Entegris Analyst Day 2026 - ENTEGRIS INC

Good afternoon. Welcome to Integris' 2026 Capital Markets Day. I'm Jeff Schnell, Vice President of Investor Relations, and on behalf of the entire Integris team, welcome to today. We know your time is valuable, and we're grateful you're spending it with Integris. Today is an exciting day for us, and we have a great program ahead. You'll hear from leaders across our business about the markets we serve, the technology and innovation supporting our customers' technology roadmaps, and the execution we're driving, tying it all together. We'll take a short break midway through, and we'll finish with an extended Q&A session. We have intentionally reserved a meaningful amount of time for that discussion, so we ask you please hold your questions until the end. Before we begin, a reminder that today's presentation will include forward-looking statements, and we'll also reference non-GAAP financial measures. Reconciliations to these measures can be found in the appendix of our slides as well as on our website. We encourage you to read the full disclosures. And for those in the room, we ask you please mute your cell phones and your computers. Today you'll hear from some leaders across our business. You'll hear form Dave, our President and CEO. Olivier, our president of material solutions and chief innovation officer. You'll hear from Clint, president of our Advanced Purity Solutions business. And you'll hear form Suki, our chief financial officer. Each will bring a different view of Integris and where we're headed together as one company. And for those in person, we hope you'll take some time to visit the product showcase we have out back and interact with the broader leadership team we have here today. We have a lot to cover, so with that, let's begin. Look around you, and you see a world demanding more. More intelligence, more connection, more compute power, more possibility. Look closer, and you see an industry pushing what is possible. With Integris at the leading edge, enabling the technologies the world relies on. Every generation of technology requires greater performance, greater density, greater efficiency, and greater precision. And with each advancement comes greater manufacturing complexity. AI is accelerating innovation at an unprecedented pace, creating demand for more powerful, more sophisticated semiconductor technologies. As chips become more advanced, customer success depends on more than just design. As complexity increases, the cost of failure increases with it. success starts with materials it depends on performance it depends on purity it depends on reliability it depends on materials and processes performing flawlessly at the atomic scale for 60 years Integris has been a critical enabler of the semiconductor and advanced manufacturing ecosystem developing the materials that make that success possible Today, that expertise is more relevant than ever. Our solutions are deeply embedded throughout the semiconductor value chain, creating durable customer relationships and positions that are difficult to replace. As semiconductor manufacturing becomes more advanced, the value of our expertise increases. Today, we are stronger, more differentiated, and better positioned than ever to capitalize on the opportunity ahead. At Integris, we enable the technologies that transform the world, because when our customers succeed, technology advances and the world advances with it. It's been an exciting day for Integris. You know, we started the day by ringing the bell this morning, and we're celebrating 60 years of Integris history. We're going to end the day by talking to you about our future. And I don't know about you, but when I see those hype videos or the sizzle reel, it gets me excited. So if you don't mind, I will probably prowl a little bit up here on the stage since the last 15 months I've spent the majority of it visiting customers, visiting our manufacturing plants around the world, visiting our suppliers to make sure that we have the supply chain to satisfy the demand that's in front of us, as well as meeting with many of you, our investors. Before we get fully started, I wanted to start with really three thank yous. The first thank you is thank you to you all. You have a lot of demands on your time, and there's certainly a lot of interesting news in the market on any given day. We appreciate the fact that you're spending time with us to learn about Integris, to learn the opportunities we see in the semiconductor industry, and to also hear about our strategy to capture those opportunities. So thank you. The second thank you is to the employees that put together today. These days don't happen by accident. There's a lot of work that goes into delivering Capital Markets Day. And thank you to the NASDAQ for hosting us, to our investor relations teams, communications teams, and countless others at Integris that made today possible. And the third thank you, And then we'll start to get started. The third thank you is really to the 9,000-plus Integris employees around the world. These are the employees that are in the manufacturing sites. These arethe employees thatare at our customers, the employeesthat are in our labs and technology centers delivering the materials and innovation of tomorrow that will solve some of the industry's most challenging problems. And so thank you to those employees. You're going to hear from four executives today that are going to tell the Integra story, but it's those 9,000 employees that write it every day. So this year, 2026, is our 60th anniversary, but we're not here to talk to you about the last 60 years and talk about the past. We're here to talk to you today about the future, about the management team that we've put together over the last 15 months to drive us into the future. The foundations that we're setting up with the transformation that we launched in the latter half of 2025, and really a transformation that was predicated on one thing above everything else, and that was execution. Execution through customer centricity, execution through technology leadership, and execution through operational excellence. And this is not a story where you have to wait years into the future to start to see proof points. This is a story and a transformation that's already underway. Most recent quarter, record revenue, profitability, flexibility, free cash flow, record engagement with customers on roadmap projects, and improved customer responsiveness. It's a transformation that is already underway, not a vision of the future that you only realize years into the future. So with that, let's get started. I'm going to talk to you today about kind of four chapters of a story of Integra. So We're gonna start with who we are. We're going to talk a little bit about where we compete. We're gong to show you the market opportunity that we see in semiconductors. And then we're going tell you how we win. We're go to tell you how we take those opportunities and we turn them into results. Let's start with Who We Are. The Integris story and the way I think about Integris is actually quite simple. AI is driving unprecedented demand and complexity. That complexity requires technology inflections to deliver the systems that the market needs, the AI systems that are ultimately going to be the foundation of almost every industry on the planet. And so AI complexity and volume with technology inflections is intersecting perfectly with our innovation and our portfolio materials, which is enabling performance, and advanced purity solutions, which is protecting yield. And then, of course, the common thread that runs through all this is execution. the first half is the opportunity the second half is our execution integris is roughly a 3.5 billion dollar pure play materials and purity platform we're organized into two divisions and roughly 40 percent of our revenue is generated from our material solutions division, and about 60% of our revenue is derived from advanced purity solutions division. Geographically, we are co-located where our customers are. Where our customers aren't, that's where you'll find Integris. The revenue is driven about 70% by units. These are wafer starts correlated highly with MSI, and around 30% of revenue is driven by CapEx. For those of you that remember, this used to be about 25%, but obviously with the growth in CapEx, it's increased about five percentage points of total, and that 30% is split pretty equally between WFE and FabCapEx. From an in-market perspective, we're about 40% driven by advanced logic, about 30% drivenby advanced memory, and then of course about 30% driven by mainstream logic. A couple other points to note. We are number one or number two in most of the markets in which we play. We have a slide later on in this presentation. We'll show you more details about some of those positions. We more than 4,000 active patents, an innumerable number of trade secrets and trade knowledge. So when you think about developing the latest materials you think about developing the most advanced purity solutions we protect that IP through patents and of course through trade knowledge finally 35 manufacturing sites if you recall when I started 15 months ago we had 38 we have 38 manufacturing sites now and we've increased output about 30% while consolidating sites by about 10%. We have numerous technology centers and as I mentioned more than 9,000 employees around the world. I also mentioned that we were organized into two divisions, two complementary divisions. So materials enables performance, advanced purity solutions protects yield historically customers have thought of these things as two separate things but as manufacturing becomes complex they're inseparable the complexity is creating opportunities across both of these divisions and the entire portfolio as a suite and Olivier and Clint will actually talk about a few of these opportunities later on in the presentation and then finally there's a lot of logos down here and you'll see that they kind of span the entire semiconductor ecosystem so remember the bottom part of this page little foreshadowing as we move to the next couple of slides so that's who we are let's look at where we compete integris is one of the few companies that create that creates opportunities and competes across the entire ecosystem so what do we mean by that before you ever get to the fab and you look at the input streams into the semiconductor manufacturing process you find integrus we're in the sub fab we sell into capex we sell in to the bulk chemical providers. So before you ever get to the fab process, we're already providing input into the fab ecosystem. These input streams then move to the manufacturing floor inside the fab, they move to the cleanroom. When you look inside the clean room, you'll find Integris across nearly every major process in the clean-room in the fab. We're in deposition, we're in etchants, we are in CMP, we are in metrology, we even in the overhead transport systems and the systems that manage contamination control in the fab. So we're on the input streams, we are on the manufacturing floor, on the clean room floor itself, and increasingly you're going to see us push more into post fab activity, into advanced packaging which historically the osap market did not require the complexity of a portfolio like integris but increasingly that opportunity requires the complexity in the portfolio that integris products provide that's needed to be able to satisfy those advanced packaging markets we've made a couple of announcements over the last week or so i know that olivier is looking forward to talking about some of that later on the presentation you've also heard us talk about waves of demand so we are one of the few companies that compete across the entire ecosystem we're also one of the few company's that participate across the entire semiconductor cycle so for example let me talk a little bit about about what we mean when we say waves of demand. Let's take a singular fab investment. In the first 0 to 12 months when you ground break a fab, there's not a lot of opportunity for Integris. We don't sell steel, and we don't sell concrete, but we're certainly working with customers on design, and we're certain accepting POs for those fabs. About 12 months post-groundbreaking, we have the opportunity for our first tranche of revenue. No surprise, this is in the subfab, or the CUB, the Central Utilities Building. So you have fluid handling, you have gas purification, bulk filtration, and many other product lines that are not listed here. Somewhere around month 18, we have the opportunity of our second tranche of revenue, as you can see, FOOPS, filters, e-chucks, again, many other product lines that we could list, but our second tranche of opportunity is associated with tool placement on that clean room floor and qualification of that fab and manufacturing process. Then, as you get to about two years, that's when we have our largest revenue opportunity, unit volume opportunity wafer starts. So once the fab and the process has been qualified, then we start to get the wafer start that drive the vast majority of our revenue. And as you can see, and as you saw outside from our product showcase, filters, specialty gases, deposition, CMP opportunities, purifiers, we could go on. you saw many of those products outside. I think one of the things that's most impressive about being able to participate across this entire investment cycle is that what starts as CapEx and a CapEx opportunity becomes recurring revenue. We think that is a very durable through cycle model. So you participate in the up cycle when you have a supply and demand mismatch and you need to build out more fabs and then you participate in the greatest part of the revenue which is actually the recurring consumption at the end. We think that is a very compelling business model and we think that as a business model that perhaps not all companies participate in equally. Okay, first chapter, who we are. We covered a little bit about where we compete. Let's talk about our market opportunity. This is a complex picture. So let me talk a little about what this picture represents and what it depicts. When you build a semiconductor chip, you start layer by layer, and this is where Integra starts. You start an individual layer, you build circuits. That circuit becomes a die. That die is essentially a completed wafer. The completed waver gets singulated, and then you package a chip. Those chips go onto circuit boards, and ever more frequently, they go into racks that then go into systems, like a data center. Integra starts on each layer. Our materials are used, deposited, consumed in each individual layer of that circuit that ultimately builds the wafer that gets singulated as a chip that enables the performance of the system. And along this entire stack, so if our materials division is enabling the layer level of the semiconductor circuit. Our purity division protects it through the whole stack. So what starts pure has to stay pure through our purity system. It stays pure with point-of-use filtration, stays pure at source filtration, and then across the entire transport of that product through the fab and the semiconductor manufacturing process Both divisions working together in a complementary way, MS enabling performance, APS protecting purity. So let's take that same chart, and now let's dollarize it into an economy. Let's start at the top. At the systems level, it's about a $5 trillion economy. And