Kulicke and Soffa's Q2 2025 Earnings Call: Contradictions in Capacity, Demand, and Market Recovery

Capacity and demand dynamics, order activity in Taiwan, semiconductor revenue growth forecast, general semiconductor market recovery, and TCB capacity and demand are the key contradictions discussed in Kulicke and Soffa Industries' latest 2025Q2 earnings call.



Revenue and Market Dynamics:
- Kulicke & Soffa reported revenue of $162 million for the fiscal second quarter of 2025, with a 38% sequential increase.
- The increase was primarily due to improved demand from logic and thermal compression bonding (TCB) stemming from the U.S. and China.

Discontinuation of Electrics Assembly Equipment Business:
- The company decided to discontinue its electronics assembly or equipment business, which accounted for $86.6 million in write-down and other charges in Q2.
- This decision aims to ensure long-term business competitiveness and alignment with beneficial technology trends.

Regional Utilization and Tariff Concerns:
- Southeast Asia experienced a significant sequential decrease in revenue due to concerns over potential tariff impacts on the automotive industry.
- Utilization rates improved in China and Taiwan, but customers are cautious about capacity buys due to trade uncertainties and tariff dynamics.

Advanced Dispense and Thermal Compression:
- Kulicke & Soffa is focusing on developing its advanced dispense portfolio, with expectations for revenue consistency and growth.
- The company is leveraging its thermal compression technology to address high-volume semiconductor market transitions and power semiconductor applications.