Cohu to expand AI and data analytics capabilities with acquisition of Tignis

Cohu, Inc. (NASDAQ: COHU), a leading supplier of semiconductor equipment and services, has announced its definitive agreement to acquire Tignis, Inc., a Seattle-based provider of AI-powered process control and advanced analytics solutions. The move is a strategic step to enhance Cohu’s capabilities in the rapidly growing semiconductor process control market, valued at an estimated $2.6 billion.

The acquisition is expected to significantly bolster Cohu’s presence in smart manufacturing and next-generation automation, areas that are increasingly driven by artificial intelligence and machine learning technologies. Tignis, recognised for its innovative software, has been instrumental in helping semiconductor manufacturers, equipment providers, and foundries achieve predictive process control and operational efficiency through advanced analytics.

What Makes Tignis a Key Player in Semiconductor AI?

Tignis has carved out a unique niche by combining AI with physics-based process control, creating solutions that address some of the semiconductor industry’s most pressing challenges. The company’s two flagship platforms, PAICe Monitor and PAICe Maker, are tailored for manufacturers looking to implement AI-driven predictive maintenance and prescriptive process control strategies.

PAICe Monitor is a powerful predictive maintenance platform that uses AI to detect anomalies and forecast equipment failures. This enables manufacturers to identify potential issues before they cause production disruptions, reducing unscheduled downtime and associated costs.

PAICe Maker delivers AI-driven process control by automatically correcting process drift, which is a common issue that impacts semiconductor yield and quality. By addressing this variability in real-time, PAICe Maker ensures consistent production processes and minimised maintenance requirements.

One of Tignis’ standout innovations is its Digital Twin Query Language (DTQL), a patent-pending scripting language that allows users to manage complex data analytics tasks without requiring advanced data science expertise. This technology democratises data analytics, enabling manufacturers to derive actionable insights faster and more efficiently.

How Will Tignis’ Capabilities Enhance Cohu’s Portfolio?

Cohu’s acquisition of Tignis reflects a broader industry trend where AI-driven process control and advanced analytics solutions are becoming indispensable tools in modern semiconductor manufacturing. The combination of Cohu’s expertise in semiconductor yield optimisation and Tignis’ cutting-edge software creates a powerful synergy to address growing demands for higher productivity and lower operational costs.

Cohu President and CEO Luis Müller emphasised that the acquisition aligns with the company’s long-term vision of delivering smarter, more efficient manufacturing solutions. He noted that combining Tignis’ machine learning capabilities with Cohu’s DI-Core software platform would drive advanced predictive automation and improve process control performance. This, in turn, is expected to help semiconductor manufacturers achieve higher yields, enhanced product quality, and better equipment utilisation.

Tignis CEO and Co-founder Jon Herlocker echoed Müller’s perspective, stating that the acquisition would accelerate the adoption of AI/ML technologies in semiconductor manufacturing. He expressed confidence that the partnership would lead to transformative solutions that address the industry’s increasingly complex challenges.

Why AI-Driven Process Control is Key to Semiconductor Manufacturing Efficiency

As Industry 4.0 transforms global manufacturing, AI-powered automation and data-driven analytics are becoming central to improving semiconductor process control efficiency. Manufacturers are under pressure to enhance productivity, reduce downtime, and address process variability—all of which require advanced tools that traditional methods cannot provide.

By integrating Tignis’ predictive maintenance platform and AI-driven solutions, Cohu aims to unlock new levels of efficiency for semiconductor IDMs, foundries, and equipment OEMs. This is particularly critical as chip demand continues to surge, driven by advancements in technologies such as IoT, AI, 5G, and automotive electronics.

Tignis’ solutions allow manufacturers to identify equipment issues and process anomalies early, reducing disruptions and improving overall operational performance. Combined with Cohu’s robust inspection and test automation portfolio, this acquisition positions the company to offer end-to-end solutions for smarter, AI-driven manufacturing.

Closing and Financial Details

While the terms of the deal remain undisclosed, Cohu has confirmed that the acquisition will be funded using its existing cash reserves and is not expected to materially impact its financials. The transaction is anticipated to close in January 2025, subject to standard approvals.

Headquartered in Seattle, Tignis has been operating since 2017, with development teams based in the U.S. and Canada. The company has established partnerships with some of the world’s leading semiconductor equipment manufacturers and foundries.

Cohu, already a global leader in test, automation, and inspection solutions, continues to expand its portfolio with acquisitions like Tignis, demonstrating its commitment to addressing the evolving needs of the semiconductor industry.

Looking Ahead: What This Means for the Industry

The acquisition of Tignis by Cohu signals a broader shift in the semiconductor market toward AI-driven process control and advanced analytics. As manufacturers look to optimise operations, reduce downtime, and achieve higher yields, the combination of AI, machine learning, and physics-based analytics is proving to be a game changer.

By integrating Tignis’ technologies, Cohu is poised to play a leading role in helping semiconductor manufacturers transition to next-generation smart manufacturing. This strategic move highlights the growing importance of AI and predictive automation solutions in maintaining competitiveness in an increasingly complex and demanding market.