that $5 trillion economy is supported by a semiconductor industry that's going to be greater than $1.5 trillion this year. And that 1.5-trillion-dollar semiconductor industry is supported by WFE and materials companies in a market that's about $300 billion. And so when you see Integra's down here in this $300 billion market, this market and the foundations of this market, that's how you derive all of this value. And so it's a small cost, but it's huge, huge impact. And so this is one of the reasons why we believe that, foundationally, what starts with Integris ultimately becomes an opportunity for a huge systems market. Okay. So the semiconductor market, we said, was about $1.5 trillion. dollars and the semiconductor industry has had many cycles in the past. We had the internet era, we had the mobile era, the cloud era and now we're squarely into the artificial or the AI era or the SI era depending on which moniker you like. This era is driving a cycle that we haven't really seen before. In fact, I was in this building in 2021, and we were talking about how the semiconductor industry was going to be a trillion dollars by 2030. I'm not sure if anyone remembers that, but we were too conservative, if you can believe it. We're going to more than a trillion and a half dollars in semiconductors. year, 2026. Well, what's driving that value? It's not more units. In fact, total wafers are still below the 2022 peak. I'll just say that again. Total wafERS are still below the 2022 peak. So what's driving a trillion and a half dollars in 2026? Well, it's the value that the industry is creating the industry is creating unprecedented value and that's what's driving such a significant inflection it's the value not the volume and as AI systems require more complexity to deliver that value that is exactly what integrus is portfolio is is designed to enable. So our SAM, we estimate that our SAM is going to grow about 10% CAGR through our long-term horizon, which for here we've defined as three to five years. Let me build that up for you. So about 70% of our revenue is driven by units. We've disaggregated those units into three markets. Advanced logic, 7 nanometers and below, we estimate is going to grow about 11% from 2025 through our long-term horizon. Advanced memory, we estimated is going grow about 7%. And then mainstream logic, we estimates is going go about 3%. Now, of the total MSI, I'll just remind you all, mainstream logic is about 55% of total MSI. So, 70% of our business is driven by unit volume correlated with MSI this is what we believe MSI is going to grow disaggregated into the three markets that we serve. 30% of our revenue is driven by WFE and fab construction capex, and it's pretty equally split about 15%, 15%. We estimate that this market is going to grow about 20% CAGR from 2025 through the long-term period, which we've defined as three to five years. Combine those two, give us our SAM. we think the SAM for Integris grows about 10% through our long-term horizon. Important thing to note, the near-term part of this horizon, we actually think CapEx grows faster. And then we've modeled that CapEx moderates towards the end of the cycle, and we've estimated that MSI is a bit moderate at the beginning of the circle, but it accelerates at the end of this long-term, much like that wave of demand that we showed you earlier in the slides. 10% in total, near-term years, WFE growing faster, out-period years, MSI accelerating as that CapEx becomes unit volume. We have aspirations to grow faster than that. Here's why. Materials intensity over the last 25 years has increased more than 10x. Contamination control limits have increased more than a thousand times over roughly the same time period. And so yes, AI is driving more complexity. Every generation, every era that you saw on the slides earlier is driving more complexity that complexity driving more materials value and consumption driving greater control limits and what do we mean by complexity advanced manufacturing on the logic side today is about 2 nanometer 20 angstrom the glucose in your veins I'm not sure if anyone had one of those cookies outside they're delicious you should try one but the glucose in your veins is about eight to nine angstroms. We are essentially manufacturing semiconductors today that are at the same size as the glucose in your veins. That's what we mean by complexity, and that complexity, driving more materials, driving greater purity requirements. Those are both powerful tailwinds for Integris. Here are a couple of examples of some of those technology trends that we see sustaining Integris for the next decade. Obviously, we've been in EUV for a while. You can see some of the Integris opportunities. Drive resist, EUV pods, filtration, move over to gate all around and backside power again CMP opportunities deposition opportunities selective etch opportunities I won't go all through all of these other than new opportunities and one we just announced over the last week so every one of these technologies and more that we haven't shown there will be increasingly greater opportunities for Integris's portfolio now the next slide is the the one that you're waiting for we expect to grow 500 bits faster than the market over the long term so our Sam growing roughly 10% because of the trends that we just showed you as well as because of the fact that we're increasingly levered to advanced manufacturing that's memory and logic, complexity plus volume for those two, and markets, we believe that we can grow about 15% over this same time period. So roughly about 500 bps over time outperformance for the market. One other point to note, historically we had about 35% of our revenue in mainstream logic and about 65% of our revenue in advanced manufacturing, memory and logic. Over this time period, that's going to shift. It's going to shift to more than 75% of revenue being associated with advanced memory and advanced logic and mainstream logic being less than 25% of our total revenue from an end market perspective. Okay. We're kind of heading into the home stretch here. We've talked about who we are. We've talking a little bit about where we compete. We talked about the market opportunity. This next section is really about, well, how do you translate opportunity into results? How do you take potential energy and turn it into kinetic, right? It's the water behind the dam. It's the charge in the battery. Having potential doesn't mean anything if you can't take action and actually turn that into real, defined, measurable results. So that's what this next section will translate for you is how do we take potential and how do we turn it into kinetic? How do we turn this opportunity that's in front of us and turn it into results. We spoke to you in the latter half of 2025 with the investment community broadly about the transformation that we were launching and that there were three priorities. And they were all foundationally predicated upon execution. Execution and customer centricity, execution and technology innovation and leadership, and execution and operational excellence. Again, this is about taking an opportunity that's in front of us and translating that opportunity into results, potential, into kinetic. So let's start with customer centricity. You know, historically, customers have engaged with Integris on a business unit by business unit basis. And that's no surprise because we did 13 acquisitions in 15 years. And so the sales team was embedded inside our divisions and business units. Well, this changed in 2025. We aggregated the sales up into an enterprise function, and we made it one team. One team with two missions, two functions underneath that one team, one function was strategic, strategic account management and planning. So this was about engaging with the customer multiple years ahead on their roadmap and making sure that we're developing product with those customers and managing the product life cycle. Think of it as spring is when you're launching a new product, you're getting the volume and maturation in summer, you are starting to wind down volume in the fall, you end of life the product in summer and then you begin again with spring. So strategic account management is about engaging earlier in the cycle with our major customers and maniacally managing that product life cycle. And then the second function is making sure that tactically you are delivering excellence, best-in-class performance for that customer on a daily basis with the products that you're currently selling to them. So this one is strategic, this one is best-in-class execution and enablement for those customers and it's also about dragging along more of the portfolio. So not selling to the customer just business unit by business unit but selling to customer the current product line that you currently have and plan a record and design when and then taking that product line and developing the plans such that you can then attach other products to provide a better solution for that customer. One is strategic, one is tactical, but all under one account management structure so that the customer is engaging with one integrus, with one portfolio, versus a loose confederation of states business unit model. Let's shift a little bit to technology. Integris has amassed a tremendous portfolio of assets through both internal organic investment as well as external inorganic investment. The next phase for Integris is really integrating all of our capabilities into real solutions for the customer. Now what does that look like practically? We just announced an entry into the advanced packaging space with a very large advanced logic customer where we have essentially taken this acquisition of CINMAT, this acquisition of Precision Microchemical Business, and our latest vertically integrated acquisition that We just closed a little less than a week ago, and we now have a TEM solution for co-loss packaging that we are excited about co-locating to Taiwan to be able to provide one of the most advanced TEM solutions to the market to extract heat, tremendous amounts of heat that are generated in the AI advanced packaging processes that are required in today's market. So very excited about that. I know Olivier will also give you a little bit more details about that, but again, how do we take potential and turn it into kinetic and how do we take opportunities and turn them into results? This is a busy chart, so let me start by orienting you on this chart with our product lines across all of these technology categories. So on the left-hand side of the page, we have major fab processes. We also have some unique subcategories. The blue bubbles represent leadership positions. Integris is number one or number two in this category. The white bubbles represent a top five position in the market. The red bubbles primarily reflect an area of or lack of investment in the area or lack of really any significant presence primarily due to management time and attention or lack of investment so blue top two white top five position and red really a position where both integrus as well as these other peers do not play you can see we have leadership positions across deposition across CMP, cross-filtration, purification, micro-environments. I won't read the entire list to you, but you can see that we have a lot of leadership positions. But I think the thing that's most striking about this chart, it's really the breadth. It's the breadth of technology that Integris has capability in that we can bring to bear to solve customer solutions. And so we have depth and we have breadth. And we have technology leadership. And so then the question is, how do we extend that leadership? How do we expand that leadership position? Or how do мы at least take that innovation to solve more customer problems in the future? And this slide explains how we do that. Historically, Integris has invested about 10% of revenue annually into R&D. And that investment, about half of it, was going to just protect the SAM that we were currently engaged in. So 50% of our investment was not for SAM expansion. It was to continue to defend our existing SAM. If you look at best-in-class companies, best-In-Class companies only spend 35% to protect their SAM. So we've developed plans to essentially take that 10% that we invest annually in R&D, and we believe that's about the right number, plus minus. We have plans to take the 50% that they're investing in, that we used to spend to defend, become more efficient, maniacally more efficient in those innovation dollars, and invest 65% on SAM expansion opportunities, both Clear, SAM Expansion, as well as Frontier Technologies. And if we can do that, we can actually take our vitality index and we can increase it by 10 points. So vitality Index is the percentage of your revenue that's driven by new products. Today, about 30% of our revenue is driven by New Products. Executing this should result in us driving 40% of our revenue driven by new products. And so we have great leadership positions already. We cannot stand idle. We have to take those leadership positions and through great R&D and selective inorganic acquisitions and translate that into more efficient spend of internal dollars, drive our vitality index higher, and then if we execute our plans well here, we'll actually enable our development cycles to be delivered three times faster. So if it takes us a year to deliver products today, new products, idea to product, we don't want to deliver in 12 months. We want to delivery in four. So, we have a lot of energy through both divisions with a common AI platform around these initiatives. We believe that we can get to best in class over the long term. We believe it will enable us to continue to outperform the market. And when we show you that bubble chart, you know, three or four years from now again in analyst day we expect to have new markets up there that we have been able to capture and deliver on okay we're heading into the home stretch for sure here operational excellence you've heard me talk about operational excellence a lot really starting in the latter half of 2025 and we said that there were kind of four pillars to operational excellence and what we meant by that the first one was network optimization the most efficient plant is a plant that has scale that's why the semiconductor industry builds in campuses because that's how you get the greatest fixed cost absorption is by driving scale through your manufacturing network so we have a lot of plans around manufacturing network optimization as you know, we started with 38 manufacturing facilities. We now have 35 manufacturing facilities, and during that time of reduction of almost 10%, we've also increased output by 30%. The team has done a good job here, but we've slowed this for now, given the demand environment, because we still have three other critical parts to operational excellence. The second Second one, centralization of procurement, or strategic supply management. Roughly today, on a last 12 months basis, Integris is about $3.5 billion, that's roughly $1.7 billion of COGS, that is roughly $1 billion of procurement. Historically, that $1 million of procurement was divided into individual spending at roughly 40 manufacturing sites. We did not have the purchasing power of a $1 billion procurement company. We had the purchasing power of about a $25 million purchasing company. So what we've done, we did this earlier this year, we consolidated procurement. That enables us to engage more strategically