Cohu to build test centers in Taiwan and China - going direct to customers :
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Cohu Goes Direct for All Products in China and Taiwan
POWAY, Calif.--(BUSINESS WIRE)--Oct. 12, 2018-- Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today announced that it had delivered a twelve-month notice of termination of Xcerra Corporation’s distribution agreement with Spirox Corporation. Cohu will leverage its well-established global sales and service organization, and expanding test development centers in Shanghai, China and Hsinchu, Taiwan to directly support customers in the region. These development centers already provide high-level test applications capability and will continue to expand in alignment with our customers’ needs. Spirox has been a valued partner and is expected to continue to support our customers while we implement a smooth transition for both companies.
“Our go-to-market strategy will enhance Cohu’s growth opportunities in these critical regions and is expected to improve our profitability once the transition is complete. Cohu already has strong direct presence in China and Taiwan, and with the recent acquisition of Xcerra, the addition of test development centers will further enhance that support infrastructure. Our strategic plan is to continue to add to these capabilities by investing in the teams that directly support our customers in these regions,” said Luis Müller, Cohu President and CEO.
Twelve months out but it should balloon revenue.
Sounds like the ole - cut out the middle man.
If you think about it, Intel uses their own test centers for their many products .
If you build a test center with equipment designed to run 24/7/365, why not do the test for your customer and maximize all of the equipment and keep the brick and mortar running all the time.
It redefines the efficiency of the entire back end system.
For volume like intel has - having your own test center is most likely very good.
For the midsize company just ship it there and get it tested by those who invented the equipment.
Sounds alot like how fabs work and they've proven themselves to outperform even intel
So revenue over 1 billion in 18-24 months?
This stock is going to be huge!!
Bob
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