ENTG - Earnings call transcript Q1 2024

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Operator

Welcome to the Entegris First Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations.

Bill Seymour

Good morning, everyone. Earlier today, we announced the financial results for our first quarter of 2024.

Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. number materially and the from a results and forward-looking involve differ could those statements of uncertainties, risks actual statements. These projected in

by in measures information report call, refer regarding SEC most G. with that presentation. On the the information these this refer and we as disclaimer filed is Additional to to slide Please the the risks we have also recent the Regulation non-GAAP subsequent and contained annual defined SEC. quarterly on financial reports will in uncertainties our of

can in You IR today's release as at find our entegris.com. of the on news a reconciliation table well page website as

And divisional XXXX divestitures. finally, the and P&Ls in for included QX that exclude all reference, for of we and have quarters consolidated earnings slide presentation for your X

CEO; today LaGorga, call are Linda our Loy, Bertrand and the CFO. our On

that, to hand the With call over Bertrand. I'll

Bertrand Loy

am good the and Bill, year. you, morning. to Thank with I our start pleased

first our guidance. the $XXX quarter, above our million For gross of non-GAAP were at and And EBITDA guidance. were sales EPS the of end high margin,

deeper were all most sales across and expected down areas seasonality. our at as normal divisions in product financial and in line Looking with performance,

node and are did in including we growth customers' product transitions, advanced edge leading-edge lines to However, selective deposition sequential materials. our that see critical

results shortly. From chose despite all of and the a the to terms with investment details will on profitability we gross R&D. point we provide of EBITDA. Despite this Linda lower strong of market maintain delivered of uncertainty, in view, that margin even more volumes, in high and levels sales

the significantly QED, sale planned On $X.X to $XXX The sale divestiture of sold quarter. divestitures of down Element of of in to noncore business our Solutions. for we up were billion the completes announced proceeds approximately used PIM, pay to a those debt. Electronic Chemicals from a assets: and X of we our PIM a me few business address Let highlights X, total the other the million, PIM March

Next, second manufacturing of Colorado, And year. million realize construction making new investments vital and generated $XX Rockrimmon ramp to revenue this at steady in [ $XX the and new growth. to to we're sales in first is X mid- ] on XXXX. progressing facility Kaohsiung fully the facility to In to our our track our expect long-term are major be expected half which is from us our of of half million to capacity, production in we continue up contribute in the and progress initial is rapidly, with site for Taiwan,

outlook this our for to year. on Moving

changed. stable the view semiconductor that environment. has inventories gradual Our market and normalizing market industry healthier demand a not of the the to continue more expect a we We is recovery throughout And do year. believe with

customers, continue based as based our full we for XXXX, expect our forecasts a be year unit this the backdrop mix. from to CapEx recent With approximately market X% on and will on and the up

of divestitures. In outperform impact our addition, continue to this logic memory strong to we market by to expect X and year, excluding points X in new the position nodes, market given the

approximately together, sales our billion. it be all Putting XXXX we will expect in $X.XX

PIM expect to X EBITDA March. EPS continue early $X.XX. sale guidance, of annual than in approximately and revenue XX% of be course, to We non-GAAP greater to months be This the its prior of includes to business

the turn to now Linda. me call Let over Linda?

Linda LaGorga

you, Bertrand. thank Good morning, and

included months approximately revenue end at our down of X in million, at sales QX sequentially the PIM sales as-reported on the $XXX down year-over-year and first the business. quarter of an basis. high guidance Our from were XX% X%

X% year-over-year sequentially. and So sales prior excluding divestitures QX and X% from the periods, first down quarter down were

quarter, basis $X plant divestiture. the approximately above was Gross our GAAP revenue had margin the The on impact and in QX. sequentially negatively revenue year-over-year non-GAAP a margin improved first PIM reflects compared no impacted to primarily and QX by guidance. exchange and utilization Foreign million XX.X% higher to in