with our suppliers. We're more relevant to them. It also helps us from a business continuity perspective. It also helps us from a cost perspective. Because the same way that we enjoy benefits from fixed cost leverage, so do our suppliers. So the second pillar for us, strategic supply management. Third and fourth pillars, yield and productivity. When you talk about yield, and we've got some examples later, but when you talk about yield most people think the avoidance of scrap. It's not just the avoidance of scrap, but it's also more units out. So it also drives fixed cost absorption. You have more units that you're spreading those costs over. So you've avoided the scrap and you've delivered more units. And then finally, productivity. So again, a maniacal, relentless focus on labor productivity and OEE or equipment and tool utilization productivity. But it's not just a margin improvement story. This is about quality. It's about customer satisfaction. It's About Business Continuity, Faster Cycle Times, Better Quality, Better Economics, Happier Customers. So it manifests itself through the gross margin line. Gross margins are up 500 bps on a year-over-year basis. But it is not just about the improving economics internally on our P&L. It's about improving the delivery to our customers and solving their problems through better supply management. Let me leave you with a final thought here. AI volume and device complexity is driving the market. The market's requiring more technology solutions, faster frequency of technology inflections, And those inflections are aligning to our product portfolio in both materials and purity and execution enables us to seize the opportunity and deliver for our customers to solve the most complex industry problems as well as to create tremendous shareholder value. And if we do that well, we believe that we can grow our top-line revenue 15% over this period against a market of roughly 10%. And so this is my last slide, but before I relinquish the stage, I want to remind you that my presentation was at the enterprise level. So the strategy, the opportunity, the execution at the Enterprise level. Olivier is going to come up in a moment, and he's going to talk to you about the Material Solution Division. Clint is then going to come up and talk to you about the Advanced Purity Solutions Division. And then Suki is going to bring us home, and he's probably going to talk to you about the second most important slide that you want to see that has a gross margin in the financials. So you have to wait for the end for that portion of the presentation, but he's going to bring it all together and show you how we take opportunity and we produce results, how we make money, how we create potential energy and convert that into kinetic and how that translates into shareholder value. So thank you for your time and enjoy this brief video while we wait for Olivier to come up to the stage. Every generation of AI computing demands more performance, more bandwidth, and greater energy efficiency. Delivering that performance requires increasingly advanced semiconductor technologies, more layers, more complex architectures, more demanding materials challenges. behind each of those technology inflections is a common requirement. New materials, new deposition materials, advanced etch chemistries, next generation CMP slurries, integrated material solutions engineered to enable performance, improve yield and make next-generation technology possible. At Integris, innovation begins long before a product reaches the fab, co-developing solutions alongside customers. Advanced modeling and simulation help us understand molecular behavior before a material is ever synthesized. AI is accelerating how we innovate. Rapid prototyping and 3D printing help transform ideas into solutions faster. Combining material science, AI-enabled discovery, and deep process expertise, we help customers solve some of the industry's most difficult challenges. Every new technology generation creates new materials requirements and new opportunities for innovation. From advanced logic and HBM to 3D NAND and advanced packaging, materials are playing an increasingly important role in shaping the future of computing. As semiconductor technology continues to evolve, so do the materials challenges that make next-generation computing possible. Materials innovation is enabling next- generation computing, and Integris is helping drive what's next. Well, thank you, Dave. As you all know, high-performance computing really drives not only more wafers, but it It drives more complexity. And it's really the complexity where integrase creates more value per wafer. Why is that? It is because every single generation of chips required for the next generation advanced logic, advanced memory, next generation NAND, but also advanced packaging, requires more layers. new materials, more process steps. We call it the Antegris content per wafer. And it's actually not just content per waiver. It is the way you bring a molecule with a delivery mechanism, with a process expertise. So let's start with the platform that we've built to enable this opportunity. what is material solution platform it is a 1.5 billion dollar platform that sits at the intersection of every single device evolution and device inflection it is actually quite balanced for those who remember three four years ago after we acquired CMC we had roughly 45-50% of our revenue in metal solution that was derived from mature nodes. Today it is 70% already. 40% advanced memory, 30% advanced logic, 30 percent mainstream. Tomorrow, as Dave highlighted, this percentage will grow. It is a platform that is unit driven, which means that the more wafer you produce, the more revenue we produce as a recurring business model. And it has breadth. Breadths around four major product and solution platforms. When you create a new transistor, you need new thin film to be deposited. This is where our advanced deposition, ELD, CVD, business unit comes into play as well as the implantation required to dope the surface. Then you need to either planarize or etch your layer, the unwanted extrusions from your transistor device in deep trenches and bias. This is where the second and third business unit come into play. And fourth is a a recently created business where we have grouped together unique, novel materials substrate engineering and process expertise and this is where the future thermal interface and advanced packaging will reside. The advantage that Antigris has is not just the breadth but it's how we connect them together. So when the architecture changes, in how many ways can we play? Well, every single device creates an opportunity for us to participate, to play, and to win. Across advanced logic, advanced HBM, high bandwidth memory, advanced DRAM, next generation NAND, but also advanced packaging. deposition, CMP, etch. But also, as you will see with Clint, delivering and filtering and purifying these materials at the right level of control and purification required. Why is it important? It's because we can not only play along these different architectures and play along these different process modules, but we can expand this opportunity into advanced packaging. You may have followed that the last 20 advanced packaging fab announcements, for every one of them, these fabs are now co-located adjacent to the front-end manufacturing fab. No longer do they sit with packaging and assembly of print of circuit board industry. Every one of these 20 advanced packaging fabs sit right next to the frontline manufacturing. There is a reason for that. The reason is the materials required, the purity requirements, now are of the same nature as front-end manufacturing. This is where integrates can play and this is where integrates can differentiate. Now let's quantify the content per wafer. What happens when these different inflections come into play. Here on the slide you can see the four major transitions that are ongoing and I will go in more details in a minute through every one of them one by one. The common themes here is the multiplier effect. More layers, more content, novel materials, more process steps. When you put it together it represents between 40-50 percent content per wafer increase up to 90% to 100% content per wafer increase over the planning horizon, which, as we say, is three to five years. More wafer creates the growth, and we all like it. This is called MSI. But more complexity creates the outgrowth, the outperformance that Dave mentioned. So let's walk you through each of these four transitions one by one, starting with logic. As many of you know, the industry transitioned three, four years ago from thin-fet structures to now gate all around, integrating now backside power delivery on the back of the chip. It will continue to shrink, going to one nanometer, 1.4, one nanometers, and then over time transition to technology called CFET early in the next decade. Why does it matter for us? It matters because it means that every one of these transition creates new deposition challenges, selective etching challenges, new CMP challenges. Over the last three years, we have increased by 2 and 1 half x the number of engagements. So when I put a number here of 130 engagement, what does it mean? It means that today we have 130 qualifications ongoing with leading edge top six of the industry, but also leading edge OEMs. Three years ago, we had less than 50. This is a 2 and 1 half x multiplier effect. And not only do we engage more, but we are winning more. Over the last 12 months, we have landed significant plan of record wins, POR, in area selective deposition, but also in dielectric and metal CMP. And not only are we delivering 50% more content on that opportunity, but we are also expanding in new, served, available markets. Let me give you three examples of these. Next generation MOR, metal oxide resist. These are photoresist materials being deposited by CVD. As you know today, these are chemically amplified resist being deposited tractor. One of the next generation way of doing it is to deposit these CVD layers through the next devices. We are entering next-gen MOA, but we're also entering selective etching as well as front end of the line dielectric and new metals. So think about advanced logic for us has accelerated engagement, new POR, new SAMS entry. But actually, AI compute is not just advanced logic. It needs tons of memory. I think most of you are aware of it, and we've all seen it over the last two or three years. As AI requires more complexity, it requires more bandwidth, more high bandwidth memory, more DRAM, and we'll see in a minute more NAND as well. So what are the inflections that we see? The current generation of DRAM is called 6F square in terms of architecture of the chip, and it's now being coupled with CMOS-bonded array, CBA, to move up to the next level of density performance. Some memory companies are now moving to 4F square, which would bring new opportunities. And at the same time, we've seen HBM going from HBM 3 to 3E, now to 4, and starting to ramp 4E. Every one of these transitions, and even in the future 3D DRAM, when you stop stacking up the device architectures in DRAM will create more layers, more interface, more deposition films, more etching requirements. In the last three years, we have more than doubled the number of engagements with memory players. And the proof point is that we are winning. We have landed in the last 12 months alone a significant plan of record wins. Take a few examples on new implantation, new way of doping the structure, but we've also landed very significant POR wins on through silicon via application, which are very important for HBM computing. And we are semi-expanding. A few examples here around the CMP, around silicon etching, SIGI, and novel materials. So again, for memory, 40 to 50% more content per wafer and new SAMs entry. Now let's look at NAND. The same theme and philosophy applies. As NAND has moved now to 300 layers, we see that moving to 500 layers over the next two years, possibly 1,000 layers by the end of the decade. Every one of these will require more layers, deeper channel materials, more selective etching, and new metallization schemes. And we are winning. We've taken significant share position in high-selectivity nitride etch applications. We've take, and we'll see that in a minute, great positions in molybdenum deposition, as well as in a hard mask CMP. Not only do we want to do that for these three applications, but we also want to enter new, served, available market. The two that I would like you to remember are really cryogenic etching. Cryogenic etchings allow you to actually go deep into these trenches and vias, and this is a new market that we haven't historically played, as well allow us to enter hybrid bonding CMP, which would be crucial for next generation land. But the best example of this new SAM is molybdenum. Molybdene started in 2017. It started as a chemistry. Molybedenum is a solid material, so you have to sublimate the material to get it into a vapor phase. And we started developing the chemistry in the precursors back then in 2017 and 18. And you could argue, actually, one or two other competitors can do that as well. The difference is, over the last five years, we have developed, you'll have an example in the next room, a unique, industry-leading, high-pressure fill, stable canisters. We've also developed specialty coatings that we believe are not only IP protected, they are, but also enable the customer to have a longer duration, longer utilization time in process. Over the last three years, we've expanded that from a chemistry, a coating, a canister, to a high volume manufacturing of solid state delivery. So this is Antigris' playbook. This is material solution playbook, where we combine not just one technology, but four different technologies into a solution, and it shows. Over the last 12 months, Antigris has landed two major plan of record with leading OEMs and two major plans of record with end-user manufacturers in the memory space. We expect our volume of molybdenum to double in 2027 versus 2026 as a result of it. this approach is the one we want to duplicate for advanced packaging so what happens when we deploy the same playbook move early and when AI moves from a chip level to system level as you all know Coos and Amib are basically the first generation advanced packaging. We all foresee in the industry the move towards panel-level packaging as well as in the future more system-level integration and complex integration. Again, what does it mean for us? It means more layers, more interfaces, more planarization challenges, more bonding challenges. What we have done is exactly the same plays that we did in the last 10 years in the three other device type we've entered through silicon via and redistribution layer CMP as a first anchor point we then expanded it to into carrier removal applications as well as post edge residue claims so the anchoring point was really CMP claims and handling. From there, we intend to aggressively grow. I'm very pleased to actually talk to you today about the two steps we've announced last week that Dave made reference to. Step number one was to take the background IP we had developed over many years in silicon carbide, combine that with a techno bought on acquisition of advanced abrasive in the diamond powder technology and the unique ability to planarize these very hard substrate for silicon carbide and then to localize this