Cohu Enters HBM Memory Market with Neon Inspection Metrology Platform

Rhea-AI Summary

Cohu announced its Neon platform has been selected by a leading U.S. memory manufacturer for inspection metrology of high bandwidth memory (HBM) devices used in high-performance computing and AI applications. The platform features a vision system for 6-sided optical inspection, micro-pillar measurement, and AI-powered inspection software. The HBM market, valued at approximately $23 billion this year, is expected to grow at a 22% CAGR through 2029, presenting a potential revenue opportunity exceeding $100M for inspection metrology systems.

Positive

• Entry into the growing HBM memory market worth $23B with 22% CAGR through 2029
• Secured initial order from a leading U.S. memory manufacturer
• Potential revenue opportunity exceeding $100M for inspection metrology systems
• Strategic expansion into AI-related semiconductor manufacturing

Negative

• None.

Insights

Market Research Analyst

The entry into the HBM memory inspection market represents a significant strategic expansion for Cohu. The $23 billion HBM market with a 22% CAGR through 2029 creates a substantial $100M+ revenue opportunity in inspection systems alone. The selection by a leading U.S. memory manufacturer validates Cohu's technology and positions them well in the high-growth AI infrastructure supply chain.

The Neon platform's AI-powered inspection capabilities address critical quality control needs in HBM manufacturing, particularly important as HBM is essential for AI/ML applications. The timing is opportune, coinciding with massive AI infrastructure buildouts by tech giants. This diversification into memory inspection could significantly reduce Cohu's cyclical exposure to traditional semiconductor testing markets while capturing growth in the AI boom.

Tech Expert

The technical capabilities of the Neon platform are impressive, particularly its 6-sided optical inspection system and micro-pillar metrology. HBM's complex 3D stacked architecture requires precise alignment of thousands of micro-pillars - even minor defects can impact performance in AI applications where memory bandwidth is critical. The integration of deep learning for pattern recognition suggests advanced defect classification capabilities, likely reducing false positives and improving yield.

The platform's factory automation integration is important for high-volume manufacturing, essential for meeting the surging demand for HBM in data centers. This technology position in HBM quality control could become increasingly valuable as memory densities and complexity increase with each generation.

POWAY, Calif.--(BUSINESS WIRE)-- Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that its Neon platform was selected by a leading U.S. memory and data storage technologies customer for inspection metrology of high bandwidth memory devices (HBM) used in high-performance computing (HPC) and generative artificial intelligence (AI) applications.

Neon offers a highly efficient vision system enabling full 6-sided optical inspection and measurement of micro-pillars, integration with factory automation and an efficient output sorting process that addresses current and roadmap HBM market needs. Cohu’s vision technology delivers accurate and reliable metrology of thousands of micro-pillars distributed over the HBM device. The accompanying AI inspection software utilizes proprietary deep learning and neural network-based pattern recognition that improves inspection yield. The HBM market is projected to be approximately $23 billion this year with a CAGR of 22% through 2029, representing an opportunity for more than $100M revenue for this class of inspection metrology systems.

“We are pleased to have received an initial order from one of the world’s leading semiconductor memory manufacturers to improve quality of HBM memory used in AI data centers,” commented Luis Müller, Cohu President and CEO. “This is a new market application for Cohu products, and it represents a strategic and substantial growth opportunity aligned with secular growth in artificial intelligence.”

About Cohu:

Cohu (NASDAQ: COHU) is a global technology leader supplying test, automation, inspection and metrology products and services to the semiconductor industry. Cohu’s differentiated and broad product portfolio enables optimized yield and productivity, accelerating customers’ manufacturing time-to-market. Additional information can be found at www.Cohu.com.

Forward-Looking Statements:

Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding new market entries, product introductions or customer adoptions and corresponding performance metrics or financial impacts; product market projected growth and market sizes and related revenue opportunities for inspection metrology systems; and any other statements that are predictive in nature and depend upon or refer to future events or conditions; and/or include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend;” and/or other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Any third-party industry analyst forecasts quoted are for reference only and Cohu does not adopt or affirm any such forecasts.

Actual results and future business conditions could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: new product investments and product enhancements which may not be commercially successful; the semiconductor industry is seasonal, cyclical, volatile and unpredictable; recent erosion in mobile, automotive and industrial market sales; our ability to manage and deliver high quality products and services; failure of sole source contract manufacturer or our ability to manage third-party raw material, component and/or service providers; ongoing inflationary pressures on material and operational costs coupled with rising interest rates; economic recession; the semiconductor industry is intensely competitive, subject to rapid technological changes, and experiences consolidation of key customers for semiconductor test equipment; a limited number of customers account for a substantial percentage of net sales; significant exports to foreign countries with economic and political instability and competition from a number of Asia-based manufacturers; our relationships with customers may deteriorate; loss of key personnel; risks of using artificial intelligence within Cohu’s product developments and business; reliance on foreign locations and geopolitical instability in such locations critical to Cohu and its customers; natural disasters, war and climate-related changes, including related economic impacts; levels of debt; access to sufficient capital on reasonable or favorable terms; foreign operations and related currency fluctuations; required or desired accounting charges and the cost or effectiveness of accounting controls; instability of financial institutions where we maintain cash deposits and potential loss of uninsured cash deposits; significant goodwill and other intangibles as percentage of our total assets; increasingly restrictive trade and export regulations impacting our ability to sell products, specifically within China; risks associated with acquisitions, investments and divestitures such as integration and synergies; constraints related to corporate governance structures; share repurchases and related impacts; financial or operating results that are below forecast or credit rating changes impacting our stock price or financing ability; law/regulatory changes and including environmental or tax law changes; significant volatility in our stock price; the risk of cybersecurity breaches; enforcing or defending intellectual property claims or other litigation.

These and other risks and uncertainties are discussed more fully in Cohu’s filings with the SEC, including our most recent Form 10-K and Form 10-Q, and the other filings made by Cohu with the SEC from time to time, which are available via the SEC’s website at www.sec.gov. Except as required by applicable law, Cohu does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241031867357/en/

Investor Contact:

Cohu, Inc.

Jeffrey D. Jones - Investor Relations

858-848-8106

Source: Cohu, Inc.

FAQ

What is the market size for HBM memory in 2023 according to Cohu (COHU)?

According to Cohu's announcement, the HBM market is projected to be approximately $23 billion in 2023.

What is the expected CAGR for the HBM market through 2029 as reported by Cohu (COHU)?

Cohu reports that the HBM market is expected to grow at a CAGR of 22% through 2029.

What is the potential revenue opportunity for Cohu (COHU) in the HBM inspection metrology systems market?

Cohu indicates a potential revenue opportunity of more than $100M for this class of inspection metrology systems.

What are the key features of Cohu's (COHU) Neon platform for HBM inspection?

The Neon platform features full 6-sided optical inspection, micro-pillar measurement, factory automation integration, and AI-powered inspection software with deep learning capabilities.