Cohu, Inc. (COHU): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the external forces shaping Cohu, Inc. (COHU), and honestly, the PESTLE framework is the best lens for this. The semiconductor cycle always brings volatility, but as a realist, I see structural tailwinds that are defintely worth tracking, especially with Cohu's 2025 revenue projected around $650 million. This number shows underlying demand is strong, but the path is a tightrope walk between US-China trade tensions, rising interest rates, and the massive technological shift to AI and advanced packaging. Let's dig into the political headwinds and technological opportunities you need to act on now.

Cohu, Inc. (COHU) - PESTLE Analysis: Political factors

US-China trade tensions directly impact equipment sales and supply chain stability.

You cannot talk about the semiconductor equipment industry in 2025 without starting with the US-China technology standoff. This geopolitical friction directly complicates Cohu, Inc.'s sales strategy, especially in the crucial Asia-Pacific market where the company has significant sales and service operations. [cite: 3 (from step 2)] The risk is twofold: a shrinking addressable market in China for advanced tools and the potential for Chinese retaliation against US-domiciled suppliers.

Cohu's Form 10-K for fiscal year 2024 explicitly flags that trade regulations and restrictions impact their ability to sell to customers in China. [cite: 3 (from step 2)] While the company's full geographic revenue split for 2025 is not yet finalized, the industry-wide effect is clear. For context, other major US chip firms are already projecting losses in the billions of dollars due to these tightened controls, which forces Cohu to pivot its sales focus and manage a bifurcating global supply chain. This is defintely a headwind for Cohu's estimated full-year 2025 revenue of $448.08 million. [cite: 3 (from step 1), 15 (from step 2)]

US CHIPS Act funding creates domestic investment incentives for customers.

The US CHIPS and Science Act of 2022 is a massive political tailwind creating a near-term opportunity for Cohu by incentivizing domestic manufacturing. The Act allocates a total of $52.7 billion in federal funding to boost the US semiconductor industry, including $39 billion in direct subsidies for domestic chip fabrication plants (fabs). [cite: 19 (from step 1), 21 (from step 1)] Plus, there is a 25% investment tax credit for manufacturing equipment costs. [cite: 21 (from step 1)]

This capital injection is already translating into concrete orders for Cohu. In 2025, the company secured a significant $28 million design-win order for its Eclipse handler platform from a US semiconductor manufacturer. [cite: 5 (from step 2), 10 (from step 2)] This platform is slated for production testing of next-generation processors, with shipments expected through the fourth quarter of 2025, directly linking Cohu's near-term revenue to the US-led push for supply chain resilience. This kind of domestic investment is exactly what Cohu needs to offset Asian market volatility.

Export control regulations on advanced technology restrict sales to specific regions.

The US Department of Commerce's Bureau of Industry and Security (BIS) has continued to tighten the screws. New export control regulations, which took effect in January 2025, intensify restrictions on advanced computing integrated circuits (ICs) and related equipment, specifically targeting China. [cite: 6 (from step 1), 10 (from step 1)] These controls restrict the export of semiconductor manufacturing equipment to Chinese entities unless specific authorization is granted, hindering China's independent development of advanced technologies. [cite: 6 (from step 1)]

The political environment is so charged that in November 2025, a bipartisan bill was introduced in the US House that would prevent recipients of CHIPS Act grants-Cohu's key domestic customers-from buying Chinese chipmaking equipment for a decade. [cite: 20 (from step 1)] This forces a clear choice for customers: take US subsidies and buy US/allied equipment, or forgo subsidies and risk being cut off from US technology. For Cohu, this strengthens the competitive moat in the US and allied markets but accelerates the risk of Chinese customers turning to domestic alternatives.

Geopolitical risk in Taiwan affects a key customer base and industry stability.

Taiwan's political status remains a critical, high-impact risk for Cohu and the entire semiconductor value chain. Cohu's Form 10-K explicitly notes that the world's largest semiconductor chip manufacturer is located in Taiwan, and this company is a top supplier for many of Cohu's customers. [cite: 3 (from step 2)] Any setback to the region's stability would compromise existing chip production, directly impacting Cohu's sales and operations. [cite: 3 (from step 2)]

The geopolitical risk is not just theoretical; it's a daily operational concern that forces all companies to manage supply chain diversification. Cohu has sales and service resources located in Taiwan to support this key customer base, but a major conflict or blockade could instantly disrupt a significant portion of the global semiconductor output, causing a severe downturn in equipment demand. You have to factor this into your risk-adjusted valuation.