GAAP basis in EBITDA million above expenses the were $XXX on million our to gross or QX. discussed QX XX% expenses guidance I was in Operating increased offset investment driven QX of were million. QX. by non-GAAP $XXX R&D a by $XXX Operating Adjusted just basis on in and partially revenue, compared margin a range, higher

rate in QX, higher was interest Net driven expense. X.X%, $X.XX in range, the share, tax per and positive and PIM share interest The of of expense per tax the EPS QX above impact by first primarily $X.XX in was million, $XX XX.X%. guidance by our non-GAAP GAAP was margin EPS the gross diluted $XX primarily million was guidance below the GAAP our the rate quarter. sale. net driven Non-GAAP was lower

Solutions our an sequentially basis. Materials for were in were X% QX Sales Sales down as-reported $XXX division million. on

were Excluding the divestitures, impact sequentially. of just the sales down X%

benefited the quarter, some continued MS early-stage recovery market, end mainstream markets. from During memory the weakness in offset in the by

XXX MS of almost points for sequentially. primary increase utilization. XX.X% the that plant for margin basis improved quarter, operating was as-reported Adjusted was driver up The

plant division were by the largest AMH fluid-handling of positive sequentially. sequential QX. sales impact down of margin sequential were lower QX driver Our the million of The sequential the increase ahead expected sales in Adjusted was growth operating for primarily in products. sales utilization of quarter. was $XXX for X% decline The AMH the margin improved of in driven XX.X% in AMH

all volumes by division, X% for was primarily expectations. XX.X% investment margin in in decline lines, consistent MC down Revenue our operating the steady the in lower For with for sequentially. quarter margin of quarter. sequential R&D. $XXX MC lower and Adjusted was our major driven were was product The sales in million

cash to flow. on Moving

million. quarter for free flow CapEx the $XX was was quarter $XX First cash million.

XXXX. approximately spend million in total to in expect CapEx to $XXX continue We

since we have million means paid QX $XXX the we million date, a was on loan The first down balance quarter, from to million term a total the of the During billion rest loan approximately through acquisition. debt proceeds cash paydown $X.X paid hand. PIM after $XXX of ], [ more CMC $XXX [ down combination in of than sale ] and the the term approximately which in

we the basis the X.X%. to portfolio a addition Blended plus in debt now our is new SOFR successful XXX. debt since point resulted hedged, debt approximately fully the loan interest is In loan, executed very XXX% March, of term repricing significant paydown, the XX on our of currently, rate And which is a interest to end term at fixed. of

billion [ approximately and At X.Xx. was our billion. net was the $X.X debt debt X.Xx end was of net and our gross leverage QX, $X.X was Gross leverage approximately ]

end Xx We continue to expect the at of our will be below XXXX. leverage gross

to QX Moving outlook. our on

This growth to the the X.X% to sequential expect midpoint We guidance equates to range, excluding from sales of million to million. divestitures. range $XXX $XXX

the EBITDA expect XX%. We approximately margin to be

be $X.XX We to $X.XX GAAP and expect be to EPS $X.XX $X.XX non-GAAP share. per EPS per to share to

Let QX. additional information provide modeling me for

non-GAAP gross to expect XX.X% of and $XXX is to QX million higher in GAAP $XXX expenses $XXX OpEx margin by expenses primarily XX.X%, operating expense. increase million non-GAAP basis, $XXX compensation driven noncash non-GAAP We both sequential QX to million. million to of of a on GAAP operating from and The equity

equity made QX, these awards we This to QX. changed year were in and going the timing grants grants whereas historically, of forward, our

$XX approximately million We approximately approximately interest million, of $XX also depreciation net XX%. of of [ rate non-GAAP ] tax expect and a expense

for it back I'll remarks. Bertrand closing over now to hand some

Bertrand Loy

Linda. the of you, year. with closing, Thank In start we pleased our are

we to that and final the our we planned used cash and other quarter, our lower the proceeds of sale divestiture, During significantly completed debt.

to We for of year. industry. remain we market optimistic semiconductor secular recovery gradual long-term the throughout prospects expect about balance continue a the And the the very growth

of a technology entering addition, unprecedented the complexity. period industry is In and device change

ability unique have core science with co-optimize shorten become Our that to and for in competencies purity, our time materials critical our to customers. coupled solutions increasingly materials yield

