Entegris Joined by White House Representatives and Colorado Governor to Celebrate $75 Million CHIPS Act Funding Announcement

Business Wire 18-Jul-2024 6:11 PM

Event in Colorado Springs highlighted the importance of building a strong U.S. semiconductor manufacturing infrastructure to support future industry growth.

Entegris (NASDAQ:ENTG), a global leader in advanced materials science, today celebrated its award of CHIPS Act funding at its Colorado Springs construction site with several federal, state, and local government guests in attendance.

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Federal, state, and local government guests joined Entegris to celebrate funding under the Chips Act. From left to right: Bill Shaner, SVP and President of Advanced Materials Handling (AMH) of Entegris; Dr. Laurie Locascio, Under Secretary of Commerce for Standards and Technology and the director of the National Institute of Standards and Technology (NIST); Cami Bremer, Chair of El Paso County Commission; Yemi Mobolade, Mayor of Colorado Springs; Bertrand Loy, President and Chief Executive Officer of Entegris; Jared Polis, Governor of Colorado; Arati Prabhakar, Ph.D., Director of the White House Office of Science and Technology Policy and Assistant to the President for Science and Technology; Johnna Reeder Kleymeyer, President and CEO of Colorado Springs Chamber of Commerce and Economic Development Corporation (Photo: Entegris)

On June 26, Entegris and the U.S. Department of Commerce announced entry into a non-binding Preliminary Memorandum of Terms (PMT) for up to $75 million in proposed direct funding to Entegris under the CHIPS and Science Act. This funding would support the development of Entegris' state-of-the-art facility in Colorado Springs designed to create products critical to the future of semiconductor manufacturing in the U.S.

The commemorative event included remarks from:

• Arati Prabhakar, Ph.D., Director of the White House Office of Science and Technology Policy (OSTP) and Assistant to the President for Science and Technology
• Dr. Laurie Locascio, Under Secretary of Commerce for Standards and Technology and the director of the National Institute of Standards and Technology (NIST)
• Jared Polis, Governor of Colorado
• Cami Bremer, Chair of El Paso County Commission
• Yemi Mobolade, Mayor of Colorado Springs
• Johnna Reeder Kleymeyer, President and CEO of Colorado Springs Chamber of Commerce and Economic Development Corporation
• Bertrand Loy, President and Chief Executive Officer of Entegris
• Bill Shaner, SVP and President of Advanced Materials Handling (AMH) of Entegris

"The CHIPS Act is not just about increasing production – it's about building resilient infrastructure that supports the entire semiconductor ecosystem," said Bertrand Loy, president and chief executive officer at Entegris. "The U.S. semiconductor industry's strength hinges on a reliable and advanced domestic supply chain of critical process chemistries and solutions, and this initiative is instrumental in making that vision a reality. We are honored to receive this funding and to be recognized as a pivotal player in the semiconductor ecosystem as the first materials supplier awarded funding through this federal initiative."

Arati Prabhakar, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy said, "Under President Biden's leadership, we're creating a new chapter in semiconductor manufacturing in America. Through the President's CHIPS and Science Act, we're teaming with companies like Entegris to strengthen the semiconductor supply chain here at home. This is exactly what we need to compete in the global economy, bolster our national security, and create good jobs that support families in Colorado and across the country."

Entegris' new Colorado Springs manufacturing center of excellence in Colorado Springs will support the company's Advanced Materials Handling (AMH) and Microcontamination Control (MC) divisions. The facility, which is targeted to begin initial commercial operations in 2025, will be built in multiple phases: the first phase will support production of FOUPs (Front Opening Unified Pods) – which are currently only produced abroad – and liquid filter membranes, and the second phase will support the production of advanced liquid filters, purifiers, and fluid handling solutions.

The construction and operation of the facility will align with Entegris' comprehensive Corporate Social Responsibility framework, emphasizing environmental sustainability. By 2030, Entegris has established a sustainability goal to reduce its greenhouse gas emissions (both Scope 1 and Scope 2) by 42% from the 2020 baseline. The Colorado Springs facility will contribute to the achievement of this goal. Entegris also plans to include facility designs that prioritize water recovery and recycling measures to reduce dependency on freshwater and to recycle 80% of process water.

