What happened with ICHR today?
No read yet
Uses news and trading volume to explain the day’s move and how it relates to the market.
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
Semiconductor manufacturing equipment needs to deliver precise amounts of specialized gases and chemicals during chip production. Ichor Holdings builds the subsystems that deliver, monitor and control those gases, and blend and dispense liquid chemicals. Equipment manufacturers outsource this work to Ichor and pay it for the finished subsystems and components, generally through purchase orders. Semiconductor equipment supplies account for the vast majority of its revenue; precision manufacturing for aerospace and defense customers is a smaller business.
Ichor’s engineers often work with customers early in equipment design, helping get its products selected for their machines. Lam Research and Applied Materials together provide most of its sales, so orders from those two customers matter greatly. Neither is required to buy fixed or minimum volumes under long-term contracts. Demand also depends on semiconductor equipment spending, which follows chip demand. U.S. export controls restrict sales for certain semiconductor manufacturing activities in China, and licensing requirements can delay or prevent shipments.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Ichor Holdings’ results hinge chiefly on equipment orders at Lam Research and Applied Materials, with ASML also identified as a major equipment-maker customer.
Ultra Clean Holdings competes with Ichor Holdings for equipment makers’ purchases of systems that deliver gases and chemicals during chip production. Its gas-delivery systems and chemical-delivery modules are the products to watch for competition over outsourced subsystem work.
Lam Research’s equipment demand feeds directly into Ichor Holdings’ sales: it buys Ichor subsystems and components for tools sold to chip manufacturers, accounting for $351.4 million of Ichor’s fiscal 2025 sales. Watch demand for Lam’s etch and deposition equipment, the markets behind Ichor’s growth that year.
Applied Materials is a direct source of Ichor Holdings’ revenue, buying its subsystems and components for chipmaking equipment and accounting for $371.7 million of Ichor’s fiscal 2025 sales. Its Semiconductor Systems business, which generates its largest share of revenue, is the clearest equipment-demand readout to watch.
MKS and Ichor Holdings both depend on equipment makers’ production cycles: MKS sells instruments and subsystems that measure and control chipmaking processes, while Ichor supplies gas- and chemical-delivery systems. MKS’s semiconductor business is the relevant demand signal, rather than its electronics, packaging or specialty-industrial sales.
Advanced Energy and Ichor Holdings both feel changes in semiconductor equipment production orders: Advanced Energy sells products that turn facility electricity into precisely controlled power for equipment, while Ichor supplies gas- and chemical-delivery systems. Watch its Semiconductor Equipment sales, rather than its data-center or other markets.
KLA and Ichor Holdings share exposure to chip-factory investment: KLA sells equipment that helps manufacturers control processes and improve yields, while Ichor sells fluid-delivery subsystems to equipment makers. KLA’s Semiconductor Process Control business is the part to watch for that shared spending cycle.
Onto Innovation and Ichor Holdings reach the same chip-factory spending through different buyers: Onto sells tools that measure chip structures and inspect defects to chip fabricators, while Ichor sells fluid-delivery subsystems to their equipment suppliers. Demand for Onto’s measurement and inspection tools offers a view of those fabricators’ investment.
Nova and Ichor Holdings both serve investment in wafer-processing technology: Nova sells measurement tools and systems that analyze and replenish electroplating chemicals, while Ichor supplies equipment makers with gas- and chemical-delivery subsystems. Nova’s electroplating chemical-control platforms are the closest product overlap in the processes they serve.
Veeco and Ichor Holdings are exposed to investment in the same types of chipmaking processes: Veeco sells deposition and wet-processing equipment to device manufacturers, while Ichor supplies equipment makers with gas- and chemical-delivery subsystems for those processes. Watch Veeco’s logic, memory and advanced-packaging equipment demand, rather than its hard-disk-drive business.
Entegris and Ichor Holdings both serve chipmakers’ need to keep gases and chemicals pure and deliver them accurately: Entegris sells filtration and fluid-management products to semiconductor customers, while Ichor supplies delivery subsystems to equipment makers. Entegris’s Advanced Purity Solutions business is the closest window on those purity and fluid-handling needs.
Lam Research Corp earningsLRCX
Lam Research’s report will show whether demand for its etch and deposition tools is holding up, a direct read on orders from one of Ichor Holdings’ largest customers.
Watch Lam’s etch and deposition equipment demand alongside any indication of purchasing or orders. Steady demand and continued buying would support sales opportunities with one of Ichor’s largest customers. Weaker demand or reduced buying would put that revenue channel at risk and underscore Ichor’s reliance on a few customers.
Ultra Clean Holdings, Inc. earningsUCTT
Ultra Clean Holdings’ report will show demand for gas- and chemical-delivery systems, a direct window into competition for the outsourced subsystem work Ichor Holdings supplies.
Watch Ultra Clean’s gas-delivery systems and chemical-delivery modules alongside any order or demand commentary. Stronger results would point to healthy demand for outsourced subsystems and potentially tougher competition for Ichor; weaker results could mean less competitive pressure, but would not show that orders shifted to Ichor.
Fed Interest Rate Decision
Ichor’s Fed interest-rate decision matters because it can change the interest Ichor pays on its $125 million variable-rate term loan.
Expected4.0%Last release4.0%
If it comes in above expectations
Higher rates can raise interest expense on Ichor’s variable-rate loan, leaving less cash for working capital, equipment and research.
If it comes in below expectations
Lower rates can ease interest expense on Ichor’s variable-rate loan, leaving more cash for working capital, equipment and research.
Ichor Holdings earningsThis company
Ichor Holdings supplies gas and chemical delivery systems to semiconductor equipment makers, and its report will show whether customer orders are growing sales without further squeezing gross margin.
Read net sales alongside gross margin, the share of sales left after production costs. Rising sales with a recovering margin would show that equipment makers’ orders are turning into more profitable shipments. Rising sales with a flat or falling margin would show that customer pricing, costs or product mix are still eating into the gains; growth has not yet improved in quality.
