Next Generation Inspection & Metrology Platform Selected by Major Semiconductor Manufacturers

Rhea-AI Summary

Cohu, Inc. (NASDAQ: COHU) reported that its Neon inspection and metrology platform has been selected by a large integrated device manufacturer for various global sites. Orders for Neon reached $33 million in the first eight months of 2021, indicating strong demand for advanced semiconductor inspection. The platform's high throughput and advanced vision systems are features that enhance production efficiency. Cohu projects its inspection and metrology business to generate around $70 million in revenue for 2021, highlighting its growth in this segment.

Positive

• Neon inspection platform orders totaled $33 million in 2021.
• Projected revenue from inspection and metrology business is approximately $70 million for 2021.

Negative

• Risks associated with global supply chain may impact operations and margins.
• High debt levels from Xcerra acquisition could limit financial flexibility.

POWAY, Calif.--(BUSINESS WIRE)-- Cohu, Inc. (NASDAQ: COHU), a global leader in back-end semiconductor equipment and services, today announced that its Neon inspection and metrology platform was selected by another large integrated device manufacturer for several of its global manufacturing sites. Introduced in 2019, Neon is optimized for small, fragile semiconductors used in mobility, automotive, consumer, industrial and medical applications. Through the first eight months of 2021, Cohu received orders for Neon totaling $33 million from multiple customers, primarily for inspection and metrology of advanced packages and bumped dies.

Neon was selected for its high production throughput combined with advanced vision systems to maximize inspection yield. Neon is configured with true infrared imaging for subsurface crack detection on silicon and 3D metrology capability for precise measurements.

Chris Bohrson, senior vice president of Cohu’s Global Customer Group, commented, “The Neon selection and production ramp with multiple customers and sites globally reinforces Cohu’s focus on providing innovative inspection and metrology products in support of our customers’ advanced packaging development and fast production ramps. Neon’s success is a key contributor to our growing inspection and metrology business projected to achieve approximately $70 million revenue in 2021.”

About Neon:

Neon can handle fragile wafer-level chip-scale products at high speed, maintaining high operational efficiency while inspecting small devices. Neon features extended process integration capabilities and can be configured with infrared and visual micro-scale defect inspection modules, and is also equipped with an external loader unloader to integrate with factory robots for customers adopting Industry 4.0 initiatives.

About Cohu:

Cohu (NASDAQ: COHU) is a global leader in back-end semiconductor equipment and services, delivering leading-edge solutions for the manufacturing of semiconductors. Additional information can be found at www.Cohu.com.

Forward-Looking Statements:

Certain statements contained in this release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding Cohu’s Neon product line, features and customer benefits, Cohu’s focus on inspection and metrology products, growing inspection and metrology business and revenue projections for 2021 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.

Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the ongoing global COVID-19 pandemic has adversely affected, and is continuing to adversely affect, our business and results of operations; ongoing increases in material, labor, supplier, logistics and other operating costs, or supply chain delays, could cause lower gross margins or lost sales and adversely impact our business, financial position, results of operations and cash flows; we are making investments in new products and product enhancements, which may adversely affect our operating results and these investments may not be commercially successful; we are exposed to the risks of operating a global business; we have manufacturing operations in Asia, and any failure to effectively manage multiple manufacturing sites and to secure raw materials meeting our quality, cost and other requirements, or failures by our suppliers to perform, could harm our sales, service levels and reputation; failure of critical suppliers to deliver sufficient quantities of parts in a timely and cost-effective manner could adversely impact our operations; the semiconductor industry is seasonal, volatile and unpredictable; the semiconductor equipment industry is intensely competitive; semiconductor equipment is subject to rapid technological change, product introductions and transitions which may result in inventory write-offs, and our new product development involves numerous risks and uncertainties; the seasonal nature of the semiconductor equipment industry places enormous demands on our employees, operations and infrastructure; a limited number of customers account for a substantial percentage of our net sales; a majority of our revenues are generated from exports to foreign countries, primarily in Asia, that are subject to economic and political instability and we compete against a number of Asia-based test contactor, test handler and automated test equipment suppliers; the incurrence of substantial indebtedness in connection with our financing of the Xcerra acquisition may have an adverse impact on Cohu’s liquidity, limit Cohu’s flexibility in responding to other business opportunities and increase Cohu’s vulnerability to adverse economic and industry conditions; our Credit Agreement contains various representations and negative covenants that limit, subject to certain exceptions and baskets, our ability and/or our subsidiaries’ ability to enter into financing and other transactions relating to our assets; because of high debt levels we may not be able to service our debt obligations in accordance with their terms; dilution of earnings per share due to our March 2021 follow-on equity offering; we are exposed to other risks associated with other acquisitions, investments and divestitures; we expect to continue to evaluate and pursue divestitures of non-core assets; our financial and operating results may vary and fall below analysts’ estimates, or credit rating agencies may change their ratings on Cohu, any of which may cause the price of our common stock to decline or make it difficult to obtain other financing; potential goodwill impairments if our business underperforms; global economic and political conditions, including trade tariffs and export restrictions, and other regulatory requirements, have impacted our business and may continue to have an adverse impact on our business and financial condition; and our business and operations could suffer in the event of cybersecurity breaches.

These and other risks and uncertainties are discussed more fully in Cohu’s filings with the SEC, including the most recently filed 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210830005137/en/

Investor Contact:

Cohu, Inc.

Jeffrey D. Jones, 858-848-8106

Investor Relations

Source: Cohu, Inc.

FAQ

What is the significance of Cohu's Neon platform selection?

Cohu's Neon platform was selected by a large integrated device manufacturer, indicating strong market confidence and demand for advanced semiconductor inspection solutions.

How much revenue is projected for Cohu's inspection and metrology business in 2021?

Cohu projects its inspection and metrology business to achieve approximately $70 million in revenue for 2021.

What were the total orders received by Cohu for the Neon platform by August 2021?

Cohu received total orders of $33 million for its Neon inspection and metrology platform during the first eight months of 2021.

What features make the Neon platform valuable for semiconductor manufacturing?

The Neon platform is noted for its high production throughput and advanced vision systems, optimizing inspection yield and enabling subsurface crack detection.

What risks does Cohu face in its operations?

Cohu faces risks related to global supply chain disruptions, high debt levels from acquisitions, and the competitive nature of the semiconductor equipment industry.