Share tips: Top-notch chip-maker

This niche provider to the semiconductor industry has a cast-iron balance sheet that should enable it to ride out most storms comfortably, says Paul Hill.

MKS Instruments (Nasdaq:MKSI), rated OVERWEIGHT by Barclays Capital

MKS Instruments is a provider of niche parts and process controllers to manufacturers of capital equipment within the semiconductor industry (62% of sales). Here it's the market leader, having roughly a 34% share of its addressable market. It booked a 2010 turnover of $853m, with just over half being derived from outside America, underpinned by its cutting-edge science, which is protected by 650 patents.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.