olivLaw · US equity research
Kulicke and Soffa Industries, Inc. KLIC
Semiconductors & Related Devices · SIC 3674 · Vertical: Semiconductors & Related Devices (SIC 3674)
Kulicke and Soffa designs and sells capital equipment, consumables and services used to assemble semiconductor devices, with a focus on interconnect and advanced assembly. The company reported net revenue of 654.1 million USD in fiscal 2025, and 330.4 million USD for the third quarter of fiscal 2026, in a context where demand appears to have improved.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Kulicke and Soffa Industries, Inc. (KLIC) stock was 68.44 USD (−5.52% on the day), with market capitalisation 3.6 bn USD, P/E 31.5 on diluted EPS of 2.17 USD over the last 12 months, dividend yield 1.20%, beta 1.75, 52-week range 35.29–133.81 USD. Latest reported quarter (Q3 2026): revenue of 330.4 m USD (+122.6% YoY), net income of 57.4 m USD, diluted EPS 1.07 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 31.5
- weak (30–45)
- Bollinger (20, 2)
- 66.74 – 92.82
- in the lower half of the band · %B 0.07 · band width 32.7%
- SMA 50 / 200
- 83.89 / 86.67
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -4.39 / -3.41
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −30.7% | −1.1% | −29.6 pp | — |
| 3 months | −27.1% | −0.5% | −26.6 pp | — |
| 6 months | −27.0% | +4.4% | −31.4 pp | — |
| Year to date | +50.2% | +12.3% | +37.9 pp | — |
| 1 year | +78.3% | +13.5% | +64.7 pp | +35.9% |
| 3 years | +51.5% | +76.4% | −24.9 pp | +125.7% |
| 5 years | +19.4% | +63.7% | −44.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 04 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 181.3 m | 166.1 m | 162.0 m | 148.4 m | 177.6 m | 199.6 m | 242.6 m | 330.4 m |
| Cost of revenue | 93.7 m | 79.0 m | 121.6 m | 79.2 m | 96.3 m | 100.7 m | 122.9 m | 172.5 m |
| Gross profit | 87.7 m | 87.1 m | 40.4 m | 69.2 m | 81.2 m | 99.0 m | 119.7 m | 157.9 m |
| Research & development | 38.8 m | 37.8 m | 37.2 m | 35.7 m | 38.8 m | 40.4 m | 38.4 m | 43.9 m |
| SG&A | 46.2 m | 38.6 m | 48.0 m | 39.6 m | 41.5 m | 40.8 m | 42.7 m | 45.8 m |
| Operating income | 2.7 m | 86.6 m | -84.7 m | -6.1 m | 888.0 k | 17.8 m | 38.6 m | 68.3 m |
| Depreciation & amortisation | 4.8 m | 5.0 m | 5.0 m ≈ | 3.9 m ≈ | 4.0 m | 4.0 m | 4.0 m ≈ | 4.0 m ≈ |
| Interest expense | 29.0 k | 27.0 k | 36.0 k | 32.0 k | 39.0 k | 40.0 k | 37.0 k | 34.0 k |
| Pre-tax income | 10.1 m | 93.0 m | -79.1 m | -118.0 k | 6.7 m | 22.5 m | 42.5 m | 72.8 m |
| Income tax | -2.0 m | 11.3 m | 5.4 m | 3.2 m | 322.0 k | 5.7 m | 7.4 m | 15.3 m |
| Net income | 12.1 m | 81.6 m | -84.5 m | -3.3 m | 6.4 m | 16.8 m | 35.1 m | 57.4 m |
| Diluted EPS | 0.22 ≈ | 1.51 | -1.59 | -0.06 | 0.12 ≈ | 0.32 | 0.66 | 1.07 |
| Operating cash flow | 31.6 m | 18.9 m | 79.9 m ≈ | 6.2 m ≈ | 8.6 m | -8.9 m | 10.3 m ≈ | 45.2 m ≈ |
| Capex | 2.5 m | 10.2 m | 2.0 m ≈ | 2.1 m ≈ | 3.0 m | 2.7 m | 4.1 m ≈ | 4.3 m ≈ |
| Dividends paid | 11.0 m | 10.8 m | 11.0 m | 10.9 m | 21.4 m | 10.7 m | 0 ≈ | 10.7 m ≈ |
