TacticScaleWhat Ultra Clean Does & How It Makes Money (UCTT)
Updated October 2026 · reflects Ultra Clean's latest reported financials
Supplier of critical subsystems, parts, and cleaning services for chipmaking. It earns revenue by manufacturing outsourced subsystems, components, and parts for semiconductor equipment OEMs, and by charging chipmakers and OEMs for chamber-part cleaning, coating, and contamination-analysis services.
How Ultra Clean makes money
It earns revenue by manufacturing outsourced subsystems, components, and parts for semiconductor equipment OEMs, and by charging chipmakers and OEMs for chamber-part cleaning, coating, and contamination-analysis services.
What Ultra Clean does
Ultra Clean Holdings, founded in 1991 and headquartered in Hayward, California, is an outsourced supplier to the semiconductor industry. It designs, sources, prototypes, engineers, manufactures, and tests critical subsystems for chip-production tools, including gas and fluid delivery systems, wafer transport systems, mechatronic assemblies, process modules, sub-fab support racks, weldments, and temperature-control products such as heaters, sensors, and controllers. Beyond hardware, the company provides validated cleaning and coating services for process tool chamber parts, along with analytical services that check cleaning effectiveness and detect micro-contamination in parts, wafers, chemicals, cleanroom materials, deionized water, and air. Its main customers are semiconductor capital equipment makers and integrated device manufacturers, and it also serves the display, consumer, medical, energy, industrial, and research equipment markets.
Products & services
- Gas and fluid delivery systems
- Wafer transport systems and mechatronic assemblies
- Precision weldments, frames, and process modules
- Heaters, sensors, and temperature controllers
- Tool chamber parts cleaning and coating services
- Micro-contamination analytical services
What is Ultra Clean worth?
On an owner-earnings DCF, Ultra Clean's most-likely value is about $11 versus a recent price near $69 (83% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$6) with a margin of safety — so the honest verdict here is “Stretched — richly priced.” Fair value earns its keep only at the extremes, not in the wide middle.
Today's $69 is above even the optimistic Bull case ($16) — the market expects faster, longer growth than modeled here. Expensive unless that extra growth actually shows up.
⚠ High leverage — net debt is 19.5× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
Ferrotec (An Hui) Technology Development (301297.SZ) · ACM Research (Shanghai) (688082.SS) · Lam Research (LRCX) · ACM Research (ACMR) · Ichor (ICHR)