technology in taiwan for a famous customer this combination of background ip technology bought on acquisition localization for partner will make us enter in a very serious way silicon carbide for advanced packaging where we have great hopes for the coming years and silicon carbides is the number two best conductive materials in the world and the reason these customers wants to use it because they want to get the heat out of the system to heat spread out and to decrease the power management of the data centers, ultimately. But what is the number one best conductive material in the world? Diamond. So last week we also announced that we have partnered exclusively with a company called LMM6. LMM 6 is the world-leading synthetic diamond producer. The world-leading synthetic diamond producer is now partner with Integris. We will functionalize this surface, we will CMP this surface we will bond this surface and offer some of the leading companies unique industry ready HVM solution to bring to market. These are two very significant move where we are not entering the mainstream community part of advanced packaging, we are entering the top end of advanced packaging, the differentiated side of it. When we put all these inflections together, advanced logic, advanced DRAM and HBM, advanced NAND, advanced packaging, this same expansion becomes significant. If you're for those who recall just after the CMC acquisition five years ago, we were talking about a sum of roughly $4 to $5 billion. I think it's $5 and 1 half today. We envision that to double in the next four years, three to five years planning horizon. With the complexity, with the layers, with novel materials and the number of, increasing number of process steps, we will see in MS a 10% SAM growth opportunity that we're very excited about. But the next question, as Dave said, is how do we capture it? So a large SAM is valuable, But what must integrates do to win it? Well, we have to engage earlier. So first priority is to ensure that we actually bring our innovation cycle and engagement not just at pilot line level of the customer, but at what we call pathfinding. Engaging with pathfining teams of the famous customers and of the OEMs. Engaging at module integration level. early engagement second that we convert our NPDs through an AI native approach I will show you an example in a minute our ambition is that over the next three years 100% of our NPs be AI native what do we mean by that it means that you don't go to a customer with a design of experiment anymore you go to customer with a predefined AI model together with your design of experiment this is a new way of engaging this is new way are differentiating for integris 100% of our NPDs will become AI native and we wanted to do that at scale so that we can shrink the development time on one side but also transfer the data packages to our manufacturing teams so that they can scale in quality with the right manufacturing facility in the world. So the next slide will show you that this approach is actually already working. This is not just hope in the future but the proof points are here. Between 2023 and 2026 we have increased the number of engagement by two and a half times, number of qualifications with customers. Over the next period, over the same period, sorry, we have increased by two-and-a-half X the number of wins, plan of record wins. This has resulted into an acceleration of our vitality index from what used to be 27, 28 percent to close to 35 percent today, 34 and a half percent our ambition is to get to 40 percent over the next three to four years and to be the industry leading engagement technology development partner of choice so ai is not only accelerating innovation but it's also accelerating manufacturing scale up and what changes when you bring these agents and the connected data together let me give you two examples before we wrap up. Typically this is an electrostatic chuck so you have an example in the next door in the room but these E-Chucks go inside the process chambers and typically took roughly three years to develop them from ideation to testing to productization to scale up. We've been able to develop a new generation of eChucks in 12 months only, from ideation to high-value manufacturing. This eChuck today not only does that, it actually performs 30% more efficiently from thermal conductivity standpoint, and it's today in customer process at the most advanced manufacturing logic fab in the world. months versus three years. Let me give you another example. We are now starting to integrate every one of the data sets, supplier customer data, into our manufacturing advanced process control data sets of our in four walls factories with the outgoing quality control metrology side of our customers. That data integration would enable us to do it at scale, not only to innovate faster, but to bring these products to market and to scale them with the right level of quality control. So let me translate that into a financial ambition. As Dave said, MS supports not only a 10% sum increase, but we foresee the combination of MSI growth at 6%, 7%, with more content per wafer, more plan of record, and of all materials to give us roughly 13% to 15% ambition. 6%, 7% MSI, 13% 15% revenue ambition. This is what material solution will enable in the coming years. And probably more importantly is at the end of the day, what matters is the customer. It's these top six customers of the industry, fundraiser IDMs, and it's the top five OEMs of the industry. What they're asking us to do is to accelerate innovation to become their technology development partner of choice. What MS will do is enable the next generation node. What APS will do, is to enable this at high yield. Thank you. For 60 years, Integris has evolved alongside the semiconductor industry, helping enable generation after generation of advances in technology through materials innovation, purity, and precision manufacturing. Our progress has been built on deep collaboration and trust, solving increasingly complex challenges. Meeting those challenges will require faster innovation, new materials, greater precision, and disciplined execution. But our story isn't complete without our customers. So as we celebrate 60 years, the perspective that matters most isn't ours, it's theirs. Hello, I'm Jin Sung-kun, the head of the SK Hynix Basic Technology Center. I sincerely congratulate you on the 60th anniversary of the establishment of INTEGRES. INTEGRIS has played an important role in solving the most difficult issues in the semiconductor industry based on its innovative leadership, close technology recovery, and outstanding execution. This is a reflection of the fact that we have reached the top of a giant technology of 60 years, with the purest immersion of semiconductor quality and no compromise. Now we are leading the future of semiconductors, and we are at an important point where we must play a leading role in the flow of the great AI era. As a co-creator of the semiconductor ecosystem, we hope to build an innovative model that enables Integris and SK Hynix to change the world. We are looking forward to many more years of collaboration and success together. Let's continue to work together to open up the future of the半導体 and humanity together. We look forward to further expanding our partnership with both companies and creating even greater growth in the next 60 years. Once again, I sincerely congratulate you on your 10th anniversary. Thank you. Congratulations on the 60th anniversary of the founding of INTEGRIS. Congratulations to INTEgris on your 60th Anniversary. Thank You. For six decades, we've earned the trust to take on the industry's most difficult challenges. As technology advances, those challenges are becoming more complex and consequential. Our history was built with our customers, and so will our future. So we've heard two great presentations today so far from Dave and Olivier. Now we're going to take a 10-minute break. There's coffee and tea outside, use the restrooms, and we'll begin precisely at 2.25 local time. If I could just ask everybody to take their seats, we're gonna get going again with the second half. The biggest challenges in semiconductor manufacturing are often invisible, a single particle, a trace contaminant, a stray molecule. What may have once gone unnoticed now impacts yield, reliability, and device performance. With every semiconductor technology inflection, the standard for perfection advances. Purity requirements become more demanding, and the margin for error shrinks. Purity is no longer just a manufacturing requirement. It is a competitive advantage. The companies that ramp faster, achieve higher yields, and deliver more consistent performance depend on the ability to control contamination at the molecular level. That's why Purity is a critical enabler of advanced semiconductor manufacturing, separating Integris from the rest of the industry. Integris helps customers create and maintain the highly controlled environments needed to manufacture the world's most advanced chips. Integris is a trusted partner to Samsung, helping advance our technology roadmap and solve some of the industry's most complex challenges. What I appreciate most is the combination of technical expertise, innovation, and the commitment that Integris team brings to every engagement. contamination control and fluid handling, to advanced filtration and process materials, our solutions help customers improve yield, accelerate ramps, and scale with confidence. The next generation of computing depends on controlling what cannot be seen. Integris is helping customers achieve the purity needed to make that possible. Welcome back. Before the break, Olivier spoke with you a little bit about how our materials, our advanced materials, enable the semiconductor ecosystem. Today, I'm going to share with you a little about the other side of the integrous value proposition, and that's how our advanced purity solutions enables those materials to be manufactured and enables our customers to maximize their yield in their semiconductor factories. So what's amazing about the purity in the semiconductor industry is that with each new technology node, there's new challenges and new demands to reduce contamination. There's new demands with new materials, with more process steps, and with increased process complexity. And that's really where APS plays. We work with our customers across the semiconductor industry to minimize contamination. And as those challenges are getting greater, you're seeing the value proposition that Integris offers through APS. You've seen it in our recent results. And today I'm going to share with you a little bit about the overall market for contamination control. I'm gonna tell you a Little bit about how we're unique and how we support our customers. And I'm going to tell you about how we're leveraging our operations prowess to deliver measurable results, not only to our customers, but also to shareholders. So with that, let me begin and tell you a little bit about APS. So APS supports advanced logic, advanced memory, as well as the mainstream markets. We're organized into four different segments, starting with fluid management and transport. And this part of our business moves and keeps safe all of the critical liquids in the semiconductor ecosystem. Essentially, this is the lifeblood of the semiconductor industry. Our microenvironments business is all about the protection of substrates in the semi-conductor industry. So substrates are things like wafers or reticles, such as EUV reticles that you've seen out in the showroom. And then lastly, we have our liquid and gas microcontamination control businesses. And basically, these two businesses are about filtering and purifying critical liquids and gases in the industry. There's a common thread through these four businesses, and it's all about protecting the purity of advanced materials in the semiconductor industry. Our business is about 45% capex-driven and 55% unit-driven. For those of you that have followed Integris for a while, you'll know that we used to have a higher percentage of unit- driven demand. But what we've seen over the last 12 months is an explosive demand for new fab infrastructure. So AI is driving new fab builds, and we are there right at the start of those fab builds. We're there providing fluidic systems. We're they're providing our gas purification systems. And then what's really exciting about our business is we move from providing CapEx solutions to unit-driven solutions as those fabs ramp. So what you will see over the upcoming months and years is you will actually see the unit- driven part grow larger. You'll see the pendulum swing back as we start to provide more of our filtration and purification solutions that are required as the fab infrastructure builds start to turn to producing wafers. So let's talk a little bit about APS across the semiconductor ecosystem. So the semiconductor system is an amazing place. You think about it, we start with some water, some sand, some basic elements. We combine them together, we move them through a semiconductor factory, and at the other end, a few months later, a chip comes out that told your Uber driver to take a left-hand turn on 43rd Street to drop you off here for our 60th anniversary. In not so long of a time, what you're going to see is that will be an autonomous vehicle that drops you off there. And it's going to do that not only safely, more efficiently, but you're also going to be able to avoid that jaywalking Elmo on his way to Times Square. That's almost magical what we do in this ecosystem. I'm going to let you in on a secret to the magic. The secret ingredient to the magic is purity. So Dave spoke about this earlier. We're dealing with atomic layers on semiconductor chips. And when you have atomic layer precision, you need purity. Because without purity, you're to have defects, you're going to have reliability failures, and the chips won't work on the other end. So if you look at our semiconductor ecosystem, APS provides products to the bulk chemical manufacturers. As a matter of fact, one of our largest customers is NS. We provide products throughout the fab, whether it's deposition, metrology, CMP, lithography, the head transport solutions everywhere in the fab we touch the critical substrates and critical materials and increasingly we're participating in advanced packaging so a great example of this is our high viscosity dispense pumps a technology that we developed for the lithography market in the fab but we've been able to take into advanced packaging to enable some of the new technologies that are being used in the industry today. So really, if you think about the integrous advantage, it really comes from the fact that there's not just one source where you can see contamination. It's throughout the ecosystem, and we participate throughout. So let me tell you a little bit about some of the different areas that we're focused on for reducing contamination control. If you've listened to me talk over the years, you've heard me talk a little bit about the importance of reducing particles. So as we reduce feature sizes on a wafer, it's very important to make sure that the particle itself doesn't introduce a defect. We talk about these in terms of killer defects. And as line widths shrunk, particle counts needed to be managed more and more. What we've seen as we've gone from our older technology to gate all around and ultimately towards CFET is an increase in the