Electro Scientific Industries

Electro Scientific Industries, Inc. (ESI) is an American photonics and electronic manufacturing-equipment company whose systems are used by manufacturers of semiconductors, printed circuit boards, integrated-circuit packages, passive components, and other miniature electronic parts. The company is based in the Beaverton, Oregon, metropolitan area and operates as a subsidiary of MKS Instruments following its acquisition in 2019. ESI traces its origins to 1944, when the business was established as Brown Engineering. It subsequently operated as Brown Electro-Measurement Corporation and, after a 1953 investment and ownership restructuring led by Douglas C. Strain and other investors, as Electro-Measurements Inc. The company marketed products under the ESI name before formally changing its name to ESI, Inc. in 1959 and Electro Scientific Industries, Inc. in 1960. Its early business focused on precision resistance-measurement instruments and related electrical test products. A major technological turning point came in 1970, when ESI began developing laser-trimming systems for resistor circuits. Laser trimming enabled manufacturers to adjust the electrical characteristics of components with high precision and without the mechanical limitations associated with conventional methods. This specialization helped ESI become a significant supplier of laser-based processing equipment for electronic components and later for broader microelectronics manufacturing applications. The company expanded from its Oregon base into international sales and manufacturing. It opened its first overseas sales office in Munich in 1978 and later developed sales offices and operations in Europe and Asia. ESI also acquired or integrated several smaller technology businesses, including Dynamotion, Chip Star, Applied Intelligent Systems, Testec, New Wave Research, Eolite Systems, the semiconductor systems business of GSI Group, and Wuhan Topwin Optoelectronics Technology. These transactions broadened its capabilities in laser sources, semiconductor processing, inspection, microfabrication, and related production systems. ESI became publicly traded on NASDAQ in 1983 under the symbol ESIO. Its product portfolio eventually included laser-trimming equipment, laser-drilling systems for printed circuit boards and semiconductor packages, wafer-processing and dicing systems, grooving platforms, component testing and inspection equipment, and fiber, rod, solid-state, and ablation lasers. The company's systems were designed for high-volume manufacturing environments requiring precise, repeatable processing at very small scales. In 2016, Michael Burger, formerly chief executive of Cascade Microtech, succeeded Edward C. Grady as ESI's chief executive. In October 2018, MKS Instruments announced an agreement to acquire ESI for approximately $1 billion in cash. ESI shareholders approved the transaction in January 2019, and the deal closed on February 1, 2019. ESI shares stopped trading after completion of the merger, and the business became an MKS subsidiary rather than an independent public company. After the acquisition, MKS sold ESI's long-standing Science Park Drive property to Columbia Sportswear in 2019. ESI subsequently moved its corporate address within the Beaverton area. The brand and business continued under MKS ownership, with activities spanning laser-based processing, micro-manufacturing, semiconductor production, interconnect fabrication, component testing, and inspection. ESI is therefore best understood today as a specialized business-to-business equipment brand within the MKS Instruments portfolio, rather than as a standalone listed corporation.