| Share repurchases | 42.7 m | 37.2 m | 21.3 m ≈ | 21.6 m ≈ | 17.0 m | 6.7 m | 165.0 k ≈ | 510.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 59 percentile of its own 34-quarter history (min 4.8, median 25.7, max 419.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 889.1 m | 540.1 m | 623.2 m | 1.5 bn | 1.5 bn | 742.5 m | 706.2 m | 654.1 m |
| Revenue YoY | +9.9% | −39.3% | +15.4% | +143.5% | −0.9% | −50.6% | −4.9% | −7.4% |
| Net income | 56.7 m | 11.7 m | 52.3 m | 367.2 m | 433.5 m | 57.1 m | -69.0 m | 213.0 k |
| Net income YoY | −55.1% | −79.4% | +348.8% | +602.0% | +18.1% | −86.8% | −220.7% | unavailable |
| Diluted EPS | 0.80 | 0.18 | 0.83 | 5.78 | 7.09 | 0.99 | -1.24 | 0.00 |
| Diluted EPS YoY | −54.3% | −77.5% | +361.1% | +596.4% | +22.7% | −86.0% | −225.3% | unavailable |
| net % | 6.4% | 2.2% | 8.4% | 24.2% | 28.8% | 7.7% | -9.8% | 0.0% |
| Free cash flow | 103.0 m | 54.2 m | 82.7 m | 277.3 m | 367.2 m | 129.0 m | 14.9 m | 96.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 04 Oct 2025
- Cash
- 215.7 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 821.5 m USD
- Total assets
- 1.1 bn USD
- Debt / equity
- unavailable
- Current ratio
- 4.79x
- ROE
- unavailable
- ROA
- 0.0%
- FCF margin
- 14.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 623.2 m | 1.5 bn | 1.5 bn | 742.5 m | 706.2 m | 654.1 m | SEC (XBRL)· 20 Nov 2025verified |
| Cost of revenue | 325.2 m | 820.7 m | 755.3 m | 383.8 m | 437.5 m | 376.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Gross profit | 298.0 m | 697.0 m | 748.3 m | 358.7 m | 268.8 m | 277.9 m | SEC (XBRL)· 20 Nov 2025verified |
| Research & development | 123.5 m | 137.5 m | 136.9 m | 144.7 m | 151.2 m | 149.6 m | SEC (XBRL)· 20 Nov 2025verified |
| SG&A | 116.0 m | 147.1 m | 140.1 m | 153.0 m | 165.6 m | 167.7 m | SEC (XBRL)· 20 Nov 2025verified |
| Operating income | 58.5 m | 412.4 m | 470.1 m | 39.4 m | -92.5 m | -3.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Depreciation & amortisation | 19.7 m | 19.8 m | 21.3 m | 28.9 m | 24.7 m | 18.0 m | SEC (XBRL)· 20 Nov 2025verified |
| EBITDA | 78.2 m ≈ | 432.3 m ≈ | 491.4 m ≈ | 68.3 m ≈ | -67.8 m ≈ | 14.8 m ≈ | SEC (XBRL)· 20 Nov 2025derived |
| Interest expense | 1.7 m | 218.0 k | 208.0 k | 142.0 k | 89.0 k | 134.0 k | SEC (XBRL)· 20 Nov 2025verified |
| Pre-tax income | 64.3 m | 414.6 m | 477.0 m | 72.2 m | -58.4 m | 20.5 m | SEC (XBRL)· 20 Nov 2025verified |
| Income tax | 12.0 m | 47.3 m | 43.4 m | 15.1 m | 10.7 m | 20.3 m | SEC (XBRL)· 20 Nov 2025verified |
| Net income | 52.3 m | 367.2 m | 433.5 m | 57.1 m | -69.0 m | 213.0 k | SEC (XBRL)· 20 Nov 2025verified |
| Diluted EPS | 0.83 | 5.78 | 7.09 | 0.99 | -1.24 | 0.00 | SEC (XBRL)· 20 Nov 2025verified |
| Weighted average diluted shares | 63.4 m | 63.5 m | 61.2 m | 57.5 m | 55.6 m | 53.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Dividend per share | 0.48 | 0.56 | 0.17 | 0.19 | 0.80 | 0.82 | SEC (XBRL)· 20 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 188.1 m | 362.8 m | 555.5 m | 529.4 m | 227.1 m | 215.7 m | SEC (XBRL)· 20 Nov 2025verified |
