Cohu, Inc

Cohu sells primarily to semiconductor manufacturers and test subcontractors that need high-precision equipment to maintain yield, throughput, and device quality. Its customer base includes integrated device manufacturers, fabless companies, and outsourced semiconductor assembly and test providers, all of which buy Cohu systems to support production of increasingly complex chips. The company also serves customers in automotive, industrial, mobile, consumer, and computing end markets through the semiconductor devices those customers produce. Demand is strongest where device complexity is rising, such as AI computing, HBM, ADAS, SiC, and GaN applications, because those segments require more advanced test, inspection, and thermal control capabilities.

Cohu’s strategy is to grow where semiconductor complexity is rising, especially in AI computing, HBM inspection, mixed-signal devices, SiC and GaN power devices, and advanced thermal and automation applications. Management is also trying to increase the share of recurring revenue through interface products, software analytics, services, spares, and upgrades, which should reduce cyclicality versus capital equipment. The company continues to invest heavily in R&D to expand its product set and defend design wins with major IDMs, fabless companies, and OSATs. It also uses acquisitions, such as Tignis, to add capabilities to its interface solutions and software analytics offering while maintaining a global direct-sales and technical-marketing model.