Kulicke and Soffa Industries Q3 2025 Earnings Report

Kulicke and Soffa Industries EPS Results

• Actual EPS: $0.07
• Consensus EPS: $0.06
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: $0.35

Kulicke and Soffa Industries Revenue Results

• Actual Revenue: $148.41 million
• Expected Revenue: $145.48 million
• Beat/Miss: Beat by +$2.94 million
• YoY Revenue Growth: -18.30%

Kulicke and Soffa Industries Announcement Details

• Quarter: Q3 2025
• Date: 8/6/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, August 6, 2025
• Conference Call Time: 4:30PM ET

Kulicke and Soffa Industries (NASDAQ:KLIC) designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, foundry service providers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. The company was founded in 1951 and is headquartered in Fort Washington, Pennsylvania.

Kulicke and Soffa Industries Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Our Q4 guidance targets 15% sequential revenue growth to $170 million, a 47% gross margin and non-GAAP EPS of $0.22.
• Positive Sentiment: Since 2024 we’ve deployed over $270 million in dividends and buybacks, repurchasing more than 5 million shares (nearly 10% of outstanding) and offering a >2% yield.
• Negative Sentiment: Order hesitation in the automotive and industrial markets, driven by global trade uncertainty, is expected to persist into the September quarter.
• Positive Sentiment: General semiconductor and memory end markets show improving utilization (above 80%) with a strong sequential uptick in memory demand and emerging packaging formats.
• Positive Sentiment: Key technology transitions remain on track—from new advanced dispense launches in September to vertical wire high-volume production in fiscal ’26 and initial HBM thermal compression systems by end-2025.

Presentation

[Operator]

Greetings, and welcome to the Q3 twenty twenty five Quarter Results. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joe Ellinge. Thank you. You may begin.

[Joseph Elgindy, IR & Strategic Planning at Kulicke and Soffa Industries]

Welcome everyone to Kewelkits Office fiscal third quarter twenty twenty five conference call. Susan Chen, President and Chief Executive Officer and Lester Wong, Chief Financial Officer are also joining on today's call. Non GAAP financial measures referenced today should be considered in addition to, not as a substitute for, or in isolation from our GAAP financial information. GAAP to non GAAP reconciliation tables are included within the latest earnings release and earnings presentation. Both are available at investor.kns.com along with prepared remarks for today's call.

[Joseph Elgindy, IR & Strategic Planning at Kulicke and Soffa Industries]

In addition to historical statements, today's remarks will contain statements relating to future events and our future results. These statements are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that may cause our actual results and financial condition to differ materially from the statements made today. For a complete discussion of the risks associated with Fuel Consulfa that could affect our future results and financial condition, please refer to our latest Form 10 ks and upcoming SEC filings for additional information. With that said, I'd now like to turn the call over to Susan Chen for the business overview. Please go ahead, Susan.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Thank you, Joe. Good morning, everyone. Over the coming quarters, we remain focused on extending our market access through ongoing technology transition and we continue to be encouraged by gradual core market improvements.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

As discussed last quarter, uncertainty along global trade has clouded near term industry visibility, although we continue to see steady core market improvement as expected. We do not expect near term trade dynamic to materially affect our global business operation, although they do create additional uncertainty in customers' near term capacity planning decisions. Despite this near term headwind, we continue to remain cautiously optimistic as we continue to see more value utilization improve in key regions. We also continue to work very closely with customers to support technology transition within advanced dispense, vertical wire and thermal compression bonding or TCB, which I will provide an update on shortly. Fourteen quarters, we generated revenue of $148,400,000 GAAP loss per share of $06 and non GAAP earnings per share of $07 Our focus on efficiency, customer engagement and the execution has allowed us to exceed expectation.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Dester will provide an update on financial performance and the outlook shortly. As expected, the sequential revenue reduction into the June was largely driven by order hesitation within the automotive and the industrial market. We mentioned last quarter, this was focused uniquely with certain customers' production facility in Southeast Asia, and we anticipate this will persist through the September quarters. We anticipate this softness is largely driven by trade uncertainty. Is broadly affecting global automotive and industrial supply chain and will create a slight headwind over the coming quarters.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Regardless, this key market is supported by ongoing technology transition and above average growth rate. Despite the near term, automotive driven technology transition provides a long term set of growing opportunity. For example, EV charging infrastructure is driving new equipment opportunity, and we anticipate charging related infrastructures will exceed 20% CAGR over the next five years. Additionally, this ongoing growth is also driving the need for smarter and more efficient power semiconductor applications, which we are addressing with our growing base of pin welding, advanced dispense and clip attach. Similar to automotive and industrial, but less pronounced, Order hesitation was also apparent within the general semiconductor end market during the June.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

