Corporate Sustainability
Enabling a smarter, safer, and more connected future.
Cohu is focused on making a positive contribution to society by creating products that enable healthier lifestyles, greater longevity, and a more habitable planet. Cohu has evaluated its sustainability initiatives under a framework promulgated by the Sustainability Accounting Standards Board (SASB) Standards, as amended by the International Sustainability Standards Board (ISSB) of the IFRS Foundation.
“We are proudly listed in “America’s Greenest Companies 2025” by Newsweek. We achieved a 9% year-over-year reduction in overall energy usage. Additionally, our total water usage decreased by 16% year-over-year, driven primarily by completion of our new consolidated facility in Laguna, Philippines, which incorporates a Rainwater Harvesting System.”
Luis Müller, President and CEO
2024 Sustainability Report
Environmental Transparency
CDP
We continued our annual submittal to CDP, (formerly the Carbon Disclosure Project), a third party global disclosure system for environmental reporting, and improved our Climate Change score.
Membership Organizations
SBTi
Cohu has committed to set near-term company-wide emission reductions in line with climate science with the Science Based Targets initiative (SBTi).
The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), and one of the We Mean Business Coalition commitments.
The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
SBER
Cohu has joined the Sustainable Business & Enterprise Roundtable (SBER), with the goal of reviewing strategies to reduce GHG emissions at principal operating sites and investigating renewable electricity energy sources.
The SBER provides strategic advisory and support services in enterprise decarbonization trusted by scores of the world’s leading companies. The Sustainability Roundtable helps executives to set goals, drive progress, and report results as they lead their organizations to more sustainable high performance — all to help align business with life.
Reducing Global Carbon Footprint
We encourage and partner with our employees to ensure we live on a healthy Earth. We promote recycling, the use of reusable water bottles, and a bike-to-work program. We have installed energy saving technology for lighting and heating, source green electricity and self-produce energy by photovoltaic system. Cohu has invested in LED lighting conversion projects at our global sites. A total of five sites have ~100% LED lighting, including two of our largest manufacturing facilities; 99K sq. ft. Melaka, Malaysia and 92K sq. ft. Laguna, Philippines.
People and Culture
We make every effort to create a culture where everyone feels welcome, valued and respected. Our employees and teams around the world are encouraged to expand their knowledge and skills through participation in internal and external education programs. We support and partner with our employees participating in philanthropy and community service including charitable activities, educational and financial support, and charitable drives.
Employee Metrics
16% – US
12% – Europe
72% – Asia Pacific
Talent Development
Our employees and teams around the world are encouraged to expand their knowledge and skills through participation in internal and external educational programs.
Continued our Investment in Development
In 2024, we provided more than 41,540 cumulative training hours to employees globally, including compliance, safety, and leadership training, investing approximately $421K in training, seminars, and educational assistance fees. This equates to approximately 13.6 hours of annual training per employee.
In 2024, we introduced online Learning Communities which are designed to empower and upskill employees from various departments and roles. The extensive online resources comprise of a library of more than 90 leadership and professional development training courses. These learning communities are strategically crafted to support professional growth, enhance a variety of skillsets, and foster a culture of continuous learning within Cohu. With a diverse range of topics, our Learning Communities aim to cater to the development needs of every employee.
Preparing the Next Generation of Leaders
We have created and deployed robust Leadership Competencies Guidelines. The online resources are available in multiple languages to all global employees and provide a reference that highlights the behavior and performance standards for individual contributors and people leaders. To continue to develop and provide resources for the next generation of leaders we have several programs available:
- Six-month Leadership Development Program, designed on enhancing leadership skills needed to be effective as leaders rise through their career at Cohu
- Twelve-month Emerging Leaders Program, provides just-in-time training for newly promoted or hired leaders, that provides the foundation skills and competencies required to be an effective leader
- Twelve-month High Potential and Highly Technical Professional Programs, o develop leaders and technical experts to prepare for current and future challenges and career advancement, as well as attract and retain top talent.
