MKS (MKSI) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Strategic direction and market positioning

• Maintains focus on semiconductors and electronics & packaging (E&P), now addressing 85% of semiconductor fab equipment and 70% of packaging steps globally.

• Broad portfolio enables close customer collaboration, early insight into industry inflections, and confident strategic investments.

• Expanded beyond critical subsystems to include lithography, metrology, inspection equipment, full systems, and chemistry, broadening supplier status.

• Acquisition of Atotech and advanced packaging capabilities support growth and market share gains.

• Positioned to serve both semi and E&P markets with a comprehensive solution set, aiming to gain share through portfolio breadth.

Semiconductor market outlook and capacity

• Industry expects a multi-year upcycle, driven by AI-related demand, with customers preparing for sustained growth through 2026 and beyond.

• Current manufacturing capacity can support $125B WFE plus a 30% surge, with a new Malaysia plant adding further scalability and efficiency.

• Outperformance of WFE expected during the ramp, leveraging historical growth above market rates and expanded product categories.

• Supply chain improvements, including multiple suppliers and inventory strategies, enhance readiness for demand surges.

• Direct, ongoing engagement with top customers ensures alignment with their ramp and inventory needs.

Electronics & packaging (E&P) segment trends

• E&P tools business consists of flexible laser drilling and chemistry equipment, with the latter at record levels and strong attach rates.

• Chemistry equipment run rate at $200M/year, with AI and China+1 customers driving demand; attach rate for chemistry revenue is 20–40% of equipment value.

• Chemistry revenue mix: one-third each from multi-layer boards, HDI, and substrate boards; AI-related chemistry revenue doubled from 2024 to 2025 and is expected to keep rising.

• Consumer electronics cycles impact quarterly chemistry revenue, but AI tailwinds are expected to offset any headwinds.

• E&P is becoming as strategically important as semi, with laser drilling and packaging complexity enabling AI advancements.