TacticScaleWhat Kulicke and Soffa Industries Does & How It Makes Money (KLIC)
Updated October 2026 · reflects Kulicke and Soffa Industries's latest reported financials
Singapore-based maker of semiconductor assembly and chip bonding equipment. The company makes money by selling bonding and assembly equipment to chipmakers and electronics manufacturers.
How Kulicke and Soffa Industries makes money
The company makes money by selling bonding and assembly equipment to chipmakers and electronics manufacturers. It also earns recurring revenue from consumables, spare parts, repairs, upgrades and maintenance services for that equipment.
What Kulicke and Soffa Industries does
Founded in 1951 and now headquartered in Singapore, Kulicke and Soffa supplies the equipment used in one of the last steps of chipmaking: assembly, where finished chips are bonded and packaged into working devices. It has four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services. Together they cover products that range from traditional wire bonders to thermocompression, die-attach, wafer-level bonding and advanced display systems. Its customers include integrated device manufacturers, outsourced assembly and test providers, foundries, automotive electronics suppliers and other electronics makers, mostly in Asia/Pacific and the United States. It sells new machines and also earns ongoing revenue from tools, spare parts, consumables, repairs and upgrades for the equipment already in use. Because of that mix, the company's results tend to follow spending on chip capacity.
Products & services
- Ball bonding equipment
- Wafer level bonding equipment
- Wedge bonding equipment
- Thermocompression bonding systems
- Die-attach and advanced display solutions
- Aftermarket tools, spares and services
What is Kulicke and Soffa Industries worth?
On an owner-earnings DCF, Kulicke and Soffa Industries's most-likely value is about $32 versus a recent price near $92 (65% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$15) 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.
⚠ Capital-intensive — this business reinvests heavily, so free cash flow runs well below its earnings. Fair value here is built on free cash flow, which understates owner earnings for reinvestment-heavy companies — read it as conservative.
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 →