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• The **Applied Materials** for semiconductor chip testing and handling equipment.
• Essentially **Teradyne**, but with a strong focus on automated chip handling and integrated test solutions.
• If companies like **Applied Materials** provide the tools to *build* semiconductor chips, Cohu provides the essential equipment to *test and validate* them.

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• Semiconductor Test Handlers: Automated systems that precisely handle and position semiconductor devices for testing, sorting, and packaging.
• Automated Test Equipment (ATE): Advanced electrical test systems designed to verify the functionality and performance of integrated circuits (ICs) before they are used in end products.
• Test Interface Products: Consumable components, including test sockets and probe cards, that provide the critical electrical and mechanical connection between the semiconductor device and the test system.
• Vision Inspection & Metrology Systems: High-precision equipment that employs advanced vision technology to inspect semiconductor packages for defects and measure critical dimensions.
• Thermal Subsystems: Specialized units that ensure precise temperature control for semiconductor devices during various test and burn-in processes.

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Cohu (symbol: COHU) sells primarily to other companies in the semiconductor industry (Business-to-Business, B2B).

According to Cohu's latest 10-K filing (for the fiscal year ended December 31, 2023), no single customer accounted for 10% or more of its total net sales for the years ended December 31, 2023, 2022, or 2021. Therefore, Cohu does not publicly identify specific major customers by name based on revenue concentration.

However, Cohu's customer base consists primarily of leading global companies within three key segments of the semiconductor industry. While Cohu does not disclose individual customer names, its equipment and services are utilized by major players across these segments. Examples of such major industry players that Cohu likely serves include:

• Integrated Device Manufacturers (IDMs): These companies design, manufacture, and market their own semiconductor devices.
  • Intel Corporation (INTC)
  • Texas Instruments Incorporated (TXN)
  • Qualcomm Incorporated (QCOM)
• Outsourced Semiconductor Assembly and Test (OSAT) companies: These companies provide independent semiconductor assembly and test services to fabless companies and IDMs.
  • ASE Technology Holding Co., Ltd. (ASX)
  • Amkor Technology, Inc. (AMKR)
• Semiconductor Foundries: These companies specialize in the manufacturing of integrated circuits for other companies based on their designs.
  • Taiwan Semiconductor Manufacturing Company Limited (TSM)
  • GlobalFoundries Inc. (GFS)

It is important to note that the companies listed above are examples of major players in the segments Cohu serves and are not Cohu's officially identified "major customers" in terms of individual revenue contribution, as Cohu states its customer base is diversified.

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Luis Müller, President and Chief Executive Officer

Luis Müller joined Cohu's Delta Design subsidiary in 2005 and has been President and Chief Executive Officer of Cohu, Inc. since December 2014. He was previously President of Cohu's Semiconductor Equipment Group (SEG) from 2011, and Managing Director of SEG's Rasco GmbH business unit in Germany from 2009 to 2010. Prior to Cohu, Dr. Müller spent nine years at Teradyne in various engineering and business development management positions. He is also noted as the founder of Kinetrix, Inc. Dr. Müller holds a B.S. and Master of Science in Mechanical Engineering from Universidade Federal de Santa Catarina and a PhD in Mechanical Engineering from the Massachusetts Institute of Technology.

Jeffrey D. Jones, Senior Vice President, Finance and Chief Financial Officer

Jeffrey D. Jones serves as Senior Vice President, Finance and Chief Financial Officer for Cohu. He also held the role of VP of Finance, CFO & Treasurer at Xcerra Corp., which was acquired by Cohu.

Christopher Bohrson, Chief Customer Officer

Christopher Bohrson joined Cohu in May 2016 as Vice President Sales and Service, Americas. He served as Vice President and General Manager for Digital Test Handlers in January 2017, and upon the acquisition of Xcerra in October 2018, was named Senior Vice President and General Manager for the Test Handler Group. Since February 2021, he has served as Senior Vice President for the Global Customer Group and was named Chief Customer Officer in 2023.

