COHU Business Summary

Cohu, Inc. (COHU) operates a dual-revenue business model centered on the sale of high-performance semiconductor manufacturing equipment and a high-margin recurring services stream. The company generates revenue through four primary segments: Semiconductor Test Handlers, Semiconductor Testers, Interface Solutions, and Inspection & Metrology, with a growing emphasis on AI-driven data analytics software following its 2025 acquisition of Tignis. As of early 2026, recurring revenue—comprising consumables like contactors, spare parts, and service contracts—accounts for approximately 60% of total sales, providing a buffer against semiconductor capital equipment cycles. Cohu competes directly with industry giants Advantest Corporation and Teradyne, Inc., as well as specialized players like Aehr Test Systems and Axcelis Technologies. Within this landscape, Cohu maintains a dominant market position in the test handler segment, holding an estimated 20-25% global market share by leveraging proprietary thermal management and high-speed pick-and-place technologies tailored for AI, automotive ADAS, and 5G applications. Originally founded in 1947 by aviation pioneer Lyle E. Cohu, the company is currently led by a veteran executive team with deep technical and industry pedigree. President and CEO Dr. Luis Müller, who has held the role since 2014, brings extensive engineering expertise from a nine-year tenure at Teradyne and holds a PhD in Mechanical Engineering from MIT. The financial strategy is overseen by CFO Jeffrey Jones, who has served in the position since 2007, while technical and product innovation is directed by Chief Product Officer Klaus Ilgenfritz, a former Infineon executive promoted in 2025 to lead all integrated product groups. The leadership team also includes Dr. Jon Herlocker, a prominent technologist and former VMware executive who joined in 2025 to head the Data Analytics Software division. Cohu is governed by a board chaired by former CEO James A. Donahue and is primarily owned by major institutional investors, including The Vanguard Group and BlackRock, which maintain significant stakes in the company.