Entegris, Inc. (ENTG) Business Profile

What it does

Entegris supplies materials and process solutions used to manufacture semiconductors and other high-technology products. Founded in 1966 and headquartered in Billerica, the company is led by President and Chief Executive Officer David Reeder. Its customers include chip manufacturers, equipment makers, chemical suppliers and wafer producers.

Making a chip involves repeatedly applying, removing and polishing materials on a silicon wafer. Each step must be controlled: unwanted particles or chemical contamination can damage devices and reduce the number of usable chips produced from a wafer. Entegris sells materials used in those steps as well as products designed to keep the materials, equipment and wafers clean.

Its materials include chemicals used to deposit thin films, slurries and pads used to polish wafers, specialty gases, and cleaning and etching chemicals. Its purity products include liquid and gas filters, chemical containers, fluid-handling components and protective carriers that move wafers through a factory.

The company organizes its business into Materials Solutions and Advanced Purity Solutions. The segments also work together: for example, a cleaning chemical can be packaged in an Entegris container, delivered through its fluid-handling system and purified by its filters. Entegris also serves industries outside chipmaking, including life sciences, aerospace and glass manufacturing.

How it makes money

Entegris earns revenue by selling materials, consumables and equipment used across the semiconductor manufacturing process. In 2025, its revenue was predominantly driven by production volumes or recurring sales of products consumed during chip manufacturing. The company sells through its own sales force and independent distributors, supported by technical and application services.

Materials Solutions sells deposition materials, polishing slurries and pads, specialty gases, coatings, and etch and cleaning chemicals. A chipmaker uses deposition materials to build thin films on a wafer; polishing slurries and pads flatten the layers, while cleaning and etching chemicals remove selected material or residue. The segment also sells materials for applications outside semiconductor manufacturing.

Advanced Purity Solutions sells filtration and purification products, wafer carriers, chemical packaging and fluid-management systems. Some products are used as customers build and equip factories, while others are consumed or replaced as factories produce wafers. Demand for these products therefore comes from both manufacturing activity and capital investment in new capacity.

Entegris evaluates pricing by product and customer. It had not included material pricing actions in the third or fourth quarter of 2026; any pricing actions would apply to new orders rather than existing backlog. Higher volumes, improved manufacturing yield and productivity contributed to its third-quarter margin improvement.

In Q3 2026, Entegris reported sales of $1.006 billion, an increase of 25% year-over-year.

Customers and how it sells

Entegris serves logic and memory chip manufacturers, semiconductor equipment makers, gas and chemical suppliers, and wafer growers. Its customers also include outsourced semiconductor assembly and test facilities, display manufacturers and hard-disk businesses. Outside electronics, it supplies customers in fields including solar, life sciences, aerospace, glass manufacturing and biomedical implants.

Taiwan Semiconductor Manufacturing Company is a named customer. Entegris’ semiconductor customer base has consolidated, and maintaining relationships with customers is important to its business. Supply agreements typically do not contain long-term purchase commitments: customers may cancel orders, adjust quantities or delay purchases. Entegris works with customers on non-binding order forecasts and participates in product development and qualification.

The company sells through its direct sales force and strategic independent distributors across major semiconductor markets. Field application engineers work with customers on product qualification and process improvements, while service centers, laboratories and technology centers provide local support. Its manufacturing network includes facilities in the United States, Canada, China, Japan, Malaysia, Singapore, South Korea and Taiwan.

In Q3 2026, Taiwan was the company’s largest growth contributor, with growth also reported in Korea, Southeast Asia and North America. Entegris had approximately 7,700 employees at the end of FY2025.

Suppliers and costs

Entegris makes products in a global manufacturing network and also uses contract manufacturers in the United States and Asia. Its facilities include cleanrooms for manufacturing and assembly, and its capabilities range from chemical formulation and purification to polymer processing, membrane production and high-purity packaging.

Many raw materials are available from multiple sources, but some are obtained from a single supplier, a limited group of suppliers or suppliers in one country. These include certain filtration membranes and polymer resins for Advanced Purity Solutions, and abrasive particles, chemicals and petroleum coke for Materials Solutions. The company uses some multi-year supply agreements to support availability and cost control.

