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Kulicke & Soffa’s Hidden Growth Lever: Fluxless TCB Could Surpass $100 Million!

Kulicke & Soffa reported a fiscal second quarter 2026 marked by a 21.5% sequential revenue increase, driven by improving demand across its served markets, notably general semiconductors and memory, which underpin global data center capacity expansion. The company observed strong utilization rates—exceeding 90% in China and solid demand in Korea, Japan, and Taiwan—while Southeast Asia and Western regions showed modest improvement. Growth in the automotive and industrial sectors was also notable, led primarily by applications requiring high input/output power and mixed signal packaging, aligning with trends in electric and hybrid vehicles. The company’s diverse product lineup includes Fluxless Thermo-Compression Bonding (TCB) solutions that saw substantial sequential growth, with TCB revenues expected to surpass $100 million in fiscal 2026 and potentially support approximately $400 million in annual revenue post-capacity expansion by fiscal 2027. This expansion involves capital expenditures totaling $20 million, with $12 million deployed in the current fiscal year.