Cohu, Inc. (NASDAQ:COHU) Q1 2024 Earnings Call Transcript

Toshiya Hari: Sure. Yes. That’s really helpful. And then as a quick follow-up, you talked a little bit about your win in display drivers. I think you have talked about that in the past as well. But I think that market is currently dominated by one of your peers. So, I am sure your Korean customer is very happy that you guys are delivering product and then technology. But I guess my question is, how big is that TAM today? I think it’s a couple of hundred million, but if you can confirm that, that would be super helpful. And then how should we think about your ability to grow share over time? I know it takes time, but since you have one of the bigger customers secured must be a promising opportunity for you, so just curious how you are thinking about that business. Thank you.

Luis Muller: Toshiya, you are right about the couple of hundred million. We do peg that TAM at $200 million. The only problem is you said, what is it now, the now part of it is the problem. So, on average, it is a $200 million TAM. We are now supplying to two customers that make up about 50% of that TAM. So, we view it as a basically a $100 million opportunity. And that doesn’t mean we are going to get 100% of it. I think we will share it with our competitor. We have had worked very closely with and supplying to the power venues [ph] manufacturer. And now we have been engaged with the Korean manufacturer, where last year, we captured their first insertion an inch a probe, represent about 40% of their capital spending, and we generated $20 million of revenue for us last year.

We now got qualified for their second insertion, which is final test. We are yet to see how much of the remaining here, which could be about a $30 million opportunity, how much of that we are going to get when business conditions normalize again. So all-in-all, you are correct about the $200 million TAM. This year is depressed, out of that $200 million, I think we can now serve $100 million.

Toshiya Hari: That’s very helpful. Thank you.

Operator: That concludes today’s question-and-answer session. I would like to turn the call back to Jeff Jones for closing remarks.

Jeff Jones: So, I would just like to close with saying thank you for joining our call today and we look forward to seeing you soon.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.