A German view

California’s Cohu is a leading producer of inspection and testing systems for components used in semiconductors. The automotive industry is its biggest customer, with the division comprising almost a fifth of sales, thanks to the ongoing shift towards electrification and autonomous driving. Industrial automation is another structural tailwind. The group’s client list, which includes Intel and Qualcomm, is healthily diversified. Sales have soared over the past few years and should double to $910m this year. Cohu boasts a return on equity of 19% and a solid balance sheet. It is on a 2022 price/earnings (p/e) ratio of 12, a big discount to rival Teradyne, which is growing at a similar pace.