Kla Corporation · NASDAQ:KLAC
Kla — Investor Day (June 2022)
28 slides from Kla's investor day presentation, Jun 16, 2022
Slide 1: 2022 KLA Investor Day
2022 KLA Investor Day New York City • June 16, 2022 1
Slide 2: EPC Business Expansion
EPC Business Expansion Oreste Donzella EVP, Electronics, Packaging and Components
Slide 3: Key Messages | EPC Business Expansion
Key Messages | EPC Business Expansion Successful implementation of KLA’s Operating Model to expand presence in the 1 electronic ecosystem, strengthen market leadership and improve operation efficiency Continued focus on customer success within all the served markets, collaborating 2 with our custome
Slide 4: EPC Represents an Attractive Growth Vector for KLA
EPC Represents an Attractive Growth Vector for KLA EPC Systems Revenue ~15% CAGR $M 6,000-10,000 semiconductors per vehicle 1 CY19 CY20 CY21 CY22E Automotive: zero defect, new materials EPC Operating Income ~40% CAGR $M CY19 1 CY20 CY21 CY22E Advanced packaging: semiconductor roadmap enabler Demonst
Slide 5: The EPC Journey
The EPC Journey Strategic Benefit Strategic Benefit Extended technology and market reach Established portfolio of etch, PVD and within electronics value chain CVD wafer processing Diversified revenue base and increased Diversified revenue base and increased TAM in PCB and FPD markets TAM in
Slide 6: EPC at a Glance
EPC at a Glance $0.95B 15% +400 bps 40% ~2,500 Revenue1 Revenue CAGR Gross Margin Operating Margin CAGR Employees (CY21) (CY192 – CY22E) Expansion (CY19 – CY22E) (CY19 – CY22E) 2021 Revenue 1 Mix Comprehensive portfolio of process and process control solutions for specialty semiconductor, packaging,
Slide 7: EPC Presence in Electronics Ecosystem
EPC Presence in Electronics Ecosystem Automotive Printed Circuit Substrates Board Connected Chips Wafer-Level Components Devices Packaging Mobile Flat Panel Devices Reticles Display 5G Business Units Infrastructure KLA Services Semiconductor Process Control (Semi PC) Electronics, Packaging And Compo
Slide 8: EPC Touches Every Component in Smartphones and Smart Vehicles
EPC Touches Every Component in Smartphones and Smart Vehicles Auto Electronics Flat panel Printed circuit display Packaged component board >100 Printed circuit Specialty connected electronics board semiconductor control units (ECU) Packaged component 6,000-10,000 semiconductors Specialty per vehicle
Slide 9: EPC Revenue Breakdown by End Markets
EPC Revenue Breakdown by End Markets Artificial Virtual High Performance 5G Connectivity Mobile Data Center Automotive Intelligence Interaction Computing Specialty Semiconductor 1 Components 1 Printed Circuit Board 1 Flat Panel Display 1 100% 100% 100% 100% 80% 80% 80% 80% 60% 60% 60% 60% 40% 40% 40
Slide 10: Successfully Implementing the KLA Operating Model Across EPC
Successfully Implementing the KLA Operating Model Across EPC Collaboration Extending key customer collaboration to newly acquired companies Engaging earlier with the entire ecosystem, anticipating market’s needs Collaborating with our customers to provide differentiated solutions Innovation
Slide 11: Successfully Implementing the KLA Operating Model Across EPC
Successfully Implementing the KLA Operating Model Across EPC Collaboration Extending key customer collaboration to newly acquired companies Engaging earlier with the entire ecosystem, anticipating market’s needs Collaborating with our customers to provide differentiated solutions Innovation
Slide 12: Multi-Year Collaborations Drive Significant Opportunities in Auto
Multi-Year Collaborations Drive Significant Opportunities in Auto Automotive Zero-Defect Policy Good Die Low Reliability Bad Die 1 Partnering with automotive KLA Systems Revenue in Automotive industry to eliminate latent reliability defects Semi PC Systems Semi Specialty (SPTS) Silicon Carbide SPTS
Slide 13: Advanced Packaging: Crucial to Semiconductor Technology Roadmap
Advanced Packaging: Crucial to Semiconductor Technology Roadmap Improved Boost in power New high-end Custom form Increased overall bandwidth performance applications factors Si area From device protection to performance differentiation 13
Slide 14: High Performance Computing Drives Package Complexity
High Performance Computing Drives Package Complexity HPC (High Performance Compute) Package Evolution CPU / GPU / FPGA 2009 2014 2020 2021+ Flip chip BGA Flip chip BGA 2.5/3D 2.5/3D New performance requirements bring increased package complexity and drive massive Heterogeneous Smaller 2D and 3D inve
Slide 15: Hybrid Bonding Exposes Packaging to Front End-Like Challenges