Entegris, for means this leading for into strong expanding attractive wafer sales open years outperformance for and of opportunity the come, with Entegris a that, is ultimately rapidly value per and moving content for organic All the operator, line questions. EPS growth, to reinforcing to expansion. With EBITDA translating let's significant compounder market as toward us

Operator

from [Operator Goldman with Toshiya Sachs. Instructions] comes question Our Hari first

Toshiya Hari

on question first industry my Bertrand, outlook. the is

puts few takes pluses up I'm there's and the maintaining a there. outlook. You're quite of and X% kind minuses, sure

you views well. you're then changed, would a the for on CapEx DRAM, two be then us start across comment logic a and quick edge, helpful got I've and Linda. super through wafer trailing And seeing what have side as If NAND, leading-edge or that to your extent follow-up walk can from perspective the a

Bertrand Loy

Toshiya. you, Thank Okay.

of on of said last. stable, in my life not some the have views recovery. and prepared is been I comments, harp we Essentially, XX% fab production. XD to we're blend NAND seeing is visible gradual units, And for saw keeping be As mainstream. of increase CapEx. in through spoke industry And logic, XX% the second a recovery industry close using DRAM, fab half in steady in again, we advanced eye industry signs wafer in our course, changed our the since a up But of X% what expect a We expect utilization a we it's we've with in year. slower compression in QX. going really

half expect that we expect year. mainstream of but in to bit QX, the the in We little of a more stabilize back

Toshiya Hari

And a the other OpEx. one guess, then on gross two-parter, for Linda, I on and margin

QX doing nicely you're with guiding and really the margin you're as gross So well. well divestiture,

was some you through second could the think takes. As hoping about puts I you and half, the us of walk

of be things And to how like mix a inside about upside utilization the tailwind? of ramp Entegris? product could and Taiwan Colorado? further there And and Is that we be should thinking

then And OpEx, quickly. very

timing lower So QX given fair the OpEx normalizes in shift of to the from the is an potentially assume it grants, perspective?

Linda LaGorga

Sure.

me puts some first So hit margin second on the of gross your question half, and takes. let

revenue With be progression as we tailwinds be said, tailwinds As But KSP being of is and depending are to headwinds leverage KSP. gradual some with evolve. That the tailwinds. those how expecting still mix some of on. headwinds still Bertrand to those volume that although headwinds, that, we're start have the can it industry. and mentioned, And mentioned, of a provide we you coming to some still some the expecting alleviate Toshiya, of some mix, can degree does there

guidance takes the provided evolve. those rest but second of haven't would think the specifically things I half how we and see as go and we of full year margin now, right So through the year, and for the gross gives

R&D will the side importantly, our business. continuing the And say have you in we're have see approximately are to to to going X%. the commitment for most And OpEx On year. invest second committed I throughout we that half, said of we would

We have in. things many exciting invest to

now, leverage. far some right will to going expect forward, giving you not some guidance. that again, continuing of invest, to but us SG&A SG&A should see offset as leverage, as specific There be will So OpEx, which

Toshiya Hari

Congrats.

Bertrand Loy

you. Thank

Operator

comes Our Roberts John next from Mizuho question with Securities.

John Ezekiel Roberts

you price-down products normally Bertrand, your quarter. in have over time. some Nice

leading to change? continues going pricing are do mix the here, to edge towards dynamics As shift the think you

Bertrand Loy

this years. I high with would it's say the Look, at trend environment, been industry the fair I several to we've a is increases. particularly compared mean conducive softer pleased a as level, that years in that, I've the X last again, think in pricing trends over preceding had not some that X say to really years. the favorable price to But I last more

John Ezekiel Roberts

seen And we've more currencies the then maybe currency, given little in a weakness discuss several the of you bit could recently? Asian