Here's the quick math: the CHIPS Act is generating immediate, concrete orders like the $28 million win, which is a clear opportunity. But that upside is constantly battling the systemic risk of losing market share in China due to the new 2025 export controls, which have cost competitors billions. The net effect is a strategic shift toward US and allied customers, but the Taiwan risk still hangs over the entire industry.

Next Step: Strategy: Model a 20% downside scenario for China revenue in the 2026 forecast to reflect the intensifying export controls.

Cohu, Inc. (COHU) - PESTLE Analysis: Economic factors

You're looking at Cohu, Inc. (COHU) and wondering how the broader economy will affect their bottom line. The short answer is that the cyclical nature of the semiconductor industry is finally turning positive, but persistent inflation and higher interest rates are still a headwind. We're seeing a clear recovery in the back-end equipment market, which is Cohu's sweet spot, but the overall top-line growth is more measured than some might hope.

Global semiconductor capital expenditure cycles dictate demand for test equipment.

Cohu's business is a direct reflection of the capital expenditure (CapEx) decisions made by the world's largest chip manufacturers and outsourced semiconductor assembly and test (OSAT) providers. The good news is that the CapEx cycle is projected to hit a new record in 2025. Specifically, global sales of total semiconductor manufacturing equipment are forecast to reach $125.5 billion in 2025, marking a 7.4% increase year-on-year.

For Cohu, the most critical number is in the back-end segment, which covers test and assembly equipment. This segment is showing a strong recovery, driven by the intense demand for high-performance chips used in Artificial Intelligence (AI) and High-Bandwidth Memory (HBM). Sales of semiconductor test equipment are projected to rise another 23.2% in 2025 to a new record of $9.3 billion. This is a huge tailwind, and it's why analysts are seeing a strong recovery in the second half of the year.

Inflationary pressures increase operating costs and raw material prices.

While demand is up, the cost to deliver products is still climbing. Inflationary pressures are hitting the manufacturing sector hard. Manufacturers surveyed in the third quarter of 2024 expected raw material and other input costs to continue to grow by another 2.7% over the subsequent 12 months. This directly impacts Cohu's cost of goods sold, especially for components, construction materials for new fabs, and skilled labor. Honestly, the supply chain is still not back to pre-pandemic norms, and elevated transportation and logistics costs are a persistent challenge.

Plus, the Producer Price Index (PPI) for semiconductor manufacturing increased 2.2% in 2024, showing that the cost pressure is real at the production level. This environment forces Cohu to manage its own pricing strategy carefully, balancing the need to pass on higher costs against the risk of losing market share in a competitive landscape.

Interest rate hikes raise the cost of capital for COHU and its customers.

Rising interest rates, a key tool in fighting inflation, directly raise the cost of capital (the return a company needs to justify an investment) for both Cohu and its customers. Higher rates make CapEx projects more expensive for chipmakers, potentially slowing down new fab construction or equipment purchases, even with strong demand signals. Cohu itself acknowledges this as a risk factor, citing 'rising interest rates' and the impact on 'access to sufficient capital on reasonable or favorable terms.'

To be fair, Cohu has been proactive in managing its own capital structure. In September 2025, the company closed an upsized private offering of $287.5 million in 1.50% Convertible Senior Notes due 2031. This 1.50% interest rate is a defintely attractive cost of debt for a five-year instrument, but it also reflects the higher cost of borrowing compared to the near-zero rates of a few years ago. This move strengthens their balance sheet, but the overall higher rate environment still pressures their customers' investment decisions.

The company's 2025 revenue is projected to be around $448.08 million, reflecting a strong recovery in the back half.

The consensus full-year 2025 revenue estimate for Cohu sits at approximately $448.08 million. Here's the quick math on the recovery: Net sales for the first six months of 2025 were $204.5 million. The company's guidance for Q3 2025 sales was in the range of $125 million +/- $7 million, showing a sequential increase from the Q2 2025 sales of $107.7 million. This sequential growth confirms the strong recovery narrative, as the second half of 2025 is clearly outpacing the first half, aligning with the broader semiconductor CapEx cycle turnaround.

