Teradyne, Inc. Common Stock Goldman Sachs Communacopia + Technology Conference 2026

Nice to be here. Likewise.

It is a really interesting question. Teradyne has, as you said, we have a semiconductor business that represents about 80% of our revenue, a robotics business that is about 10% of our revenue, and a product test business that is about another 10%. A little bit more for semi test recently because it has grown so quickly. The kind of uniting theme for all of those businesses right now is exposure to the AI build-out. Teradyne basically has exposure to the AI build-out from wafer all the way to data center, and some of that is upfront, wafer to package test with our semiconductor test business, and then our product test and system-level test business really takes us through the part, through the module, and the tray level. Our robotics business really picks up in the areas of robotic-assisted test, robotic-assisted assembly, and robotic-assisted operations in data centers.

We're kind of in a unique period right now where these three parts of Teradyne's business are reinforcing each other much more than they ever have before. That's actually a very good thing because not only are we seeing this whole value chain cutting across our businesses, but increasingly, the end market is more and more concentrated in the form of these hyperscalers. The people that are actually building out these data centers and using them and developing the chips for them, they have diverse needs across the whole range of what Teradyne does. We have exposure to the whole value chain, and we have a set of customers that want to deal with us across those different nodes.

This was the stumper from last year. It's a rerun of that.

Had time to react. Yeah, I've had time to think it over.

Unfortunately, the whole world is different 12 months on, right? One of the things that we've learned is that predicting five years out is a really tough thing to do. As an industry, we're even struggling to try and figure out how big things are going to be in the current year. I do think that there are some things that are pretty certain to be true, looking back from five years from now. One is that AI is going to continue to be the dominant force across our industry. Right now, that is mostly being driven through the build-out of this data center economy.

But beyond that, there's a whole wave of physical AI, whether it's in robotics, autonomous vehicles, edge AI for mobile electronics, new types of devices that we expect to be a very big part of our business looking further into the future. If we're looking all the way out to 2031, 2032, I would expect to see that we will have experienced the most sustained period of growth that we've ever seen in our industry. I have no illusion that it's going to be perfectly monotonic, that there's going to be bumps and grinds along the way, but the setup in terms of the importance of information technology and AI is undeniable.

Having ourselves positioned in this space to be able to benefit from not only the compute part of this, but the mobile and power and robotics part of it, means that Teradyne is looking at a kind of a unique period in our history in terms of aligning our corporate strategy with the direction that the whole global economy is going. I think looking back five years from now, other than feeling really, really old, I think we will have seen a kind of a golden age for the semiconductor industry and for the test industry in general.

Yeah. It's a really interesting question, and one that we've spent a lot of time trying to understand better, both so we can size our own business, but also so it can help people understand the factors that are at play. One way that people are trying to wrap their heads around the size of the test equipment market is to look at it as a portion of the entire semiconductor capital spend. Right now, the money is that semiconductor capital spend is going to be increasing pretty rapidly over the next few years. Right now, last year, kind of $120, moving on towards $250 or even $300 billion of semiconductor capital spend in the 2028 to 2030 period of time. Semiconductor test represents a fraction of that. If you look back in 2023, that was maybe 4% of the total semiconductor CapEx went into semiconductor test.

In the first five months of 2026, it's actually 8% of the total is going into test. So it's a much bigger market, and we have doubled the amount of that market that is going into test. Looking out into the future, as the market continues up to this $250 billion, we're not sure that it's going to continue to increase as a percentage, but it's certainly going to increase in proportion to that market. So we're going to expect to see that test is a really good place to play and the things that are driving that. If you think about semiconductor capital spend, the most important thing that that does is it enables new generations of process nodes and increased capacity. Each new process node allows additional transistor density.