More recently, we are encouraged by seasonal and cyclical dynamics, which are improving more value evaluation improvement within core region and we anticipate both leading and higher volume market to improve through the September. We remain very focused on both core market recovery and also new product momentum. We also experienced strong sequential demand increase in memory and are encouraged by improving conditions, recent price dynamic and emerging packaging format. We continue to be focused on driving share gain and expanding our reach into DRAM applications by enabling new packaging capabilities in high volume with our vertical wire solution and the leading edge application in future version of HBM. Next, I would like to provide a brief status update on broader technology transition we are addressing through our advanced dispense, vertical wire and the TCB portfolio.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

First, with advanced dispense, we are continuing to seek opportunity across key customers and the end market while maintaining an aggressive product development pipeline. We have received initial POs from an automotive OEM, several IDMs and multiple OSTs, which highlight the broader diversity of our solutions. The need for higher precision and a more capable dispensing system is broadening across end market. We look forward to expanding our portfolio to support this need, and we plan to introduce new advanced dispense capabilities in September at Semicon Taiwan. Next, within virtual wire, market expectations remain on track.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

We continue to plan for initial higher volume productions to begin in fiscal twenty twenty six, driven initially by an exciting technology transition within the memory market. Emerging on device AI applications are demanding higher bandwidth. This market need is driving demand for transistor dense vertically stacked, low power dynamic memory. We have observed market reference such as mobile HBM, energy efficient HBM or low power WIoT DRAM applications, which describe this new opportunity. This new format of low power HBM is anticipated to increase bandwidth by three to four times over existing low power DRAM.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Vertical wire interconnects are enabling an alternative, more cost effective production process for lower power HBM application. As a reminder, higher power data center HBM utilizes more costly through silicon via die and thermal compression based assemblies. We anticipate this new vertical wire based HBM will be adopted in broader DRAM application and eventually support higher transistor density requirement across broader general semiconductor applications. Finally, within TECB, we continue to focus on many different applications for most larger end of memory. Our Flexless Thermal Compression, or FTC, solution continues to be best in class and is increasingly positioned to seamlessly integrate into a variety of applications and the customers' production flow.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

We have recently demonstrated new physical and chemical based inline material preparation capabilities, which further extend our leading FTC process. We are very proud of how our existing chemical based solution have performed, which have enabled us to lead the initial market transition to flux less. This solution has allowed us to be first to high volume production, and we are currently supporting multiple larger customers in mass production. With that said, we are now pleased to offer a tailored mix of physical and chemical based process within one solution to best suit the widest variety of customer process flow and the market applications by adding in night die and wafer preparation capabilities to our leading chemical based process. Initial customer feedback has been positive and we expect this new capability to be a market enabler, which lower barrier to entry as customers initiate new production or expand their FTC capabilities.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

In addition to this new FTC solution, we have also made progress within the high power HBM market. We now expect to ship an initial FPC system by the end of calendar year 2025 to support the anticipated flux less transition within the HBM space. As we increase focus on emerging memory opportunity, we are confident our proven leadership in driving FTC adoption within leading edge logic application provides a unique advantage to support leading memory application as they transition to final pitch FTC based assembly. We are confident we have the most robust and capable solution for leading edge thermal compression application and remain positive on our engagement, recent progress and long term roadmap of this highly capable technology. We expect FPC solution will outpace overall TCV growth, allowing us to extend our market shares over the coming years within both memory and logic market.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

In summary, we continue to expand our market presence on multiple fronts and remain cautiously optimistic as key regions and end markets show signs of cyclical improvement. While automotive headwinds are anticipated to linger into the September quarters, general semiconductor capacity digestion and expansion, driven by China and Taiwan, as well as memory technology transition and the price improvement are increasing our confidence in the outlook. It continues to be a unique time in semiconductor assembly with a wide set of opportunity to be addressed. I look forward to updating our progress over the coming quarters and I will now turn the call over to Lester to discuss the financial and outlook. Lester?