| Inventories | 111.8 m | 167.3 m | 185.0 m | 217.3 m | 177.7 m | 160.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Current assets | 860.2 m | 1.4 bn | 1.3 bn | 1.2 bn | 995.0 m | 901.5 m | SEC (XBRL)· 20 Nov 2025verified |
| Property, plant & equipment, net | 59.1 m | 68.0 m | 80.9 m | 110.1 m | 64.8 m | 59.0 m | SEC (XBRL)· 20 Nov 2025verified |
| Goodwill | 56.7 m | 72.9 m | 68.1 m | 88.7 m | 89.7 m | 69.5 m | SEC (XBRL)· 20 Nov 2025verified |
| Intangibles (excl. goodwill) | 38.0 m | 42.8 m | 31.9 m | 29.4 m | 25.2 m | 5.6 m | SEC (XBRL)· 20 Nov 2025verified |
| Total assets | 1.1 bn | 1.6 bn | 1.6 bn | 1.5 bn | 1.2 bn | 1.1 bn | SEC (XBRL)· 20 Nov 2025verified |
| Accounts payable | 57.7 m | 154.6 m | 67.3 m | 49.3 m | 58.8 m | 57.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Current liabilities | 157.9 m | 351.9 m | 248.7 m | 181.6 m | 183.8 m | 188.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Total liabilities | 296.6 m | 506.4 m | 393.9 m | 325.2 m | 296.2 m | 282.9 m | SEC (XBRL)· 20 Nov 2025verified |
| Equity | 758.0 m † | 1.1 bn † | 1.2 bn † | -21.8 m | -13.4 m | 821.5 m † | SEC (XBRL)· 20 Nov 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 94.4 m | 300.0 m | 390.2 m | 173.4 m | 31.0 m | 113.6 m | SEC (XBRL)· 20 Nov 2025verified |
| Capex | 11.7 m | 22.8 m | 23.0 m | 44.4 m | 16.1 m | 17.2 m | SEC (XBRL)· 20 Nov 2025verified |
| Free cash flow | 82.7 m ≈ | 277.3 m ≈ | 367.2 m ≈ | 129.0 m ≈ | 14.9 m ≈ | 96.4 m ≈ | SEC (XBRL)· 20 Nov 2025derived |
| Investing cash flow | -126.0 m | -81.7 m | 133.8 m | -91.3 m | -138.5 m | 27.7 m | SEC (XBRL)· 20 Nov 2025verified |
| Financing cash flow | -145.8 m | -44.3 m | -321.2 m | -111.9 m | -196.1 m | -153.1 m | SEC (XBRL)· 20 Nov 2025verified |
| Dividends paid | 30.2 m | 33.5 m | 39.4 m | 42.0 m | 44.2 m | 54.1 m | SEC (XBRL)· 20 Nov 2025verified |
| Share repurchases | 54.5 m | 10.4 m | 281.3 m | 69.2 m | 150.8 m | 97.1 m | SEC (XBRL)· 20 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.6 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 48.2% | 20 (on a fixed band) | 14% |
| EBIT margin · Quality | 13.2% | 55 (vs peers) | 11% |
| FCF margin · Quality | 4.3% | 17 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | -24.2% | 0 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | -7.4% | 8 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.4x | 100 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 1.1% | 23 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 1.9% | 65 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/2 factors with a value
- Growth3/100 · 2/2 factors with a value
- Quality30/100 · 3/3 factors with a value
- Returns65/100 · 1/1 factors with a value
- Valuation· partial23/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
KULICKE AND SOFFA INDUSTRIES, INC. (KLIC). Latest full fiscal year: 2025; data up to 2026-07-04.
