We came across a bullish thesis on Kulicke and Soffa Industries, Inc. on X.com by @ContrarianCurse. In this article, we will summarize the bulls’ thesis on KLIC. Kulicke and Soffa Industries, Inc.’s share was trading at $46.77 as of December 16th. KLIC’s trailing and forward P/E were 456.89 and 34.13 respectively according to Yahoo Finance.
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Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and consumables in China, the United States, and internationally. KLIC is strategically positioned to capitalize on the growing demand for advanced packaging solutions, particularly in the AI semiconductor space, by leveraging its long-term partnership with Amkor and its own in-house capabilities.
With Chip-on-Wafer-on-Substrate (CoWoS) no longer part of the roadmap, KLIC is shifting to Embedded Multi-die Interconnect Bridge (EMIB) technology, which requires highly precise Thermo-Compression Bonding (TCB) tools due to the fine bumps used in these packages, as flux-based processes would damage the chips.
The company’s alignment with Amkor, which has available floor space in Korea, ensures timely capacity expansion without relying on external equipment (Outsourced Semiconductor Assembly and Test – OSAT), which is critical given the time-sensitive nature of AI packaging demand. This partnership underscores KLIC’s ability to meet high-quality output standards expected by leading chip designers, including Intel, while maintaining control over process consistency.
Each TCB tool can handle approximately 500 wafers per month at an Average Selling Price (ASP) of $1.25 million, which, given the high-margin consumables and above-corporate-average Gross Margin (GM), would directly contribute to KLIC’s bottom line. Amkor’s recent guidance updates, including 2.5D investment discussions, suggest that these tools could be part of immediate expansion plans, positioning KLIC to capture significant incremental revenue. For every 1,000 wafers processed using EMIB packaging, analysts estimate approximately $0.022 of upside per share, highlighting both near-term earnings impact and potential for market rerating.
Given KLIC’s specialized technology, strong partnerships, and targeted capacity investments, the company is well-positioned to deliver both robust cash flow and strategic growth in high-value AI packaging markets, making it an attractive investment with clear upside catalysts tied to execution and volume ramp.
Previously we covered a bullish thesis on KLA Corporation (KLAC) by Quality Equities in January 2025, which highlighted its leadership in semiconductor process control, AI-driven demand, and benefits from rising foundry capex. The company’s stock price has appreciated approximately by 61.50% since our coverage. This is because the thesis played out as AI and capex tailwinds strengthened. The thesis still stands as semiconductor complexity continues to rise. @ContrarianCurse shares a similar view but emphasizes KLIC’s upside from advanced AI packaging and EMIB adoption.