need, the purity requirement. So a 10x increase is taking place today. What the industry now is looking more and more towards, though, are contaminants beyond just particles. So things like metal and ionic contamination or organic impurities are becoming increasingly critical to ensure that the specialty materials are reliable and work as intended. And what's amazing about this and a great opportunity for APS is these new contaminant types have much higher purity requirements. So you see where I was talking about a 10x increase in purity requirements for protocols, it's a 65x increase for ionic contamination or 25x for organics. So it's an key thing to remember is we're not just filtering contamination a little bit better. What we're really looking at is we'RE filtering and purifying new contaminants in new sources in the factory. The economics become really clear when you look at AI. So AI is driving new chips, which require new technology, more layers, more process steps. But an interesting fact is when you compare AI chips versus smartphone chips, they're actually much larger. So here are two wafers, both for the N3 technology node, same process node, One for smartphone, the other for GPU used in AI. And what you can see is that if you have the same defect density on both of these wafers, the wafer with the GPU, because it has less chips, has a yield of 60% versus a yield of 90% for a smartphone die. So you have this same defect intensity, but a very different economic outcome for AI. This is one of the factors that's driving our leading-edge customers who are developing solutions and products for AI to turn more and more towards Integris to make sure that they minimize contamination in the line. Let me turn the page a little bit and talk about ionic contamination, metal contamination. So a recent experience I had is we had a customer that came to us a few months ago, and they were experiencing problems with parametric yield at the end of the line. Very specifically, they had a problem with a parametric parameter called gate leakage. And so on a semiconductor wafer, you have billions of transistors, and each of those transistors is a switch, on or off. And if you have a problem with gate leakage, when that switch is meant to be off, you actually have electrons that are traveling through the transistor. That's a problem because it leads to heat, it leads to electrical loss, and long term it can lead to reliability problems. Of course, reliability problems become increasingly important when you have mission critical applications such as autonomous vehicles. So our customer turned to us, we went in, we worked with them to evaluate and found out that one of their critical liquids had increased levels of ionic contamination, of metal contamination. We introduced our Protego ion exchange purifier, an example of which I'd be happy to show you in the showcase, and we were able to reduce that ionic contamination by 90 percent. More importantly, we didn't just stop there. We worked with our customers' supplier, our customer's bulk chemical supplier, which was providing material that had that increased level of ionic contamination, and we were able to introduce solutions upstream to eliminate that ionic contamination from ever entering into the factory. So an important point to note is we don't just treat contamination when it occurs. We're actually working to eliminate it upstream. And that is, again, another key differentiation between Integris and our competitors. This same principle applies to the wafer. So one of Integris' leading products is the Front Opening Unified Pod, or FOOP. This is a product that we invented about 30 years ago. And it's a product where we have leading market share in the industry. And one of the reasons that our customers turn to us is because we have knowledge about everything that is required to make sure a FOOP keeps a wafer safe. So when you think about a front-opening unified pod, you hold 25 wafers. The value of those wafERS can be multiple millions of dollars. And I often say there's two things that you don't want your FOOP to be. One, you don'T want it to be a sponge. You don't WANT it to suck up contaminants because there's a risk that then those contaminants can be leached onto the wafers later and impact yield. And the second thing that you WANT to avoid is you WAN to avoid the FOOPE from becoming a pickle jar. And by that, I mean you have this enclosed environment. And the wafers stay in that environment longer than in any process tool in the factory, longer than an litho tool, etch tool, deposition tool. In many ways, we're not just a transport system in the factor. We're actually an environmental chamber that the waffers sit in. And so it's really important that we do not allow those wafERS to cross-contaminate each other. And so the way we manage this is with two technologies that Integris pioneered. One is something we call our Integris barrier material, which is a special polymeric solution that prevents the food from absorbing these materials. And the second is through the use of purge technology, advanced purge terminology in our foods. With that advanced purged terminology, we're able to keep the wafers clean. And as a great example is when you actually are opening and closing the foops, you can measure the relative humidity, which is a key parameter that our customers want to minimize. We can keep the relative humility below 5%, which is eight times better than the competition. And so these are some examples that I've given as to why we're able to really start to outgrow the market in general. If you think about the market, and you think about the markets that APS participates in, there's three forces that compound together. One is tighter purity requirements. There are tighter purity requirement for each new technology node. The second is there are new contaminants. With new materials, with new process steps, there are contaminants, and the third is there's more control points. There's more tools in the factory, you have more layers, You have a need to control contamination, not just in the factory, but also upstream. And so it's not just about the industry having more wafers, but it's about these three factors that compound together that drive more need for advanced purity solutions. And it's for this reason that APS can grow faster than the semiconductor market. So when I look at our long-term available market over the next few years, I see that going to about a $10 billion market for purity solutions. More purity, across more contaminants, more points in the process is really what's driving this growth. And the way we will capture it is by engaging earlier, innovating faster, and having a strong manufacturing network. And so that brings us back to this three-pillar slide that Dave first introduced and Olivier built upon, where we're looking to focus on the customer, to elevate our engagement with the customer earlier in the process, where we are extending our technology leadership. We're number one and number two in most of what we do, but we don't want to stay complacent. We have to keep investing in technology to advance, and then to leverage our operating scale. So I'm going to give a few examples to expand on these three pillars. When I think about customer centricity and what's unique about APS, a great example is around the lithography model or module. So to develop lithography solutions in a semiconductor fab, you have suppliers of critical chemicals, resist manufacturers. You have equipment OEMs that provide all the process tools. And then, of course, you have the chip manufacturers themselves. They all have slightly different needs, but they all need to work together to develop a process that not only technologically works, but also has an economic and appropriate yield. Integris is able to partner collaboratively across all three early on in the technology development cycle. A great example of this is with EUV. If you go into our showroom outside, you'll see an example of our EUV reticle pod, a product we collaboratively developed working through the ecosystem as a whole. This early engagement allows us to have differentiated, durable, early customer positions that are sticky throughout the lifecycle of a product. So customer intimacy tells us what problems matter, but really technology helps us determine how quickly we develop the technology gets our foot in the door and enables us to have solutions that customers buy. And what I'm showing over here on the right side of the screen is one of the ways in which we've been increasingly using AI to develop products. So we're increasingly leveraging AI around modeling and solution to develop solutions faster. The example I show here goes back to, once again, our FOOP technology where we've developed digital twins that are enabling us to introduce and iterate products faster to the market and solve harder customer problems that much faster. If we engage early, if we develop the technology sooner, that is a key factor that enables Integris to not only stay ahead of the competition, but also to continue to grow our overall market. So, customer technology, and lastly, I want to talk a little bit about manufacturing piece. Over the last several years, we've spoken about our strategy to build out our manufacturing network in region for region. We've done this in Japan, in Korea, in Taiwan, in the United States. And that's super important because we need to be close to our customers to have a resilient supply chain and to develop solutions to meet their needs earlier. What you've seen, though, over the last year, is that we've been able to really maximize the productivity across the network. So in our recent results, you've see that not only were we able to scale by about 31% year over year, but we were able to deliver 850 basis points of operating income improvement over the last year leveraging a manufacturing network more efficiently. One of the ways we're doing that is increasingly using AI ourselves to find ways to improve our yield, to improve our cycle time in the factories. This is a very powerful part of the integrous in the APS value proposition. And fundamentally, when we combine leverage with purity demand, that drives a very compelling long-term model. So last slide. I want to kind of leave you with a few key points. AI is driving more device complexity. And that increased device complexity is driving higher purity requirements. The more purity requirements that are out there, the higher value problems that APS can solve. When we engage early, when we innovate faster, and when we scale through our network, that's going to allow us to have upper teens CAGR over the next few years. Overall, it's very, very, sehr important to note that purity is one of those magical elements in the semiconductor industry that makes it successful. And as semiconductor complexity increases, purity becomes more valuable and a more important ingredient. So before I turn it over to Suki, I just want to kind of emphasize that innovation creates the opportunity for us. But execution is really what's going to drive profitable growth. And in the next section, Suki is going to show how both APS and MS translate this growth into profitability, cash flow, and ultimately shareholder value. Thank you. Innovation creates opportunity. Execution turns it into value. At Integris, that means scaling our technology leadership, operating with discipline, and converting opportunity into growth, earnings, and cash flow. The semiconductor industry is entering a period of extraordinary growth and technology acceleration. Our leadership positions Integris at the center of these technology inflections, creating opportunity to grow alongside our customers. Behind that innovation is a global manufacturing and technology network built to deliver at scale. Solving complex technology challenges requires the ability to deliver consistently, every day, for customers around the world. Quality gives customers confidence in our process. Reliability gives them confidence that Integris will deliver on its commitments when they matter most. That's why customers trust Integris with some of the most critical parts of their technology roadmaps. As semi-conductor technology continues to evolve, so does our opportunity. Capturing that opportunity requires disciplined execution. We are moving faster and strengthening how we engage with customers, operate our business, and allocate capital to create greater value over time. The result is a business designed to turn technology leadership into profitable growth, operational excellence into earnings, and disciplined execution into long-term shareholder value. Well, let me, this is my presentation, so thank you everyone for coming. Thank you, Clint, and good afternoon. What I will be demonstrating here really is how the opportunities you heard from Dave and Olivier and Clint translate into higher earnings, accelerating cash flow, and ultimately greater shareholder value. Our financial framework is significant and also straightforward. We expect to organically double the revenue over this period we talked about, deliver a step change in profitability, grow earnings substantially faster than revenue, and convert more of these earnings into free cash flow. This is a powerful value creation cycle, and The common theme here you've heard from our leaders here is the execution of three transformation pillars. Customers, customer centricity, R&D or technology leadership, and operational excellence. Our value creation framework. Let me anchor you in how do we deliver this. First, our value creation framework is built upon three distinct priorities. First is compounding double-digit revenue growth. We're starting with a very attractive portfolio, approximately, like you heard, approximately 70% of our revenue today is leading edge, both advanced logic and advanced memory. That's going to become 75% of the period of time. These are the areas that are fastest growing in the industry, and that's what we're levered to. Second is profitability. As we scale, volume provides leverage, but the opportunity is much broader for us. The bigger margin of opportunity is coming from all of the self-help initiatives we've been talking about. With our technology leadership, we continue to win strong positions of record. We continue to and which improves our product mix. We're executing on structural changes on how we operate, including network optimization, improvement, productivity, and supply chain management. Third is a disciplined capital allocation. Stronger cash generation allows us to strengthen the balance sheet, fund our highest return strategic opportunities, both organically and inorganically, and return more of this capital to our shareholders. These are not separate objectives. I'll show you why we have confidence in this model, starting with the progress we are already made. So just looking, let me anchor you with the framework in the meaningful progress we've made so far. At the midpoint of our fourth quarter guidance, we expect to deliver sales of roughly 3.7 billion dollars this year, representing 17% growth year over year. At same time, we're translating this higher growth into substantially higher profitability and earnings. Gross margin is expected to improve by 370 basis points to about 48.3%. About half of this improvement is because of all the self-help initiatives that we have embarked, and there's more to come. Adjusted operating margin is going to improve 450 basis points year-over-year, and our earnings per share is going to grow 60% almost. This is early evidence of the earnings leverage we expect in the model, and we are also becoming more capital efficient. Capital expenditures this year will be about 200 million, or about 6% of sales, and if we expect to exit this year at about 2.7 times net leverage, roughly a full turn below where we started in the beginning of this year. So just stepping back, this combination of results really matters. Strong growth, significant margin expansion, faster earnings growth, improved capital efficiency, deleveraging, all are occurring at the same time. We have more work to do ahead, but we are entering 2027 with a very strong position with increasing confidence in our ability to deliver on our commitments. So let me talk about future revenue growth first. Over the next three to five years we are targeting approximately 15% annual revenue growth taking revenue from over 3.2 billion to approximately 6 billion. This represents a nearly doubling of our revenue base organically. There are three core reasons for this. First, the foundation is our attractive and market exposure. We're increasingly concentrated in the fastest growing parts of the semiconductor market. Second is the complexity expands our opportunity faster than wafer starts. You heard this from Olivia, you heard this from Clint. As an example, advanced logic moving from FinFET to gate all around increases our content per wafer by more than 50%. 