Figures computed from the financial statements: revenue 654.1 m USD in 2025; YoY growth -7.4%; net margin 12.2%; ROE 13.2%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 3.4x
What contradicts it
- Gross margin: 48.2%
- FCF margin: 4.3%
- Revenue CAGR 3Y: -24.2%
- Revenue growth (YoY): -7.4%
- FCF yield: 1.1%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Semiconductors & Related Devices (SIC 3674) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TSMTaiwan Semiconductor Manufacturing Company Limited | 10,262.8 bn | 291.0 | 29.3% | 40.0% | +25.0% | +36% / +307% |
| NVDANvidia Corp | 4,823.1 bn | 25.3 | 117.2% | 63.7% | +65.5% | +13% / +328% |
| AVGOBroadcom Inc. | 1,553.7 bn | 41.6 | 44.2% | 42.9% | +23.9% | −19% / +252% |
| MUMicron Technology, Inc. | 899.7 bn | 10.7 | 88.3% | 63.8% | +256.3% | +236% / +945% |
| AMDAdvanced Micro Devices, Inc | 801.6 bn | 106.3 | 11.8% | 16.8% | +34.3% | +125% / +303% |
| INTCIntel Corporation | 309.7 bn | — | -10.9% | -20.1% | −0.5% | +44% / +30% |
| AMATApplied Materials Inc | 293.2 bn | 31.9 | 41.1% | 30.1% | +4.4% | +46% / +147% |
| TXNTexas Instruments Inc | 284.6 bn | 40.4 | 39.7% | 34.3% | +13.0% | +85% / +104% |
| ADIAnalog Devices Inc | 196.8 bn | 48.2 | 12.2% | 29.8% | +16.9% | +53% / +122% |
| MRVLMarvell Technology, Inc | 140.1 bn | 52.8 | 16.5% | 27.9% | +42.1% | +79% / +187% |
| NXPINXP Semiconductors N.V. | 66.8 bn | 20.8 | 29.2% | 23.4% | −2.7% | +36% / +30% |
| MPWRMonolithic Power Systems, Inc. | 61.5 bn | 69.5 | 25.1% | 23.9% | +26.4% | +36% / +130% |
| MCHPMicrochip Technology Incorporated | 40.9 bn | 104.2 | 7.2% | 9.3% | +7.1% | +41% / −10% |
| ALABAstera Labs, Inc. | 39.0 bn | 89.0 | 28.2% | 29.6% | +115.1% | +42% / unavailable |
| ONOn Semiconductor Corp | 27.7 bn | 41.4 | 8.9% | 10.8% | −15.3% | +42% / −0% |
| CRDOCredo Technology Group Holding Ltd | 25.7 bn | 48.7 | 30.7% | 33.8% | +205.7% | −23% / +662% |
| QQnity Electronics, Inc. | 24.8 bn | 42.0 | 7.6% | 11.5% | +9.7% | +46% / unavailable |
| GFSGLOBALFOUNDRIES Inc. | 22.4 bn | 25.4 | 7.8% | 13.0% | +0.6% | +13% / −25% |
| FSLRFirst Solar, Inc. | 20.9 bn | 11.3 | 18.7% | 37.1% | +24.1% | −29% / +23% |
| MTSIMACOM Technology Solutions Holdings, Inc. | 17.8 bn | 74.6 | 17.2% | 20.7% | +32.6% | +33% / +178% |
| TSEMTower Semiconductor Ltd. | 16.7 bn | 76.7 | 7.9% | 14.1% | +9.1% | +38% / +443% |
| SMTCSemtech Corporation | 10.3 bn | — | -5.8% | -3.0% | +15.5% | +50% / +578% |
| RMBSRambus Inc | 8.9 bn | 34.1 | 19.6% | 33.4% | +27.1% | −13% / +23% |
| MXLMaxLinear, Inc. | 5.2 bn | — | -5.9% | -4.4% | +29.7% | +265% / +204% |
| AAOIApplied Optoelectronics, Inc. | 5.0 bn | — | -5.4% | -9.6% | +82.8% | +121% / +347% |
1- and 3-year price returns: for KLIC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 37.29 Total return -45% · Per year -45% | 66.26 Total return -2% · Per year -2% | 100.26 Total return 48% · Per year 48% |
| 3 years | 29.61 Total return -54% · Per year -23% | 59.80 Total return -9% · Per year -3% | 100.26 Total return 51% · Per year 15% |
