Entegris Forecasts 2026 MSI Growth and Industry Impact on AI Investment

Entegris’ forecast for industry MSI growth in 2026 (advanced logic + memory) and the implication for AI spend and CapEx

1) Entegris’ 2026 MSI growth forecast (industry MSI)

Entegris says it now expects mid- to high single-digit industry MSI growth for the remainder of 2026 ¹. Management also frames this outlook as correlating to ~75% of its business (i.e., the unit-driven / MSI-exposed portion) ¹.

Within that MSI outlook, Entegris provides a qualitative breakdown of end markets relevant to “advanced logic memory markets”:

• Advanced logic (about ~40% of Entegris revenue) is “well positioned for strong growth in 2026,” supported by accelerating demand for leading-edge compute and aggressive capacity investments by the industry to support next-generation nodes ².
• Memory (about ~30% of Entegris revenue) is “structurally strong,” underpinned by AI workloads and DRAM/NAND technology road maps; specifically, DRAM demand continues to accelerate, driven by increased AI consumption, and Entegris expects DRAM capital investments to continue at pace, supporting accelerated DRAM MSI growth beyond 2026 ².
• For NAND, Entegris expects MSI to increase in 2026 but “remains more nuanced than DRAM,” with near-term growth tied to layer scaling and the resulting incremental Entegris content; wafer start activity is expected to improve in the latter half of 2026 into 2027 ².

Bottom line on MSI growth in 2026 (per Entegris): mid- to high single-digit industry MSI growth for the rest of 2026 ¹, with stronger underlying tailwinds in advanced logic and DRAM-driven memory tied to AI demand ²¹.

---

2) How this impacts their AI spend (R&D / innovation posture)

Entegris does not state a specific “AI spend” dollar figure in the provided excerpts. However, it does describe how it budgets innovation and why it sees the AI-driven technology roadmap as reinforcing its investment priorities:

• Entegris indicates it targets ~10% of revenue reinvested into R&D as a benchmark ³.
• Management argues that as semiconductor processes get more demanding—moving to higher layer counts/memory, advanced packaging for DRAM, and advanced logic from 2nm to sub-2nm—the contamination/purity and process complexity requirements become “orders of magnitude harder,” and that this plays “very well” for its innovation engine and product development needs ³.

Interpretation (supported by the transcript language):
The AI-linked industry trajectory Entegris describes (AI workloads driving DRAM demand and capacity investment) supports continued complexity and process-material demand, which in turn underpins Entegris’ sustained R&D/investment posture (roughly 10% of revenue level) rather than “ticking down” investment ²³.

---

3) How MSI (and AI-driven capacity demand) impacts Entegris’ capital expenditures (CapEx)

Entegris explicitly connects industry CapEx and end-market signals to its own business expectations, and it also provides its own 2026 CapEx guidance:

A) Industry CapEx momentum linked to MSI-up cycle

• Entegris says fab spending is improving and that this correlates with the remaining ~25% of its business that is fab construction and WFE-driven ².
• It also states that it is “incrementally more positive” on the industry CapEx portion of its business, citing return to growth in fab spending, driven by selective but substantial global capacity additions and pull forwards in leading-edge logic and memory, and that WFE spending forecast remains strong as projects advance ⁴.
• In the same discussion, Entegris states it expects tempered MSI growth in mainstream logic through 2026, improving thereafter—implying the strongest MSI momentum is concentrated in advanced logic and memory rather than mainstream ⁴.

B) Entegris’ own 2026 CapEx guidance

Entegris guides:

• CapEx of $250 million for full year 2026 ⁵.
• It further comments that CapEx-driven revenue decreased modestly year-over-year in Q1 2026, “mostly driven” by prior-year order timing dynamics from tariffs, but that given current bookings patterns, it expects 2026 CapEx revenue to increase throughout the remainder of the year, supported by strong WFE growth and improving fab construction trends, particularly in the latter half of 2026 and into 2027 ⁶.

C) The direct “MSI → their CapEx” linkage

From the excerpts, management’s causal chain is not “MSI growth mechanically increases Entegris CapEx.” Instead, MSI growth primarily supports Entegris’ unit-driven revenue (approximately 75% of the business) ¹, while its own CapEx is guided separately (e.g., $250M in 2026) ⁵. What MSI signals do is:

• reinforce confidence that the industry is entering/continuing an upcycle in advanced logic and memory, which improves visibility into end-market demand and fab/WFE build-out—the segment of Entegris’ business that is more directly “CapEx-driven” (~25% of revenue) ²⁴⁷⁶.

So, Entegris’ CapEx guidance for 2026 is consistent with a constructive backdrop:

• industry MSI expected to grow mid- to high single digits for the rest of 2026 ¹, and
• fab/WFE spending improving with capacity additions in leading-edge logic and memory ²⁴, while Entegris budgets $250M CapEx for full-year 2026 ⁵.

---

Summary answer

• Forecast for industry MSI growth in 2026 (advanced logic + memory markets): Entegris expects mid- to high single-digit industry MSI growth for the remainder of 2026 ¹, with advanced logic and memory/DRAM particularly supported by AI-driven compute and AI consumption that is prompting aggressive capacity investments ²¹.
• Impact on Entegris “AI spend”: Entegris doesn’t quantify “AI spend” in the excerpts, but it maintains an R&D reinvestment benchmark of ~10% of revenue and ties continued investment to increasing process complexity driven by advanced nodes, memory, and advanced packaging linked to the same AI workload demand Entegris highlights ³².
• Impact on Entegris capital expenditures: Entegris guides CapEx of $250 million for full-year 2026 ⁵. MSI growth primarily supports its unit-driven revenue (~75% of business) ¹, while improving industry fab/WFE CapEx supports the ~25% CapEx-driven portion of its revenue and is expected to lift CapEx-driven revenue in the latter half of 2026 and into 2027 ⁶⁴⁷.