3D NAND, going from 300 layers to 500 layers, increases our content by nearly 90%. Third is our execution, which provides the final multiplier for growth about our SAM. That is what takes us from a SAM growth of 10% to our own revenue growth of 15% over this period of time. We expect this growth to be broad-based and resilient through the cycle. We participate when fabs are built, when equipment is installed, and even more when wafer volumes ramp in manufacturing. We do not rely on any one architecture, any one customer, or one phase of the semiconductor cycle. Okay, so what does it really mean from a profitability standpoint? This revenue growth combined with our discipline execution will fundamentally change the earnings power of the company. Our long-term target, long-form model targets a gross margin of 55%, up from 48.3% this year. The remaining bridge from 48.3% to 55% is 670 basis points. What really excites that is about one-third of this is because of volume, and two-thirds is all the structural self-help work that we are doing. The volume component is pretty straightforward. Over the past five years, we have made significant investment in our capacity, manufacturing network, and this capacity is already in place. This gives us the opportunity to drive greater asset utilization and fixed-carb absorption as revenue grows. But the larger opportunity really is structural self-help improvement, and there are several here. First is the end-market mix. Our portfolio is shifting even more towards innovative, advanced manufacturing and thereby higher-value solutions. A greater portion of our revenue will be coming from areas where our technology differentiation matters the most. Second, we are turning proven technology leadership into profitability. The positions of record that Olivia and Clint talked about in both MS and APS divisions are results of years of technology investment. These innovations achieve better, broader customer adoption and scale, and we expect the differentiation to increasingly translate into better economics for us. Third is manufacturing productivity and yield. We maintain a very active funnel of productivity cost-down initiatives focused on yield improvement, scrap reduction, labor efficiency. This funnel includes hundreds of projects spanning our 35 different sites, exceeds $75 million in productivity over the next 12 to 24 months. I'll give a couple of examples here. Through a process redesign and proper shift management, we have been able to increase the yield on one of our key product lines by 3x in a matter of months. In another example, we were able to introduce lean manufacturing methodologies that removed bottlenecks in filter pleating process that subsequently improved overall equipment utilization by 20 points. These are just two of the hundreds of programs that we have right now for improvement and margins. So putting all of this together we have multiple paths to margin expansion. Volume improves absorption, mix increases the value of what we sell, and execution improves cost and productivity. Now 55% gross margin reflects a structurally better portfolio and we're building a business capable of sustaining a higher level of profitability across the semi-country cycle. This is what gives us confidence in the strong earnings model while continuing to invest in innovation required for future growth. Well we also intend to extend our technology leadership by investing more in innovation while simultaneously expanding margins. We can do both by driving greater returns on our innovation investments and creating operating leverage across SG&A. We intend to build R&D to approximately 10% of sales. Against our revenue growth model, this implies a doubling of our annual R&B investment and more than $2 billion of cumulative investment to the end of this decade. We're also changing where these dollars are invested. Today, approximately 50% of our R&D spend is directed to SAM expansion and new technology horizons. Over time, we intend to increase that allocation by 15 percentage points. At the same time, we expect to scale SG&A more efficiently. Simplification, standardization, stronger enterprise processes will lead to SG&A growing slower than revenue. These actions create significant operating leverage. From the 2026 outlook to our long-term model, total operating expenses declines from approximately 22.5% of sales to approximately 20% of sales, even as we substantially increase our investment in R&D. Combined with this gross margin expansion, our model translates into more than 40% flow through as we scale supporting and adjusted operating margin target of 35%. We do not see a trade-off between investing for growth and expanding profitability. We're creating the capacity to do both. This is the earnings algorithm that's embedded in our model. Double digit organic growth, significant gross margin expansion, and operating expense leverage combined to drive adjusted EPS growth at 30% CAGR, or roughly twice the rate of revenue. So what does this mean? The next step is to actually drive this earnings power into exerting free cash flow. Over the last several years, we have invested heavily in our manufacturing network, building the capacity required to support our future growth. Since 2020, we've invested nearly $1.9 billion in capex. These investments were strategically important, but constrained our cash flow. This dynamic is now changing. Much of this capacity is now in place, and our first priority is to drive greater asset utilization and productivity from our installed base. In fact, we believe our current network supports meaningfully more than a billion dollars of incremental revenue from here. As a result, we expect our capital expenses in the future to range between 7 to 9 percent of sales. Working capital is the second lever. We're targeting an improvement in our cash conversion cycle from approximately 150 days to 120 days, supporting higher revenue with less cash tied up in the operating cycle. The third lever is margin expansion. As we deliver higher gross margins and operating margins, the underlying earnings part of the business should translate directly into operating cash flow. The result is that we expect free cash flow to grow faster than revenue, fundamentally changing our financial flexibility. This enhances our capital available to further reduce leverage, invest strategically in technology and increase shareholder returns. Our first near-term use of growing cash balances is to continue to strengthen our balance sheet. We ended 2025 with approximately 3.4 billion in net debt and net leverage of 3.8 times. We are on track to exit 2026 with approximately 2.9 billion in net debt and net leverage of about 2.7 times. Our long-term target is net leverage approximately two times through cycle. We made significant progress in a relatively short period and we are on a clear path to get to our target. This matters for three reasons. First, it improves our financial strength. Second, it lowers our interest expense, and third, it expands our capital allocation flexibility. So as leverage declines, more capital becomes available to invest in growth and returns to shareholders. We believe deleveraging is therefore not only a balance sheet statistic, it is a bridge to greater strategic flexibility in how we deploy our growing cash flow. As leverage approaches our long-term target of two times, our priorities will evolve, but our renewed discipline will remain. So what next? As leverage moves towards our long term model, our capital allocation frameworks become more balanced. Three points here. First, we will continue to invest in our business, we'll continue to fund organic growth and capex investments that extend our technology leadership and generate attractive returns. Second, we will pursue value-creating M&A. The bar is high. Any transaction must strengthen the core, expand our technology positions, or accelerate innovation. The acquisition of advanced abrasives that Olivia just talked about and which we closed last week is one such example. M&A must compete for capital against organic investment and shareholder returns. Third, we expect shareholders to participate more directly in the value we create. Over the long term, we expect to return approximately 50% of our excess cash to shareholders through share repurchases and dividends. Now to reinforce this commitment, today we are announcing that our board has authorized a 500 million dollar share repurchase program and we also intend to increase our quarterly dividend by 10% beginning in the first quarter of 2027. So overall our capital allocation for framework is balanced but the governing principle is consistent. Every dollar of capital must compete for the opportunity to create the strongest returns. So let me close by bring it all together what you heard today and what it means financially for our company. Our technology solutions, portfolio breadth, and customer positions give us the opportunity to capture more of the growth. Our job now is to drive disciplined execution to convert the market growth into financial performance and long-term shareholder value. So over the next three to five years there are four financial commitments to remember. We are targeting approximately 15% percent revenue growth Kager. We're targeting gross margin of approximately 55 percent, operating margin of of approximately 35 percent, and we expect to our adjusted EPS to grow approximately 30 percent annually. Put another way, we're expected nearly double the size of the company organically. And we expect free cash flow to grow faster than revenue as margins expand, working capital improves and capital intensity moderates from historic highs. This opportunity is differentiated. We have a clear operating plan and a financial model designed to translate this into results. Thank you all for showing up here today and in your interest in Integris. With that I will pass this on back to Jeff to moderate the Q&A. Great. Thank you, Suki. So that concludes the formal presentation. We're just going to get the chair set up here momentarily and we'll invite the four presenters today up on the stage. Just a few things to make this go as efficient as possible. We are going to have mics running up and down the sides. We ask that you raise your hand and we will call on you for whoever's going to ask a question. Once you've finished asking your questions, please hand the mic back to our staff so we can get the next question queued up. With that, I invite the four, please, to come up. So if you're interested in asking a question, please raise your hand, and we'll start here. So, Melissa, maybe you could start with this. You all actually, what you all don't know is that Suki and I fought over who got to pitched that last slide I wanted it he's small but fierce so he captured that slide please just state your name and your firm when you ask I'm not small hi guys this is Melissa Weathers from Deutsche Bank thank you very much for hosting this day um I guess I'll spare you a gross margin question for now but um in the context of the cycle uh Dave you kind of talked about it in your prepared remarks as we look at the fab build outs happening over the next couple years and compare it to your long-term model the CAGRS that you're giving can you help us understand kind of the shape of the cycle you're expecting any kind of difference in MS versus capex just a little more color on how that cycle will shake out shape of the cycle this is always one that you want to avoid actually because Because inevitably, anyone that's been around Semi for 30 years, which is how long I've been around Semi, you rarely are able to call the cycle correctly. But let me give you the best data that we have collectively as a team. I think it's pretty clear that there's a supply and demand mismatch in the industry. And that supply and command mismatch is in advanced memory, it's in advanced logic and it's also in advanced packaging and I think that that is pretty clear and I that's near term and it upon us and the industry is working incredibly hard to resolve that supply and demand mismatch so I think what that translates into is I do think the capex build-out continues from here I think progresses through 2027 our best visibility is it will progress through 28 as well and then eventually that That CapEx spend will turn into units, probably towards the out years of the long-term horizon that we presented. So near term, I think supply-demand mismatch will drive that CapEx. I think that CapX cycle looks still pretty strong and still, if not early innings, at least mid-innings. And then we think that turns into units. Great. And then I don't know if this would be for Olivier or for Dave, but on the advanced packaging investments that you've done, Integris has always been known as kind of a front-end-focused, shrink-focused company. And so it's been interesting to see you guys invest more on that advanced packaging side. So any more color on the rationale, why you want to get into this business, how big do you think this could be as a percent of your portfolio? So maybe I'll start, and Olivia, you can build on the comments. I mentioned a couple of times over the last 15 months, it feels longer than that since I've been in this seat, but I mentioned it a couple times about the incredible opportunity in the advanced packaging market. Again, not in the bulk commoditized market, which a portion of this industry will become, but in the portions of the market that create the most value. You know, five years ago, advanced packaging, the annual spend on CapEx was only about a billion dollars, maybe two. This year and next year, it's probably going to be about $20 billion annually. It's incredible how that market has grown because of complexity. So what we used to think of as back end of line has actually become much more similar to front end of lines. And so what you're seeing us do strategically at a high is you're seeing us focus on the areas that we think