| 5 years | 23.51 Total return -62% · Per year -18% | 53.97 Total return -16% · Per year -3% | 100.26 Total return 54% · Per year 9% |
- Exit P/E± 14.95
- Net margin± 10.46
- Annual revenue growth± 9.45
- Annual dilution± 0.88
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (06 Aug 2026).
In brief
Kulicke and Soffa designs and sells capital equipment, consumables and services used to assemble semiconductor devices, with a focus on interconnect and advanced assembly. The company reported net revenue of 654.1 million USD in fiscal 2025 1, and 330.4 million USD for the third quarter of fiscal 2026 2, in a context where demand appears to have improved.
SWOT
Strengths
- The company holds a technology leadership position in bonding and a global customer base, reinforced by steady investment in R&D.
- The balance sheet is solid, with substantial liquidity and a program of returning capital through dividends and buybacks.
- The aftermarket segment is less volatile, which could stabilize revenue in cyclical downturns.
Weaknesses
- Customer concentration in Asia and China makes the company vulnerable to changes in trade policy.
- Fixed costs and R&D spending remain high, which can amplify the effect of revenue declines.
- Quarterly results are volatile and visibility into future demand is limited.
Opportunities
- A recovery in demand across all end markets could lead to significant revenue gains in the coming quarters.
- Expanding Advanced Solutions capacity could let the company serve high-performance segments better.
- Memory and advanced packaging solutions could open new markets if customers adopt them.
Threats
- Price pressure from Chinese competitors could erode margins over the longer term.
- Geopolitical tensions and tariffs could disrupt supply chains and operations in sensitive regions.
- A new period of industry oversupply could reduce demand for capital equipment.
Risks
- High geographic exposurehigh
Most revenue comes from outside the U.S., and a significant share of customers are in China, where trade policies can change quickly 1.
- Industry cyclicalityhigh
The semiconductor industry goes through rapid growth periods followed by sharp downturns, and these downturns have hurt demand for assembly equipment in the past 1.
- Pricing pressuremedium
Average selling prices have declined over time, and Chinese manufacturers could intensify this pressure through lower prices 1.
- Supply chain risksmedium
The company relies on sole source suppliers for certain components, and disruptions could delay deliveries to customers 1.
- EA business cessation and impairmentlow
The EA wind-down could generate additional costs or impairments if it does not complete as planned 12.
Investment thesis
What would need to be true (bull case)
- If the sequential growth reported in the third quarter is sustained, the company could reach the revenue levels it has guided for late fiscal 2026 2.
- Its technology leadership in bonding and investment in advanced solutions could strengthen its share in high-performance segments 1.
