- Entegris will benefit from both the short-term global semiconductor shortage and long-term ‘megatrends’
- As chips get smaller and more complex, the group’s revenue per wafer is set to increase
Structural growth drivers
Global chip shortage
High margins
Analyst upgrades
Cyclical vulnerability
Premium valuation
Manufacturing semiconductors entails hundreds of complex steps, during which numerous materials are applied to a silicon wafer to build integrated circuits onto its surface. Entegris (US:ENTG) supplies the specialist chemicals, microcontamination controls and advanced materials handling solutions that underpin these processes. From high-performance wafer coatings that provide resistance to erosion, to filters that remove microscopic contaminants, Entegris’ products enable chipmakers to reduce defects, increase yields and improve the reliability of their semiconductors. It estimates that a 1 per cent improvement in yield can translate to up to $150m ($106m) in additional net profit for its customers.