KLA CORP (KLAC)

KLA Corporation, formed in 1997 through the merger of KLA Instruments and Tencor Instruments, is a leading global supplier of process control, process-enabling, and yield management equipment and services for the electronics manufacturing industry, serving customers involved in wafer, reticle/mask, chemical/materials, integrated circuit (IC), packaged IC, and printed circuit board (PCB) production. The company operates through three reportable segments: Semiconductor Process Control, which offers inspection, metrology, chemistry process control, and software solutions supporting chip, wafer, reticle, and packaging manufacturing from R&D through high-volume production; Specialty Semiconductor Process, which provides vacuum deposition and etching tools for MEMS, RF, and power semiconductor manufacturers; and PCB and Component Inspection, which supplies inspection, imaging, and patterning solutions for PCB, IC substrate, and packaged IC manufacturers. Services, including maintenance and support to maximize equipment uptime and productivity, represented approximately 23% of total revenue in fiscal 2026.

KLA's business is closely tied to capital spending by semiconductor and electronics manufacturers, which is driven by demand for advanced chips, especially amid growth in high-performance computing, AI infrastructure, and leading-edge nodes such as 2-nanometer technology, as well as advanced packaging and EUV lithography adoption. The company's largest customer across fiscal 2024–2026 was Taiwan Semiconductor Manufacturing Company, and international sales made up approximately 87–89% of total revenue in these years, reflecting a heavy reliance on Asian markets. KLA invests significantly in R&D, with primary centers in the U.S., U.K., India, China, Singapore, and Israel, and held over 9,100 active patents as of June 30, 2026.

Manufacturing is conducted in-house with outsourced components, with principal operations in the U.S., Singapore, Israel, China, and Europe, supported by a global supply chain strategy that considers ethical sourcing and regulatory compliance. The company's backlog grew substantially from $7.86 billion at the end of fiscal 2025 to $12.57 billion at the end of fiscal 2026, driven by AI-related infrastructure demand. KLA operates in a highly competitive market, facing rivals such as Applied Materials, ASML, Hitachi High-Tech, Lasertec, and Onto Innovation, and is subject to various global regulations covering trade, environmental, labor, and anti-corruption matters, with export controls and tariffs—particularly related to China—posing ongoing risks to its operations and financial results.

The company also emphasizes environmental, social, and governance (ESG) initiatives as part of its long-term value creation strategy.