Entegris inks supply deal with chipmaker ON Semiconductor

Billerica (Reuters): Industrial materials maker Entegris Inc (ENTG.O), opens new tab said on Wednesday it has entered into a long-term supply agreement with chipmaker ON Semiconductor (ON.O), opens new tab to provide technological solutions to help manufacture silicon carbide (SiC)-based semiconductors.

WHY IT'S IMPORTANT

The surge in adoption of artificial intelligence applications has thrust semiconductor manufacturers into the spotlight.

Chipmakers are among the top beneficiaries of the AI boom, with the iShares Semiconductor ETF (SOXX.O), opens new tab gaining nearly 7% since the start of this year, following a 65% surge in 2023.

CONTEXT

Billerica, Massachusetts-based Entegris supplies advanced materials and processes for semiconductor and other high-tech industries.

Its offerings include chemical mechanical planarization (CMP), a critical process used to remove surface irregularities from silicon wafers during chip manufacturing.

The company counts major chipmakers such as Taiwan Semiconductor Manufacturing (2330.TW), opens new tab and Samsung (005930.KS), opens new tab among its clients.

KEY QUOTES

"Entegris is well-positioned to offer complementary solutions, such as specialty gases, precursors, and graphite, to meet Onsemi's needs across other semiconductor manufacturing processes," said Dann Woodland, president of Entegris’ Materials Solutions.

MARKET REACTION

Shares of ON Semiconductor were up 2.5% premarket.