Linda LaGorga

go question. Sure. and I'll up the currency pick ahead

say, but So monitor I we try clearly would FX, it. first, forecast to don't we

our So about FX on business, think let here's me why. give huge you our impact a not the and has context had of to how business. Historically,

have happens between XX% natural costs. margin greater appreciation have quickly, our dollar we hedge in when when Our and quarter. impact timing the does built the sold. a recently. a said, or are that this also are typically to our being sales due that USD sales in and on had seen our And products We've That some when between they're

of factored the we week, rates for at looked looked we But last continue we of at we're our that to as currency, end as the going have currency into to to thinking. monitor our and forward. So guidance April, going

Operator

Markets. comes with Our Bhavesh Lodaya next question Capital BMO from

Bhavesh Lodaya

recover segment, respect that the profits memory with then if here. seems drove sales divestitures, And look have sequentially, starting jumped XX, Slide just margin like flat almost excluding has but sciences Bertrand, Can you at share the materials what I markets to it to uplift? numbers operating your segment XX%.

should we XXXX expect So of margin what heading kind segment? for the uplift into

Bertrand Loy

Right.

I take I line more top question will implied maybe line to in on can the Linda top Bhavesh, in what's margin. to then your MS this defer question take driving So precisely and and past the on quarter,

in pleased essentially performance some at we the being again, But there we of softness Material with obviously, very Solutions a our the when business, flat time was sequentially were industry. seasonal --

that -- remember memory. one most So this what's is that business that behind of is part the really mean, has the exposure I the to

the first And year. significant about business especially that, last So last of obviously, memory half a for was we've that headwind during talked year.

bodes tailwind, gradual QX But terms the business has the QX improvements obviously QX, turned on which in we've in year? Maybe that very implication you, for the some in headwind and solid into a to turning and and that Linda, a of seen sequential margin. rest well of

Linda LaGorga

point on the call margin in Bhavesh, me to this of specifics. plant bit MS, but for margin, quarter Yes. let the give you the your a in mentioned I more increase utilization,

running. X up For was example, we divisions say cost idle to had were ramp contributed also that I of efficiency bit lines there and a we as are that together. productivity SG&A now also some and combined the leverage, would that margin that

Bhavesh Lodaya

one changed Chinese say, then your Got around noise to Intel, Also, any offsets you but probably sales seems you as And there lose about chips in players sales their Chinese make makers. is there up grow U.S. phasing the growing sales AMD your the from it. chip Chinese where view size? this on operations. for in on out, some the be for company? sanctions Has government domestic that And area, are talking impact

Bertrand Loy

Bhavesh, -- mind sorry, would didn't you question really you Could it? hear repeating I'm well. I your

Bhavesh Lodaya

Absolutely. U.S. Chinese players probably How impact out your the I government chips from talking that just the Chinese around government, that intensity. help would And your domestic the even operations. they're of business? offset their increasing, in sanctions is phasing does this? AMD the say, actually And Yes, some this about and exposure in Intel does is --

Bertrand Loy

escalation we're and U.S. potential China. look, I Oh, or on restrictions that new not I see. speculate between Yes. to going Well, think

that -- are understood. the restrictions export think well I current

team We capable have comply with to invested a solid those and in restrictions.

in with really that business. our that QX serve. well. business we saw that continue is relatively actually QX reflected fabs we many China the benefits that as MS been our on saw new the those quantified some and in loss We about the still numbers saw to divisions of activity which impact of customers in benefited And a XXXX. But production. million XXXX can some impact, MC that started have And AMH steady $XX well a it our then mainstream We do basis. of have steady. fab in and revenue construction And quarterly we in has We

So pretty international there's and we won't about. if our been you comes you well. And look and which again, I I business, is again if on mostly talk something it's speculate at update doing fabs, China next, what mainstream to mean, will

Operator

next KeyBanc comes from with Our Capital Markets. question Aleksey

Aleksey Yefremov

the could Bertrand, RAMs you node XXXX outlook new describe or for the XXXX? at your memory customers, and

Bertrand Loy

Aleksey. Yes,

close XD logic attention So we paying and advanced in are to node in NAND foundry. obviously transitions and

