Technological Innovation: The company's continuous focus on technological innovation, particularly in advanced microprobe technology and solutions for advanced packaging, has been crucial in maintaining its competitive edge. This innovation has enabled the company to meet the evolving needs of the semiconductor industry.
• Market Expansion: Expanding its presence in key markets, particularly in Asia, has been a transformative decision. This expansion has allowed the company to capitalize on the growth of the semiconductor industry in the region.
• Financial Performance: Achieving record revenue in 2021 underscored the effectiveness of the company's strategic initiatives and its strong position in the market. This financial success has provided the resources for further investment in innovation and expansion.

To gain more insights into the investors, read this article: Exploring FormFactor, Inc. (FORM) Investor Profile: Who’s Buying and Why?

FormFactor, Inc. (FORM) Ownership Structure

FormFactor, Inc. operates with a mixed ownership structure, including a combination of institutional, retail, and insider holdings that influence its governance and strategic direction.

FormFactor, Inc.'s Current Status

FormFactor, Inc. is a publicly traded company, listed on the NASDAQ under the ticker symbol FORM. This means that its shares are available for purchase by the general public, and the company is subject to regulations and reporting requirements set forth by the Securities and Exchange Commission (SEC).

FormFactor, Inc.'s Ownership Breakdown

Understanding the ownership structure of FormFactor, Inc. provides insights into who has the most influence over the company's decisions. Here's a breakdown:

FormFactor, Inc.'s Leadership

The leadership team at FormFactor, Inc. is responsible for the strategic direction and day-to-day operations of the company. Key members of the leadership team as of April 2025 include:

• Mike Slessor: Chief Executive Officer
• Shaun Hawkins: Chief Financial Officer
• Amy Leong: Senior Vice President, General Manager of Emerging Growth Business Unit

These individuals, along with other senior leaders, guide FormFactor in its mission. More insight into the company's goals can be found at: Mission Statement, Vision, & Core Values of FormFactor, Inc. (FORM).

FormFactor, Inc. (FORM) Mission and Values

FormFactor's mission is centered around enabling advancements in technology through innovative test and measurement solutions. The company values innovation, collaboration, and customer success, aiming to be a trusted partner in the semiconductor industry.

FormFactor's Core Purpose

Official mission statement

While FormFactor doesn't have a single, universally publicized official mission statement, their core purpose can be inferred from their actions and public statements. It revolves around:

• Enabling silicon advancements: FormFactor provides critical test and measurement technologies that allow semiconductor manufacturers to develop and produce increasingly complex and powerful integrated circuits.
• Driving customer success: They focus on delivering solutions that meet the evolving needs of their customers, helping them to improve yields, reduce costs, and accelerate time-to-market.
• Leading through innovation: FormFactor continuously invests in research and development to create cutting-edge technologies that address the challenges of advanced semiconductor manufacturing.

Vision statement

Again, FormFactor doesn't have a specific, formally declared vision statement. However, their vision can be understood as:

• To be the leading provider of test and measurement solutions for the semiconductor industry, enabling the next generation of technological breakthroughs.
• To foster a culture of innovation and collaboration, attracting and retaining top talent to drive continuous improvement and growth.
• To create long-term value for their customers, employees, and shareholders by delivering exceptional products and services.

Company slogan/tagline

FormFactor's tagline is 'Test. Measure. Innovate.':

• This concise slogan encapsulates the essence of FormFactor's business and values.
• 'Test' highlights their core offering of test and measurement solutions.
• 'Measure' emphasizes the precision and accuracy of their technologies.
• 'Innovate' underscores their commitment to continuous improvement and development of new solutions.

To gain more insights into FormFactor's financial health, explore: Breaking Down FormFactor, Inc. (FORM) Financial Health: Key Insights for Investors

FormFactor, Inc. (FORM) How It Works

FormFactor, Inc. designs, develops, manufactures, and sells probe cards and systems that are integral to the test and measurement of integrated circuits. These products are essential for semiconductor manufacturers as they develop and produce new generations of devices.

FormFactor, Inc.'s Product/Service Portfolio

FormFactor, Inc.'s Operational Framework

FormFactor operates through a combination of design, manufacturing, and direct sales to its customers. Here's a breakdown:

• Design and Development: FormFactor invests heavily in research and development to create innovative probe card and test system solutions. This includes advanced simulation and modeling tools to optimize performance.
• Manufacturing: The company has manufacturing facilities that utilize precision engineering and materials science to produce high-quality probe cards and systems.
• Sales and Support: FormFactor employs a direct sales force and support teams to engage with customers, understand their testing needs, and provide technical assistance.
• Customer Collaboration: They work closely with semiconductor manufacturers to develop custom solutions that meet specific testing requirements for new and existing chip designs.