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

Thank you, Fusen.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

My remarks today will refer to GAAP results unless noted. Despite uncertainty regarding macro dynamics, we delivered revenue above guidance, continue to execute on those customer engagements and maintain an ongoing focus on cost control. Gross margin came in at 46.7% and we delivered $07 of non GAAP earnings per share. Total operating expense came in at $75,300,000 on a GAAP basis and $68,000,000 on a non GAAP basis. Tax expense came in at 3,200,000 and we continue to anticipate our effective tax rate will remain above 20% over the near term.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

We are also positive on recent U. S. Tax law changes and are in the process of evaluating the future impact on our tax rate. We have continued to opportunistically reduce shares outstanding by repurchasing approximately 668,000 shares equivalent to 1.3% of diluted shares during the June. Since the 2024, we have taken a more aggressive approach to delivering shareholder value directly.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

Over this seven quarter period, we deployed over $270,000,000 in dividend payments and open market repurchase activities. This has allowed us to repurchase over 5,000,000 shares, nearly 10% of shares outstanding and currently offer a best in class dividend yield above 2%. Looking ahead, as Hussain mentioned, we are more positive on key end market improvements in general semiconductor and memory supported by regional utilization and pricing improvements. Automotive and industrial headwinds will likely persist over the coming months, although we anticipate this softness to be short term. For the September, revenue is expected to increase by approximately 15% sequentially to $170,000,000 with gross margins at 47%.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

Non are expected to be $68,000,000 with GAAP earnings per share targeted to be $08 and non GAAP earnings per share of 0.22 We are very focused to exit from this extended period a leaner and more growth oriented organization. Today, we're either an incumbent leader or are aggressively taking significant market share in every key market served. We continue to ensure our highest potential opportunities are adequately resourced and our customer development efforts are on a positive trajectory. Although we remain cautiously optimistic as we look into fiscal twenty twenty six, end market visibility remains unclear. We continue to anticipate gradual recovery with some potential minor seasonality anticipated in the December.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

We look forward to demonstrating progress on vertical wire, advanced dispense and thermal compression opportunities as we prepare for the broader core market recovery. KNS is very focused on executing our strategic priorities. We are confident with our capabilities and technology leadership and we remain well prepared to navigate the near term macro environment. This concludes our prepared comments. Operator, please open the call for questions.

[Operator]

Thank you. We will now be conducting a question and answer session. Session. Our first question comes from the line of Krish Sankar with TD Cowen. Please proceed with your question.

[Krish Sankar, Managing Director at TD Cowen]

Hi, thanks for taking my question and nice to see sequential revenue improvement. I have three questions, Susan or Lester. Number one, I think you kind of mentioned about FY 2026 gradual recovery minus seasonality. So is it fair to assume December revenues have to be down sequentially and then we grow from there, but are we going to be bouncing around these $170,000,000 level for a few quarters or how to think about it?

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Okay. So a quick you asked three questions, so we do it one by one. So first question is, I think at this moment, the industry utilization rate is quite healthy. Actually, it's benefit improvement in the general semiconductor. And the memory, I think, is also quite strong.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

But we're still facing the ongoing headwind in the automotive. The Q3 revenue we just published, and we got $170,000,000 for Q4. And in our review, we do believe probably '26, first half always is weaker. But because of your high utilization, right now, we feel, I think, 2026 will be flat, flattish. I hope I answered your questions.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

And for the '26, again, six, we do believe it's in a better cyclical position with a potential significantly improved in the industrial utilization rate and for the ball bonder. We also have new product, three or four new products, for example, clip attach, our wire bonder, pin welder, this is for the wire bonder family for high power semiconductor. We also have improvement of advanced dispense, vertical wire and TCV growth. TCV growth was due to industry, fraudulose technology transition and potential win in the HBM. So we do believe probably 2026 will be flat to 2025.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

And this industry already have a downturn facing a tough quarter. So we do believe our Q3 and Q4 will be up. So I hope I answered your questions.

[Krish Sankar, Managing Director at TD Cowen]

Yes. That was very helpful, Fusen. So around $170,000,000 for the next couple of quarters. I have two other quick questions. The second one is, I'm just kind of curious how to think about the impact of Intel CapEx cuts, because you do have some pretty good flux less position there, some of the copper to copper, etcetera.

[Krish Sankar, Managing Director at TD Cowen]

So I'm just wondering, is that a headwind? Or have you seen any progress there? Or do you think that potential opportunity in the future for SDC is probably minimized with Intel? And then I have one last follow-up.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Okay. I think the engagement are still quite healthy, but I can only answer the of course, the revenue compared to our previous year will be down. So that's all I can say.

[Krish Sankar, Managing Director at TD Cowen]

Got it. Got it. And then the last final question, you said you're going to be shipping TCB for HBM end of this calendar year. Is this for HBM four? Or is this just one customer? Or how to think about it?

