Global Test Equipment Sales (2018–2027e)
Exhibit 30: ...and testing intensity to stay above 100bp. 2026 and 19% Y/Y in 2027, or 35% CAGR, 2024-27e.. (FT) and system-level testing (SLT) stages. In the FT process, ICs are picked up from IC Advantest's V93O0O made by or Teradyne's UltraFLEX. Each tester is paired with a handler, underscoring the handler's critical role in the testing value chain. Key handler suppliers include Hon Precision, Cohu, Chroma, Changchuan Technology, and JHT Semiconductor (JHT). Hon Precision holds over 7O% market share in the AI/HPC handler segment and roughly 30% of the overall handler market. Considering Hon Precision holds roughly 30% of the overall handler market, we expect handlers to account for 0.5% and 0.9% of global WFE market in 2024 and 2025, respectively. We expect the overall handler market to expand to around 1.7% of global WFE over time, driven primarily by strong Al demand, longer testing times, and rising testing requirements such as co-packaged optics (CPO). As the clear leader in the AI/HPC handler market with over 70% market share, we expect Hon Precision to further increase its overall handler market share from 30% in 2024-25 to 40% by 2027e. This market share expansion should support a revenue CAGR of 81%, 2024-27e, and 61%, 2025-28e.