ENTEGRIS INC (ENTG)

Entegris, Inc. is a supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. Its products help customers improve productivity, yield, performance and technology in advanced manufacturing environments, with a focus on materials science, materials purity and solutions that speed time to yield. The company expects demand to be driven by growth in semiconductors for applications such as smartphones, artificial intelligence, self-driving vehicles, cloud computing and the Internet of Things, and by increasing manufacturing complexity. In 2022 it acquired CMC Materials for a total purchase price of about $6.0 billion. In 2023 it sold QED Technologies and its Electronic Chemicals business, and it terminated an alliance agreement with MacDermid Enthone.

Entegris reports three segments. Materials Solutions provides CMP slurries and pads, deposition materials, process chemistries and gases, formulated cleans, etchants and other specialty materials. Microcontamination Control offers filtration and purification of critical liquid chemistries and gases used in semiconductor manufacturing and other high-technology processes. Advanced Materials Handling develops products that monitor, protect, transport and deliver critical liquid chemistries, wafers and other substrates, including wafer carriers, EUV reticle pods, chemical containers, valves, fittings and tubing. Its products are used in photolithography, etch and resist strip, deposition, ion implant, chemical mechanical planarization, wafer and reticle transport, chemical handling, and wafer and package testing. At December 31, 2023 it offered more than 28,000 standard and customized products, and no single product platform exceeded 4% of 2023 net sales.

Customers include leading logic and memory semiconductor manufacturers, original equipment manufacturers and semiconductor materials suppliers, spanning chemical companies, equipment makers and fabs. The top ten customers made up 43% of sales at December 31, 2023. About 75% of 2023 revenue was unit-driven or recurring, from products consumed repeatedly in semiconductor manufacturing, so revenue tracks global semiconductor demand more than capital equipment sales. The company also seeks adjacent markets such as hydrogen purification, clean energy, batteries, LEDs, optical space systems and life sciences. Government initiatives such as the U.S. and EU CHIPS Acts are encouraging local semiconductor ecosystems.

Entegris maintains a global infrastructure of design, manufacturing, logistics, distribution, service and technical support facilities. In May 2023 it opened a manufacturing facility in Kaohsiung Science Park, Taiwan, which is to become its largest. It has begun building a manufacturing facility in Colorado Springs, Colorado, and a research center in South Korea. It has added capacity in Billerica, Massachusetts; Yonezawa, Japan; Toronto, Ontario; Chaska, Minnesota; and JangAn, Korea. Engineering, research and development spending was $277.3 million in 2023, or 7.9% of net sales. The text does not name its competitors, key suppliers or headquarters.