are the most differentiated where we can create the most value Olivia in particular I'll pick two examples one is on the challenges of the industry to basically bond or adhere chip on wafer or ultimately wafer on waver and for short chip-on-chip, a 3D IC. So if you think about every single device architecture, we are going 3D. With that comes materialization schemes, connectivity, but probably the biggest challenge that the industry is facing right now is around how to ensure that the surfaces are actually planarized, cleaned, passivated, and ready for the next chip or the next wafer to be attached to. This is an incredibly complex challenge for the industry at scale to do. And this is where hybrid bonding will come into play. So Antigris strategically has done a lot of work in the last couple of years, sometimes in a quiet manner, so that we are ready to basically attack this market. And we intend to be the leader in hybrid bonding CMP, number one. Number two is the biggest challenge of every single data center is power and thermal management. I'm sure you're all very familiar with it. We're not saying we're going to be the only ones solving it, but we absolutely want to be at the intersections of the material science innovation that enable these solutions to be lower power. It starts with SIC. It continues diamond, and you'll see more coming in the future, which we can talk about immediately. Anticrystine tends to be the leader in thermal interface materials for the many years to come. Now, taken together, both of them are very large SAMs. Hybrid bonding alone will definitely be multi-hundred million, if not more, for CMP application. Team materials, well, the team market is already $4 billion today. But these are traditional materials, not the leading edge and not the most advanced, the most complex. Where we want to participate is really the most differentiated side that offers the best opportunity for us to intersect. So both of them would be very sizable, Sam, and we intend to be leaders there. Thanks a lot. Hi, it's Tim Arcuri at UBC. Yes. So Dave, I want to ask you about China. So I think China was 20% of revenue last year. And a lot of people worry about your not your competitive position, but just China, generally, you know, eating into your business. And so I wonder, is MS more exposed to that? Or is APS more exposed to that and what's being assumed for China in this model? right so china is probably going to be closer to 18 percent of our revenue this year it'll be less than 20 less than last year not because we don't expect china to grow we actually expect china to grow this year even though we're lapping at least in the first half uh the impacts of liberation day but um but we expect china the world to grow faster so if you take a step back and you look at rest of world versus China, the first thing that you notice is the rest of the world is growing incredibly rapidly on the back of advanced manufacturing. That's memory and that's logic. And China is still mostly a mainstream logic market. Now, they are growing in memory, but they are not yet growing because of EUV capability and tools, etc., yet in advanced logic. And so because of just the market trends, we expect the rest of the world to outgrow China because they're still primarily a mainstream logic market. We expect to grow in China this year. I would expect us to grow in China actually over this long-term horizon, but it will be at a much, much slower rate, not because of particular challenges for our product lines in China, but because it's mostly a mainstream market. We are selling into the most advanced manufacturers in China. So when you think about memory, we have positions of record in memory in China When you think of mainstream logic and their most advanced logic, we have plans of record. In their most advance logic, we sell more than 1,000 products into China. So this is not a market that's particularly narrow and small and we're easily displaced with very few SKUs that are of very high value. We sell a broad lineup of products and portfolio into China. So near term, Tim, I think what you can expect, you can respect China to grow in absolute terms on a percentage basis, probably less than the rest of the world. I think you can except to see more CapEx being sold in China over the near term. Again, they're building some fabs as well, particularly on the memory side. And then I think over time, you'll see us continue to participate in units the same way that we do today. The business in China is pretty well balanced. over the next couple years great thank you uh second row elizabeth hi uh thanks for taking your question and uh this is elizabethton from city i'm just curious on this five percent of performance if you could help us break it down like how much is from content growth how much from you know share gains with your existing products and how much from like you know new markets such as advanced packaging and if i could follow up to that what what drives to the upside to the 5%? I'm sorry, what was the last question? What drives to the upside to the 5% outperformance? Okay. Let me take it at a high level, and then I'll turn it over to Clint and Olivier to maybe talk specifically about product lines and business units. Look, at a high level we think the case for about 10% SAM, CAGR, is pretty straightforward. And so when we think about that business case, remember 70% of our revenue driven by units, advanced logic, MSI growing, let's call it 10-ish percent, slightly more than 10%, memory growing, lets call them high single digits, and mainstream growth being very muted, primarily because it can't actually get all the memory that it needs for those in markets. And then 30% of our revenue coming from CapEx. So I think there's a good case for 10% CAGR for our SAM. When you look at our outperformance, which was the nature of the question, the incremental 500 bits, it's really the two the chart that I showed you that had the one page I showed that had two charts the first chart on the left was materials intensity and value consumption has increased more than 10x over the last 25 years and contamination control requirements has increased a thousand X and both of those together are driving incremental content as you think about both most advanced memory and the most advanced logic and that's what's creating the opportunity for us. Just more volume from AI is great. We'll take it. But what's driving the incremental outperformance is really the materials consumption and the value with technology inflections and the control and contamination requirements on the purity side with those same inflects. Olivier, Clint? Yeah, I mean, I'll give you just a simple rule of thumb. On the MS side, the The bridge between 6-7% MSI to 10% SAM expansion to 15%, close to 15% revenue growth, I call it one-third, one- third, one third. One third of that bridge comes from the number of layers and the opportunity that Dave just described that I think I showed you across every one of the device inflection. One third comes from plan of record and share gain within the SAM that will participate and one third will come from SAM expansion, including some of the, not just advanced packaging, by the way, but also some of the new opportunities, cryogenic edge, novel implant, new deposition, and applications we will participate in too. That's probably a good way to think about that split. Yeah, and I would just expand from my side. From a customer standpoint, we're engaging, solving some of most challenging problems, where we're actually enabling ourselves to expand our SAM. I gave some examples of purification. I talked a lot about metal and ionic purification, we're actually developing solutions that don't exist into the market. So we're growing our SAM. Second example that I'll give is unique to our competitors, we're able to partner with our customers in region on solutions around the world. We have a global network of technology centers where we're working hand in hand with our customers. So that customer interaction is another way. And then the third thing is, as the demand overall in the industry is rising, I think Integris is uniquely positioned to be able to satisfy that demand from a manufacturing network. So I really see growth above the market coming from technology, customer, as well as the manufacturing expansion. And then to the second part of your question, potential upside, if you just break down MSI today, 55% of MSI, again, this is total wafers that are produced in the market, 55%, of that is mainstream logic. 45% of that split with the bulk of it in memory and then a smaller portion in advanced logic. If that part of the market, advanced logic and advanced memory, can add capacity even faster than we expect, those are the areas where we're most levered, and that will drive incremental outperformance for us. Go to Chris on the back row, and then Brian, did you want next? Chris Barkinson, Wolf Research. I'll do my best not to be too leading, but you've been here for about 15 months. When you came in, what were the two businesses you were the most enthusiastic to run? I know it's a hard question. What were the 2 where you approached that, perhaps saying, hey, I'm going to have a lot of work to do over the next year or 2 to catch up, or I'm gonna have competition in China? And has that response changed into this event a year later? The 2 I was most excited about or the 2 I thought needed the most help? Both. Now you've expanded the question. This is like a favorite child question. What was your favorite child? I love all children equally. No. Look, I think when you look at the core assets of the company and where we have, like, real competitive advantage that's tangible, we have a great position in C&P starting kind of with slurries, increasingly in pads, and then migrating into cleans, and then potentially pushing all of that into a market like advanced packaging, we're incredibly excited about that portion of the market, excited about some of the plans that Olivier has launched and enacted. And so that's a portion of a market that we think as you add more layers and process steps, as you ad more packaging, you need more planarization. And so having a very strong position there as a starting point and then being able to capture the opportunity in front of us, we're excited about that position. On a similar basis, on the filtration and the purification side, you know, Clint talked about filtration and our position on filtration. You know, filtration started as a physical separation, right? The pore size is this big, the particle is this Big, it won't pass through, right. Well, now all of a sudden, we're trying to capture ions and organic contaminants and that's not done through a physical process it's done through chemical process that's the purification part so filtration traditional filtration with the filter media and then you treat that media with chemistry I can use some of my chemical engineering background by the way everyone on the stage is an engineer I'm just gonna say that as an aside everyone on this stage is engineer and everything that we deploy in the company kind of first principle, you know, scientific method. But back to filtration and purification. So you're taking a traditional filter, you're treating it with chemistry, and now you're moving out of the realm of what used to just be physical, and you're adding chemical, and that creates incremental opportunities, and it creates a big gap and a divide between us and competition. So I think the two things, two assets, two product lines, two technologies, let's call them. You know, the planarization technologies, or CMP, and the filtration and purification technologies that are increasingly intertwined. We're incredibly excited about those. Other businesses that, you know, we have positions in, but we think we can kind of land, expand, and do more. Deposition in Olivier's business, I think, is an area that, is you think new materials and technology inflections is an area where we want to be much more relevant. We're relevant today, but we're small. And I think we want to expand that to be even more relevant where we are. And then I think micro-environments and some of the advanced packaging. So when you think about all of a sudden, instead of just moving wafers, you have to move a panel. And so it's a co-packaged chip, and it's vertically integrated and we've added some of the TEMS material and COAS and EMIB on top with hybrid bonding, imagine the value that's being carried that has to be protected. So I think in terms of opportunities, core positions, incredibly exciting carrying us forward, filtration purification with CMP, and then I think kind of becoming bigger in the future, some of the advanced packaging, micro-environments, and some ofthe deposition from MS. Yes, please do. So one additional point that I want to make is, so Dave talked about filtration, purification, and NCMP or some ofThe MS solutions, and we talked about those as powerful individual franchises, but what's really exciting is when they come together and when we can come up with, when I can learn how to develop a better filter and purifier by leveraging the knowledge from Olivier's team. When Olivier can introduce a new CMP slurry or a new chemistry, and we can pair it with a filter or purifier. Now you also, and then when you combine that with this transition from mechanical-based filtration to a chemical kind of purification solution, You'll have a system where you have a chemical coming in, chemical A, a purifier, and then what comes out is not just cleaner A, but rather it's a different product. It's chemical B. And that's really important. And that is something that no one else in the industry can do besides Integris. And we are, in my opinion, still in the early stages of developing those styles of solutions. And that's yet another way where we're going to be able to expand faster than our competitors. I'll add one thing on the deposition side. I think the business model is really evolving as well. So the old way of the low-key wave 20 years ago with one very successful company, than the high K wave 10 years ago with another successful companies. The way the leading companies in the world and leading OEMs are now inventing is totally different. It's changing. So they, I think I mentioned that during the presentation, but they now expect you to come up with a predefined model, innovation model, together with the new chemistry. I think we see that as a great opportunity for AntechRace to leverage on its technology centers in Taiwan, Korea, and the U.S. and in Japan that we just announced last week, to innovate completely differently and actually bring solutions for the next inflections on the deposition side that will really disrupt the market. So while we are a little bit smaller on deposition, this will be a key differentiation for us, as well as being the only competitor in the industry that can do deposition in edge or deposition MCMP. Most of our competitors can do depositions for two big players or can do CMP for one big player or can do H for two or three in Japan. None of them can synchronize these two. If you bring these two fundamentals together, novel way of inventing your thin film deposition materials for the future, and new way of synchronizing the data packages between DEP and H or DEP in CMP, you'll see a very different Antigris in these domains in years to come. And then maybe we'll go back to Pete in the back. Hi. Thanks. Brian