As you new those content opportunities have incremental architectures. at we know, wafer

of for those we're to to different layer I still all, And high-volume have increasingly pleased, a appear about time. When ] molybdenum going all are this be of So etch closely. to talking number selective particular, is really first in architectures. that transitions NAND adoption of that exciting, becoming comes material is forward, solutions something it in are we of XD those been of the we've But years. number on production. watching is critical mean a we that high count what [

developed into And canister leveraging are very a corrosive. precursors [ number those business to highly Entegris unique develop to across of an different competencies suite has a gases. Those solid ] units industry-leading of evap pro gases sublimate capabilities,

for cabinets. gas of coatings protective have developed course, proprietary the So and filtration gas some delivery we lines and

to are happen industry very And molybdenum. we think we the unique Those a transitions to So transition. ease have focused that opportunity don't often. we very this on migration

year. very that of So the watch we're for the to carefully continue obviously, balance this going is something, to

Aleksey Yefremov

'XX and memory And -- is faster I you growth could this a maybe productive, 'XX? logical be from it a that more perspective guess, does from year on transition a content this. follow-up just than for

Bertrand Loy

logic, a think, place in or a implied precise taking in we're will in XXXX. of XXXX. mean going on I -- be I But memory think node not you that it be you're I give right, guidance those lot to late transitions,

of of line felt for we account bit positive bit -- little standpoint I the but XXXX, of will seen annual a a course, taken guidance our from and will we bulk a that, be the of opportunity in of be the we've bulk to so, It's see that. the expect impact -- top little XXXX. see into And will mean in

Operator

Arcuri UBS. next comes with Tim from Our question

Timothy Arcuri

I is out material came And a be a going had different supply bans in seems some was Bertrand, the material China. the question, And is, fall like more on leaves already lot on read update this question if the it on some you really the news the tea side. that side. about chain there that and more to the

I close contact with in you're mean, know Department. I the So Commerce

of fall I'm for you whether wondering when this presents this So risk kind out. you think comes update this

Bertrand Loy

But really to don't I I'm read Tim, a I'm coffee speculate. well. as drinker said, going tea leaves Look, I myself. not

We again, are question, going Do potentially on have to I'm But upcoming other government. rules. speculate the Tim? you obviously working closely any said, as not new with I

Timothy Arcuri

do, I yes. Bertrand, do. I

I'm up up wondering, MSI market business listen number to you're has [ X%. X% TAM up What up to ] So your I like if equipment XX% is is year. ] and But suggesting, that companies, more high [ listen based guiding is TAM up get singles. up up to WFE XX%. And mean them, you X% single ] if the high mean, this on? saying digits. you're I'm just Because Gartner it's [ you that to up X% the the I you're the

number. if MSI how kind WFE the if to you're up curious singles that just I'm So is is TAM X%? only of XX%, up and is up Gartner getting high how

Bertrand Loy

will that I but assumptions a for forecast particular. may the have slowly revisions know, firms their of year. their multiple lot of MSI in you could be conservative, when most comes I go you think firms actually as our that and mean it through numbers research market say brought down mean, actually I Yes. guidance to research those

that we WFE. it's [ basis So will, is believe really about of modestly industry think X number essentially you... the is full a be that I this that we CapEx to a if probably good update then essentially a maybe to And X% course, wafer assumption better, it point. flat, So going CapEx, And that that. When be CapEx, having And I up, will at our at place but right? benefit comes just remember really not think CapEx the flat, to stub ] from it for industry is that's we number. is

Timothy Arcuri

Okay. Yes, I guess...

Bertrand Loy

Go ahead.

