Aehr Test Systems

Intangible assets (65/100): Aehr holds a sizable IP portfolio tied to WLBI and contactor technology, including at least 131 active patents as of FY2025 and a history of continued filings.

Proprietary WaferPak/DiePak and the integrated WaferPak Aligner underpin differentiation, particularly for full‑wafer, single‑touchdown test at elevated power and temperature. Ongoing patent enforcement in China highlights both the value and the vulnerability of the IP.

Switching costs (75/100): Once a device family is qualified on FOX‑XP with custom WaferPaks and integrated automation, process re‑qualification is costly and time‑consuming. WaferPak and DiePak fixtures are device‑specific with multi‑year lifecycles that drive repeat orders and discourage switching.

Cost advantage (55/100): WLBI can pull out infant mortality earlier and reduce downstream scrap vs system‑level burn‑in, improving overall cost of test for high‑reliability devices such as SiC power, AI processors, and silicon photonics. However, some rivals and in‑house solutions can narrow cost advantages over time.

Efficient scale (50/100): The WLBI niche is specialized, limiting the number of credible entrants, but rising interest has encouraged new participants (notably Semight in China). Aehr’s installed base and integrated automation create some local scale.

Network effects (10/100): Minimal classic network effects; value accrues from qualification depth rather than user density. Overall, multiple moderate moats produce a defensible but not impregnable position.