Supporting and Encouraging Community Involvement
Cohu’s employees, all over the world, take great pride in the volunteer work they do with local charities, schools, and other non-profit. We support and partner with our employees participating in philanthropy including charitable activities, educational and financial support, blood donation drives. Some examples of employee activities in 2024:
- Fundraising activity proceeds donated to Bung Khe School in Nakhon Nayok, Thailand, aimed to support underprivileged students
- Volunteering at Xinfeng Mangrove Nature Reserve, Hsinchu, Taiwan, to help clean up wetlands
- Picking up garbage while hiking in the mountains in Suzhou, China
- Back-to-school drive benefiting students at Punta Elementary School in Laguna, Philippines
- Care-A-Thon proceeds benefiting several NGOs in Melaka and Penang, Malaysia
- Charity run proceeds donated to World Citi Foundation in Philippines benefiting children requiring surgeries
- Charity run proceeds benefiting Bukit Baru Melaka Disability Care Association and the Happiness Center for Disabled Children in Malaysia
- Blood drives in partnership with the Philippines Red Cross and the Melaka General Hospital in Malaysia
- Participating in a Futsal Charity event in Singapore with proceeds being donated to Boys’ Town and Beyond Social Services
- Fundraising for the Dana-Farber Cancer Institute and the Jimmy Fund in Norwood, Massachusetts, with proceeds going directly to the Pediatric Activities Fund
Delivering Optimized Yield and Productivity
Cohu designs differentiating energy-efficient products and services for the semiconductor test industry, delivering sustainable benefits. Lower energy consumption reduces our customers’ operating costs and lessens the environmental impact of greenhouse gas emissions from their manufacturing and test facilities.
In 2024, R&D expense was 51% of total operating expenses. 18 patents applied; 12 patents issued.
Smart Factory Automation
We design Smart Factory automation compatible solutions into our products to improve productivity and workers’ safety. For example, our Neon™ Inspection Metrology system and NY32-LU™ handlers are equipped with an external loader unloader to integrate with factory robots for customers adopting Industry 4.0 initiatives, our Krypton™ Inspection Metrology system, and MATRiX™, Eclipse™, and Jaguar™ handlers operate with Automated Guided Vehicles (AGV)/Automated Mobile Robots (AMR) equipment. Our NV-Core™ Inspection software uses AI-powered deep learning algorithms to improve inspection yield.
Improving Overall Equipment Efficiency
Our DI-Core® Data Intelligence software significantly improves overall equipment efficiency for Cohu’s large installed base of test handlers and inspection systems.
- Insight™ delivers real-time online performance monitoring and process control of the entire fleet of equipment to improve utilization
- Predictive Maintenance™ provides early warning to replace parts or service equipment using real-time component and thermal performance analytics
- AI Inspection™ optimizes yield and defect detection, and reduces scrap, utilizing Artificial Intelligence
Avoiding Scrap Material Waste
Krypton™ Cohu’s next generation inspection metrology system’s unique race-track architecture enables higher throughput and productivity. The system is factory automation ready with Autonomous Mobile Robot hardware and communications interface.
AI Inspection™ utilizes proprietary deep learning and neural network technologies to improve inspection yield without compromising quality. Real-time computation that enables semiconductor manufacturers to improve visual inspection accuracy at production speeds.
We believe that the product offers significant sustainability benefits by reducing scrap material. For example, in a typical large back-end semiconductor manufacturing facility, annual scrap avoidance could be in excess of 200M semiconductor devices.
Optimizing Temperature Control
Cohu’s unique T-Core™ active thermal control (ATC) technology dynamically removes heat from devices during testing to optimize temperature control, minimizing test time and yield loss. Cohu’s patent-pending Volta-Flux™ high-power density solution enables efficient heat dissipation from the top and bottom surface of the die under test for high-voltage and high-current applications.