FormFactor, Inc.'s Strategic Advantages

FormFactor's success is driven by several key strategic advantages:

• Technological Leadership: Known for its advanced probe card technology, particularly in high-growth areas like advanced packaging and high-speed memory testing.
• Strong Customer Relationships: The company maintains close relationships with leading semiconductor manufacturers, ensuring a steady demand for its products.
• Diversified Product Portfolio: FormFactor offers a range of probe card solutions and systems, reducing its dependence on any single market segment.
• Global Presence: With operations and support teams located around the world, FormFactor can effectively serve its global customer base.
• Focus on Innovation: Continuous investment in R&D allows FormFactor to stay ahead of the curve and meet the evolving needs of the semiconductor industry.

Additional insights into FormFactor's financial performance and strategic positioning can be found here: Breaking Down FormFactor, Inc. (FORM) Financial Health: Key Insights for Investors

FormFactor, Inc. (FORM) How It Makes Money

FormFactor, Inc. primarily generates revenue by designing, developing, manufacturing, and selling advanced wafer probe cards and probe stations used in the testing of semiconductor integrated circuits.

FormFactor, Inc.'s Revenue Breakdown

FormFactor's revenue is divided into two main segments: Probe Cards and Systems. Probe cards constitute the majority of the company's revenue. Here's a closer look at the revenue streams based on the 2024 fiscal year:

FormFactor, Inc.'s Business Economics

FormFactor operates in a highly specialized segment of the semiconductor industry, focusing on providing essential testing tools. The company's business economics are influenced by several factors:

• Pricing Strategy: FormFactor employs a premium pricing strategy, reflecting the high value and precision of its products. The pricing is also influenced by the complexity and customization required for specific customer needs.
• Economic Fundamentals: The demand for FormFactor's products is closely tied to the overall health and investment cycles within the semiconductor industry. Factors such as global demand for electronics, advancements in semiconductor technology, and capital expenditures by semiconductor manufacturers significantly impact FormFactor's revenue.
• Customer Base: FormFactor serves a global customer base, including leading semiconductor manufacturers, foundries, and integrated device manufacturers (IDMs). This diversification helps to mitigate risks associated with regional economic downturns or specific customer challenges.

FormFactor, Inc.'s Financial Performance

FormFactor's financial performance in recent years reflects its strategic positioning and operational efficiency. Key highlights include:

• In the fiscal year 2024, FormFactor reported revenue of $743.2 million, a 2.9% increase compared to $722.2 million in the prior year.
• The company's gross margin for 2024 was 44.2%, compared to 44.4% in 2023.
• Net income for 2024 was $35.2 million, or $0.46 per diluted share, compared to a net income of $29.7 million, or $0.38 per diluted share in 2023.
• FormFactor's financial stability is also evident in its cash flow management. The company generated substantial cash from operations, which supports investments in research and development, strategic acquisitions, and shareholder returns.

To delve deeper into FormFactor's financial health, explore: Breaking Down FormFactor, Inc. (FORM) Financial Health: Key Insights for Investors

FormFactor, Inc. (FORM) Market Position & Future Outlook

FormFactor is strategically positioned to capitalize on the growing demand for advanced microprobing and test solutions, driven by the semiconductor industry's relentless pursuit of higher performance and greater efficiency. The company's future outlook appears promising, with significant opportunities in emerging markets and technologies, though it faces challenges related to competition and economic uncertainties.

Competitive Landscape

Opportunities & Challenges

Industry Position

FormFactor holds a strong position in the semiconductor test and measurement industry, particularly in the advanced probe card market. The company's innovative technology and strong customer relationships have enabled it to maintain a competitive edge. Key aspects of its industry standing include:

• Technology Leadership: FormFactor is known for its cutting-edge probe card technology, which enables the testing of high-performance semiconductors at high speeds and frequencies.
• Customer Relationships: The company has established long-term relationships with leading semiconductor manufacturers, providing it with a stable revenue stream and valuable insights into industry trends.
• Market Diversification: While primarily focused on the semiconductor market, FormFactor is expanding into related industries such as automotive, aerospace and defense, and medical devices, reducing its reliance on any single market segment.
• Financial Performance: In the 2024 fiscal year, FormFactor reported revenues of $878.7 million, reflecting its strong market position and growth trajectory.

To delve deeper into the core principles that guide the company, explore: Mission Statement, Vision, & Core Values of FormFactor, Inc. (FORM).