Electro Scientific Industries began in Oregon in 1944 as Brown Engineering. The company later became Brown Electro-Measurement Corporation, and in 1953 Douglas C. Strain and three other investors acquired the interests of Strain's former partners and established Electro-Measurements Inc. The business promoted its products using the ESI acronym, associated at the time with the phrase "excellent scientific instruments." Its formal corporate name changed to ESI, Inc. in 1959 and Electro Scientific Industries, Inc. in 1960. During its early decades, ESI concentrated on high-precision resistance measurement and electrical instrumentation. Its facilities were initially located in southeast Portland. A new plant on Macadam Avenue opened in 1956 but was destroyed by fire in 1957 and subsequently rebuilt. In 1962, the company announced plans for Sunset Science Park in the Cedar Mill area of Washington County. ESI moved its headquarters there in 1963 and transferred manufacturing operations to the site in 1966. The campus remained associated with the company for decades, although it had a Portland mailing address while being located on unincorporated land adjacent to Beaverton. In 1970, ESI entered laser trimming, developing systems that used lasers to adjust resistor circuits accurately during production. This move transformed the company from a conventional electrical-instrument supplier into a specialized photonics and electronic manufacturing-technology business. ESI later expanded its systems into laser drilling, micro-machining, wafer processing, component testing, inspection, and semiconductor and package manufacturing. ESI opened its first international sales office in Munich in 1978 and subsequently developed direct sales and support coverage in Europe and Asia. It became a public company in 1983, with its shares traded on NASDAQ under ESIO. During the late 1990s and 2000s, the company expanded through acquisitions, including Dynamotion, Chip Star, Applied Intelligent Systems, Testec, and New Wave Research. It also opened a manufacturing facility in Klamath Falls, Oregon, in 2001. By the late 2000s, ESI had hundreds of employees and a geographically distributed operating footprint. The company continued broadening its technology base in the 2010s. It acquired Eolite Systems, a fiber-laser manufacturer, in 2012; the semiconductor systems business of GSI Group in 2013; and Wuhan Topwin Optoelectronics Technology in 2015. These additions supported ESI's offerings in laser sources, semiconductor processing, microfabrication, and Asian-market operations. Edward C. Grady became president and chief executive in 2014, followed by Michael Burger in 2016. ESI also participated in a 2005 Oregon political and regulatory campaign concerning the forced annexation of unincorporated land. The company joined other major Washington County employers in seeking restrictions on Beaverton's ability to annex certain areas without consent. The Oregon Legislature subsequently enacted measures that limited the relevant form of annexation and specifically protected ESI property from forced annexation for a period of at least 30 years. In October 2018, MKS Instruments announced a proposed cash acquisition of ESI valued at approximately $1 billion. Shareholders approved the transaction on January 1, 2019, and the merger closed on February 1. ESI's public shares ceased trading, and the company became an MKS subsidiary. In 2019, MKS sold ESI's former Science Park Drive buildings to Columbia Sportswear. ESI later moved its address within Beaverton. The business remains associated with laser-based and photonic systems for electronics and microelectronics manufacturing under MKS ownership.

1. 2019Acquisition by MKS Instruments closes

   MKS Instruments completed its acquisition of ESI, ending ESI's status as an independent public company.

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2. 2016Michael Burger becomes chief executive

   Michael Burger succeeded Edward C. Grady as chief executive effective October 3.

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3. 2015Wuhan Topwin acquired

   ESI acquired Chinese laser company Wuhan Topwin Optoelectronics Technology.

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4. 2013GSI semiconductor systems business acquired

   ESI acquired the semiconductor systems business of GSI Group.

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5. 2012Eolite Systems acquired

   ESI acquired fiber-laser manufacturer Eolite Systems.

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6. 2007New Wave Research acquired

   ESI acquired California-based New Wave Research to expand its technology and product capabilities.

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7. 2001Klamath Falls manufacturing facility opens

   The company opened a new manufacturing facility in Klamath Falls, Oregon.

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8. 1983Shares begin NASDAQ trading

   ESI became a publicly traded company on NASDAQ under the symbol ESIO.

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9. 1978First foreign sales office opens

   ESI opened its first overseas sales office in Munich, Germany.

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10. 1970Laser-trimming development begins

    ESI began developing laser-trimming systems for resistor circuits, establishing a core photonics business.

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11. 1960Electro Scientific Industries name adopted

    The company adopted the name Electro Scientific Industries, Inc.

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12. 1959Name changed to ESI, Inc.

    The company's formal name was shortened to ESI, Inc.

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13. 1953Electro-Measurements Inc. established

    Douglas C. Strain and three investors formed Electro-Measurements Inc. after acquiring the interests of Strain's former partners.

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14. 1944Business founded as Brown Engineering

    The company that would become Electro Scientific Industries was established in Oregon as Brown Engineering.

