Slide 1: KLA's Automotive Opportunities
KLA’s Automotive Opportunities Oreste Donzella, Executive Vice President September 21, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation other than historical facts, such as statements pertaining to: (i) industry trends; (ii) customer demand and investment strategy; (iii) anticipated synergies from acquisitions; (iv) hiring by KLA; (v) anticipated dividends and share repurcha
Slide 3: KLA by Numbers
KLA by Numbers 1976 ~60,000 ~11,000 $6.1B 1 15% fo u n d e d installed base employees re v e n u e R&D (tools) % of revenue Revenue Mix by R e v e n u e Ty p e Geography 3 KLA Non-Confidential | Unrestricted 1 Revenue from CY 2020
Slide 4: Semiconductor Process Control
Semiconductor Process Control KLA Core Business Since 1976 KLA systems find the defects and variations that affect chip performance you can’t fix you can’t what you can’t control what find you can’t measure 4 KLA Non-Confidential | Unrestricted
Slide 5: Market Expansion Via Acquisitions and Integration
Market Expansion Via Acquisitions and Integration 2008 2019 2020 Electronics, Rick Wallace Packaging and President and Chief Executive Officer Components (EPC) Oreste Donzella Ahmad Khan Brian Lorig Executive Vice President, Executive Vice President, President, Electronics, Packaging Semiconductor P
Slide 6: Diversified Global Leader in Electronics Value Chain End Products
Diversified Global Leader in Electronics Value Chain End Products AUTOMOTIVE Vehicles MAINSTREAM CONNECTED DEVICES Laptops, watches, PRINTED CIRCUIT smart speakers, WAFERS BOARDS, IC SUBSTRATES VR/AR, security cameras, smart WAFER-LEVEL COMPONENTS everything CHIPS PACKAGING MOBILE DEVICES Phones FLA
Slide 7: The Evolution of Automotive Industry
The Evolution of Automotive Industry Data Leverage, Semiconductor Dependent, Zero-Defect Methodology
Slide 8: Data and Connectivity will Change Automotive Industry Forever
Data and Connectivity will Change Automotive Industry Forever Connectivity Electrification Autonomous Higher RF/Modem content Introduction of new and unproven Shift to more advanced technologies Linked to 5G mega trend materials such as SiC and GaN Broad Range of Semiconductor Devices in Mod
Slide 9: Trends are now Accelerating after the Pandemic and…
Trends are now Accelerating after the Pandemic and… Safety and Security Electrification: Zero Emissions Zero in-process defects Car weight reduction Zero market failures More miles on battery Zero disability accident SiC/GaN power semi rates devices Networking: Connected Car Autonomous D
Slide 10: Automotive Industry Has Become Highly Dependent on Semiconductors
… Automotive Industry Has Become Highly Dependent on Semiconductors 6,000-10,000 semiconductors per vehicle Development 2 years vs 7 years >100 connected electronics Innovations control units (ECU) >80% enabled by semiconductors 10 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 11: Automotive Zero-Defect Leadership
Automotive Zero-Defect Leadership 5G V2X ADAS Growing semiconductor content ADAS, autonomy, connectivity 8-10K devices per premium vehicle Advanced design rule parts needed Complex use cases Less mature processes Harsh environment Quality is top auto buying factor Semiconductors are lead
Slide 12: Quality and Reliability Challenges
Quality and Reliability Challenges Test Escapes Latent Reliability Defects Hard killer defects in a test coverage gap Become activated some time after test Function of yield and test coverage Usually requires statistical approach 12 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
Slide 13: KLA I-PAT®: New Inline Screening Standard
KLA I-PAT®: New Inline Screening Standard Inline Parts Average Testing
Slide 14: Existing Methods for Quality and Reliability
Existing Methods for Quality and Reliability Process Control Electrical Test Coat E xp ose E tch Clean Fill CMP Inspect and Measure wafer probe final test Identifies sources of manufacturing defects by sub- Identifies devices that don’t function or are outside sampling a percentage of inline wafers
