Keeley Small Cap Fund on MKS Instruments Inc.
Thesis
MKS supplies critical vacuum, photonics, materials, and precision technologies used in semiconductor manufacturing and advanced packaging. The company is benefiting from a cyclical recovery in memory equipment and the increasing complexity of AI chip production. Balance-sheet deleveraging after the Atotech acquisition provides an additional catalyst.
“MKS is benefiting from both a cyclical recovery in NAND/memory equipment as well as increasing complexity in AI chip manufacturing processes.”
Key risks
- Debt from the Atotech acquisition