- A solid balance sheet and capital return programs could support the company through periods of volatility 12.
What would break the thesis
What to watch
- Actual results against the fourth-quarter revenue outlookQ4 2026
- Completion of the Advanced Solutions expansion2027
- Gross margin trend against the 47.8% reported in the third quarterQ4 2026
- Status of the EA business cessation and remaining customer obligationsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (06 Aug 2026).
The business
Kulicke and Soffa (K&S) is a global leader in semiconductor assembly technology, with activity across automotive, compute, industrial, memory and communications markets 1. The company designs, manufactures and sells capital equipment, consumables and services, and its main customers are IDMs, OSATs, foundry providers and electronics manufacturers 1. Its principal offices are in Singapore, with a business office in Fort Washington, Pennsylvania 1.
The strategy rests on technology leadership in ball bonding, wedge bonding and advanced solutions, plus investment in R&D for next-generation products 1. In fiscal 2025 the company decided to cease its EA equipment business to focus on core semiconductor assembly 1.
In the third quarter of fiscal 2026 the company reported net revenue up sequentially, with a gross margin of 47.8% 2. For the fourth quarter of fiscal 2026 management expects net revenue of about 375 million USD 2.
Segments
Ball Bonding, Wedge Bonding and Advanced Solutions
These reportable segments are mainly affected by the industry's internal cycle and broader macroeconomic factors 1. The expanded Advanced Solutions production facility is scheduled for completion in the second half of fiscal 2027 2.
Aftermarket Products and Services (APS)
The APS segment has historically been less volatile than the other segments, because its sales are tied more directly to semiconductor unit consumption than to capacity needs 1.
All Others
The All Others category contains smaller operating segments, and the company took an impairment on one unit in this category linked to the EA business cessation 1.
Market context
The semiconductor industry is cyclical, while semiconductor consumption has historically grown over the long term, according to the source 1. Revenue is highly concentrated geographically, with about 90.5% of fiscal 2025 net revenue from shipments outside the U.S. 1.
Management notes improving demand conditions across all end markets in the third quarter of fiscal 2026 2, while macroeconomic uncertainty, tariffs and geopolitical tensions remain important factors 1.
Trends
- Demand recovery after the inventory cycletailwind
Management describes strong sequential growth and improving demand across all end markets, which could support revenue if the trend continues 2.
- Geopolitical tensions and tradeheadwind
Tensions in the Middle East, the Ukraine-Russia conflict and tariffs can amplify supply chain volatility and logistics costs 1.
- Chinese competition and pricing pressureheadwind
Chinese manufacturers, supported by government policy, are lowering average selling prices, which could weigh on margins if not offset by cost reductions 1.
- Investment in next-generation technologiesmixed
Demand for advanced packaging, memory and AI-related assembly could support growth in high-performance segments if the company's R&D investments win customer adoption 12.
Competitive position
The company competes on performance, cost and quality in each major product line, and price pressure from China can force price reductions 1. The provided sources do not explicitly name competitors.
Competition from Chinese assembly equipment makers could grow if they receive government support to expand domestic capacity 1.
- Chinese assembly equipment manufacturers
Named in the source as actors lowering average prices through expanded domestic capacity and government support.
- East Asian equipment suppliers
Competitors active in the same semiconductor assembly markets, not named in the source.
- Other assembly equipment makers
Generic competitors in similar product lines, described in general terms in the source.
- Consumables and service providers
Competitors in the aftermarket, where the company sells consumables for its own and peers' equipment.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report14 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Current report17 Aug 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Current report05 Mar 2026Shareholder vote
- Quarterly report05 Feb 2026
- Current report04 Feb 2026Results of operations · Financial statements and exhibits
- Proxy statement22 Jan 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-10-04 · SEC / Kulicke and Soffa Industries, Inc. · 20 Nov 2025
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Kulicke and Soffa Industries, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.