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B2B high-precision photonics and laser equipment for electronics, semiconductor, component, and micro-manufacturing production.

• Laser trimming systemsElectronic component manufacturing1970

  ESI's laser-trimming systems use controlled laser processing to adjust resistor circuits and other electronic components to precise electrical specifications. The technology became a foundational part of the company's identity after development began in 1970 and was designed for repeatable, high-throughput production.

• Laser via drilling systemsPCB and semiconductor-package manufacturing

  These systems create small vias and other openings in printed-circuit-board materials and integrated-circuit packages. Laser processing supports the dense interconnect structures required by modern electronic assemblies and avoids some limitations of mechanical drilling.

• Wafer processing and dicing systemsSemiconductor manufacturing

  ESI supplied automated systems for processing semiconductor wafers, including ultra-thin wafer dicing and high-accuracy grooving. These platforms are intended for semiconductor and advanced packaging environments where precision, throughput, and process consistency are important.

• Passive-component test and inspection systemsElectronic component test and inspection

  The company's equipment supported automated testing, termination, handling, and visual inspection of miniature multilayer ceramic passive components, arrays, inductors, varistors, and related products. These systems address production quality and electrical-performance requirements in high-volume component manufacturing.

• Industrial laser sourcesPhotonics

  ESI manufactured or incorporated fiber, rod, solid-state, and ablation lasers into laser-processing platforms. These sources enabled material removal, marking, drilling, trimming, and other micromachining operations across electronics and semiconductor applications.

• 2005Oregon annexation-law campaign

  United States · Oregon

  ESI joined Nike, Columbia Sportswear, Tektronix, and other Washington County companies in supporting legislative restrictions on forcible annexation of unincorporated areas by the City of Beaverton.

  Outcome. The Oregon Legislature enacted measures limiting the relevant form of forced annexation and included language protecting ESI property from such annexation for at least 30 years.

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• 2018Agree to sale to MKS InstrumentsM&A

  ESI was an established but specialized publicly traded supplier of laser and photonic systems for microelectronics manufacturing.

  What changed. ESI agreed to be acquired by MKS Instruments in an all-cash transaction valued at approximately $1 billion.

  Aftermath. Shareholders approved the merger in January 2019, the transaction closed on February 1, 2019, and ESI became an MKS subsidiary. Its NASDAQ listing ended after closing.

  Approximate transaction value. $1 billion (Announced October 2018; completed February 1, 2019)

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• 1970Enter laser trimmingProduct launch

  ESI's earlier business centered on precision electrical measurement, while electronics manufacturers needed more accurate ways to tune resistor circuits during production.

  What changed. The company began developing laser-trimming systems for resistor circuits.

  Aftermath. Laser trimming became a core capability and helped reposition ESI as a photonics and electronics-manufacturing-equipment supplier.

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• 2019ESI shareholders approve MKS merger

  ESI shareholders approved the proposed merger with MKS Instruments, clearing the way for the company to leave the public market.

  M&A
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• 2019MKS Instruments completes acquisition of ESI

  The acquisition closed on February 1, 2019. ESI became an MKS subsidiary and its NASDAQ-listed shares ceased trading.

  M&ALeadership change
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• 2018ESI agrees to be acquired by MKS Instruments

  MKS Instruments announced an agreement to acquire Electro Scientific Industries in an all-cash transaction valued at approximately $1 billion.

  M&A
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• 2016ESI changes its chief executive

  Michael Burger, previously chief executive of Cascade Microtech, was appointed to succeed Edward C. Grady as ESI chief executive effective October 3, 2016.

  Leadership change
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• 2005ESI joins Oregon annexation-law campaign

  ESI joined Nike, Columbia Sportswear, Tektronix, and other Washington County companies in opposing forced annexation of certain unincorporated areas by Beaverton.

  RegulationCampaign
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1. Electro Scientific Industries