Ichor (ICHR) UBS Global Technology and AI Conference summary

Business overview and market positioning

• Supplies critical components to process tool and EUV manufacturers, with top customers accounting for 70% of business.

• Gas panel assembly is 60% of business, with additional focus on chemical delivery and precision components.

• Advanced packaging and high bandwidth memory are key growth areas, with increasing integration of proprietary products.

• Leverage to deposition and etch markets, expected to strengthen in 2025.

• Customer base diversification has improved, with ASML and ASMI growing as significant clients.

Industry trends and growth drivers

• NAND demand is rebounding, with strong outlook for 2025 driven by storage infrastructure upgrades.

• Gate-all-around and advanced packaging are increasing process steps and tool demand, benefiting suppliers.

• WFE growth outside China is expected to be robust, offsetting declines in China.

• Company expects to outgrow the market even in a flat WFE environment due to share gains and inventory normalization.

Strategic initiatives and margin expansion

• Insourcing of components and development of proprietary products are driving higher gross margins.

• Targeting 20% consolidated gross margin, with incremental margin flow-through rising to 25-30% as integration increases.

• Flow controller integration and qualification expected to provide a step-up in margins, with major impact from 2025-2026.

• Operational leverage expected as revenue grows, with SG&A and R&D investments managed for efficiency.