Onto Innovation (ONTO) unveiled a collaboration and plans for a $710 million equity investment in Rigaku late Monday to advance the so-called process control services for semiconductor manufacturing.

The duo is aiming to develop more precise measurement tools by integrating Onto's X-ray data analysis software with Rigaku's X-ray machines to overcome measurement challenges in chip manufacturing and the shift toward using exotic materials.

Two "key" customers have selected this new offering, which "addresses a market that external analysts estimate to be in excess of $1 billion within the next five years," the companies said.

Onto has entered into a share purchase agreement with Atom Investment, an affiliate of The Carlyle Group (CG), to acquire 27% of Rigaku's common stock for about $710 million. The transaction, subject to customary closing conditions, is expected to close in H2. Onto, which expects its investment to be accretive as of Dec. 31, will receive the right to nominate one director to Rigaku's board.

Onto Innovation shares were up 2.2% in Tuesday's premarket activity.