Entegris to invest $700 million in US semiconductor R&D

BILLERICA, Mass. - Entegris, Inc. (NASDAQ:ENTG) announced Thursday it will invest $700 million in domestic semiconductor research and development over the next several years, bringing its total planned investment in U.S. manufacturing and R&D to $1.4 billion.

The materials science company said part of the investment will develop its Aurora, Illinois location into a state-of-the-art U.S. Technology Center. The facility will be positioned between semiconductor hubs in New York, Ohio, Arizona and Texas.

This new commitment complements Entegris’ previously announced $700 million investment for a manufacturing center of excellence in Colorado Springs, Colorado.

"To support the industry’s growth, we have been creating a stronger and more resilient domestic semiconductor ecosystem in the U.S.," said Entegris President and CEO Dave Reeder in the press release. "These investments also allow for continued leadership in advanced materials solutions." The company’s financial strength is evident in its $295.5 million net income over the last twelve months, though InvestingPro data shows it currently trades at a relatively high P/E ratio of 41.8x.

The R&D spending will span across the company’s Materials Solutions and Advanced Purity Solutions divisions, focusing on products including deposition materials, slurries, cleans, and CMP pads.

Entegris, which employs approximately 8,200 people globally, supplies advanced materials and process solutions for the semiconductor and other high-tech industries. The company maintains operations across the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan.

The announcement comes as semiconductor manufacturing continues to expand in the United States, creating increased demand for domestic capacity and innovation in semiconductor materials. With an Altman Z-Score of 3.99 indicating strong financial health, Entegris appears well-positioned to execute its investment plans. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.

In other recent news, Entegris Inc reported second-quarter earnings per share of $0.66, reflecting a 1% decrease quarter-over-quarter, while sales increased by 2.5% from the previous quarter. Despite this sales growth, adjusted EBIT fell by 3% quarter-over-quarter to $165 million. Analysts at Mizuho have raised their price target for Entegris to $100, citing a recovery outlook, while maintaining an Outperform rating. However, BMO Capital lowered its price target to $95, highlighting margin headwinds, though they also maintained an Outperform rating. The company’s second-quarter results exceeded both its guidance and consensus estimates, benefiting from normalized U.S.-China trade relations and positive momentum in its consumables business. Despite these positive results, Entegris issued third-quarter guidance that did not meet investor expectations.

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