Entegris Acquires Advanced Abrasives After Quarterly Sales Reach $1,005.7 Million
Key Facts
Entegris announced on November 3, 2026, that it had completed its acquisition of Advanced Abrasives, saying it is entering the market for silicon carbide- and diamond-based thermal management materials for advanced AI packaging applications. The announcement comes as the company moves to expand its activities from substrate processing solutions into materials targeting heat and power challenges in data centers. Olivier Blachier, a company official, said, "The growth of AI computing, from model training to inference, is increasing power and thermal management requirements in data centers." The available information did not disclose the financial value of the deal. Entegris shares closed at $151.56 on November 2, the trading day before the announcement.
Entegris described the acquired company as a New Jersey-based specialist producer of ultra-fine diamond abrasives used to polish hard substrates. This expertise allows the company to expand its presence in materials related to advanced packaging applications, alongside its silicon carbide business. Entegris said the deal builds on its existing capabilities in chemical and mechanical processing solutions for silicon carbide, including slurries, polishing pads, cleaning and surface preparation. The company links these capabilities to its plan to enter the thermal management materials market, without attributing all new solutions to the acquisition alone. The plan draws on distinct paths: expanding silicon carbide solutions and developing diamond-enhanced thermal interface materials.
On execution, Entegris plans to invest in a new manufacturing line in Taiwan to bring silicon carbide solutions to market. In the United States, the company continues exploratory research and development on thermal interface materials, leaving part of its plan at the development stage. In parallel, it has entered a long-term development partnership with Element Six, a global specialist in synthetic diamonds and a subsidiary of the De Beers Group. The partnership focuses on accelerating the integration of diamond-enhanced thermal management solutions into advanced packaging. Priorities include developing scalable and cost-effective integration methods at the wafer level and for heterogeneous integration.
The move follows strong quarterly results reported by Entegris for the third quarter ended September 26, 2026. Net sales were $1,005.7 million, compared with $807.1 million in the same period of 2025 and $883.2 million in the second quarter of 2026. Net income also rose to $157.8 million, from $70.5 million a year earlier and $93.6 million in the previous quarter. GAAP diluted earnings per share were $1.03, versus $0.46 a year earlier and $0.61 in the previous quarter. Non-GAAP diluted earnings per share were $1.23, compared with $0.72 and $0.93 in the corresponding periods.
Chief Executive Dave Reeder said "increasing semiconductor complexity, rising materials intensity and investment in advanced technologies" are driving the company's opportunities, adding that third-quarter results exceeded the guidance range. Silicon carbide materials are used in power and radio-frequency devices because of their properties, according to a company technical paper. Entegris says demand for these materials is driven by sectors including electric vehicles, renewable energy, data centers and industrial systems. This reflects a broader base of applications than AI alone, while the company links its announced expansion to advanced packaging and thermal management. The published information does not specify the deal's financial impact on Entegris' results.
Entegris expects fourth-quarter 2026 sales of between $1,025 and $1,055 million, and non-GAAP diluted earnings per share of between $1.32 and $1.40. The company is scheduled to present its thermal management platform strategy at its Capital Markets Day in New York on November 9, 2026. The presentation follows the acquisition announcement and manufacturing and development plans, giving the company an opportunity to provide investors with further details on the platform. Until then, the announced steps remain spread across the planned manufacturing line in Taiwan, ongoing research in the United States and the development partnership with Element Six. The financial guidance applies to the fourth quarter and does not include a separate estimate for the deal's contribution.