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STP · Index 4 of 4 · AI Build-Out Family · monthly cadence · 12 tickers · 4 layers · cycle-stage detector

Semicap / Test Pulse

Semiconductor equipment is the upstream-of-upstream layer. When ASML, AMAT, Lam, Tokyo Electron, and the test-and-packaging names build order books, fab capacity follows 6-12 months later, silicon a quarter after that, and the products that depend on it a quarter after that. STP tracks the four layers of the equipment cycle and surfaces the cycle stage from the gap between front-end capex and back-end test.

Composite 63 / 100 Steady
Data month May 2026
Snapshot taken May 26, 2026
Universe 12 semicap + test + packaging names across 4 layers
SEMI NA + SEAJ billings layer pending (MVP2 — semi.org + seaj.or.jp scrapers)
Cycle Stage Early cycle · Bullish

Front-end Capex layer running 20+ points above Back-end Test. Capacity is being built ahead of demand — wafer-processing equipment booking now lands on the floor 6-12 months later. Historically the first leg of an upcycle.

Layer breakdown

Each layer captures one stage of the semicap/test value chain. Score is the percentile rank of average 21d return vs the layer's rolling 24-month history (first months use a deterministic heuristic). Weights front-load front-end capex because it leads the rest by 6-12 months.

Front-end Capex 86 35% weight
21d avg: +14.5% tickers: 4

ASML (EUV/DUV lithography monopoly), Applied Materials, Lam Research, Tokyo Electron. The wafer-processing capex layer — when these names build order books, fab capacity follows 6-12 months later.

Front-end Test / Inspection 33 25% weight
21d avg: -6.9% tickers: 3

KLA (process control inspection leader), Onto Innovation, Camtek. Metrology and wafer inspection — the quality-gate layer that scales with wafer starts.

Back-end Test 45 20% weight
21d avg: -2.1% tickers: 3

Advantest (memory + SoC test, HBM leader), Teradyne (SoC + robotics), Cohu (handlers). Test equipment for finished die — moves later in the cycle as silicon comes out the front-end.

Advanced Packaging 78 20% weight
21d avg: +11.0% tickers: 3

BE Semiconductor (hybrid bonding, HBM4 critical), ASMPT, Disco (wafer dicing). The CoWoS / chiplet / HBM-stack assembly layer — the new bottleneck as die sizes plateau and integration moves to packaging.

Per-ticker breakdown 13 tickers · sorted by layer · 21d return

Ticker Company Specialty Layer 21d return
LRCX Lam Research Etch / deposition Front-end Capex +18.1%
8035.T Tokyo Electron Coater / etch / cleaning Front-end Capex +17.9%
ASML ASML EUV / DUV lithography (monopoly) Front-end Capex +15.2%
AMAT Applied Materials Deposition / etch / inspection Front-end Capex +7.0%
KLAC KLA Corp Process control inspection (leader) Front-end Test / Inspection +4.0%
ONTO Onto Innovation Metrology / lithography software Front-end Test / Inspection -10.3%
CAMT Camtek Advanced-packaging wafer inspection Front-end Test / Inspection -14.6%
6857.T Advantest Memory + SoC test (HBM leader) Back-end Test +2.4%
COHU Cohu Test handlers + contactors Back-end Test +2.1%
TER Teradyne SoC test + robotics Back-end Test -10.6%
0522.HK ASMPT Advanced packaging + bonders Advanced Packaging +21.3%
BESI.AS BE Semiconductor Hybrid bonding (HBM4 critical) Advanced Packaging +16.3%
6146.T Disco Wafer dicing + grinding Advanced Packaging -4.4%

AI Build-Out Index Family 4 indices · supply-side AI hardware tracking

CCST · TAISP · MHP · STP — four independent indices, each with its own data source, equity basket, and equity-gap signal. Read them together: when one moves before the others, that's the rotation signal. (Agentic-demand-side tracking lives in the separate Agentic Demand Family.)

Methodology

STP is the fourth and final of the Closelook AI Build-Out Index Family — a 4-index suite tracking the AI hardware supply chain (Compute Spot Tightness · Taiwan AI Supply Pulse · Memory/HBM Pulse · Semicap/Test Pulse). Each index has its own data sources, equity basket, and equity-gap signal. Closelook Agentic Usage Pulse (AUP), tracking demand-side AI adoption, is a separate standalone index in its own track.

Equity layer: 21d returns from the Closelook Lake API for 12 semicap/test/packaging tickers across 4 layers. Per-layer score = percentile rank of average 21d return vs rolling 24-month history. Composite = layer-weighted blend: Front-end Capex 35% (the leading layer), Front-end Test/Inspection 25%, Back-end Test 20%, Advanced Packaging 20%.

Cycle-stage detector reads the gap between Front-end Capex and Back-end Test scores. Early cycle (bullish): FE ≥ BE+20 = capacity built ahead of demand. Mid cycle (aligned): within ±20 pts and both expansionary. Late cycle (warning): BE ≥ FE+20 = demand outrunning capacity, historically precedes pricing pressure. Contraction: both layers <40.

MVP2 will add the macro-billings layer: SEMI North America monthly equipment billings (semi.org press release ~17-20th of the following month) and SEAJ Japan monthly billings (seaj.or.jp ~mid-month), with book-to-bill ratios as the actual leading derivative. The MVP1 cron fires on the 18th to align with both release windows.

Index reading is a diary entry on our process. Closelook publishes research, not investment advice.