MKS (MKSI) BofA Securities 2024 Global Technology Conference summary

Company overview and strategy

• Founded in 1961, initially focused on pressure sensors for vacuum chambers, now holds over 80% market share in that product.

• Expanded through organic growth and acquisitions, becoming a leading supplier of critical subsystems for semiconductor capital equipment.

• Major acquisitions include Newport (lasers, optics, photonics) and Atotech (advanced packaging chemistry and equipment).

• Business is structured into three segments: semiconductors (40% of revenue), electronics and packaging (25%), and specialty industrials (33%).

• Focused on enabling 'More-than-Moore's Law' through advanced packaging and subsystem technologies.

Market trends and growth outlook

• Expects the second half of 2024 to be slightly better than the first half for both semiconductors and electronics/packaging, driven by inventory normalization and consumer product cycles.

• Historically outperforms wafer fab equipment (WFE) growth by 200 basis points over the long term.

• Anticipates DRAM to recover before NAND, with logic and foundry remaining stable; strong growth expected if both DRAM and NAND inflect.

• Advanced packaging is a key growth area, especially as AI and cloud deployments drive demand for more complex substrates.

Technology and product positioning

• Supplies critical subsystems to all major semiconductor equipment makers, with broad integration across customer tools.

• Market leader in advanced packaging chemistry, equipment, and laser tools, uniquely offering all three solutions.

• Differentiated laser drilling tools serve niche applications like low earth orbit satellite PCBs.

• Specialty industrials segment leverages R&D from core markets into life sciences, defense, and industrial applications, providing stability and high margins.