Entegris inks supply deal with chipmaker ON Semiconductor

Entegris

07/08/2024 12:10

Aug 7 (Reuters) - Industrial materials maker Entegris
Inc  ENTG.O  said on Wednesday it has entered into a long-term
supply agreement with chipmaker ON Semiconductor  ON.O  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  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  and Samsung  005930.KS 
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.

 (Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim
Zahid)
 ((Srivastava.Vallari@thomsonreuters.com;))