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KLA Corporation is a leading supplier of process control and yield management solutions for the semiconductor and related electronics industries . The company provides a range of inspection, metrology, and software products, along with services that help manufacturers optimize their production processes . KLA is organized into three main segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection . Additionally, KLA's service business is a significant part of their operations, driven by long-term subscription contracts .
- Semiconductor Process Control - Offers a comprehensive portfolio of inspection, metrology, and software products, as well as related services, to help manufacturers achieve target yields throughout the fabrication process .
- Specialty Semiconductor Process - Focuses on advanced vacuum deposition and etch process tools used by manufacturers of microelectromechanical systems (MEMS), radio frequency (RF) communication semiconductors, and power semiconductors for automotive and industrial applications .
- PCB and Component Inspection - Provides products and services for inspecting, testing, and measuring PCBs, IC substrates, and packaged ICs .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Richard Wallace ExecutiveBoard | President and Chief Executive Officer (CEO) | Board Member at Marvell Technology, Inc. | Joined KLA in 1988; became CEO in 2006 and President in 2008; extensive leadership in the semiconductor industry; previously held roles such as COO and EVP of Wafer Inspection Group. | View Report → |
Ahmad Khan Executive | President, Semiconductor Process Control, Electronics, Packaging and Components, and KLA Instruments | None | Joined KLA in 2003; oversees unified product and customer organization; previously EVP of Global Products Group and Patterning Division. | View Report → |
Bren Higgins Executive | Executive Vice President and Chief Financial Officer | None | Joined KLA in 1999; CFO since 2013; oversees finance operations, global manufacturing, and investor relations; previously VP of Corporate Finance. | |
Brian Lorig Executive | Executive Vice President, Global Support and Services | None | Joined KLA in 1998; oversees Global Support and Services organization; previously VP of U.S. Manufacturing and Operations Group. | |
Mary Beth Wilkinson Executive | Executive Vice President, Chief Legal Officer, and Corporate Secretary | None | Joined KLA in 2020; oversees legal, compliance, and corporate governance; previously General Counsel at O-I Glass, Inc.. | |
Oreste Donzella Executive | Executive Vice President and Chief Strategy Officer | SEMI North America Advisory Board | Joined KLA in 1999; previously EVP of Electronics, Packaging, and Components; extensive experience in marketing and product management. | |
Virendra Kirloskar Executive | Senior Vice President and Chief Accounting Officer | None | Joined KLA in 1993; rejoined in 2003 as VP and Corporate Controller; became Chief Accounting Officer in 2008. | |
Emiko Higashi Board | Director | Board Member at Takeda Pharmaceutical Company Ltd. and Rambus, Inc. | Director at KLA since 2010; founder of Tohmon Capital Partners; extensive experience in M&A and strategy. | |
Jeneanne Hanley Board | Director | Board Member at QuantumScape Corporation | Director at KLA since 2019; no prior roles at KLA; brings expertise in automotive and technology industries. | |
Kevin Kennedy Board | Director | Director at Digital Realty Trust, Inc. and UL Solutions Inc. | Director at KLA since 2007; extensive experience in technology and corporate governance; former CEO of Avaya Inc.. | |
Michael McMullen Board | Director | Senior Advisor at Agilent Technologies, Inc.; Director at Bristol-Myers Squibb Company | Director at KLA since 2023; retired CEO of Agilent Technologies; extensive leadership experience in life sciences and technology. | |
Robert Calderoni Board | Chairman of the Board | Board Member at Ansys, Inc. | Director at KLA since 2007; became Chairman in 2022; extensive leadership experience, including as CEO of Citrix Systems and President of SAP's cloud business. | |
Robert Rango Board | Director | Director at Keysight Technologies, Inc. and Microchip Technology, Inc. | Director at KLA since 2014; former CEO of Enevate Corporation; extensive experience in semiconductors and wireless technologies. | |
Victor Peng Board | Director | None | Director at KLA since 2019; retired President of Adaptive, Embedded, and AI Group at AMD; former CEO of Xilinx, Inc.. |
- Given that your gross margin is forecasted to decline to 61.5% plus or minus 1% in the September quarter , can you elaborate on the weaker anticipated product mix and whether you expect further margin pressure in the coming quarters?
