Kla Corporation · NASDAQ:KLAC
Kla — Nasdaq Investor Conference June 2023
29 slides from Kla's conference presentation, Jun 13, 2023
Slide 1: Enabling Fast Growing Applications in the Electronics Ecosystem
Enabling Fast Growing Applications in the Electronics Ecosystem Oreste Donzella Executive Vice President, EPC Group KLA Corporation June 2023
Slide 2: Disclaimer
Disclaimer Statements in this presentation other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors and WFE; (ii) future development of regulatory landscape; (iii) our market position for the future; (iv) our forecast of financial measures for the
Slide 3: KLA Non-Confidential | Unrestricted
3 KLA Non-Confidential | Unrestricted
Slide 4: Digitization of Everything Continues to Drive Semiconductor Growth
Digitization of Everything Continues to Drive Semiconductor Growth 1,000 Ecosystems Driving Leading Edge Growth 800 Semiconductor Revenue $B 600 Data 400 PC + Internet + Mobile PC + Internet 200 2001 2007 2016 2020 2030 4 KLA Non-Confidential | Unrestricted Sources: KLA Analysis, TechInsights May 20
Slide 5: KLA at a Glance
KLA at a Glance Founded in He ad quarters in 19 1976 Milpitas, CA Locations 15,200 $10.5B >65% P h D / M a s t e r ’s a m o n g Employees CY22 Revenue professional roles Diversified leader in the electroni cs ecosystem 5 KLA Non-Confidential | Unrestricted
Slide 6: KLA Organizational Structure
KLA Organizational Structure Rick Wallace President and Chief Executive Officer E l e c t ro n i c Pa c ka g i n g S e m i co n d u ct o r P ro c e s s K L A S e r v i ce s & C o m p o n e nt s ( E P C ) C o nt ro l Oreste Donzella Ahmad Khan Brian Lorig Executive Vice President, President Executive
Slide 7: KLA EPC Journey
KLA EPC Journey S t ra te gi c B e n ef i t S t ra te gi c B e n ef i t Established portfolio of etch, PVD E x t e n d e d t e c h n o l o g y a n d m a r ke t and CVD wafer processing reach within electronics value chain D ive rsified re venue b ase an d D ive rsified re venue b ase an d i
Slide 8: KLA in the Electronics Ecosystem
KLA in the Electronics Ecosystem Semi PC EPC AUTOMOTIVE SUBSTRATES PRINTED CIRCUIT BOARD CONNECTED DEVICES WAFER-LEVEL MOBILE CHIPS COMPONENTS DEVICES PACKAGING RETICLES FLAT PANEL 5G INFRASTRUCTURE DISPLAY DATA EPC brings KLA closer to end markets 8 KLA Non-Confidential | Unrestricted
Slide 9: Packaging and Automotive Opportunities at the 2019 Investor Day
Packaging and Automotive Opportunities at the 2019 Investor Day Targeting New SAM | Advanced Packaging Our Targeted, Strategic Initiatives within Auto Electronics 2020+ KLA: I C O S KLA: S W I F T , I C O S +$1.0B KLA: A l l S e m i P C P r o d u c t s Incremental Orbotech: P C B Orbotech: P C B , S
Slide 10: Advanced Packaging
KLA Advanced Packaging
Slide 11: Semiconductor Technology has Been Scaling for 50+ years
Semiconductor Technology has Been Scaling for 50+ years 1980 1990 2000 2010 2020 g-line (436nm) i-line (365nm) KrF (248nm) ArF (193nm) ArF Immersion (193i) EUV (13.5nm) 3nm 5nm 7nm 10nm 16nm 32nm 65nm 130nm 500nm 250nm 1μm Conventional scaling is still happening , but it has become slow and expensiv
Slide 12: New Technologies and Architectures Allow Moore's Law to Continue
New Technologies and Architectures Allow Moore’s Law to Continue Tra n s i t i o ni n g F ro m E U V t o H i g h - N A E U V F i n F E Ts t o G a t e A l l A ro u n d ( G A A ) ArF Immersion (193i) EUV (13.5nm) EUV High-NA EUV FinFET Gate All Around 12 K L A N o n - C o n f i d e n t i a l | U n r e
Slide 13: Advanced Packaging is Another Way to Improve Performance
Advanced Packaging is Another Way to Improve Performance 1 D o n - b o a rd 2 D p a c ka g e - l e v e l 2.5D chip-level 3D chip-level logic memory system in package (SiP) Si interposer and TSVs memory stacking logic stacking PCB Heterogeneous integration (chiplet) no longer the technology of the fu
Slide 14: Heterogeneous Integration is Here and Requires a Paradigm Shift
Heterogeneous Integration is Here and Requires a Paradigm Shift Heterogeneous integration and chiplets are no longer the “technolog y of the future” in HPC (data/AI) Large, single-die monolithic designs are no longer performance/cost competitive in the high-end “Ponte Vecchio” “Sapphire Rapids”
Slide 15: Semiconductor of the Past: Three Separate Worlds