What this estimate hides is the potential upside if the AI-driven HBM and mobile markets accelerate faster than expected in Q4. Still, the $448.08 million figure is the realistic anchor for your financial models right now, balancing the strong back-end market growth against the lingering effects of the prior-year downturn in the first half of 2025. The analyst consensus for 2026 revenue is already looking much stronger, at around $507.3 million.

Next Step: Strategy Team: Integrate the 23.2% test equipment growth forecast into the 2026 sales model by end of next week.

Cohu, Inc. (COHU) - PESTLE Analysis: Social factors

Growing demand for electric vehicles (EVs) and 5G/6G drives testing needs.

You're seeing a massive, structural shift in demand, and it's directly impacting Cohu, Inc.'s core business: semiconductor testing. The push for electric vehicles (EVs) and next-generation telecommunications like 5G and 6G is creating an enormous need for high-reliability components. This isn't just about more chips; it's about chips that must not fail in critical applications, like a car's advanced driver-assistance systems (ADAS).

Cohu is capitalizing on this. For instance, the company secured a significant $28 million design-win order in the first half of fiscal year 2025 from a customer serving both the mobile and automotive end-markets, with shipments scheduled through the fourth quarter of 2025. This trend is baked into the market's structure: by the end of 2025, over 70% of new vehicles are expected to incorporate L2+ ADAS features, requiring constant, rigorous testing of high-performance processors and sensors. Also, telecommunications applications account for 25.0% of the total Automated Test Equipment (ATE) demand in the USA in 2025, specifically driven by the need for 5G component accuracy and network-equipment reliability.

Increased focus on corporate social responsibility (CSR) by institutional investors.

Institutional investors, including giants like BlackRock, are no longer treating Corporate Social Responsibility (CSR) as a side project; it's a core financial metric. They're scrutinizing Environmental, Social, and Governance (ESG) factors because they know it maps to long-term risk and operational efficiency. Cohu is defintely responding to this pressure, which is crucial for attracting and retaining capital.

Cohu's 2025 sustainability goals show concrete results that matter to these investors. They achieved a 9% year-over-year reduction in overall energy usage and a 16% year-over-year decrease in total water usage, largely due to a new facility in Laguna, Philippines, that incorporates a Rainwater Harvesting System. The firm also reduced its global Greenhouse Gas Emissions (GHG) by a substantial 32% in 2024 compared with 2023 calculations, partly by converting its Melaka, Malaysia, manufacturing facility to use renewable energy. This proactive stance earned Cohu a listing in America's Greenest Companies 2025 by Newsweek.

Labor shortages for skilled engineers in the US and Asia impact R&D capacity.

The biggest near-term risk for Cohu's growth is not demand, but the ability to execute on R&D and manufacturing capacity due to a persistent talent gap. The semiconductor industry is facing an unprecedented global talent shortage, particularly for specialized roles like Validation & Test Engineers, which are critical for Cohu's product development.

The numbers are stark. Globally, the semiconductor industry is projected to need over one million additional skilled workers by 2030, equating to more than 100,000 annually. In the US alone, the industry will require over 70,000 additional skilled workers by 2030. This shortage forces companies to compete aggressively on compensation, especially in key Asian manufacturing hubs. For example, in Taiwan, job seekers in the semiconductor sector are seeing pay bumps of 15 - 20% when moving into a new role in 2025, putting upward pressure on Cohu's global operating expenses. This is a competition for talent, not just market share.

Consumer reliance on high-performance electronics requires higher quality testing.

Consumers now rely on a vast array of complex, interconnected electronics-from high-end smartphones to medical wearables-and they demand perfect reliability. This societal expectation translates directly into higher quality and more complex testing requirements for Cohu's customers, which drives demand for the company's advanced Automated Test Equipment (ATE).

The global Electrical and Electronic Testing Services market, which Cohu's equipment enables, is valued at an estimated $15 billion in 2025. The Consumer Goods application segment is projected to dominate this market through 2033. This demand is driven by factors that Cohu's technology addresses:

• Increasing complexity of integrated circuits (ICs) requires high-precision testing.
• Stringent global regulations on product safety and compliance.
• Miniaturization and integration of electronics make reliability testing more critical.

The complexity of these chips means testing cycles must be faster and more thorough, which is why the USA ATE demand is valued at $3.1 billion in 2025 and is projected to grow at a CAGR of 4.7% through 2035. Cohu's value proposition is simple: its equipment helps manufacturers meet this non-negotiable consumer demand for quality.