- Your 12-month shippable RPO decreased by about $70 million quarter on quarter, remaining flattish compared to last quarter ; what factors contributed to this decline, and how confident are you in bookings increasing over the next few quarters?
- With China revenues expected to remain relatively flat , while peers indicate that China mature nodes are in a digesting mode and calendar Q1 was the peak , are you anticipating any slowdown in China sales into next year, and how might this impact your overall growth?
- The revenue guidance range for the September quarter has widened to plus or minus $150 million from the usual $125 million ; does this reflect increased uncertainty or volatility in your business, and can you provide more color on the factors influencing this wider range?
- Advanced packaging revenue run rate has increased to $500 million from $400 million three months ago ; is this growth primarily due to market expansion, or are you gaining share in new markets like macro inspection where competitors have traditionally been stronger, and how sustainable is this growth?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
In each of our product markets, we have many competitors, including companies such as Applied Materials, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. | |
In each of our product markets, we have many competitors, including companies such as ASML Holding N.V., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. | |
Hitachi High-Technologies Corporation | In each of our product markets, we have many competitors, including companies such as Hitachi High-Technologies Corporation, some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. |
In each of our product markets, we have many competitors, including companies such as Onto Innovation, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. | |
Lasertec, Inc. | In each of our product markets, we have many competitors, including companies such as Lasertec, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Taiwan Semiconductor Manufacturing Company Limited (TSMC) | Major semiconductor foundry partner. | Semiconductor Process Control. | In FY 2024, accounted for 13% of total revenue. More than 10% in FY 2023 & FY 2022. More than 10% of net accounts receivable as of June 30, 2024 & 2023. |
Samsung Electronics Co., Ltd. | Major electronics manufacturer. | Semiconductor Process Control. | More than 10% in FY 2023 & FY 2022 , possibly 15% or 18% in FY 2023. More than 10% of net accounts receivable as of June 30, 2023. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
ECI Technology, Inc. | 2022 | ECI Technology, Inc. was acquired on February 28, 2022 for $431.5 million in cash to extend and enhance KLA’s product and service portfolio, with key allocations including $271.8 million in goodwill and $208.4 million in identifiable intangible assets. |
Another Privately Held Company (May) | 2022 | This company was acquired on May 1, 2022 for $8.6 million in cash, with the purchase price allocated primarily to tangible, identified intangible assets and residual goodwill assigned to the Wafer Inspection and Patterning reporting unit, although the strategic purpose was not specified. |
Another Privately Held Company (August) | 2022 | Acquired on August 9, 2022 for $32.7 million in cash, the deal was aimed at securing the supply of materials for existing products and included allocations such as $30.0 million to intangible assets, $6.8 million to goodwill (assigned to the Wafer Inspection and Patterning reporting unit), among other asset and liability items. |
Recent press releases and 8-K filings for KLAC.
- KLA Corp expects a mid-single-digit growth in 2025 with key industry drivers including increased wafer fab equipment (WFE) levels reaching between $100 billion and $105 billion and record revenue in 2024, reflecting strong performance in both legacy and advanced process control markets.
- The executives highlighted significant progress in e-beam technology, noting its complementary role to optical inspection and its early wins, which are expected to enhance market share through advanced applications including AI-enhanced inspection.
- Advanced packaging opportunities are emphasized, with discussions on the growth potential in high-bandwidth memory (HBM) and cost-effective process control for both packaging and logic-based die improvements, signaling further market expansion.
- The call also addressed increased process control intensity in leading-edge foundry nodes, as well as a strategic reduction in China’s business share from around 41% to 29%, with expectations to stabilize between 20% and 25% over time.