Semiconductor of the Past: Three Separate Worlds p a c ka g i n g f ro nt e n d s e m i co n d u c t o r Protect and connect at lowest cost Performance driven by technical innovations I C s u bs t ra t e s Support, protect and connect at lowest cost 15 K L A N o n - C o n f i d e n t i a l | U n r e
Slide 16: 'New' Semiconductor: Bridging Front End, Packaging and Substrates
‘New’ Semiconductor: Bridging Front End, Packaging and Substrates p a c ka g i n g f ro nt e n d s e m i co n d u c t o r Package enabling device performance Scaling New materials Novel processes Performance driven by Increased layer count technical innovations I C s u bs t ra t e s IC su bs
Slide 17: Wafer-Level Packaging Processes are Blending with Front End
Wafer-Level Packaging Processes are Blending with Front End 0.001 µm p a c ka g i n g PA C K A G I N G 0.01 µm Transistors f ro nt e n d s e m i co n d u c t o r 0.1 µm Interconnect Size W2W hybrid bonding D2W 1 µm hybrid bonding I C s u bs t ra t e s 10 µm TSV µbumps 100 µm FRONT END C4 bumps 1000
Slide 18: Advanced Packaging Requires Front End-Like Process Control
Advanced Packaging Requires Front End-Like Process Control Kro n o s ™ 1 1 9 0 Wa fe r I n s p e c t i o n M o s a i c™ P l a s m a D i c i n g High- Resolution Optics Mechanical Dicing AI Algorithms Plasma Dicing SPTS Plasma Dicing Units Sale Line bridging Line open Line bending Strong focus on waf
Slide 19: IC Substrate Processes are Blending with Wafer-Level Packaging
IC Substrate Processes are Blending with Wafer-Level Packaging packaging packaging front end semiconductor IC substrates IC su bstrate 19 K L A N o n - C o n f i d e n t i a l | U n r e s t r i c t e d
Slide 20: Advanced IC Substrates Require Wafer-Level Process and Inspection
Advanced IC Substrates Require Wafer-Level Process and Inspection N ex t G e n e ra t i o n L a s e r D i re c t I m a g i n g N ex t G e n e ra t i o n A u t o m a t e d O p t i ca l I n s p e c t i o n Omni Sphere Large Scan Optics, High DOF1 M u l t i - Wa v e l e n gt h I l l u m i n a t i o n M
Slide 21: Advanced Packaging at KLA
Advanced Packaging at KLA 33% >10 >50 >40 KLA Packaging System New Products Under New Products Collaboration Projects Revenue CAGR2 Development Penetration with Top 5 Semi4 KLA Packaging1 Revenue Process Control (Semi PC, EPC) Process (EPC) M&A (Orbotech, SPTS EPC) IC Substrate (EPC) I n c re a s
Slide 22: Automotive Electronics
KLA Automotive Electronics
Slide 23: The Automotive Industry is Being Transformed…
The Automotive Industry is Being Transformed… Chip Shortage Software- Defined Vehicles Just-in-time to just-in-case >80% of innovation enabled by se mico n ductors Strategic supply agreements and direct fab investments OEMs working directly with chip companies Subscription services Electri
Slide 24: … Driving Broad-based Demand for Semiconductors
… Driving Broad-based Demand for Semiconductors S t ro n g G ro w t h A l l D e v i c e Ty p e s 2 All Design Rules Auto Semi Forecast ($Billion)1 RF In cremental Au to motive Fab Cap acity An alog 2% 7% Needed by 2027 (WSPM)3 ASIC $116 7% $110 Sen sors/ME MS 370,333 $103 MCU 13% $95 15% $88 $82 $74
Slide 25: Zero Defect Strategy and SiC Adoption are Opportunities for KLA
Zero Defect Strategy and SiC Adoption are Opportunities for KLA A I m e t h o d o l o g y t o S c re e n Po t e nt i a l Re l i a b i l i t y Fa i l u re s P l a s m a D e p o s i t i o n a n d E t c h i n g C u s t o m S o l u t i o n s fo r S i C I - PAT ® o n 8 9 x x Test Escapes Latent Defects O
Slide 26: Automotive at KLA
Automotive at KLA 37% 11% >3x >$300M >35% KLA Auto System KLA Auto Service KLA vs. Total Auto Power SiC Revenue in Auto % of SPTS Revenue CAGR1 Revenue CAGR1 Semi CAGR2 2022 Revenue in 2022 KLA Automotive Revenue Process Control (Semi PC) Specialty Process (EPC) M&A (SPTS EPC) I n c re a s i n g p
Slide 27: Summary
KLA Summary
Slide 28: Summary
Summary The front end semiconductor industry continues to The automotive industry has been forever changed by the p r o d u c e i n n o v a t i o n p u s h i n g M o o r e ’s L a w f o r w a r d . chip shortage, vehicle electrification and the software- defined vehicle. H e t e r o g e n e o u s i n
Slide 29: Growth Inflections R&D Competition
Growth Inflections R&D Competition 29 K L A N o n - C o n f i d e n t i a l | U n r e s t r i c t e d