MKS (MKSI) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Business transformation and market positioning

• Expanded from a vacuum chamber-focused company to a diversified provider in semiconductor and PCB packaging, now addressing over 85% of semiconductor equipment and 70% of PCB packaging steps globally.

• Major acquisitions, including Newport (2016) and Atotech (2022), enabled entry into optics, photonics, lasers, and advanced PCB manufacturing.

• Company grew from $700 million revenue and 2,000 employees pre-2016 to nearly $5 billion and 10,000 employees in 2024.

• Early recognition of packaging’s importance and AI-driven demand positioned the company for growth as the market rebounded.

Semiconductor segment outlook and trends

• Outperformed wafer fab equipment (WFE) growth historically, with a broader product mix and exposure to all major segments (foundry, logic, DRAM, NAND).

• Current cycle differs from previous ones due to less reliance on NAND, increased lithography/metrology/inspection, and reduced China OEM revenue.

• AI is driving a multi-year upcycle, with WFE spending projected to reach $165–$180 billion by 2027.

• Strong position in depth etch and RF power, benefiting from NAND upgrades and vertical scaling.

• Integrated material system (IMS) platforms and process complexity are increasing dollar content per platform.

Process control, lithography, and innovation

• Process control and lithography revenues have doubled in five years, reaching a $300 million run rate, with strong tailwinds from leading-edge applications.

• Portfolio includes optics, lasers, and precision motion, supporting innovation in lithography/metrology/inspection.

• Broad product range enables rapid response to industry inflections and new technology demands.