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Semiconductor manufacturers and test subcontractors buy Cohu’s equipment to test chips and inspect them for defects. Its systems move chips through testing, control their temperature and measure electrical performance; inspection equipment checks for physical defects. Customers pay for these systems when they invest in production and testing capacity.
Most revenue, however, comes from recurring purchases rather than new systems. Customers replace test interfaces—the parts that connect a particular chip to testing equipment—and buy spares, software and services to support equipment already in use. These sales depend on how many chips customers test and the new chip technologies they introduce, while system sales depend more on equipment budgets and expected semiconductor demand.
A relatively small group of large customers supplies most of Cohu’s revenue. Cohu also relies on Jabil to manufacture most of its semiconductor test systems in Malaysia. U.S. export controls and sanctions can prohibit shipments or require licenses, particularly for dealings involving certain semiconductor facilities in China, limiting which customers Cohu can serve.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Cohu’s results hinge on semiconductor test spending and device volumes; Advantest and KLA are important competitors to watch beyond this list.
Teradyne competes with Cohu for chip manufacturers’ and outsourced test providers’ spending on equipment that automatically tests chips. Watch its Semiconductor Test business rather than robotics for clues to the test-equipment demand Cohu faces.
FormFactor and Cohu both sell chip-testing customers the parts that make electrical contact with devices during testing, called probe cards. FormFactor’s Probe Cards sales offer a read on demand for test interfaces, which at Cohu depends on device test volumes and new technologies.
Aehr Test Systems and Cohu both depend on semiconductor customers investing in testing, though Aehr sells wafer- and package-level burn-in systems and contactors while Cohu sells testers, automation and device-specific interfaces. Watch Aehr’s WaferPak contactor business for a view of demand for the contact hardware used in testing, distinct from spending on whole systems.
Kulicke & Soffa shares Cohu’s exposure to chip manufacturers’ and outsourced assembly-and-test providers’ budgets: it sells equipment and consumables for assembling chips, while Cohu sells equipment and consumables for testing them. Its assembly-equipment sales help gauge these customers’ investment appetite, while aftermarket consumables offer a separate view of production activity.
inTEST supplies semiconductor testing operations like those Cohu equips, selling hardware that positions and connects test heads, plus test interfaces and temperature-control equipment. Watch its semiconductor test hardware demand for clues to test-capacity investment, rather than treating it as a rival selling Cohu-style testers and handlers.
STMicroelectronics is a chipmaker that buys Cohu products, accounting for 12% of Cohu’s consolidated net sales in 2023 and less than 10% in each of 2024 and 2025. Watch its device production and test-equipment spending, since those affect demand for Cohu’s systems and test consumables.
Amkor’s device volumes and technology changes drive demand for the kinds of test systems and consumables Cohu sells; Amkor earns fees for packaging and testing chips for chipmakers and other customers, not from a disclosed Cohu purchasing relationship here. Watch its advanced packaging and test activity for clues to changing test requirements.
Cohu depends on Jabil, a contract manufacturer, to build most of its semiconductor test systems in Malaysia. Downtime or missed delivery schedules at that operation can delay Cohu’s orders or prevent system sales, so production continuity there matters more than Jabil’s company-wide growth.
Amkor Technology Inc earningsAMKR
Amkor’s report will show how outsourced chip-testing activity and technology changes are shaping demand for the test equipment and consumables Cohu sells.
Focus on Amkor’s testing activity and any discussion of advanced packaging or changing test requirements, not just its total revenue. More testing and more demanding requirements would point to potential need for additional equipment or new test solutions, supporting demand for Cohu’s systems and consumables. Weaker testing activity would signal pressure on this source of demand, even if technology changes still create different equipment needs.
Teradyne, Inc. earningsTER
Teradyne competes with Cohu for chipmakers’ and outsourced test providers’ equipment budgets, so its Semiconductor Test results will show how that shared market is faring.
Focus on Teradyne’s Semiconductor Test business, not robotics. Strength there would show customers are spending more on automated chip-testing equipment, a supportive demand signal for Cohu’s test systems. Weakness would indicate those budgets remain constrained and the market for Cohu’s system orders is tighter.
Cohu Inc earningsThis company
Cohu’s report will show whether demand for test systems is adding to its recurring consumables and services revenue, and whether the mix of what it delivers is weighing on gross margin.
Read systems revenue alongside recurring revenue and gross margin. Systems growth with stable margin would show that customer equipment spending is adding to consumables and services without delivery mix or costs erasing the gain. If growth comes mainly from recurring revenue, or systems grow while margin weakens, equipment investment remains limited or the mix and cost of system deliveries are still weighing on profitability.
FormFactor Inc. earningsFORM
FormFactor’s Probe Cards business and Cohu’s interface products both serve chip-testing customers, so its report will show how demand for test interfaces is changing.
Read changes in FormFactor’s Probe Cards sales as a clue to demand for test interfaces, not as a measure of Cohu’s own sales. Stronger sales would point to firmer customer demand that may support Cohu’s interface products; weaker sales could signal softer testing volumes or interface demand, leaving Cohu’s related recurring revenue in a weaker demand environment.
Fed Interest Rate Decision
Cohu sells semiconductor test and inspection systems to manufacturers and subcontractors, so Fed rate decisions that change borrowing costs can influence customers’ equipment budgets and Cohu’s systems sales.
Expected4.0%Last release4.0%
If it comes in above expectations
Higher rates make new borrowing and debt that resets with rates more expensive, which may prompt semiconductor customers to delay equipment expansions and reduce Cohu’s system orders.
If it comes in below expectations
Lower rates make borrowing cheaper, which may ease pressure on semiconductor customers’ equipment budgets, support capacity expansions and increase orders for Cohu’s systems.
STMicroelectronics N.V. earningsSTM
STMicroelectronics is a chipmaker customer of Cohu, and its report will show how its production and equipment spending may affect demand for Cohu’s systems and test consumables.
Separate STMicroelectronics’ production from its equipment spending. More production can mean more chip testing and support demand for Cohu’s consumables; higher equipment spending is a more direct signal for Cohu’s systems. If both weaken, Cohu could face less demand for consumables as well as fewer system-order opportunities. STMicroelectronics accounted for less than 10% of Cohu’s sales in both 2024 and 2025, so it is a useful customer signal, not a read on all of Cohu’s demand.
Jabil Inc. earningsJBL
Jabil makes most of Cohu’s semiconductor test systems at its Malaysia facility, so any report on that operation can show whether Cohu’s system supply is running smoothly.
Look for Jabil’s comments on production continuity and delivery schedules at the Malaysia facility; Jabil’s company-wide results do not answer that question by themselves. Production and deliveries on schedule would leave Cohu better able to fulfill system orders on time. Downtime or delays could hold up Cohu’s shipments and sales even if customers still want the systems.