Cohu, Inc. (COHU) - PESTLE Analysis: Technological factors

The technological landscape for Cohu, Inc. is defined by the critical shifts in semiconductor manufacturing, driven primarily by the need for higher performance in Artificial Intelligence (AI) and 5G applications. Cohu's ability to capture market share hinges on its rapid development of specialized equipment that can handle the complexity of next-generation chips. This isn't a slow evolution; it's a structural shift demanding new test cell architectures.

Here's the quick math: the global Semiconductor Test Equipment market is valued at approximately $15.11 billion in 2025, and Cohu's success is directly tied to its R&D investments, which totaled $46.3 million for the first six months of fiscal year 2025, representing 22.7% of net sales.

Transition to advanced packaging (e.g., heterogeneous integration) requires new test solutions

The industry is rapidly moving away from monolithic chip designs toward advanced packaging techniques like heterogeneous integration, which stacks or places different chiplets (dies) side-by-side on an interposer to create a System-in-Package (SiP). This shift is non-negotiable for high-performance computing (HPC) and AI processors, as it bypasses the physical and economic limits of shrinking transistors. The Advanced Packaging market is a huge opportunity, valued at approximately $51.62 billion in 2025, with 2.5D/3D solutions projected to advance at a 13.2% CAGR through 2030.

For Cohu, this means a fundamental change in its core product requirements. Testing these complex assemblies requires highly precise handling and thermal control during the test process. We saw Cohu secure a multi-unit order for its High Bandwidth Memory (HBM) inspection systems in the first quarter of 2025, a direct response to the surge in AI chip demand that relies heavily on stacked memory. Cohu's technology must manage the ultra-fine pitch and high-power dissipation of these multi-die packages.

Adoption of Artificial Intelligence (AI) and Machine Learning (ML) in test processes improves efficiency

AI is moving beyond the chips being tested and into the testing process itself. Integrating Machine Learning (ML) algorithms into Automated Test Equipment (ATE) software allows for predictive maintenance, faster fault isolation, and optimized test patterns, which directly boost manufacturing yield and reduce the cost of test. The market for AI in Semiconductor Manufacturing is estimated at $15 billion in 2025.

Cohu made a clear move to capitalize on this trend by completing the acquisition of Tignis, Inc. in January 2025 for approximately $36.6 million. This acquisition immediately expanded Cohu's software portfolio with AI-driven data analytics and process monitoring capabilities. This is defintely a smart strategic play, as it shifts Cohu from being purely a hardware provider to a provider of 'smart' test solutions. The company is already signing new customers for AI process monitoring demonstrations of the Tignis software, showing immediate market traction.

Development of new high-speed automated test equipment (ATE) is crucial for competitive edge

The core of Cohu's business, the Automated Test Equipment (ATE) segment, must evolve to handle the exponentially increasing data rates and complexity of modern System-on-Chips (SoCs). ATE accounted for a significant 38.1% of the semiconductor test equipment market share in 2024, confirming its entrenched position. The competitive edge is now measured in speed, parallelism, and precision.

Cohu's new ATE platforms and interface products must offer high-density pin counts and superior signal integrity to test complex devices for automotive, mobile, and computing markets. A clear near-term opportunity is evidenced by the $28 million design-win order Cohu secured from a customer for Mobile and Automotive test equipment, with shipments scheduled through the fourth quarter of 2025. This win validates the company's investment in its next-generation ATE and interface solutions, like the qualification of the ULTRA-S contactor for precision analog IC test.

The shift to higher-frequency testing for mmWave applications demands new handler technology

The rollout of 5G and the development of radar for Advanced Driver-Assistance Systems (ADAS) in vehicles necessitate testing at extremely high frequencies, specifically millimeter-wave (mmWave) applications. Testing at these frequencies is incredibly sensitive to the physical environment, requiring handlers that can maintain precise temperature control and minimal signal degradation.

Cohu, a leader in test handlers, must ensure its equipment can perform reliably in this high-frequency environment. This demands innovation in contactors, thermal subsystems, and material science. The introduction of the new Eclipse handler model in 2025, which targets share expansion at test subcontractors, is a direct response to the demand for high-throughput, high-frequency capable handling systems. This new technology is vital for seizing opportunities in the 5G and automotive radar markets, which are key growth drivers for the entire semiconductor industry.

