Qnity Electronics, Inc. Goldman Sachs Communacopia + Technology Conference 2026

Thanks, Jim. Happy to be here.

Yeah, thanks, Jim. We're coming up on the one-year anniversary of the spin and the launch of the company. What a great year to have launched. Couldn't have picked better timing. Qnity is really the largest pure-play material solution provider for the semiconductor ecosystem. We provide a full suite of solutions from the front end to the back end of the stack, including front-end semi fab materials, kind of middle-of-the-line advanced packaging materials that have been some of the fastest-growing parts of the business. On the back end, we do AI PCBs and high-value assembly, things like thermal and EMI shielding, which are also growing very nicely. We're well-positioned with all of the leading customers in the AI ecosystem, and in particular, on the most advanced technologies.

Whether it's high-performance computing or advanced connectivity, the trends around AI and those types of advanced technologies have really been fueling our growth as we continue to enable the success of our customers' technology roadmaps. We support those customers with really a local for local operating model, which for us means we co-locate manufacturing and R&D activities close to where our major customers are located. So you'll see us with significant footprint and presence from a manufacturing and innovation point of view in the U.S., but also I just got back recently from Taiwan, Korea, Japan, and China. So we're off to a good start. We're thrilled with the progress that we're making, and we're looking forward to the future ahead.

Yeah, it's a good question. For us, priority number one, especially as a new public company, has just been establishing that track record of steady, consistent execution. We talk about our business is 90% unit-driven consumables, so we're highly levered to unit volumes across the industry, and the best metric for that typically has always been MSI. We outperform MSI based on the content, opportunities, and growth from the most advanced technologies. Our outperformance this year, we're thrilled with the performance that we've seen in the first half of the year. We're almost 2x MSI, a bit higher than our normal outperformance that we would see, largely because most of the growth that we're seeing is coming from our customers' most advanced technology.

In the semi world, the success that we're seeing with 3 nanometer and 2 nanometer technologies, the dramatic rise of advanced packaging and thermal management are all fueling our growth. Maybe just to characterize a little bit across the two segments, we operate with two business segments, one focused on semiconductor and the other focused on middle-of-the-line and back-end interconnect solutions. Within the semi segment, about 40% of those sales are really to advanced nodes. We think of advanced nodes as anything below 7 nanometer. That business has been growing really nicely for us this year, about 20% here in the first half. On the interconnect side, similar trends around the most advanced technologies, where advanced packaging, thermal management, and AI PCBs comprise about 30% of that segment, and that's been growing by more than 50% year-over-year.

What I'm most excited about is the investments that the industry and all of our customers are making in expanding capacity, primarily at the leading edge. New fabs coming online to support the most advanced technology, whether that's in Taiwan, Korea, Japan, or Arizona, Texas. All of that bodes really well for the future. Dramatic increases in advanced packaging capacity, and a lot of our PCB customers upgrading their capabilities to do more sophisticated, higher-end printed circuit boards that all require more sophisticated and more specialized materials, which is really what's fueling our content growth at the leading edge of technology. We expect that momentum to continue the outperformance through the rest of this year with a really favorable backdrop going into 2027.

Well, interconnect, historically, semi has always grown a little bit faster. With the rapid rise of thermal management and advanced packaging, the interconnect segment has been outpacing. That trend probably continues for the next year or so because of how explosive that growth has been, and we're really well-positioned with leading technology positions across a number of key product categories in that space. I do expect ICs will continue to outpace semi, but we'll have really nice growth from both segments.

Yeah, maybe that's a good question for the guy next door here in a few minutes as well. But if I think about for our portfolio, I think there's two things that I think we're really excited about over the next handful of years. Number one is the continuation of the AI-led transformation across the modern economy. So far, what we've seen is all of the rapid growth, primarily in data centers. And the data center growth has been terrific. We've certainly benefited from that alongside our customers, but it's really just the first leg of the AI-led transformation. I'm excited by the emergence, and data center is kind of all about cloud computing. It's where AI learned to speak and learn to think.