Timothy Arcuri

Yes. No, was it, guess to TAM to saying whatever outgrow put that the just going I just a you're this say, TAM fine point I to is, you're going like on year? the

Bertrand Loy

is to this commitment And And That's done. X. algorithm that hard is I is our why established outpace And goal going That's that, X by reason be we predict. that the we year, have right. we industry the what to to to X that's and recognize X our industry we've -- points. that's is growth said the right. range notoriously that to mean that

Operator

Shi next Needham. comes from with question Our Charles

Yu Shi

a have past one more a [ side, notice seem noticed little just for out start which in to ask to exposure with seem handling want did on me down your you ] is to QX. And I bottom, side. first, numbers weakness of both your the CapEx for observation infrastructure I areas, on little did expectation a AMH, because little -- off they more I the probably in fluid I Maybe are X take also believe be quarters. industry-level the of at CapEx bit while if MC, point that bit let MS more But and numbers, forma look the I does the to year. pro this the bit

get under full like a full CapEx there? and get any to expecting to just pressure in on What Maybe do but view to QX, infrastructure of do modestly I I sense you want that the you So be year different does you But those between may industry have be little temporarily a sound bit little basis. it flat see up. two? bit are infrastructure there equipment, between a

Bertrand Loy

I actually go are to sell those into we FOUPs more projects, handling at construction have and [ AMH tied two If then specifically, we where sell you lens fab I look mean that components that ]. fluid the components, new really

a relatively have all of hand, backlog construction robust That actually that's been world. The have of actually for FOUP mean very has around -- has announced the in fair a our function relatively on I steady, backlog FOUP with fab we demand into handling for products. that contracted. and major fluid we've business, had the I came a of FOUP still So early that projects and been our really other been XXXX amount witnessed XXXX. we mean has dissipated. the new --

been recovered. recovery that So we have and actually the we in And of year, reached particular the and balance the see this actually QX year. that has in FOUP expect not business we expect gradual relatively to bottom slow for of has line product

product a that less the again, related. and sharper decline lines in decline products WFE that fab construction for of new So a the are are related

Yu Shi

the what's for see? equipment? infrastructure, between outlook the and What year you And do CapEx full

Bertrand Loy

expect So WFE-related the right in infrastructure-related we expect of demand now, to relatively back some demand. uptick half the see year. And in steady we

Operator

comes with question next from Wolfe Parkinson Research. our And Christopher

Harris Fein

Chris. Fein This is for on Harris

fabs we've at point for weeks. guess few new the fabs could to mean are seen that related what the look like? I that, about process I grants to I you a that receiving last customers systems, of Colorado And funding? construction of to lot come over start in nature? during would I for for then So those the feeling FOUPs, guess, Springs what filtration you things how guess, U.S.

Bertrand Loy

Yes.

built. being about So when fabs let's talk the of first new opportunity are shape the

handling in by solutions start are loops. mean I those the typically, used chemical sub-fab So selling solutions. we fluid

being new built. opportunities So when those see fabs we really on early are

greater all purification followed purities. It's those gas that gases mean volumes fabs of more advanced by need. advanced using I those much advanced are requiring of then systems will large the fabs processed

that. And fleet then the it and will seeing actually the into delivered tools the time are key fleet, filters for the achieve getting to usually chemistries then FOUP start at fabs, fabs those is And and when are the going the the for gearing we're are up right? So systems ramp. to really be demand

objective the that's is which make year. of not U.S. of Colorado, manufacturing for Rockrimmon but we ], in that components plans us. When the three the administration, should constructive essentially to it Colorado, an clearly squarely that our the way dialogue to is here Colorado opportunities just our site objective. of of Program our in line different to been onshore filed about in the also Office. it, So the last will what in We've in constant name fits believe advanced for investment application objectives in dialogue with you waves manufactured And comes that that We think CHIPS investment -- this ecosystem critical is be are the [ semiconductor the sure again, with

have X Phase those the obviously, as I as incentives to just the we can us Colorado. tell will So accelerate for would can in access say sooner the then be Phase that you. I our that's potentially can more and incentives, probably and it have investment much X to we easier

Harris Fein

them. bit part memory maybe more they little the a keeping be helpful. DRAM see not customers guess your past, is around are yields your HBM, of my of a hear would out. playing in some capacity off-line. little challenge Got more are for a know dynamic that for to I some good a been it on There's bit disciplined today. than it. business same time, becoming being perspective But they've larger, how follow-up, at I getting That's you sizes the And talk huge die as ramp