The technological actions Cohu is taking are clear:

• Invest heavily in R&D: $46.3 million in H1 2025.
• Acquire software capability: Tignis acquisition for AI/ML integration.
• Win key high-growth orders: $28 million design-win for Mobile/Automotive test.
• Launch new hardware: New Eclipse handler model and ULTRA-S contactor.

Next step: Product Management should draft a detailed competitive analysis comparing the new Eclipse handler's mmWave performance specs (e.g., insertion loss, temperature uniformity) against Teradyne and Advantest by the end of the month.

Cohu, Inc. (COHU) - PESTLE Analysis: Legal factors

Strict intellectual property (IP) protection laws are essential for proprietary test algorithms

For a company like Cohu, which is a leading supplier of semiconductor test automation and inspection equipment, the strength of its intellectual property (IP) protection is defintely a core legal factor.

Your competitive edge is built on proprietary test algorithms and software that enable optimized yield and productivity for customers. The semiconductor industry is currently seeing intense global patent wars, such as the high-stakes clash between Samsung and TSMC over chip fabrication patents. Cohu must continuously invest in patent defense and prosecution to protect its differentiated product portfolio, which includes test handler solutions, semiconductor tester solutions, and interface solutions.

The rise of Artificial Intelligence (AI) in product development, which Cohu is utilizing, also introduces new legal risks. The use of AI-based algorithms in test and inspection equipment is subject to legal and regulatory uncertainty, which could impact operational performance. You must ensure your AI-driven IP is robustly protected and that its use does not infringe on third-party patents, which is a growing area of litigation in 2025.

Compliance with the European Union's General Data Protection Regulation (GDPR) for customer data

Operating globally means you must comply with a patchwork of international data privacy laws, with the European Union's General Data Protection Regulation (GDPR) being the most stringent. Cohu processes personal data, including that of its applicants and employees, and must adhere to GDPR and local laws like the German Federal Data Protection Act (BDSG).

The legal landscape for data is shifting rapidly in 2025, driven by stricter enforcement and the complete phase-out of third-party cookies by major browsers. This means your data collection practices must prioritize transparency and unambiguous consent. The legal risk here isn't just a fine-which can be up to 4% of annual global revenue-but also a loss of customer trust if data handling is perceived as non-compliant. Cohu's Audit Committee, as of the 2025 Proxy Statement, specifically oversees the adequacy and effectiveness of the company's information security policies and internal controls regarding information security and cybersecurity.

Antitrust scrutiny over mergers and acquisitions in the semiconductor equipment sector

The semiconductor equipment sector is highly consolidated, and any significant mergers and acquisitions (M&A) face intense antitrust scrutiny from regulators in the U.S., E.U., and China. This trend has been escalating, with regulators increasingly challenging vertical and complementary deals, not just those between direct competitors.

A prime example of this heightened scrutiny in 2025 is the $35 billion acquisition of Ansys by Synopsys, which is undergoing regulatory reviews across multiple jurisdictions. The regulatory focus is on potential harm to downstream competition, such as the risk of bundling products or reducing interoperability between different software tools. For Cohu, this means that any future strategic acquisitions to expand your product portfolio or market share will face a longer, more complex, and more costly regulatory approval process. You need to budget for potential structural remedies, like divestitures, to get a deal cleared.

New international tax laws, like the OECD's Pillar Two, affect global tax liability

The Organization for Economic Co-operation and Development's (OECD) Pillar Two framework, which establishes a 15% global minimum corporate tax rate, is a critical legal and financial factor for all large multinational enterprises (MNEs). This initiative applies to MNE groups with consolidated revenues of at least €750 million (approximately $800 million).

Cohu's Form 10-K filed in February 2025 stated that the company is currently not subject to Pillar Two but is continuously evaluating its potential future impact. This is the key action item: you must monitor your consolidated revenue against the threshold and prepare for the complex, country-by-country calculations required by the Global Anti-Base Erosion (GloBE) rules. For instance, the rules took effect in jurisdictions like Hong Kong on January 1, 2025.

Here's a quick look at the Pillar Two implications you need to track:

What this estimate hides is the administrative burden. Compliance requires significant investment in new technology and specialized tax professionals to extract and organize the granular, entity-level data needed for the GloBE calculations.

