TacticScaleWhat Cohu Does & How It Makes Money (COHU)
Updated October 2026 · reflects Cohu's latest reported financials
Maker of semiconductor test and inspection equipment and software. Cohu earns revenue by selling test equipment, handlers and interface products to semiconductor manufacturers and test subcontractors.
How Cohu makes money
Cohu earns revenue by selling test equipment, handlers and interface products to semiconductor manufacturers and test subcontractors. It also earns recurring income from spares, kits, warranties, training, software and consulting, sold through a direct sales force and independent representatives.
What Cohu does
Cohu, Inc. is a San Diego-based supplier of semiconductor test and inspection equipment. It was incorporated in 1947 and has operated under the Cohu name since 1972. It serves semiconductor manufacturers and test subcontractors in the United States and across Asia, including Taiwan, China, Malaysia, the Philippines and Singapore. Its hardware covers most of the back-end test process: automated test equipment for wafer-level and packaged-device testing, a wide range of test handlers, thermal subsystems, MEMS test modules, and interface products such as contactors, probe heads and pins. Alongside equipment sales, Cohu makes money from its installed base through spares and kits, warranties, maintenance training, and application and data management software. Its software includes the DI-Core suite, which monitors Cohu equipment in real time, and AI-based process control and analytics tools. It sells through a direct sales force and independent sales representatives.
Products & services
- Semiconductor automated test equipment (wafer and package test)
- Test handlers (pick-and-place, turret, gravity, strip, film frame)
- Test contactors, probe heads and pins
- Thermal subsystems and MEMS test modules
- DI-Core data analytics software
- AI process control and analytics monitoring software
What is Cohu worth?
On an owner-earnings DCF, Cohu's most-likely value is about $31 versus a recent price near $68 (55% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$13) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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