Case Study Dual Approach Driving Increased Revenues with Leading Technology Customer

Business Case Study: Dual Market Penetration Success with NT Flow Controller at TEL

Situation and Challenge: ENTG, after acquiring NT International for over $20M, aimed to exploit revenue growth and secure market adoption with OEMs, particularly with Tokyo Electron Ltd., (“TEL”) in Japan. NT faced challenges related to 1) securing the specification position on next-gen TEL wet process tools, 2) ramping up production output in the NT facility, and 3) enabling technology leaders like TEL in improving and maintaining quality in critical semiconductor processing steps like wet-etch.

Parallel Approaches:

1.  NT Flow Controller OEM Spec with TEL Photoresist

Actions Taken: Internally, ENTG hired a controls engineer, invested in automated characterization and test stations, updated visual work instructions, and added a second shift. Externally, they targeted TEL in Japan, conducted product characterization with TEL engineering oversight, and established direct company-to-company contacts for enhanced support and visibility.

Results Achieved: Despite obstacles like the OEM design cycle and technical barriers, ENTG achieved significant milestones. They secured qualification with Tokyo Electron for wet etch and retrofit of TEL photolithography, doubled revenue from $8 million to $16 million with 65% gross margins, and generated over $500K in cash every 6 months.

2. NT Flow Controller Field Retrofit of Peristaltic Pump with TEL

Actions Taken: ENTG introduced and leveraged a new OEM spec position with TEL for the NT Flow Controller. They implemented a closed-loop flow controller solution, improved process knowledge and control, conducted field testing for qualification, and leveraged AMAT's position in CMP.

Results Achieved: Despite obstacles like visibility issues and Copy Exact practices, ENTG ramped application revenue to $20 million in 4 years, increased Fluid Handling business revenue by 56%, circumvented the new OEM spec cycle, achieved qualification with AMAT for CMP slurry dispense, and captured valuable yield improvements and cost reductions.

Conclusion: Through parallel approaches targeting TEL with different aspects of the NT Flow Controller, ENTG demonstrated exceptional market penetration success, revenue growth, and technological advancement. Their strategic actions, overcoming obstacles, and leveraging partnerships with TEL and AMAT led to significant achievements, highlighting the effectiveness of their market penetration strategies.