Cohu, Inc. (COHU) - PESTLE Analysis: Environmental factors

The environmental landscape for Cohu, Inc. in 2025 is less about immediate regulatory fines and more about managing the long-term, material risks of energy consumption and product life-cycle management. The key takeaway for investors is that Cohu's focus on energy-efficient products and operational renewable energy adoption is a clear competitive advantage, not just a compliance cost.

You're seeing a clear push from your customers to reduce their operational carbon footprint, and Cohu is positioning its test solutions right in the middle of that trend. This isn't just altruism; it's a direct path to lower operating expenses for your clients, which makes your equipment a better long-term buy. Honestly, this is where the real value is being unlocked in the capital equipment sector.

Customer demand for energy-efficient test solutions reduces operational carbon footprint.

Customer demand for lower operating costs is driving the need for energy-efficient test solutions, and Cohu's product strategy is capitalizing on this. The company designs differentiating energy-efficient products that directly reduce the operational carbon footprint of its semiconductor manufacturing clients. This includes being a key supply chain partner for at least nine major customers who are developing power management devices, controllers, and inverters that enable solar and wind power generation.

On the operational side, Cohu is actively working to reduce its own Scope 1 and 2 emissions, which is critical for meeting customer-mandated supply chain sustainability requirements. In 2024, the company achieved a global Greenhouse Gas (GHG) reduction of 32% compared to 2023 calculations, largely driven by converting its Melaka, Malaysia, manufacturing facility to renewable electricity.

Here's the quick math on Cohu's energy progress:

Compliance with the EU's Restriction of Hazardous Substances (RoHS) directive is ongoing.

Compliance with the European Union's Restriction of Hazardous Substances (RoHS) directive is a baseline requirement for any global semiconductor equipment supplier. Cohu's semiconductor test equipment, as a form of industrial monitoring and control instrumentation, is subject to these rules, which restrict the use of specific hazardous materials like lead, mercury, and cadmium in electrical and electronic products. This is defintely a continuous process, not a one-time fix.

While specific 2025 compliance costs aren't publicly itemized, the ongoing effort is managed under the umbrella of their broader regulatory compliance framework. This includes:

• Maintaining a formalized process for material declaration and tracking across the global supply chain.
• Ensuring all new product designs, like the Diamondx and PAx testers, are compliant with the latest exemption renewals under RoHS 3.
• Integrating compliance checks into the supplier onboarding process, which is also used for Conflict Minerals due diligence.

Increased focus on sustainable manufacturing practices in the supply chain.

Supply chain sustainability is a major risk factor, particularly in the semiconductor industry where raw material sourcing and manufacturing span multiple continents. Cohu addresses this through formal engagement with industry-leading organizations and rigorous internal controls.

The company has maintained a Low Risk Rating with the Responsible Business Alliance (RBA), which is the industry coalition focused on responsible business conduct in global supply chains. This rating indicates strong management systems are in place to prevent labor, ethics, and environmental violations among suppliers. Also, Cohu joined the Sustainable Business & Enterprise Roundtable (SBER) in early 2024 to collaborate on strategies for reducing Greenhouse Gas (GHG) emissions at key operating sites.

Specific actions include:

• Monitoring and maintaining buffer stock for critical materials like cobalt, palladium, and rhodium to mitigate supply chain disruption risks.
• Achieving a 95% response rate from in-scope suppliers surveyed for their 2024 Conflict Minerals Report (filed in 2025), demonstrating strong supplier engagement.
• Operating the Melaka, Malaysia, manufacturing facility with the internationally recognized ISO 9001 quality management system certification.

Managing e-waste from older test handlers and equipment requires new recycling programs.

The disposal of old semiconductor test handlers and Automated Test Equipment (ATE) is a growing e-waste challenge. Cohu is tackling this with a two-pronged approach: internal waste management and product life-cycle extension.

Internally, the company has a structured waste management program. In 2024, the total amount of hazardous waste generated was 186,000 kg, and they successfully recycled 83% of that, or 155,000 kg. They also recycled 698.3K kg of non-hazardous waste (paper, plastic, wood, etc.). This shows a strong commitment to keeping materials out of landfills.

For older equipment, the Cohu Refurbished Group, branded as EDGE, runs a formal program that acquires, refurbishes, and resells pre-owned ATE systems. This business unit extends the useful life of capital equipment, providing a lower-cost solution for customers and directly reducing the volume of large-scale e-waste that would otherwise require disposal. It's a smart business model that also addresses the environmental life-cycle problem.