Camtek projects 25% revenue growth in advanced packaging business

Camtek Ltd., the Israel-based maker of semiconductor inspection and metrology equipment, just posted a record quarter that tells you everything you need to know about where the AI hardware buildout is headed. Q2 2026 revenue hit $133.2 million, an 8% jump year-over-year and 10% growth sequentially, with the advanced packaging segment doing most of the heavy lifting.

Advanced packaging now represents 75% of Camtek’s total revenue. Within that slice, products tied to high-performance computing and AI applications account for more than half.

The numbers behind the momentum

Year-to-date orders through June 2026 have surpassed $600 million, with roughly 80% of that total linked to advanced packaging. That kind of order book doesn’t just validate the current quarter. It gives the company meaningful revenue visibility stretching into 2027.

Management is guiding Q3 revenue to land between $158 million and $160 million. The company expects the second half of 2026 to deliver over 30% sequential revenue growth compared to the first half. Advanced packaging revenue specifically is projected to climb approximately 70% from Q1 to Q4 of this year.

For the full year, Camtek anticipates advanced packaging revenue growth in the range of 35% to 45%. The company’s full-year 2025 revenue came in at $496 million, up 16% year-over-year, and management expects similar double-digit growth for 2026.

Two product families are driving much of the growth. The Eagle G5 and Hawk platforms, designed to handle the increasing complexity of advanced packaging inspections, contributed roughly 50% of total systems revenue in Q2 2026.

Why advanced packaging matters right now

Instead of making one chip do everything, manufacturers are now stitching together multiple smaller chiplets into a single package. Technologies like high-bandwidth memory (HBM), chiplets, and hybrid bonding allow different functional components to communicate at high speeds within a tightly integrated unit. This is how the most powerful AI accelerators, the kind training large language models, achieve their performance.

Every one of those packaging steps needs to be inspected. As packaging complexity increases, the inspection requirements multiply. More layers, tighter interconnects, and novel bonding techniques all demand more sophisticated metrology tools.

Positioning in a crowded semiconductor equipment landscape

When 80% of your incoming orders are tied to the fastest-growing segment of semiconductor manufacturing, you’re not a supporting act. You’re a leading indicator.

The company’s 2025 revenue of $496 million makes it a mid-cap player in the equipment space. Its Eagle G5 and Hawk platforms have carved out meaningful market share in packaging inspection.

The projected 70% growth in advanced packaging revenue from Q1 to Q4 of 2026 suggests Camtek’s customers aren’t just placing routine orders. They’re ramping capacity aggressively. Camtek’s order visibility into 2027 provides some cushion against the cyclical nature of semiconductor equipment spending.