Entegris is partnering with Microchip Technology Inc., Pikes Peak State College, Pikes Peak Business and Education Alliance, as well as various high school districts and universities to collaborate on workforce development and create a self-sustaining ecosystem in Colorado Springs and the Mountain West region.

Entegris also is continuing its support of STEM with current scholars at University of Colorado School System, School of Mines, and through the Denver Scholarship Foundation, as well as opportunities for continued education through tuition reimbursement and grants with Colorado Technical University.

In addition, Entegris' project will be a Military Center of Excellence that aims to recruit 50% of its workforce from veterans and military families through partnerships with Hiring our Heroes, Mt. Carmel Veterans Service Center, the SEMI Veteran Foundation and local military bases.

About Entegris

Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan. Additional information can be found at www.entegris.com.

Cautions Regarding Forward Looking Statements

This news release contains "forward-looking statements." The words "believe," "expect," "anticipate," "intend," "estimate," "forecast," "project," "should," "may," "will," "would" or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements may include statements about fluctuations in demand for semiconductors; global economic uncertainty and the risks inherent in operating a global business; supply chain matters; inflationary pressures; future period guidance or projections; the Company's performance relative to its markets, including the drivers of such performance; market and technology trends, including the duration and drivers of any growth trends; the development of new products and the success of their introductions; the focus of the Company's engineering, research and development projects; the Company's ability to obtain, protect and enforce intellectual property rights; information technology risks; the Company's ability to execute on our business strategies, including with respect to manufacturing delays and the Company's expansion of its manufacturing presence in Taiwan and in Colorado Springs; the Company's capital allocation strategy, which may be modified at any time for any reason, including with respect to share repurchases, dividends, debt repayments and potential acquisitions; the impact of the acquisitions and divestitures the Company has made and commercial partnerships the Company has established, including the acquisition of CMC Materials, Inc. (now known as CMC Materials LLC) ("CMC Materials"); the amount of goodwill we carry on our balance sheets; key employee retention; future capital and other expenditures, including estimates thereof; the Company's expected tax rate; the impact, financial or otherwise, of any organizational changes or changes in the legal and regulatory environment in which we operate; the impact of accounting pronouncements; quantitative and qualitative disclosures about market risk; climate change and our environmental, social and governance commitments; and other matters. These forward-looking statements are based on current management expectations and assumptions only as of the date of this news release, are not guarantees of future performance and involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, but are not limited to, weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company's products and solutions; the level of, and obligations associated with, the Company's indebtedness, including the debts incurred in connection with the acquisition of CMC Materials; risks related to the acquisition and integration of CMC Materials, including unanticipated difficulties or expenditures relating thereto, the ability to achieve the anticipated synergies and value-creation contemplated by the acquisition of CMC Materials and the diversion of management time on transaction-related matters; raw material shortages, supply and labor constraints, price increases, inflationary pressures and rising interest rates; operational, political and legal risks of the Company's international operations; the Company's dependence on sole source and limited source suppliers; the Company's ability to meet rapid demand shifts; the Company's ability to continue technological innovation and introduce new products to meet customers' rapidly changing requirements; substantial competition; the Company's concentrated customer base; the Company's ability to identify, complete and integrate acquisitions, joint ventures, divestitures or other similar transactions; the Company's ability to effectively implement any organizational changes; the Company's ability to protect and enforce intellectual property rights; the impact of regional and global instabilities, hostilities and geopolitical uncertainty, including, but not limited to, the ongoing conflicts between Ukraine and Russia, between Israel and Hamas and other tensions in the Middle East, as well as the global responses thereto; the increasing complexity of certain manufacturing processes; changes in government regulations of the countries in which the Company operates, including the imposition of tariffs, export controls and other trade laws, restrictions and changes to national security and international trade policy, especially as they relate to China; fluctuation of currency exchange rates; fluctuations in the market price of the Company's stock; and other risk factors and additional information described in Entegris' filings with the U.S. Securities and Exchange Commission (the "SEC"), including under the heading "Risks Factors" in Item 1A of Entegris' Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 15, 2024, and in Entegris' other SEC filings. Except as required under the federal securities laws and the rules and regulations of the SEC, Entegris undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates.

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