Aug 7 (Reuters) - Industrial materials maker Entegris

Inc ( ENTG ) said on Wednesday it has entered into a long-term

supply agreement with chipmaker ON Semiconductor to

provide technological solutions to help manufacture silicon

carbide (SiC)-based semiconductors.

WHY IT'S IMPORTANT

The surge in adoption of artificial intelligence

applications has thrust semiconductor manufacturers into the

spotlight.

Chipmakers are among the top beneficiaries of the AI boom,

with the iShares Semiconductor ETF gaining nearly 7%

since the start of this year, following a 65% surge in 2023.

CONTEXT

Billerica, Massachusetts-based Entegris ( ENTG ) supplies

advanced materials and processes for semiconductor and other

high-tech industries.

Its offerings include chemical mechanical planarization

(CMP), a critical process used to remove surface irregularities

from silicon wafers during chip manufacturing.

The company counts major chipmakers such as Taiwan

Semiconductor Manufacturing ( TSM ) and Samsung

among its clients.

KEY QUOTES

"Entegris ( ENTG ) is well-positioned to offer complementary

solutions, such as specialty gases, precursors, and graphite, to

meet Onsemi's needs across other semiconductor manufacturing

processes," said Dann Woodland, president of Entegris' ( ENTG ) Materials

Solutions.

MARKET REACTION

Shares of ON Semiconductor were up 2.5% premarket.