Dear Fellow Stockholders,
It is my pleasure to invite you to attend the 2024 Annual Meeting of Stockholders of FormFactor, Inc. on Friday May 17, 2024, at 3:00 p.m., Pacific Daylight Time. Our Annual Meeting will again be conducted online via a live webcast, as we have found a virtual meeting provides greater accessibility and inclusivity for all stockholders; and you will be able to attend the Annual Meeting and vote online during the meeting by visiting www.virtualshareholdermeeting.com/FORM2024.
We had another record-breaking year that produced over three-quartersencourage you to read this Proxy Statement, as it contains important information for voting your shares and explains how our Board of a billion dollars in revenue, an 11% increase overDirectors oversaw your investment during the previous year, despite the pandemic headwinds. We continuedpast year. It also provides information about our engaged and effective Board of Directors, corporate governance and executive compensation practices, commitment to drive business performancesustainability and generate positive momentum across the company by refining the adaptive strategies that contributedcorporate responsibility, and regular dialogue with and responsiveness to our successstockholders.
Financial Performance and Business Strategy. FormFactor is a global semiconductor test and measurement market leader, with a breadth of market opportunities serving applications from the Lab to the Fab. Our diversification strategy sets us apart from our direct competitors, and our unique Probe Cards Segment portfolio, together with our Systems Segment products, enables us to compete for business across diverse demand pools at all major semiconductor manufacturers.
Despite the current cyclical industry trough, the broad spread of our business produced relatively stable aggregate demand across our combined served markets and generated consistent top-line results during each of the quarters of 2023. Customer investment in 2020. We also made additional investmentsgrowing areas driven by generative AI, like high-bandwidth memory and co-packaged silicon photonics, is helping offset the impact of areas that are presently at cyclically low levels, like mobile handsets, PCs, and automotive.
This stability, in turn, enabled FormFactor to continue investing in R&D for new-product innovation and manufacturing capacity thatcompetitive differentiation, especially in our product roadmap for advanced packaging applications. This will, we believe, position us well for continued success in 2022produce market-share gains, above-industry revenue and beyond. Our new Livermore manufacturing facility began shipments inprofit growth when the fourth quarter of last year,industry returns to growth.
Connecting with Stockholders. In 2023, we attended more than two-dozen virtual and we are gradually expanding capacity at that facility, and facilities across our global manufacturing network,in-person conferences. We believe active stockholder engagement contributes to meet growing customer demand.
Our commitment to environmental, social and governance (“ESG”) leadership was recognized by Newsweek magazine, which named us as one of America’s Most Responsible Companies for the year 2022. We are very proud of this accomplishment and remain dedicated to continued improvementaccountability of our corporate social responsibility program.Board of Directors and management.
The dedicationSustainability and excellence of our employees continue to drive our innovation and growth, and we remain energized by the important role we play in the dynamic semiconductor industry. Our success and ability to generate long-term value for stockholders is also attributable to the sustained focus of our long-term strategic objectivesCorporate Responsibility. Guided by our Board of Directors, we made progress integrating our ESG objectives into our human resources, sourcing, manufacturing, and management:
Leadershipother key functions, as detailed in Core Markets: Increase market share in advanced probe cardsthe “Corporate Citizenship” and engineering systems, while innovating new“Diversity and leveraging existing roadmap technologies and investments across all our served markets.
Drive Profitability: Maintain and continuously improve efficiency by capitalizing on our leadership positions and economies of scale.
Enter and Develop in Adjacent Markets: Continue long-term diversification of revenue streams and customer mix through mergers and acquisitions and product extensions in test and measurement.
Connecting with Stockholders. We are committed to effective stockholder engagement, which we believe contributes to greater accountabilityInclusion” portions of our Board and management. In 2021, we attended substantially more virtual conferences than we would have been able to attend in-person, which we found helped broaden our investor outreach.
Sustainability and Corporate Responsibility. In recent years, ESG matters have become a key focus for our Board, management, and all our employees. Guided by our Board, we have made significant progress in the integration of ESG objectives throughout FormFactor. Our products continue to help the semiconductor industry improve yields and efficiency to advance the sustainability of the global electronics supply chain.website.
Human Capital. We remainare focused on maintaining a highly qualified and engaged workforce and providing opportunities for growth and advancement, while continuing to emphasizebuilding a strong pay-for-performance culture that supports our diversity and inclusion initiatives. Our goal is to remaincreate a work environment that is solidly aligned with the interests of our stockholders. We continue to enhance our diversity and inclusion programs to create a work environmentstockholders where everyone feels welcome, valued, and supported to contribute to their highest potential.
COVID-19 Response. As the global pandemic continued in 2021, we built upon the strong foundation of our previous COVID-19 response strategies to maintain the safety of our employees, while meeting the needs of our customers. Our demonstrated ability to adapt to constantly changing circumstances and requirements will continue to serve us well.