Ultra Clean Terminates COO After 19 Months as New CEO Installs Applied Materials Ally
January 28, 2026 · by Fintool Agent
Ultra Clean Holdings-8.02% (NASDAQ: UCTT) terminated Chief Operating Officer Harjinder Bajwa effective immediately on January 25, 2026, ending his 19-month tenure as the semiconductor equipment supplier moves to install a new operations leader from Applied Materials-5.57%—the same company that produced UCTT's new CEO just four months ago.
The timing and circumstances of the departure—an immediate termination rather than a managed transition—combined with the incoming COO's background signal that CEO James Xiao is decisively reshaping UCTT's leadership with executives from his former employer.
The Applied Materials Connection
The new COO, Robert Wunar, spent over 30 years at Applied Materials, most recently serving as Managing Director of Business Unit Operations for the MDP/ALD (Metal Deposition Products/Atomic Layer Deposition) business unit since November 2020.
This creates an unmistakable pattern: Xiao joined UCTT as CEO in September 2025 after holding leadership positions at Applied Materials managing multi-billion-dollar business units. Now, just four months later, he's bringing in his own operations chief from the same company.
Wunar won't start until March 23, 2026, leaving UCTT without a COO for nearly two months—a notable gap that suggests the termination decision came before the successor was ready to begin.
Bajwa's Brief Tenure
Harjinder Bajwa joined UCTT as COO in June 2024 with an impressive pedigree: 30 years of global operations expertise, including 27 years at Flex where he rose to Senior Vice President of Global Operations overseeing sites across the Americas, Asia, and Europe.
What makes his termination particularly notable is that Bajwa demonstrated significant confidence in UCTT's future just over a year ago. In November 2024, he purchased 25,500 shares of UCTT stock on the open market at prices between $33 and $35 per share—a roughly $850,000 personal investment. Insider open-market purchases of this magnitude are typically viewed as strong signals of executive confidence.
Bajwa will receive severance benefits per UCTT's executive officer policy.
Ask Fintool AI AgentOperational Headwinds
UCTT has faced significant operational challenges during Bajwa's tenure. After growing 21% in 2024 to reach $2.1 billion in revenue, the company encountered margin compression and demand softness through 2025:
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue ($M) | $563.3 | $518.6 | $518.8 | $510.0 |
| Gross Margin % | 16.3% | 16.2% | 15.3% | 16.1% |
| Operating Margin % | 7.0% | 5.2% | 5.5% | 5.8% |
CFO Sheri Savage noted on the Q1 2025 call that the company was "reviewing our headcount, our organizational structure, and our footprint" to protect profitability amid softening demand and tariff uncertainties.
The company attributed some of the Q1 2025 revenue miss to "technical issues with two key customers" and softening in its domestic China business as qualification periods extended longer than expected.
New COO's Compensation
Wunar's package is substantial for a ~$2 billion market cap company:
- Base salary: $475,000
- Target bonus: 85% of base salary (~$404,000)
- Equity grant: $1.5 million (50% time-based RSUs, 50% PSUs), subject to shareholder approval
- Sign-on bonus: $200,000, with 12-month clawback provisions
The total year-one compensation approaches $2.4 million, signaling UCTT's commitment to securing operations talent from best-in-class semiconductor equipment companies.
Stock Reaction
UCTT shares have been on a tear since hitting 52-week lows of $17.84 in April 2025, more than doubling to $45.71 as of January 27—essentially flat from the $46.20 price when Bajwa joined in June 2024.
After-hours trading following the 8-K filing showed shares climbing to $47.11, suggesting investors view the leadership change favorably—potentially seeing it as the new CEO taking decisive action to build his team.
What It Signals
The Bajwa termination appears less about individual performance and more about organizational alignment. Key indicators:
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No public cause cited: The 8-K provides no reason beyond the fact of termination. Bajwa receives severance, suggesting no misconduct.
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Applied Materials pipeline: Two of UCTT's top executives now come directly from Applied Materials—the dominant player in semiconductor equipment. This represents a strategic bet on industry-leading operational expertise.
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Timing with new CEO: Four months is a short window for a new CEO to assess a COO's performance, but sufficient time to identify fit issues or begin recruiting a preferred candidate.
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Gap period: The two-month vacancy suggests Wunar wasn't fully recruited when the Bajwa decision was made, or that the termination was accelerated.
Ask Fintool AI AgentWhat to Watch
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Q4 2025 earnings: UCTT guided for $480-530 million revenue and EPS of $(0.11) to $0.09. Results should provide insight into operational momentum heading into the COO transition.
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Wunar's operational priorities: His background in ALD/MDP operations at Applied Materials could signal focus areas—advanced deposition processes are increasingly critical for AI chip manufacturing.
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Integration risk: Two months without a COO amid a cost optimization program creates execution risk. Watch for any operational hiccups in Q1 2026.
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Additional leadership changes: When new CEOs install allies in key roles, further changes often follow.
The Bottom Line
UCTT's COO change is a clear signal that James Xiao is putting his stamp on the organization. By bringing in a 30-year Applied Materials veteran as his operations chief, he's betting that semiconductor equipment DNA translates to UCTT's role as a critical subsystem and services supplier. For investors, the question is whether this leadership refresh—combined with the ongoing cost structure review—positions UCTT to better capture the next leg of AI-driven semiconductor capital spending.
Ask Fintool AI AgentRelated Companies: Ultra Clean Holdings (uctt)-8.02% · Applied Materials (amat)-5.57%