Entegris 2026 Industry MSI Growth, R&D, and CapEx Outlook

Entegris forecast: industry MSI growth for advanced logic & memory in 2026

In its Q1 2026 earnings commentary, Entegris stated it now expects mid- to high single-digit industry MSI growth for the remainder of 2026.¹ Entegris also characterized the end-market mix in a way that links this MSI view primarily to its exposure profile: advanced logic (~40% of total revenue) and memory (~30% of total revenue).² For advanced logic specifically, Entegris expects strong growth in 2026, noting that utilization at the most advanced nodes is already operating near effective capacity and that the industry is responding with aggressive capacity investments to support leading-edge demand.²

For memory, Entegris described a structurally strong environment underpinned by AI workloads and technology roadmaps reshaping DRAM and NAND architectures.² Within that, Entegris said:

• DRAM demand continues to accelerate, driven by increased AI consumption, and it expects DRAM capital investments to continue at pace, supporting accelerated DRAM MSI growth beyond 2026.²
• NAND demand and MSI are expected to increase in 2026, though it is “more nuanced than DRAM,” and Entegris attributed the near-term NAND growth driver to layer scaling and the resulting incremental Entegris content.²

Bottom line on the forecast level: Entegris’s explicit numeric direction is the “mid- to high single-digit” MSI growth for the remainder of 2026.¹ Management ties the strength especially to advanced logic and DRAM memory (AI-linked), while noting mainstream logic is mixed and expects tempered MSI growth through 2026.²³

How this impacts Entegris’s AI spend (R&D) and capital expenditures (CapEx)

1) Impact on “AI spend” (Entegris’s R&D intensity / innovation commitments)

Entegris does not provide a separate “AI spend” line item in the excerpted text, but it does explicitly discuss how its innovation/R&D is sized and why it matters given AI-driven semiconductor transitions. Management said there is “no intention to kind of tick down R&D” and that it generally budgets roughly 10% of revenue invested back into R&D.⁴

Importantly for the MSI/AI linkage, management tied the need for ongoing R&D to the same technology trends that drive higher Entegris content:

• Higher layer counts and memory and more advanced packaging for DRAM require incremental process inputs (e.g., slurries, pads, filtration).⁴
• Moving advanced logic from ~2nm to sub-2nm increases contamination control and precision requirements “by orders of magnitude,” which supports Entegris’s need for continued innovation.⁴

Since Entegris expects strong advanced logic growth in 2026 driven by leading-edge compute demand and near-capacity utilization, and expects DRAM MSI to accelerate (with AI consumption as a key demand driver), the logical operational implication is continued (not reduced) R&D investment to match the increasing complexity and materials needs.²⁴ The excerpted evidence for that “no R&D cut” and “~10% of revenue” framework is direct.⁴

2) Impact on Entegris CapEx

Entegris’s CapEx outlook in 2026 is explicit in the excerpt and is consistent with the constructive MSI/end-market environment:

• Entegris guided full-year 2026 CapEx of $250 million.⁵
• Management also said it expects CapEx-driven revenue to increase throughout the remainder of 2026, driven by strong WFE growth and improving fab construction trends.⁶
• On the earlier part of the cycle, management explained that its CapEx exposure is about 25% of revenue, with the rest unit-driven (~75%), and further described how memory fits the cycle (“memory… is kind of in the wave 1… really… DRAM at the forefront”).⁷

Putting it together: the mid- to high single-digit MSI growth expectation for the remainder of 2026 implies continued utilization and capacity builds, which Entegris indicates supports improved fab spending / WFE trends and therefore continued growth in its CapEx-driven business into the latter half of 2026—but Entegris still anchors its total CapEx plan at $250M for 2026.¹⁶⁵ Separately, management said it is incrementally more positive about the portion of its business tied to industry CapEx, noting selective but substantial global capacity additions and pull forwards (especially in leading-edge logic and memory).³

Final synthesis

• MSI growth forecast (advanced logic & memory-linked): Entegris expects mid- to high single-digit industry MSI growth for the remainder of 2026.¹ Management expects strong advanced logic growth in 2026 and calls memory structurally strong, with AI-driven DRAM demand acceleration and DRAM capital investments continuing at pace (supporting accelerated DRAM MSI growth beyond 2026).²¹
• AI spend / R&D impact: While Entegris doesn’t quantify an “AI spend” number here, it states it will not cut R&D and will target ~10% of revenue invested in R&D, justified by the increasing materials/process complexity tied to advanced nodes, higher layer-count memory, and advanced packaging that are all linked to AI demand.⁴²
• CapEx impact: The MSI and end-market outlook translates into improving fab/WFE trends and higher CapEx-driven demand later in 2026, while Entegris’s guided 2026 CapEx remains $250 million.⁶⁵