Bertrand Loy

great a it's No, Yes. question.

is we filtration, additional are to stubs from increased participants course, a industry And because that this all HBM. think core the wafer that with that I And will ] in we really opportunity essentially the increase will core new etching going [ to is a terms mean, very of to now in the is us in focused an of of it DDRX the of chip considering also on the in open an demand turning memory which have I EUV architectures terms what overall cell up don't in change some for adopting and content HBM materials we architecture, parts photoresist of mean by chemistry EUV. chip. We means advanced But they ]. that, DRAM of cell. are HBM improving So they're performance And terms wafer opportunities is memory know XD all for course, benefit same. number driven then, [ an of and the of chip. do

we a years enjoying increase enjoy starts wafer ]. So wafer the in we content [ again, today, DRAM. now, in in in are few per increase And from will the

Operator

And Kapsch we will Markets. take our Loop last question Capital Chris from with

Christopher Kapsch

sounds it definitively more broadly really industry? And of the instances given the backdrop, layer is where Or node a there are instances the will have leading more play to soft looking are are in there sort memory just, My more the are, of Xxx visibility the as then backed that market or still producers process that, color on a follow-up the Is role NAND in X the right will moly memory focused NAND. bit by assume record right wins? NAND question And X PORs of role? is to is willingness memory on molybdenum a in leading to but follow-up little it those And with chips? just, specifically, roadmap encouraging. where say, technology to node Bertrand, layer fact, the skip your to across around Xxx -- a confidence share producers more

Bertrand Loy

Chris. Yes,

that that the mean magnitude don't interconnect very for to metal -- in So of industry. to often look, I close mean, been transitions X this NAND, has in I decades happen logic/foundry. put first, tungsten that as and earlier, think I in And tungsten DRAM said context, I choice of

] those move and time. And with which and [ the desire moly resistivity thin-film essentially allows been the very no at to barrier materials layer material, to without a increase thin-film on number the the electrical have important of properties, ratio. a ] a direct participants to the functional more roadmap that resistivity it become of trying XD which better and the complex layer, the thermal as But companies that for without for [ has architectures increasing new you of deposition, deposition when long has obviously are present all time all the fact property and of that into number of aspect layers is

been So has all now. great, deliver. mean really close. deposit And is trying really to are think semiconductor used closely are working makers. we're And the years getting been and has challenge difficult of materials -- manufacturers, it's the really, that equipment but that solve notoriously for I the to several moly the industry with we that handle that we're to the

within POR decisions. How adopting out? in I what will play going previous of think still precisely they something at they X moly? months calls, be the we is Will it's that node discussed. to X said -- is that are to As being first I

that of combination and ecosystem going of the all And of be is equipment a makers the the to the think degree readiness I ecosystem. material function a really by suppliers. of is the perceived

industry, certainly to has Entegris for exciting to a ease time very this this that And a is set time migration think unique very, very exciting we for a the But Entegris. of molybdenum. very capabilities

Christopher Kapsch

helpful. That's

like it management, just as it's just help percentages? Solutions. Material process opportunity sounds It any be... how couple margin steps. elimination should follow-up, it barrier thermal that chemistry, of terms a Or you Is layers, something of those like this be what -- it a margin there the can that potential a of very you opportunity is the Just sounds in enabling given differentiated things, highlighted way will quantify in is will

Bertrand Loy

And information the think margin to -- it for that's by -- product. I very really stage would do mean that be disclose that of adoption mean, difficult I and us gross frankly, of I specific don't No. we current at product.

So pass we'll that question, on Chris.

Operator

Seymour that we remarks. time. will to the appears I It no Bill back further this any turn now questions have for at or closing additional over program

Bill Seymour

up can me our set Please or call for disconnect. call. further today. and day, directly have if great joining Thank you to any want you questions you now out you a Have a to reach

Operator

XXXX day. Quarter and a Please First you. Thank disconnect Call. wonderful your have Earnings at today's Entegris Conference line This this concludes time,

Entegris (ENTG) 1 May 242024 Q1 Earnings call transcript