Its costs include raw materials, factory labor, logistics and research and development. Entegris invested approximately $329.0 million in engineering, research and development in 2025. In Q2 2026, higher raw-material and logistics costs and planned direct-labor investment affected Materials Solutions. By Q3 2026, higher volumes, improved yields and productivity contributed to gross-margin improvement, while factory head count had also increased.

Competitive position

Entegris competes with divisions of multinational companies as well as smaller regional suppliers. It says competition varies by product and segment, and that no global competitor covers its entire range of offerings. Price matters, but the company also competes on technical expertise, product performance, manufacturing capabilities, supply reliability, customer support and the breadth of its portfolio.

In Advanced Purity Solutions, named competitors include Pall Corporation, part of Danaher Corporation, Shin-Etsu Polymer, Cobetter Filtration and Gudeng Precision Industrial. In Materials Solutions, competitors include Qnity Electronics, the EMD Performance Materials division of Merck KGaA, the Electronics Advanced Materials division of Air Liquide and Linde. Entegris says it leads the market for certain wafer carriers, including 300 millimeter FOUPs, which protect wafers as they move through manufacturing.

Our reading: Customer-specific qualification and integration provide a meaningful potential switching barrier because changing a product can take time and introduce manufacturing-yield risk. Our reading: The combined materials and purity portfolio provides another source of differentiation, since Entegris can address several related steps in a customer’s process, though competition remains product-specific. Our reading: Research capabilities and intellectual property support that position, but continued investment is needed to meet changing manufacturing requirements. Entegris owned approximately 4,400 active patents worldwide as of December 31, 2025.

Growth opportunities

Entegris expects demand for semiconductors to grow over the long term as applications such as artificial intelligence, cloud computing, vehicles and connected devices require more capable chips. It believes advanced logic and high-bandwidth memory used in AI create opportunities for its materials and process solutions.

More complex chip designs can require additional manufacturing steps, new materials and tighter contamination control. Entegris believes these changes can increase demand for its products and the amount of its content used per wafer. Its portfolio addresses several stages of introducing a new material, from deposition and polishing to cleaning and filtration.

The company has expanded manufacturing and technical facilities near customers, including in Taiwan, Colorado and South Korea. In Q3 2026, its KSP South facility reached gross-profit breakeven. The Colorado facility was producing samples and undergoing customer qualifications; Entegris expected revenue from it to begin in 2027.

Entegris also reported a recent EUV filtration application win at the 2-nanometer node and multiple polishing-material plans of record with memory providers. These are positions in customer processes that can create revenue opportunities as designs move into production. In Q3 2026, backlog rose more than 35% sequentially, and the company expected approximately 8% wafer starts growth in 2026.

Structural risks

• Semiconductor demand: Revenue depends primarily on the global semiconductor ecosystem. Customer order timing, inventory corrections, device mix, utilization and changes in the rate at which consumables are used can cause results to fluctuate.
• Customer concentration and commitments: Semiconductor customers have consolidated. Supply agreements typically do not include long-term purchase commitments, and customers may cancel or delay orders or change quantities.
• Supply and operations: Some materials come from single or limited sources. Supplier failures, procurement shortages, higher input prices or manufacturing disruptions could affect Entegris’ ability to control costs and deliver products.
• Trade and regulation: Export controls, tariffs, sanctions and changing trade policies can affect sales and sourcing. The company also faces environmental, health and safety requirements across the jurisdictions in which it operates.
• Debt: Entegris has substantial indebtedness. Debt service can use cash that might otherwise fund operations or investment, and debt may limit access to financing or increase exposure to interest expense. The company repaid its term loan in Q3 2026.

Bottom line

Our reading

Entegris combines materials consumed in chip production with purity and handling products used both in factories and as customers equip new capacity. Our reading: Customer-specific processes and the breadth of the portfolio can make the company difficult to replace in particular applications, but they do not remove its exposure to semiconductor cycles, concentrated customers and supply constraints. Debt remains a consideration despite the recent term-loan repayment.