Eric Boyes

Eric Boyes requested a timeline update on the startup of Linde's unit at TSMC's Arizona Fab 2 and asked how gas intensity increases from Fab 1 to Fab 2, impacting Linde's profitability.

Answer

Sanjiv Lamba, CEO, confirmed that Linde's plants for TSMC's Arizona Fab 1 and Fab 2 are already in operation, commissioned, and in various stages of utilization, with Fab 2 ramping up as planned. He explained that advanced nodes lead to higher gas intensity, meaning increased usage of existing gases per node and the introduction of new gases in larger quantities, all contributing to an overall increase in gas intensity for these new fabs.

Eric Boyes requested a timeline update for Linde's unit startup at TSMC's Arizona Fab 2 and clarification on how gas intensity increases from Fab 1 to Fab 2, along with its profitability implications for Linde.

Answer

Sanjiv Lamba, CEO, confirmed that Linde's plants for TSMC's Fab 1 and Fab 2 are already in operation, commissioned, and ramping up as planned (Fab 1 fully utilized, Fab 2 ramping). He explained that advanced nodes, like those in Fab 2, lead to higher gas intensity per node and the introduction of new gases in larger quantities, all contributing to an overall increase in gas intensity and profitability for Linde.

Eric Boyes inquired about the profitability and margin ranking of Aerospace coatings, transparencies, and sealants, as well as the customer mix (military vs. general aviation commercial) and the evolving product mix for transparencies and sealants in 2026 and beyond.

Answer

Senior Vice President and CFO Vince Morales stated that PPG does not disclose profitability by specific product or end market, but confirmed Aerospace is one of the company's better-performing businesses due to technology and specification requirements. Chairman and CEO Tim Knavish added that growth rates are similar across OEM, military, and aftermarket/general aviation, and that coatings represent a minority of the total Aerospace portfolio. He noted that all markets are currently sold out, driving capital and operating expense increases for debottlenecking and significant R&D investment.

Eric Boyes inquired about the profitability and margin ranking of Aerospace coatings, transparencies, and sealants, as well as the customer mix (military vs. GNA commercial) and the evolving product mix for transparencies and sealants in 2026 and beyond.

Answer

Senior Vice President and CFO Vince Morales stated that the company does not disclose profitability by specific product or end market within Aerospace, but confirmed it's one of their better-performing businesses. Chairman and CEO Tim Knavish added that growth rates across OEM, military, and aftermarket/general aviation are similar, and coatings are a minority of their total Aerospace portfolio. He highlighted significant R&D investment as a driver for better margins. Vince Morales reiterated that all Aerospace markets are currently sold out, necessitating capital and operating expense increases.