Cohu, Inc.

Overview

Cohu, Inc. is a global supplier of equipment and services that optimize semiconductor manufacturing yield and productivity. Founded in 1947, the company operates a single reportable segment: Semiconductor Test & Inspection Equipment (STIE). Its service scope includes test automation, inspection and metrology, semiconductor automated test equipment (ATE), interface solutions, software analytics, and related services.

Business model

• Recurring revenue: interface products, spares, kits, configuration tooling, software analytics, and services.
• Systems revenue: driven by customer capital expenditures on semiconductor testing, inspection, and related equipment.
• Focus on expanding recurring revenue and software analytics alongside systems sales.

Core product lines

• Test Automation: Equipment and systems to automate device handling, temperature control during test, throughput optimization, yield, and quality for high-performance devices; features active thermal control (ATC).
• Inspection and Metrology: Quality inspection and metrology for molded leaded/leadless devices, post-singulated WLCSP, and bare dies; full six-sided optical inspection with infrared; uses deep learning and pattern recognition to improve yield.
• Semiconductor ATE: Instrumentation and a universal platform for testing semiconductors with RF, digital, mixed-signal, and power management capabilities; used for wafer-level and device-package testing.
• Interface Solutions: Test contactors and power probe cards that provide the electrical interface between tester and device; emphasizes signal integrity and consumable pins; contributes to recurring revenue.
• Software Analytics: Digital twin platform with data analytics for process control, using machine learning and DTQL; provides real-time monitoring, prescriptive maintenance, and machine learning process control to improve yield and defect detection.
• Services: Customer support, spares, maintenance, and service agreements; global field engineers and a 24/7 customer portal integrated with ERP.

Customers, installed base, and addressable market

• Active installed base: more than 25,000 systems.
• Customer footprint: serving over 280 high-volume manufacturing facilities across 108 customers in 31 countries.
• Customer concentration:
  • In 2025, the ten largest customers represented 60% of total revenue.
  • In 2023, STMicroelectronics accounted for about 12% of consolidated net sales.
• Markets served: computing & networking, automotive, industrial, mobile, and consumer electronics.

Market position and growth opportunities

• Serviceable addressable market (SAM): approximately $3 billion.
• Growth focus areas: high-bandwidth memory (HBM) inspection; high-performance processor testing for AI (CPUs, embedded NPUs, discrete/integrated GPUs, ASIC/xPUs); mixed-signal devices; silicon carbide (SiC) and gallium nitride (GaN) wide bandgap testing; AI-driven software analytics.
• Strategic emphasis on design wins in AI, high-performance computing, ADAS, electric vehicles, and factory automation.

R&D and innovation

• R&D expenditure:
  • 2025: $92.2 million
  • 2024: $84.8 million
  • 2023: $88.6 million
• R&D priorities: high-precision inspection and metrology, thermal control, automation, signal integrity, and AI-driven analytics to support next-generation products and analytics.

Backlog and timing

• Backlog: $165.1 million as of December 27, 2025; $138.0 million as of December 28, 2024.
• Backlog is generally expected to ship within the next 12 months, subject to customer scheduling, cancellations, or supplier constraints.

Global footprint and manufacturing

• Manufacturing and engineering locations:
  • Melaka, Malaysia (largest facility; high-volume production for test automation and inspection)
  • Philippines (interface solutions, contactors, probes)
  • Japan (interface solutions, testing components)
  • Singapore and U.S. (support engineering and development)
  • Germany (engineering and development)
• Jabil’s Malaysia facility supports manufacturing of most semiconductor test systems and applies Lean Six Sigma practices.
• Global distribution and local engineering support facilitate transfers, customization, and on-site collaboration.

Intellectual property and data privacy

• Protects IP across patents, trademarks, copyrights, and trade secrets and invests in its IP portfolio to maintain competitive differentiation.
• Addresses AI-related data handling and privacy, including compliance with evolving AI-related regulations.

Employees

• Approximately 2,857 employees as of December 27, 2025.
• Geographic distribution: about 15% in the Americas, 10% in Europe, 75% in Asia-Pacific.
• Includes around 80 temporary employees.

Financial snapshots

• Net sales by product line:
  • 2025: Semiconductor test & inspection systems 40%; Recurring revenues 60%.
  • 2024: Systems 35%; Recurring 65%.
  • 2023: Systems 51%; Recurring 49%.
• Backlog: $165.1 million (Dec 27, 2025) vs. $138.0 million (Dec 28, 2024).

Governance and disclosures

• Maintains formal succession planning and leadership development programs.
• Public governance materials and regulatory filings are available on the company website, including annual reports, quarterly reports, and current reports filed with the SEC.