from Steeple. Appreciate the presentation. Very informative. Very helpful. Maybe a two-part question for me as well. I think there was a slide that showed R&D at some point, at one point it was like 50-50 defending versus like offense versus defense, something like that. And so I guess that shift from 50% to 35% was just you're overspending on what it takes to defend, not that you're walking away from business per se, but now you can just reallocate that in a more favorable way. That was one clarification, and then I'll ask kind of the gross margin question, too. When you show the crosswalk from high 40% to 55% over time, where would the new product introduction start to kick in in terms of that sort of linearity over time going from now to, you know, four to five years from now, which I think is roughly what the implied category suggests? And also, I know it's, you know, the line share there is kind of structural improvements, but in terms of pricing, where would that also factor into the model? Maybe I'll start, Suki, and you can build. That may be three questions, actually, but we'll try to hit them all. If I miss one, let us know. And look, from an R&D perspective, we have a lead today, and we want to extend and keep our lead from a technology perspective. But to do that, we Have to change. And so if we really want to Extend our leadership position and we start to want to more aggressively target some of the SAM expansion areas, then we have to become more efficient in our existing SAMs. And I think we have A number of methods to do That. I'm not going to kind of go too deeply into some of those methods, but we're already starting to see progress in utilizing those methods and deploying those methods. And we're уже seeing faster innovation cycles. So what used to take us, as Olivia gave an example, three years to do, we're able to do it in 12 months. What used to be a quick spend for a product that would maybe take three to six months is now taking one to two months. and so we believe that some of the methods that we're deploying are working and we believe we can get to that best in class model over time, over the time horizon that we showed you. With respect to new products, so new products as we introduce them, they're already being introduced at a higher value. So as new products are being introduced, they are already capturing the value that those new products are delivering and by and large that's accretive to where our current enterprise margin sits today so we already feel good about the innovation cycle the value that we're delivering and our ability to be able to capture that sookie do you want to maybe make some comments on the gross margin multiple paths to this gross margin right so there's productivity yield we We didn't talk much about pricing, but in Q3 and Q4, there has been no pricing impact. And to Dave's point here, all new products will command better value for us. So as we move forward into next year, it's going to be another lever for gross margin expenses. So there's multiple levers that we're focused on. That's why we feel like our gross margin target of 55% is the right one for us moving forward. Hey, good afternoon, Pete Osterlund, Truist Securities. Just wanted to ask on capital allocation, just as your leverage continues to decline, what areas of the portfolio overall do you see the best opportunities to accelerate growth through Bolton M&A. Well, let me start, and then maybe I'll pitch it to the team here, and so you can hear. You hear from me a lot, and I think this is a unique opportunity for this community to hear more from the staff who's critical to delivering long-term. I'm just happy that we can sit here today and talk about capital allocation, because a year ago we couldn't, right? A year ago, we were at 3.8 times leverage, And the only thing that we could talk about was how do we continue to pay down debt and perhaps pay it down faster. Well, let me just talk briefly about what we've been able to do. Free cash flow this year, Suki, keep me honest on the numbers. I think free cash flow is up year to date. Free cash low, I think it's up like 85% year over year, 85% in 15 months. That's what we have been able do through some of the self-help that we've showed you in these slides. Our net leverage has gone from 3.8 times to 2.9 and, you know, probably down to 2 .7. By the end of the year, we've retired $450 million of term loan. And we still have another quarter to go and a quarter of kind of record, some records potentially for fourth quarter again. So I'm glad to get this question. I think it's a great question and I'm that we can get it because 12 months ago we actually couldn't talk about this other than just paying down debt team anything you want to talk about without expanding too deeply any areas technologies that are interesting so anywhere on the heat map where you see a number three four five position but not a number one or two is an area for us to consider reinforcing the core. Anywhere where you see an inflection on any one of the four device type roadmaps is an opportunity for us to ask ourselves should we build, should we partner, should we buy. Anywhere you see a chemistry filter is an opportunity to combine that with a data set. So I would just guide by saying you have three roadmats of M&A that you can imagine for us, one to reinforce the core, one to expand in the inflections, and one to further enrich our products with data. We're running low on time, so we'll take two more. We'll go here and then Ed will go finish there. Thanks for taking my question. This is Saurabh from Zoho. So you had two POR wins on MOLLE last 12 months. Can you give us a sense of where we in the adoption curve for MOLLE and help us understand how many of the big NAND makers are currently utilizing MOLLe in high volume manufacturing and when do you see MOLle to be used in advanced logic and DRAM going forward? Olivier, maybe I'll start high level and then pitch it over to you for some of the details. And look, I think we've actually seen pretty good transition this year, maybe a little bit faster than we originally expected, moving up to about that 300-layer count. Every NAND provider has slightly different technology, as you know. But once you get around 300 layers, that's when you start to really introduce molybdenum. And so as the pricing for memory and NAND has gotten higher, and the capacity has not really been expanding because there's been no real new investments that have come online what you've seen is you've seen the memory makers want to move to more density and moving to more bit density is driving higher layer count and that's what's driving molybdenum to be kind of 2x growth for us this year versus last year Olivia want to talk a little bit about where we are in the curve of molly adoption and maybe the remainder of this question the NAND market is nowadays driven on one side by the storage requirements for data centers, but also by the KVCache applications that are very, very critical for the AI inference. So for them to really play in that KVcache that requires you to increase the bit density at a pace of innovation that is probably faster than before, if you look on a historical basis. So NAND first, for sure. I would say two of four and soon four of the four big players will adopt molly over the next two years um probably dirham second or the jury's out and we'll leave it to the dirham makers to decide which integration schemes some of them are staying on success square with cmos bonded array cba others are transitioning to 4f square and others are trying to jump to 3d dirham although it may take a little bit more time so depending on the scheme they choose you'll have very different integration schemes and different timeline for moly adoption um but it's also the logic side so logic on the advanced side will likely see more living adopted at least at the liner level of the lower lower metal level um whether they will adopt moly or the fill of these trenches and vias at these lower metal levels again that will be up to the customers to decide But in either one of these three cases, whether it's for NAND, whether it's four DRAM and HBM, whether its for logic, I think we will be ready. The difference is for us is less on the supply of the MOLLE precursor but more on the corresponding edge or CMP solution that we bring with it. Again we would be probably unique in the industry in being able to market not only the deposition side against one or two other big platforms but bring a ready MOLLe edge solution for NAND, or a ready-made CMP solution for logic in the future. Ed, we'll go to you, and then we'll have one more in the back. Thank you, Ed Yang Oppenheimer, and thanks for squeezing me in, and this is a very helpful analyst. I appreciate it. I just want to get a little bit more granular on your assumptions for material solutions growth, the long-term growth algorithm, 6% to 7% MSI growth, 13% to 15% material solutions growth, so 7% to 8% outperformance for Integris. In your 2024 analyst day, you were looking for 46% outperformance, so you've increased the outperformance. It seems like some of the structural drivers have remained unchanged, content growth, et cetera. So I just want to get a better sense of, you know, what informs your view of that acceleration of outperformance and how much of this outperformance is supported by your current POR pipeline and your win rates there. Let me start at a high level, and then, Olivier, I'll kick it over to you. I think, one, when you compare us to the past, I think it's somewhat similar, although we certainly expect better execution on a go-forward basis. When you go back to the chart that I showed about the total integrous SAM expansion and you focus on the unit portion, so the unit proportion is where the vast majority of the MS division plays. So about 95-ish percent of their revenue is driven by units. And if you remember, when we disaggregated that MSI, it was advanced logic growing about 11%, memory growing about 7%, and mainstream logic growing about 3%. I think if you go back in time, I think it was unclear how quickly advanced logic and memory capacity investments would be made. And I think what you're seeing now is with the supply and demand mismatch we see in the industry, you're seen a lot more investment on advanced logic and on advanced memory than what was in the prior iteration in the past and so i think that would explain some of that outperformance olivia anything else that you'd build upon there yeah the only the only two other point i would add one is definitely we see the memory market becoming a specialty differentiated market which is looks totally different than three years ago i mean i don't have to explain that to you uh but think back but i know this day february 2024 it it was on the back of 2023 memory market at that time hbm was barely taking off look at what it's become today so the number of architecture changes in vram in high bandwidth memory is just totally different so the market has turned to the better because every device inflection acceleration brings more materials opportunity the other one is the customers need antichrist way more than in in the prior years. Think about the numbers we showed you earlier with Clint and I. And for material side, 350 engagement. At that time, we had 150. So we've gone from 150 engagement qualifications to 350. I can tell you today that if we had the means to do it, the customers would give us 500 to 600 opportunities. So the customer need Antigris more than ever. I think that gives us the confidence, not only memory market acceleration, for sure advanced logic as well, but also the number of engagements rising very significantly. I'll just add one point, I know you asked about MS, but from an APS side, Olivier's point about the value, what's changed in the memory market, think about three years ago, the value of improving yield for a memory manufacturer, think about that today. Every chip that a memory manufacture produces today flows to the bottom line at a level that's quite frankly unprecedented. It's actually driving more engagement from my side of the business with the memory markets, whereas historically it's been more, a lot of our focus has been on the logic side. We'll take one more question in the back over there, and while we're getting the mic there, remind you that afterwards we'd love to see you in the product showcase as well. You'll get to speak to some of the leaders from across our business. We're really happy to have everybody here. And with that, we'll take our last question from the back. Good afternoon, Alexei Efremov, Barclays. I just wanted to clarify your first, in the past, Integris used to provide three-year targets. This time you decided to provide 3- to 5-year. so could you expand on why and then just to clarify is your six billion dollar sales target your commitment over the next three years or over the next three to five years the way we really thought about the long term everyone has a slightly different definition of long term and everyone has a slightly difference mental model with respect to how a semiconductor semiconductor cycle looks and so what we tried to do was be kind of less specific on the year just so that we could just essentially give you numbers that we feel like we can deliver on over a long period both something we should expect over a somewhat shorter period at three years as well as extending out to a longer period as well depending on what the market does and so that's that's why we chose that time period I think when you when you look at the near-term noise in the market and maybe maybe this is a good point to kind of kind of wrap up just think about the market sentiment three weeks ago versus today our demand hasn't changed it hasn't from where we sat three weeks ago to where we sit today in fact we I think we've gotten even more orders at this point in time in the quarter than we had last quarter so if anything our demand from customers has actually improved and so we we are optimists as a management team we think when you look back at the prior eras whether it was internet whether it is mobile whether it was cloud or whether you're sitting here today in AI we think every single era of technology delivery and semiconductor has improved life as we know it and our standard of living you think about the number of semiconductors that you touch on a daily basis you wake up in the morning you touch your phone you look at your watch maybe use your coffee pot maybe perhaps you use your dishwasher your microwave you get into your car you have LED lights on the street semiconductors make our life the way it is today in fact they're the magic of our life today and so we think the long-term trends for semi are fantastic we don't know exactly the rate and pace of how many data centers are gonna roll out and you know 2027 or 2028 but we think a long- term trend is fantastic we think are we are incredibly positioned to capture those long-term trends and opportunities and quite frankly we couldn't be more excited to sit here today as a management team and tell you about how we're gonna capture those opportunities and more specifically how we take that potential energy and that potential opportunity and turn that into results that you all can measure so thank you so much for your time today we really appreciate your interest in And please, if you have time, meet some of the management team, ask us more questions and we're happy to engage. Thank you.