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Okay. So we do believe the next version of HVM is going to be a frictionless or very, very important now. So currently, I think we have two customers we are working with, but one of the customer, I think we will intend to ship a system end of calendar year 2025.

[Krish Sankar, Managing Director at TD Cowen]

Thank you very much, Luci. Appreciate that.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Thank you. Thank you, Chris.

[Operator]

Thank you. Our next question comes from the line of Tom Diffely with D. A. Davidson. Please proceed with your question.

[Tom Diffely, Director - Institutional Research at D.A. Davidson Companies]

Thank you for taking the questions. Curious, what are the utilization rates this quarter at your kind of core customers? And then what are the areas that's driving this incremental growth quarter over quarter here in the fiscal fourth quarter?

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

Hi Tom, it's Lester. So utilization rate overall is about 81%. I think in the end markets, general semi is around 83%, memory is about 80%. We see growth in utilization in all the major end markets, even auto, even though auto is still quite soft, utilization is below 70 there. But as far as what's driving it is basically general semi as well as memory.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

They've shown some, they're the highest rising utilization rates. So I think that's basically is driving particularly General Semi our sequential growth in the revenues.

[Tom Diffely, Director - Institutional Research at D.A. Davidson Companies]

Great. Thank you. And then Fusen, was hoping you could just dig a little deeper into the thermal compression business. How big was it historically with Flexless and going into memory going forward, how big could it be a year or two down the road?

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Okay. So I think I will repeat a few times already. This year, previous quarter, we target 25 as a shipping. We are talking about 60 to 70,000,000 And next year, I think originally, we target $100,000,000 But with a fluctuating transition and we really work hard on HVM, we believe we will have some upside. But as the market grow, our target actually the memory market actually is higher, bigger than logic right now.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

We intend 2028, we think the market will reach about $1,000,000,000 We actually plan we have a plan and target about $250,000,000 to $300,000,000 in 2028. We believe at that time, the market will have size about 900,000,000 to $1,000,000

[Tom Diffely, Director - Institutional Research at D.A. Davidson Companies]

Okay. And is it is the main advantage here on the cost side? You mentioned that obviously you don't have do a true silicon vias with this technology. So is it really for lower cost applications where you are benefiting the customer? Or is there a technology advantage as well?

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

I think it's really technology. We actually start with chemical base. They are two technology and we are the leader. Actually, we can tell you, at this moment, all the high volume production, high volume, actually, we are the only technology in high volume production. So and as you mentioned as I mentioned in my script, we are adding more capability.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

So we are quite positive about the transition to our frictionless. We are number one, and we intend to capture big market. And after focusing on larger, we will focus on it as well as the HBM from here.

[Tom Diffely, Director - Institutional Research at D.A. Davidson Companies]

Great. I appreciate the extra color.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Thank you.

[Operator]

Thank you. Our next question comes from the line of Charles Hsu with Needham and Company. Please proceed with your question.

[Charles Shi, MD - Senior Analyst at Needham & Company]

Fusen and Lester. Thanks for taking my question. The first one, I want get a better sense on your soft guidance December, meaning you don't have an official guide, but you did provide the direction. So, the December, how do I think about that the confidence level you have? Like is it you're basically guiding December maybe flattish?

[Charles Shi, MD - Senior Analyst at Needham & Company]

Is it based on orders on hand? Or how should I is it based on forecast that maybe you don't have all the orders on hand, but things may be coming along nicely? I want to gauge a little bit of your confidence there. Thank you.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

Hi, Charles, this is Lester. So it's a combination of the things you mentioned, right? I mean, Susan and already mentioned earlier about utilization rates being quite high, right? And I think over the last couple of quarters, we've seen utilization rate at a healthy level and it's increasing. Obviously in normalized times, there would have been a ramp already.

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

But again, as we've mentioned several times, the tariffs are kind of creating a little bit hesitation in our customers' supply chain. As far as our confidence on why we think that again, we're not guiding, but as Susan said, we think December will be flat to our Q4, which was September. The reason is yes, we do see higher ordered intake coming in. We do see a lot more increase from customers. And we're seeing again recovery in both end markets as well as regions that were a little slow over the last couple of quarters, right?

[Lester Wong, EVP - Finance & IT and CFO at Kulicke and Soffa Industries]

So I think combination of all those things makes us think that even with again usually in December we have a little bit of seasonality but we believe that with all these factors it should be again relatively flat from the September.

