VOL. XCIV, NO. 247
★ MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 5 CENTS
Friday, December 26, 2025
Entegris, Inc.
ENTG · The Nasdaq Global Select Market
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Entegris supplies mission-critical materials and purity solutions used in semiconductor manufacturing and other high-technology industries, organized into Materials Solutions (process materials, CMP and chemistries) and Advanced Purity Solutions (filtration/purification, microenvironments and fluid management). A key moat is that many products are specified into customer processes and require lengthy qualification, making switching slow and risky to yields. The model is also supported by recurring consumables demand tied to wafer production, plus deep materials-science/purity know-how and a global applications/service footprint. Competition is intense and large customers have purchasing leverage, so moat strength varies by product area.
Primary segment
Advanced Purity Solutions
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 7 tags
Updated 2025-12-26
Segments
Materials Solutions
Semiconductor process materials (deposition, CMP slurries/pads, etch & clean chemistries, specialty gases/materials)
Revenue
43.1%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Advanced Purity Solutions
Semiconductor contamination control & purity infrastructure (liquid/gas filtration & purification, microenvironments, fluid management/materials handling)
Revenue
56.9%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Moat Claims
Materials Solutions
Semiconductor process materials (deposition, CMP slurries/pads, etch & clean chemistries, specialty gases/materials)
Revenue/profit shares computed from FY2024 segment net sales and segment profit disclosed in the FY2024 Form 10-K Segment Analysis (Materials Solutions net sales $1,400.082M; segment profit $286.220M).
Design In Qualification
Demand
Design In Qualification
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Process materials are specified into customer flows; lengthy qualification/re-qualification and yield risk make vendor swaps slow and risky.
Erosion risks
- Second-sourcing requirements at leading fabs
- Node transitions that reset incumbency
- Localization of supply chains favoring regional suppliers
Leading indicators
- Share of new-node qualification wins
- MS gross margin and ASP trends
- Customer concentration (top-10 share) trend
Counterarguments
- Large customers can qualify alternatives and force dual sourcing
- Customers have purchasing power and can negotiate price-downs
Learning Curve Yield
Supply
Learning Curve Yield
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
Materials science/purity and cross-module process understanding help reduce integration risk and accelerate customers' time-to-yield on new materials.
Erosion risks
- Competitors closing performance gaps via R&D
- Rapid process changes making formulations obsolete
- Know-how diffusion through employee mobility
Leading indicators
- R&D spend as % of sales
- Adoption of new interconnect/substrate materials (e.g., SiC, new metals) in customer roadmaps
- Time from development to commercial qualification for new formulations
Counterarguments
- Company notes no single patent is material; differentiation may be hard to defend in court
- Some materials categories can become more price-competitive over time
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
CMP slurries, pads, and post-CMP consumables are repeatedly consumed in wafer processing, creating recurring demand tied to wafer volume/utilization rather than only equipment spend.
Erosion risks
- Utilization-driven downturns and inventory corrections
- Process changes reducing consumables per wafer
- Price competition on mature-node consumables
Leading indicators
- Wafer starts and fab utilization at major foundry/memory customers
- MS volume growth vs broader semiconductor demand
- Customer renegotiation cadence and price-down requests
Counterarguments
- Even consumables can be re-sourced if performance parity is achieved
- Large customers can standardize and push aggressive cost reductions
Advanced Purity Solutions
Semiconductor contamination control & purity infrastructure (liquid/gas filtration & purification, microenvironments, fluid management/materials handling)
Revenue/profit shares computed from FY2024 segment net sales and segment profit disclosed in the FY2024 Form 10-K Segment Analysis (APS net sales $1,850.199M; segment profit $496.131M).
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Filtration/purification and related components are repeatedly consumed/replaced as part of ongoing fab operations, creating recurring revenue tied to production volume.
Erosion risks
- Downcycles reduce replacement frequency and fab utilization
- Customer standardization across fabs favors lowest-cost qualified suppliers
- In-house redesign of subcomponents to reduce consumable usage
Leading indicators
- APS revenue sensitivity to fab utilization vs WFE cycle
- Filter/purifier attach rates in new tool installs
- Customer inventory and replacement cadence signals
Counterarguments
- In mature product lines, differentiation can narrow and price becomes central
- Some customers can qualify multiple suppliers and rotate volume to manage costs
Design In Qualification
Demand
Design In Qualification
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Purity solutions are specified into critical process steps; qualification and yield-risk dynamics create high switching friction.
Erosion risks
- Competitors win design-ins at new fabs/nodes
- Local-supplier mandates in certain regions
- Customers push second-sourcing to reduce supply risk
Leading indicators
- Win/loss rate for qualification at new fabs and nodes
- Incidence of forced dual-sourcing or re-qualification events
- Gross margin trend in APS
Counterarguments
- Market is described as highly competitive and price remains an important factor
- Competitors with entrenched customer relationships can get specified at certain fabs
Service Field Network
Supply
Service Field Network
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Global field application engineering, service centers, and local tech/application support help drive qualification, uptime, and faster turnaround for customers in key semiconductor regions.
Erosion risks
- OEMs and large fabs internalize more support capability
- Geopolitical restrictions limit ability to serve certain geographies
- Service costs rise faster than revenue in downcycles
Leading indicators
- On-site support footprint in Taiwan/Korea/US/EU
- Customer satisfaction/quality metrics (returns, field failures)
- Time-to-solution / turnaround time trend
Counterarguments
- Large competitors can replicate global support networks
- If products become standardized, service differentiation matters less
Evidence
10-K highlights that solutions are specified into customer processes and that switching away can be costly/time-consuming with yield risk; it also notes long customer qualification periods and that manufacturing changes may require customer re-qualification.
Risks & Indicators
Erosion risks
- Second-sourcing requirements at leading fabs
- Node transitions that reset incumbency
- Localization of supply chains favoring regional suppliers
- Competitors closing performance gaps via R&D
- Rapid process changes making formulations obsolete
- Know-how diffusion through employee mobility
Leading indicators
- Share of new-node qualification wins
- MS gross margin and ASP trends
- Customer concentration (top-10 share) trend
- R&D spend as % of sales
- Adoption of new interconnect/substrate materials (e.g., SiC, new metals) in customer roadmaps
- Time from development to commercial qualification for new formulations
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.