Cohu Inc
F:CU3
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Cohu Inc
F:CU3
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East Japan Railway Co
OTC:EJPRY
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Cohu Inc
Cohu makes equipment used to test and inspect semiconductor chips after they are made. Its tools help chip makers and outsourced test companies check whether chips work correctly, sort good parts from bad ones, and prepare devices for shipping. The company sells this equipment to semiconductor manufacturers and assembly-and-test service providers that need reliable factory tools for high-volume production. Cohu’s business is built around selling specialized hardware, software, and related service support for chip test and handling systems. Customers pay for the equipment upfront and often return for spare parts, upgrades, maintenance, and technical support over the life of the machines. That mix gives the company both one-time equipment sales and a recurring service stream tied to installed systems. What makes Cohu’s role distinctive is that it sits near the final step of chip production, where quality control is critical and mistakes are expensive. Its products are not consumer-facing chips themselves; they are the factory tools that help the semiconductor industry verify performance before devices leave the line. That gives Cohu a niche position in the chip supply chain, especially where precision testing and handling matter most.
Cohu makes equipment used to test and inspect semiconductor chips after they are made. Its tools help chip makers and outsourced test companies check whether chips work correctly, sort good parts from bad ones, and prepare devices for shipping. The company sells this equipment to semiconductor manufacturers and assembly-and-test service providers that need reliable factory tools for high-volume production.
Cohu’s business is built around selling specialized hardware, software, and related service support for chip test and handling systems. Customers pay for the equipment upfront and often return for spare parts, upgrades, maintenance, and technical support over the life of the machines. That mix gives the company both one-time equipment sales and a recurring service stream tied to installed systems.
What makes Cohu’s role distinctive is that it sits near the final step of chip production, where quality control is critical and mistakes are expensive. Its products are not consumer-facing chips themselves; they are the factory tools that help the semiconductor industry verify performance before devices leave the line. That gives Cohu a niche position in the chip supply chain, especially where precision testing and handling matter most.
Revenue beat: Cohu reported second-quarter revenue of $149 million, up 38% year over year and above the midpoint of guidance, helped by stronger demand in high-performance computing and a better mix.
HPC ramp: Management raised 2026 high-performance computing revenue expectations to $100 million to $110 million, citing a larger customer pipeline, faster qualification progress and a $26 million Eclipse order that will mostly ship in Q4.
Core recovery: The traditional business is also improving, led by industrial, while automotive remains the laggard. Management said Q3 growth should come about evenly from HPC and the core business.
Margins and costs: Gross margin was 45.5%, above guidance, but the company flagged higher component costs and longer lead times, especially for memory, as it expands supply.
Capacity buildout: Cohu is expanding manufacturing in Malaysia and the Philippines to support demand, with plans to double HPC handler output by year-end and again by mid-2027 if needed.
Software traction: Software analytics crossed its first $1 million revenue quarter and orders rose 140% year over year, with management highlighting land-and-expand deployments inside large HPC customers.