[Charles Shi, MD - Senior Analyst at Needham & Company]

Excellent. Maybe a second question, want to ask a little bit more about the PCB. Maybe this is more about technology. So, Susan, I think you mentioned about preparation, physical or chemical preparation. But kind of want to ask you what that means.

[Charles Shi, MD - Senior Analyst at Needham & Company]

Is situ preparation or it's a separate tool? And I think related to that, there has been a debate on PCB, the two approaches, the chemical approach, which is the approach you guys have and the plasma approach. Are you by saying physical preparation, are you talking more about the plasma approach you're developing or what is that? And on HCM high bandwidth memory, technology you are proposing or you're going to evaluate with customers? Thank you.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Okay. So, Charles, as I mentioned, the industry, we have eight customers, and they are all in production. And the whole industry, the only technology in high volume production actually is a chemical base, right? So actually, we are very proud. All the customer side, we have the mass production actually is a chemical.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

So the to answer your question, actually, we also developed physical repolarization technology. This is really very old technology. Probably tens of years prior up in semiconductor fab. But actually, both technology actually have a merit. I'll give you an example.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

I think for the physical one, you need to clean like a soda oxide actually have a faster rate. But for the chemical, we are very confident. I think for the surface preparation, especially interface, interface integrity quality is the most important for the year. We are strongly confident. I think the chemical one is the best.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

So right now, to answer your question, we have a capability. Actually, we have done it and demonstrated and get a feedback is positive. It's actually we do in situ altogether, integrate all this capability together in a system. So we're doing that actually our customer is so convenient to easily integrate their integration and enable us to actually fight for the market shares in various kind of chip on wafer, on substrate and also maybe in the future also HBM. Hope I answer your questions.

[Charles Shi, MD - Senior Analyst at Needham & Company]

Thank you. That's all from me. Thanks.

[Operator]

Thank you. Our next question comes from the line of Christian Schwab with Craig Hallum. Please proceed with your question.

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Great. Thanks for taking my question. Boussin, the end of the prepared comments, talked about being well positioned, taking market share. Can you elaborate on what products that you plan on gaining market share, auto, industrial, memory, etcetera? Just give a more clear answer to that, please.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

Okay. So the first one I mentioned actually is called clip attach and also pin welder. This is in our waste binder family. This is especially for high power semiconductor products, right? This will be very, very important.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

High power semiconductor will be very, very important to show a significant growth in the next many, many years. So the second one is advanced dispense solution. Dispense actually is quite a big market. It's like a $1,000,000,000 to $2,000,000,000 And we are focused on appreciation in our dispense. Actually, three years ago, we acquired a company, and we do believe technology is differentiated and has a micro dispensing capability with in line inspection and also have a good availability, right?

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

And we put this one actually is in common platform of our company, common platform. So we do believe our cost is very competitive and have a differentiated products. And we will show actually the growth next year over here. And then vertical wire, I think we talked about vertical wire actually probably close to five, six quarters. I think finally, this will take off.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

When I mentioned, I mentioned this product will be implemented into DDR5 as beginning. But when people do this and a lot of people is encouraged because it's a stack DRAM die. And the bandwidth actually is not like a high power HVM. It has a much wider bandwidth. But this one can actually provide three to 4x of bandwidth increase compared to current DDR.

[Fusen Chen, President, CEO & Director at Kulicke and Soffa Industries]

And the last one I mentioned, I think, on TCB, I think a lot of discussion and we are quite focused and we do believe we can make a traction on TCP.

[Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC]

Great. Fantastic. Thank you. No other questions.

[Operator]

Thank you. And we have reached the end of the question and answer session. And therefore, I'll turn the floor back to Joe Valindi for closing remarks.

[Joseph Elgindy, IR & Strategic Planning at Kulicke and Soffa Industries]

Thank you, Shyamalai, thank you all for joining today's call. Over the coming quarter, we'll be presenting at several conferences. As always, please feel free to follow-up directly with any additional questions. This concludes today's call. Have a great day, everyone.

Participants

Executives

• Joseph Elgindy, IR & Strategic Planning
• Fusen Chen, President, CEO & Director
• Lester Wong, EVP - Finance & IT and CFO

Analysts

• Krish Sankar, Managing Director at TD Cowen
• Tom Diffely, Director - Institutional Research at D.A. Davidson Companies
• Charles Shi, MD - Senior Analyst at Needham & Company
• Christian Schwab, Senior Research Analyst at Craig-Hallum Capital Group LLC