Cohu, Inc. (COHU): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the company optimizing semiconductor manufacturing? Cohu, Inc. (COHU), a global technology leader supplying test, automation, inspection, and metrology products and services to the semiconductor industry, reported full year 2024 revenue of $401.8 million. Let's delve into Cohu's history, understand its ownership structure, explore its mission, and uncover how it operates and generates revenue, while also noting its recent acquisition of Tignis, Inc., an AI process control and analytics software provider. Keep reading to discover how Cohu remains a key player in the semiconductor industry.

Cohu, Inc. (COHU) History

Cohu, Inc.'s Founding Timeline

Year established

Cohu, Inc. was founded in 1957.

Original location

The company was originally located in San Diego, California.

Founding team members

The founding team consisted of engineers with a vision for developing advanced electronic solutions. While specific names of all founding members are not widely publicized, the company's early leadership was instrumental in establishing its foundation in the electronics industry.

Initial capital/funding

Details regarding the initial capital and funding for Cohu, Inc. are not readily available in public records. However, like many technology companies of that era, initial funding likely came from a combination of private investment and strategic partnerships.

Cohu, Inc.'s Evolution Milestones

Cohu, Inc.'s Transformative Moments

• Strategic Shift to Semiconductor Testing: The decision to concentrate on semiconductor testing equipment in the 1990s was pivotal. This move capitalized on the escalating demand for sophisticated testing solutions in the rapidly expanding semiconductor industry, setting the stage for future growth and specialization.
• Key Acquisitions: Strategic acquisitions, particularly the 2018 acquisition of Xcerra Corporation, have been transformative. These acquisitions broadened Cohu's product offerings and market presence, enabling the company to deliver comprehensive solutions and strengthen its competitive positioning.
• Technological Innovation and Adaptation: Continuous investment in research and development to adapt to the evolving needs of the semiconductor industry has been crucial. This commitment has allowed Cohu to stay at the forefront of technology, providing innovative solutions for advanced testing requirements.

To learn more about the investors of the company, check this out: Exploring Cohu, Inc. (COHU) Investor Profile: Who’s Buying and Why?

Cohu, Inc. (COHU) Ownership Structure

Cohu, Inc. features a mixed ownership structure, including institutional and retail investors, which influences its corporate governance and strategic direction.

Cohu, Inc.'s Current Status

Cohu, Inc. is a publicly traded company, meaning its shares are listed on a stock exchange (NASDAQ: COHU) and available for purchase by the general public.

Cohu, Inc.'s Ownership Breakdown

The ownership of Cohu, Inc. is distributed among various types of shareholders. Here is a breakdown:

Cohu, Inc.'s Leadership

Cohu, Inc.'s leadership team is responsible for the strategic direction and operational management of the company. Key members include:

• President and Chief Executive Officer: Luis A. Müller
• Senior Vice President and Chief Financial Officer: Thomas A. Kampfer
• Senior Vice President, General Counsel and Secretary: Jeffrey D. Jones

These individuals, along with other key executives, guide Cohu, Inc. in its mission to provide advanced testing and handling solutions to the semiconductor industry. You might also be interested in: Mission Statement, Vision, & Core Values of Cohu, Inc. (COHU).

Cohu, Inc. (COHU) Mission and Values

Cohu, Inc. aims to enable a smarter, connected world by delivering vital test and handling solutions, while upholding values like integrity, customer focus, and innovation.

Cohu's Core Purpose

Official mission statement

Cohu's mission statement is: 'Enabling a smarter, connected world through vital test and handling solutions.' This underlines the company's role in providing essential technologies that support advancements in connectivity and intelligence across various industries.

Vision statement

While a specific, distinct 'vision statement' is not explicitly detailed in recent publicly available documents, Cohu's strategic direction and long-term aspirations can be inferred from their corporate goals and initiatives. These include:

• Sustaining profitable growth through innovation and market leadership.
• Expanding their presence and capabilities in key technology sectors such as automotive, 5G, and advanced computing.
• Delivering comprehensive solutions that address the evolving needs of their customers in the semiconductor and electronics industries.

Company slogan/tagline

Cohu’s tagline, 'Enabling a Smarter, Connected World,' encapsulates its mission and vision, highlighting its role in providing essential test and handling solutions for the semiconductor industry. This succinct phrase reflects the company's focus on facilitating technological advancements and connectivity on a global scale.

To gain more insights into Cohu's financial standing and investor relations, check out: Exploring Cohu, Inc. (COHU) Investor Profile: Who’s Buying and Why?

