Direct to Digital Holography (DDH) has been developed as a semiconductor wafer inspection tool and in particular as a tool for seeing defects in high aspect ratio (HAR) structures on semiconductor wafers and also for seeing partial‐height defects. While the tool works very well for general wafer inspection, it has unusual capabilities for high aspect ratio inspection (HARI) and for detecting thin residual film defects (partial height defects). Inspection of HAR structures is rated as one of the highest unmet priorities of the member companies of International SEMATECH, and finding residual thin film defects (in some cases called “stringers”) is also a very difficult challenge. The capabilities that make DDH unusually sensitive include: 1) the capture of the whole wave—both the classical amplitude captured by traditional optical systems, and the phase of the wave, with phase potentially measured to ∼1/1000’th of a wavelength or ∼2 to 3 Angstroms for a deep ultra‐violet (DUV) laser; 2) heterodyne detection—this allows it to capture very low signal levels; and 3) a head‐on geometry using a collimated laser beam that allows best penetration of HAR structures. The basic features and methods of this patented technology are presented, along with simple calculations of signal strength and expected noise levels for various circumstances. Full‐wave numerical calculations of electromagnetic field penetration into HAR contacts and experimental results from various wafer types and structures are also presented. © 2003 American Institute of Physics