Hybrid Bonding Exposes Packaging to Front End-Like Challenges Integration Schemes Thermo-Compression (Bump) Bonding Void Sources Surface defectivity Bonding film deposition Dicing profile defectivity Hybrid (Bumpless) Edge profile and defectivity Bonding Non-Uniformity Sources CMP profile
Slide 16: Developing Strong Collaborations to Enable Packaging Roadmap
Developing Strong Collaborations to Enable Packaging Roadmap Integration and Design Fabs’ Collaborations Collaborations Process Flow Stackup Design Stacking Defectivity Data Reduction Metrology Integration Automation Product Portfolio Product Portfolio (wafer-level packaging) (IC substrates) 30+ joi
Slide 17: Case Study: ICOS Component (Final Package) Inspection
Case Study: ICOS Component (Final Package) Inspection Problem Results Increased defect sensitivity and Complexity and cost driving 100% inspection of accurate 3D metrology final multi-die components Large form factor, complex architecture and shrinking geometry require advanced inspection Multi-
Slide 18: Case Study: SPTS Plasma Dicing for Advanced Packaging
Case Study: SPTS Plasma Dicing for Advanced Packaging Problem Results Plasma dicing results in smooth Wafer singulation is usually done with blade and/or profile and low defectivity laser, which creates particles and cracks Defects can lead to failures of entire multi-die package, causing huge e
Slide 19: Innovation Does Not Happen Without Collaboration
Innovation Does Not Happen Without Collaboration Mosaic system for plasma dicing of framed 300mm wafers Presented by Lord Lieutenant of Gwent on behalf of the Queen 24 th May 2022 19
Slide 20: Successfully Implementing the KLA Operating Model Across EPC
Successfully Implementing the KLA Operating Model Across EPC Collaboration Extending key customer collaboration to newly acquired companies Engaging earlier with the entire ecosystem, anticipating market’s needs Collaborating with our customers to provide differentiated solutions Innovation
Slide 21: Long History of KLA Technology Innovation
Long History of KLA Technology Innovation <1990s Continuous innovation in subsystem technologies Today First wafer 39xx high-res inspector invented BBP First reticle Teron 640e inspector invented Dual-imaging First laser scattering Voyager® 1015 wafer inspector DUV Platform First inline overlay Arch
Slide 22: Case Study: PCB AOI Fine for Advanced IC Substrates
Case Study: PCB AOI1 Fine for Advanced IC Substrates Problem Results Suppliers facing challenges to scale capability, Improved contrast and resolution capacity and yield Smaller feature sizes driving more advanced panel-based inspection capability Current New IC substrates are key enablers Cur
Slide 23: Successfully Implementing the KLA Operating Model Across EPC
Successfully Implementing the KLA Operating Model Across EPC Collaboration Extending key customer collaboration to newly acquired companies Engaging earlier with the entire ecosystem, anticipating market’s needs Collaborating with our customers to provide differentiated solutions Innovation
Slide 24: Case Study: KLA Operating Model Implementation
Case Study: KLA Operating Model Implementation Cumulative Synergies Achieved $100 ~$92M Highlights $80 Extended key customer collaboration $60 $50M to new divisions $M $40 Widened KLA brand awareness $20 outside core semi $0 Developed a new organization to Deal Thesis CY19 CY20 CY21 CY22E refl
Slide 25: Case Study: Advanced Packaging Revenue Growth
Case Study: Advanced Packaging Revenue Growth Execute On time program delivery, on-site support Innovate New technologies, products and methods $M Collaborate Top 5 semi customers, OSATs, ICSs CY16 CY17 CY18 CY19 CY20 CY21 CY22E 1 2023 F …... 2024 F 2025 F CY26E 1 Wafer Level Packaging Assembly and
Slide 26: EPC | Driving Sustainable Outperformance
EPC | Driving Sustainable Outperformance 1 EPC Revenue ~$90M ~$1.65B ~$240M ~$80M ~$290M $0.95B $0.75B $0.8B CY21 – CY26E 2021 – 2026E Revenue Growth Drivers 11-12% KLA EPC CAGR 2 3 4 CY19 CY20 CY21 Market Growth (5.5% CAGR) Automotive Specialty Advanced Packaging Display CY26E SAM/Share Double digi
Slide 27: EPC | Key Takeaways
EPC | Key Takeaways 1 2 3 4 Successful Continued focus on Differentiated product Sustainable profitable implementation of KLA’s customer success within portfolio developed for growth at double digit Operating Model to all the served markets, the unique needs of our top line revenue growth expand pre
Slide 28: EPC Summary
EPC Summary 13% ~$1.65B 24% ~2,500 EPC Revenue1 Packaging + ICS Revenue CY192-CY21 CAGR CY26E Revenue1 CY192 – CY26 CAGR employees 40-50% +420 bps Incremental Operating CY21 Gross Margin expansion since CY19 Margin CY21 – CY26 +1,070 bps CY21 Operating Margin expansion since CY19 1 Systems only 2CY1