Cohu, Inc. (COHU) Message Board

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Technology Stocks : Cohu, Inc. (COHU)

COHU 24.09

-0.2%

3:59 PM EDT

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To: Johnny Canuck who wrote (7700)	5/21/2024 9:36:03 AM
From: robert b furman	1 Recommendation Recommended By Debt Free Read Replies (1) of 7822

Cohu buys components and assembles most of their equipment. Many yearsago they tried outsourcing and quality suffered. They pulled it all back in. Their assembly in the US was outsourced to Ismeca nad Rasco's facility. The Malaaka facility (Indonesia) has been expanded just several years ago. Then Xcerra's outsourcing was insourced which improved margins. The kits that change with die shrinks and the majority of the recurring business is done in the original Philippines plant (ocated on Clak Air Force Base). In the late 1999 to 20001, Chuck Schwann used to say it was almost a quarter behind the front end equipment makers. There is also a longer delay when new equipment is installed. The initial test specification trial is slow and methodical. Once the first line gets quality and a high percent of good performing chips, the ramp and multiple orders come on quickly. Cohu can count the shipping of the equipment as revenue once the firsst pieces pass their performance tests. That's when revenue really RAMPS! Then we hope and pray that the good times can extend 4-6 quarters. Somewhere past that time, excess capacity can raise its ugly head. Another evolution that has helped in the past is stacked memory on top of the GPU or CPU. The chip needs a first test before the memory is attached to the GPU, then a second performance test which ranks the performance of the stack, so the foot print of the testhandlers doubles. From what I've seen the Nvidia package appears to have alot of that. The onshoring of chip making should be a very good strong run for equipment makers. It could well be a historic ramp in size! Cohu should print big money by then. The always expected merger by one of the big equipment makers AMAT, LRCX, KLAC, or TER who also will print huge money might want some more organic growth for the future. That's when Cohu hits $90.00! I've been saying that for 25 years. <smile> I'll be filthy rich and too old to do anything with it! Heck its still free to dream! Bob

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