Compact Low-Power Technology
Cohu’s Diamondx™ product line was designed to deliver cost reductions in both capital and operating costs. Our air-cooled architecture and instruments do not require compressed air or chilled water. Diamondx™ consumes 2.8 kVA of electrical power, ~75% less power is required versus a comparable liquid-cooled test system. Diamondx™ includes compact low-power (CLP) technology which uses less energy to operate. Cohu’s CLP technology greatly reduces greenhouse gas emissions.
Extending the Life of the Platform
Our Sense+™ platform was designed to be an all-in-one system for testing, calibration, final inspection, and packaging of MEMS Sensor devices, delivering the full backend process in one tool creating less work-in-progress and a better cost of test.
Its architecture isolates the test of MEMS from outside noise and vibration, significantly increasing test accuracy and daily output. The system can operate on a standard noisy test floor, eliminating customers’ need for additional anechoic rooms or chambers on the production floor resulting in energy savings and a reduced footprint.
Sense+™ also provides customers the flexibility to reconfigure the system in the field to test different sensors, and it can be mechanically de-coupled from the production system for use as a standalone unit for engineering or low-volume manufacturing, thereby extending the useful life of the platform.
Providing Enabling Capability and Technology
We focus on creating products that enable healthier lifestyles, greater longevity, and a more habitable planet. We are proud to support the manufacturing and testing of semiconductor components and technologies that save energy, enable the reduction in greenhouse gas emissions, and create a lower carbon economy. We are enabling many products that reduce energy consumption, optimize battery usage, and reduce the number of needed components.
Renewable Energy
We have numerous customers that provide semiconductor solutions to manage and reduce power consumption and enable solar and wind power generation. We support these important technologies including power management devices, controllers, inverters, sensors, motor drivers, and gate drivers. We are proud to be a key supply chain partner to these customers.
Reducing C02 Emissions
Our solutions are installed at the top semiconductor automotive manufacturers. Our test and inspection solutions are being utilized to test driver-assistance applications to increase safety, and power battery management systems for electric vehicles enabling reduced emissions and noise.
Advancing Healthcare
Our spring probes are used in procedures using robotic surgical instruments which enable minimally invasive surgery, faster recovery time, and less eye strain for the surgeon.
We are facilitating the testing of MEMS sensors in consumer wearables to collect vital data, analyze the information, and send data wirelessly to medical specialties for real-time feedback.
Our testers, handlers, contactors, and inspection & metrology solutions are being utilized in life-saving medical devices and applications: patient monitors, ventilators, IR thermometers, digital x-rays, rapid sepsis testing, and biometers to measure contactless temperature.
Providing Internet Capability to the World
Low-earth satellite-based internet constellations are bringing high-speed broadband to areas and people that lack reliable internet access creating life-changing socioeconomic opportunities, and access to educational resources and healthcare. Our RF/Satellite Communication Test and Inspection Cell is being utilized for testing of high-performance RF devices deployed in these satellites and ground-based transceivers.
We are enabling accurate signal integrity and temperature control with our testers, handlers, and contactors. We are proud to have enabled internet service following the Tonga earthquake and during the ongoing crisis in Ukraine.
Business Ethics
Corporate responsibility is an integral part of our business strategy and operating philosophy. A firm commitment to ethical behavior is embedded in our business processes and practices
Business Processes and Practices
We view our corporate responsibility as having integrity in all we do including respecting our people and the environment and holding ourselves to the highest ethical standards and compliance criteria at all levels of our organization. We firmly believe that this provides the foundation to create a culture of accountability and the best opportunity to create long-term, sustainable value for our stakeholders and the global community.
Employee Training
- Anti-corruption Policies
- Employee Reporting System
2024 Metrics
- No bribery/corruption claims, legal proceedings, or monetary losses
- No anti-competitive behavior claims, legal proceedings, or monetary losses
- No direct monetary contribution to political campaigns, lobbying
2024 Sustainability Report
