Automated test equipment is used extensively in semiconductor manufacturing, where integrated circuits on a silicon chip must be tested before it is prepared for packaging. It cuts down on the time it takes to test more complex chips, which are incorporating higher speeds, performance, and pin counts. Automatic testing also helps to locate flaws in system-on-chips, or SoCs, which often contain analog, mixed-signal, and wireless parts on the same silicon chip.
Automated test equipment is not only being used to weed out defects, industry executive said, but also to tweak parts for lower power consumption and higher accuracy. “This becoming an economical way for manufacturers to get higher yields out of increasingly finicky lithography,” Mark Jagiela, chief executive of Teradyne, one of the largest ATE makers, told investors in a conference call earlier this year.
Teradyne reaped $963 million in revenue in the first half of 2016, up 13% from the same time last year, according to its financial filings. But at the same time, the company has generated little revenue from its wireless test equipment, which has followed the decline of the entire wireless testing market. Many analysts have predicted that the release of fifth-generation, of 5G, wireless technology will reverse the decline in of wireless testers.
The downturn suggests that the needle is moving slowly toward automated test equipment. Many engineers are still using traditional test equipment from companies like Anritsu and Keysight Technologies, the former test division of Hewlett Packard.
But major wireless test equipment makers are starting to include more automated features into their products. National Instruments recently announced that it would add a digital pattern instrument for automatically testing wireless circuitry to its PXI platform. Anritsu has incorporated new features in base station testers that enable continuous testing, which can be monitored and controlled from a smartphone.
The other major ATE companies include Japan’s Advantest and LTX-Credence, which together with Teradyne account for more than 85% of the entire market, which has consolidated in recent years with falling equipment prices.