Jon Herlocker, Vice President and General Manager of Tignis

Jon Herlocker joined Cohu in January 2025 following the acquisition of Tignis, a company he co-founded and served as CEO. He has also co-founded two other startup companies. Prior to Cohu, Dr. Herlocker held technical and executive roles with VMware's Cloud Management Business Unit, Mozy, and EMC's Cloud Services division. He is a former tenured professor of Computer Science at Oregon State University.

Emily Lough, Vice President and General Counsel

Emily Lough joined Cohu in October 2023 and was named Vice President and General Counsel in July 2024. She has over 15 years of corporate law experience in the technology and automotive industries, including serving as Vice President and General Counsel at Maxwell Technologies Inc. from 2007 until its acquisition by Tesla Inc. in 2019. She also served as Associate General Counsel and Chief Intellectual Property Counsel at Tesla, Inc. from 2019 until 2023.

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The key risks to Cohu's business include the cyclical and volatile nature of the semiconductor industry, significant customer concentration, and the challenges associated with rapid technological change and new product development.

1. Cyclicality and Volatility of the Semiconductor Industry: Cohu operates within the highly cyclical, seasonal, volatile, and unpredictable semiconductor industry. This inherent instability can lead to rapid fluctuations in demand, sales, and gross margins. Recent reports indicate an erosion in sales within the mobile, automotive, and industrial markets, collectively impacting the company's financial performance.
2. Customer Concentration: A significant portion of Cohu's consolidated net sales is derived from a limited number of major customers. For instance, STMicroelectronics accounted for 12% of consolidated net sales in 2024. The loss of, or a substantial reduction in, orders from these key customers due to market, economic, or competitive conditions would adversely affect Cohu's financial condition and results of operations.
3. Rapid Technological Change and New Product Development Risks: The semiconductor equipment industry is characterized by rapid technological advancements, frequent new product introductions, and transitions. This environment poses a risk of inventory obsolescence and requires continuous investment in research and development. New product development inherently involves numerous uncertainties and risks that could impact Cohu's operational performance and financial success.

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Cohu (COHU) participates in several addressable markets within the semiconductor manufacturing industry. The estimated sizes of these markets are as follows:

• Semiconductor Test Handlers: The global semiconductor test handler market size was valued at USD 2.568 billion in 2025 and is expected to reach USD 6.24 billion by 2034, growing at a compound annual growth rate (CAGR) of approximately 10.37% from 2025 to 2034.
  • For specific regions in 2025, the U.S. Test Handler Market size is projected at USD 0.84877 billion.
  • The Europe Test Handler Market size is projected at USD 0.66104 billion.
  • The China Test Handler Market size is projected at USD 0.74785 billion.
  • The Asia Pacific region's market size is projected to reach USD 1.1 billion by 2032, growing at a CAGR of 7.1%.
• Automated Test Equipment (ATE): The global automated test equipment market size was valued at USD 5.19 billion in 2024 and is projected to grow from USD 5.41 billion in 2025 to USD 8.37 billion by 2032, exhibiting a CAGR of 6.4% during the forecast period. Another estimate indicates the global automated test equipment market size was USD 9.20 billion in 2025 and is projected to climb to USD 12.84 billion by 2030, advancing at a 6.9% CAGR.
  • The Asia Pacific region dominated the global market with a 50.09% share in 2024.
• Semiconductor Metrology and Inspection Equipment: The global semiconductor metrology and inspection equipment market size was estimated at USD 8.98 billion in 2024 and is projected to reach USD 16.21 billion by 2033, growing at a CAGR of 6.9% from 2025 to 2033. Another report estimates the global semiconductor metrology and inspection system market size at USD 13.03 billion in 2025, projected to reach USD 16.95 billion in 2030 with a 5.4% CAGR.
  • In 2024, the U.S. semiconductor metrology and inspection market accounted for USD 2.6 billion.
  • The Asia Pacific dominated this market with the largest revenue share of 54.7% in 2024.
• Test Contactors/Interface Products: null
• MEMS Test Solutions: null
• Thermal Subsystems: null
• Data Analytics Software: null
• Bare Board PCB Test Systems: null

