Qnity Electronics, Inc. 2026 Technology Conference

Yeah, that's a lot. Thanks, Melissa. Look, I'm really excited to be here. It's great to see all of you. We've had a great day talking to a number of investors all day today. Look, we're about nine months old as a company now, and we've had a terrific nine-month start. We sort of picked a perfect launch timing. If I had to pick any time in the last 30 years to have launched a semiconductor company, it would've been the timing that we just had. We've had an exciting nine months. When I think about Qnity, what makes us unique is really, we're the largest pure-play end-to-end solutions provider across the semiconductor ecosystem, with materials that run the full gamut of the semiconductor stack, from front-end semi-fab materials, to the middle of the line in the advanced packaging materials, to back-end, high-value assembly and AI PCB materials.

That affords us the opportunity to capture and benefit from leading-edge technology, working with some of the world's largest and most respected technology companies, where over decades, we've earned a seat at the design table, working with them to enable their technology roadmaps. We're really well-positioned to capitalize on the AI-led transformation that we're seeing, whether that's in investments in the data center or increasingly investments in other parts of the AI-led transformation, across both high-performance computing and advanced connectivities. What I like to say is AI is changing the unit of innovation and how things get built, and materials innovation is really the hidden hero of the AI era in the sense that it's enabling kind of how those designs and how compute can be delivered in new and innovative ways to customers around the world.

We support those customers with a local for local operating model that has allowed us to co-locate our innovation and manufacturing capabilities in the major centers of geography for this industry, whether that's the U.S., Taiwan, Korea, Japan, or China. Within DuPont, this business thrived and did really well for a number of years, but it was sort of hidden in the corner of a company that was going through a lot of portfolio changes over the last decade. So it was relatively undiscovered, and I'd say it's still relatively undiscovered. When I think about the things that are fundamentally different, certainly the advantage of the strategic focus of being a pure-play company is first and foremost. But really when I think about what this industry requires, it's really a different sense of the pace of play.

When we were part of a larger, somewhat more bureaucratic organization, both the risk appetite and the pace of play were challenging. Our ability to operate, to kind of step change the clock speed with how the company operates in lockstep with our customers, has been refreshing to us and to them in terms of what we've been able to do already in terms of affecting a culture change within the organization. The different portfolio moves that were happening inside of DuPont also became a too internally focused, where we wanted to reorient the customer with a much more customer-centric mindset. As we came out, customer and innovation and speed became three of our core values.

We've really taken that to heart and really tried to drive that, and I think that culture is underpinning some of the success that we've seen over the last nine months as we've been able to capitalize on the growth momentum in the industry.

Yeah, it's a great question. Maybe I'll use a couple of examples. Certainly, it gives us more strategic flexibility to act quickly. One example that I'll use, we announced in the first quarter of this year two fairly significant capacity investments, one in Delaware and another one of a new building that we acquired in Taiwan. One of the biggest constraints in the industry has been clean room capacity. This facility in Taiwan, it was less than 100 yards from our existing Taiwan manufacturing facility, and it was a five-story building with three floors of already built-out clean room capacity. Now, it was a $60 million price tag. That's what we ended up paying for it. We didn't know what the price tag was going to be, so we needed some flexibility to negotiate that.

I think previously, that would've been a six-month process in order to get authorization all the way to the board level to go through that. We did it in 10 days. We had the purchase contract signed in 10 days. So much more flexibility to time the strategic investments and operate with the speed that this industry requires, because there was a building that had come up before that, and literally it was gone in a week. Because that's how fast this industry moves, particularly in Asia. The other thing I would say is, we were fortunate enough to do a couple of acquisitions even while we were part of DuPont, but doing acquisitions was always a little bit of a challenge because there was so much other portfolio activity that there was a pull on the resources.

The same resources that would do the acquisition were doing some of the other portfolio moves, and so there was this constant tension of, is now the right time? Not to mention, when you're trading at an industrial multiple or a chemistry industry multiple and trying to do acquisitions in the semiconductor industry, the multiple divergence makes the economics a bit more challenging. So now that we're a pure play, we've seen some revaluation that has already happened. I think there's more opportunity to go further. But certainly that unlocks a little bit more strategic flexibility for the economics that would make sense in our industry. Our portfolio has been built through a series of really smart acquisitions over time, and we continue to be interested in leading technology positions that would expand the breadth and depth of our portfolio, especially in fast-growing areas like advanced packaging and thermal management.