Cohu, Inc. (COHU) How It Works

Cohu, Inc. operates by providing equipment and services to semiconductor manufacturers and electronics assemblers, enabling them to test and handle integrated circuits, ensuring the quality and reliability of their products.

Cohu's Product/Service Portfolio

Cohu's Operational Framework

Cohu's operations are structured around:

• Product Development: Focused on creating innovative testing and handling solutions to meet the evolving needs of the semiconductor and electronics industries.
• Manufacturing: Overseeing the production of equipment and systems, ensuring high quality and reliability.
• Sales and Marketing: Promoting and selling products to a global customer base, supported by technical expertise and customer service.
• Customer Support: Providing ongoing support and maintenance services to ensure optimal performance and customer satisfaction.

These operational facets enable Cohu to deliver comprehensive solutions that enhance the efficiency and accuracy of semiconductor testing and handling processes.

Cohu's Strategic Advantages

Cohu's strategic advantages include:

• Technological Innovation: Investing in research and development to stay at the forefront of testing and handling technology, ensuring a competitive edge.
• Diverse Product Portfolio: Offering a wide range of products and services that cater to various segments within the semiconductor and electronics industries, reducing dependence on any single market.
• Global Presence: Maintaining a global sales and service network, allowing for localized support and responsiveness to customer needs.
• Strong Customer Relationships: Building and maintaining long-term relationships with key customers, fostering loyalty and repeat business.

These advantages enable Cohu to maintain a strong market position and deliver sustained value to its stakeholders. For more insights into Cohu's financial performance, you can explore: Breaking Down Cohu, Inc. (COHU) Financial Health: Key Insights for Investors

Cohu, Inc. (COHU) How It Makes Money

The company primarily generates revenue by providing equipment and services to the semiconductor and electronics manufacturing industries. This includes test and handling equipment, interface solutions, and related services that help manufacturers ensure the quality and reliability of their products.

Cohu, Inc.'s Revenue Breakdown

Here's a breakdown of the company's revenue streams based on the latest available information:

Cohu, Inc.'s Business Economics

The company's business economics are influenced by several factors:

• Semiconductor Industry Cycles: The demand for company's products is closely tied to the cyclical nature of the semiconductor industry. During periods of high demand for semiconductors, manufacturers invest more in test and handling equipment, boosting company's revenue. Conversely, during downturns, capital expenditures are often reduced, impacting the company's sales.
• Pricing Strategy: The company employs a competitive pricing strategy, balancing market share and profitability. Pricing may vary based on product complexity, customization requirements, and competitive pressures.
• Cost Structure: A significant portion of the company's costs are related to research and development (R&D) and manufacturing. Continuous investment in R&D is crucial for maintaining a technological edge and meeting evolving customer needs.
• Global Presence: With a global customer base, the company's revenue is subject to fluctuations in currency exchange rates and geopolitical factors.

Cohu, Inc.'s Financial Performance

Key aspects of the company's financial performance include:

• Revenue: For the fiscal year 2024, the company reported revenue of approximately $650 million, reflecting the cyclical trends in the semiconductor industry.
• Gross Margin: The company's gross margin typically ranges between 40% and 45%, influenced by product mix, manufacturing efficiency, and pricing pressures.
• Operating Expenses: Operating expenses, including R&D and selling, general, and administrative (SG&A) costs, account for approximately 25% to 30% of revenue.
• Net Income: Net income varies depending on revenue levels and cost management. In a strong year, the company can achieve a net income margin of 10% to 15%.
• Cash Flow: The company's cash flow from operations is closely monitored to ensure sufficient liquidity for investments in R&D, acquisitions, and shareholder returns.

To gain more insights into the company, consider reading: Exploring Cohu, Inc. (COHU) Investor Profile: Who’s Buying and Why?

Cohu, Inc. (COHU) Market Position & Future Outlook

As of April 2025, Cohu, Inc. is strategically positioned within the semiconductor testing industry, navigating a landscape characterized by technological advancements and evolving market demands. The company's future outlook hinges on its ability to capitalize on key opportunities while effectively mitigating potential risks. For more insights, check out: Exploring Cohu, Inc. (COHU) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

Cohu, Inc. holds a significant position in the semiconductor testing equipment industry. This position is reinforced by several factors:

• Diversified Product Portfolio: The company offers a wide range of testing solutions catering to different segments of the semiconductor market.
• Strategic Acquisitions: Cohu has grown its capabilities and market reach through strategic acquisitions, enhancing its product offerings and customer base.
• Customer Focus: Focuses on building strong relationships with key customers and providing tailored solutions to meet their specific needs.