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• Semiconductor Market Recovery: Cohu anticipates a recovery in the broader semiconductor market, with management noting that its main market segments are "crossing the chasm of a downturn". The company provided optimistic guidance for Q2 2025 and expects year-over-year growth in 2025, driven by market recovery.
• Growth in Automotive and Mobile Market Segments: Cohu has observed sequential increases in systems revenue within the automotive and mobile segments. The mobile segment showed strong year-over-year revenue growth in Q3 2024, marking a turning point, and Cohu secured a significant test cell design win with a top-five automotive semiconductor manufacturer. Analyst expectations for 2023-2026 also project a Compound Annual Growth Rate (CAGR) of approximately 11% for the automotive market and 7% for wireless communications.
• Expansion in AI/ML-Related Test and Inspection Solutions: The acquisition of Tignis, Inc., an artificial intelligence process control and analytics software provider, is a key driver. This acquisition is expected to enable Cohu to grow its software revenue at an annual rate of 50% or more over the next three years, as the industry seeks solutions to optimize yield and productivity. Cohu has also secured new customers for AI process monitoring demonstrations of Tignis software and received multi-unit orders for High Bandwidth Memory (HBM) inspection systems.
• Continued Strength in Recurring Revenue: Cohu's recurring revenue, which primarily includes consumables, services, and interface solutions, consistently contributes a significant portion of its total revenue, representing 62% in Q4 2024 and 65% for the full year 2024. This segment demonstrated sequential growth for several quarters, driven by strong demand for interface solutions and test handler spares, indicating a stable and predictable revenue stream.
• New Product Introductions and Design Wins: The company actively pursues new business, having secured multiple design wins and customer expansions for its testers, handlers, inspection systems, and interface products. Notably, Cohu achieved new business wins in automated test equipment and automated optical inspection for high-growth markets, including its first Diamondx Axe order from a longstanding customer.

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Share Repurchases

• Cohu's Board of Directors authorized an additional $70 million under its share repurchase program on October 25, 2022.
• In 2023, Cohu repurchased 700,270 shares of common stock for $23.6 million, and in 2022, it repurchased 1,767,070 shares for $50.7 million.
• During the first quarter of fiscal 2025, Cohu repurchased 432,288 shares of its common stock for approximately $8.6 million.

Share Issuance

• In March 2021, Cohu completed a public offering of 5,692,500 shares of common stock at $41.00 per share, generating net proceeds of approximately $223.1 million, with $100 million used to repay debt.
• In September 2025, Cohu announced the closing of an upsized private offering of $287.5 million aggregate principal amount of 1.50% Convertible Senior Notes due 2031.
• The company entered into capped call transactions in connection with the convertible notes offering to mitigate potential shareholder dilution.

Outbound Investments

• On January 7, 2025, Cohu completed the acquisition of Tignis, Inc., a provider of AI process control and analytics-based monitoring software, which was funded with cash on hand for a net amount of $34.9 million.
• Cohu acquired Equiptest Engineering Pte. Ltd. (EQT), a Singapore-based provider of semiconductor test contactors, on October 2, 2023.
• On January 30, 2023, Cohu completed the acquisition of MCT Worldwide, LLC, a U.S.-based company offering automated solutions for the semiconductor industry.

Capital Expenditures

• In the first quarter of 2025, capital additions significantly increased to $11.0 million, primarily due to the purchase of the Melaka, Malaysia facility.
• Capital expenditures in the third quarter of 2025 were $4 million, mainly allocated to facility improvements.
• Cohu's capital expenditures were $38.7 million in fiscal 2024 and $22.7 million in fiscal 2023, with a general focus on developing new products, equipment, and enhancing existing offerings through research and development.