Slide 15: Zero-Defect Requires New Screening Methodology
Zero-Defect Requires New Screening Methodology Process Control Inline Defect Screening 100% of lots, 100% of die on critical layers Coat E xp ose E tch Clean Fill CMP Inspect and Measure Not all wafers or die are measured Electrical Test High speed Low cost Unique data Low overkill Test cove
Slide 16: Current Method and Quality Escapes
Current Method and Quality Escapes Process Control Electrical Testing Escapes Excursion lot At-risk die At-risk die At-risk die Quality Maverick wafer Failures At-risk die At-risk die At-risk die Low yields and incomplete test coverage allow escapes 16 K L A N o n - C o n f i d e n t i a l | U n r e
Slide 17: Inline Defect Screening Adds Another Layer of Protection
Inline Defect Screening Adds Another Layer of Protection Process Control Inline Screening Electrical Testing Escapes Excursion lot At-risk die At-risk die Fewer At-risk die Escapes Maverick wafer At-risk die At-risk die At-risk die Screening augments disposition decisions and reduces escape pressure
Slide 18: I-PAT®: Inline Defect Part Average Testing
I-PAT®: Inline Defect Part Average Testing Defect Die-Level Reliability Weighting Metric Correlation Engine Die Aggregator Layer Aggregator Inspection and Metrology Statistical Filter Attributes Examples of Yield or Potential Reliability Failures Each die receives a score based on cumulative defecti
Slide 19: I-PAT® Integrated Solution for High Volume Manufacturing
I-PAT® Integrated Solution for High Volume Manufacturing H i g h t h ro u g h p u t a t n e e d e d R u nt i m e ex t ra c t i o n o f M a c h i n e L e a r n i n g p re d i c t i o n i n D i e a g g re ga t i o n a n d s t a t i s t i ca l s e n s i t i v i t y fo r d i e s c re e n i n g i nfo r m
Slide 20: I-PAT® Can Detect Latent Reliability Defects
I-PAT® Can Detect Latent Reliability Defects I-PAT Die Characterization Fab Layer 1 5.3% of I-PAT die pass electrical wafer sort, but fail final test Layer 2 Layer 3 + I-PAT 1.5% of I-PAT die pass final test, Layer 4 but fail burn-in Layer 5 Layer 6 89xx Defect Inspection Layer 7 Remaining 22% of I-
Slide 21: Automotive Standards Now Recommend Inline Screening
Automotive Standards Now Recommend Inline Screening Inline defect inspection added to ‘Screening Methods’ “Optical screening by high-speed inspection on 100% of wafers and 100% of die on a few known quality-sensitive layers to identify and disposition individual at-risk wafers or product die.” [5.4.
Slide 22: KLA Automotive Product Solutions
KLA Automotive Product Solutions Process Control Products Launch for Automotive, SPTS Leadership in Power
Slide 23: New Automotive Inspection Products Launched in June 2021
New Automotive Inspection Products Launched in June 2021 23 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 24: SPTS Process Solutions for Automotive Power Semiconductors
SPTS Process Solutions for Automotive Power Semiconductors Enabling Beyond Silicon SPTS SiC Power Revenue Trend Device Substrate Wafer description Technology Si Si 8-12” Si CVD Power PVD SiC SiC 6-8” SiC Etch Power 2016 2017 2018 2019 2020 2021 Omega Plasma Etch beyond silicon 24 K L A N o n - C o n
Slide 25: Are we on Track with our Growth Plan?
Are we on Track with our Growth Plan? Progress vs. Plan (Sep 2019 Investor Day)
Slide 26: Our Targeted, Strategic Initiatives within Automotive Electronics
Our Targeted, Strategic Initiatives within Automotive Electronics Extract from Sep 2019 Investor Day Presentation 2020+ 2019+ Capitalize on Secular Trends 2018+ Fortify Industry Leverage strengths of KLA portfolio of differentiated Leadership solutions 2010+ Strengthen Industry Define industry s
Slide 27: In Summary
KLA In Summary
Slide 28: Reliability and New Materials are Critical for Automotive Electronics
Reliability and New Materials are Critical for Automotive Electronics Automotive Zero-Defect Policy market evolution KLA partners with the automotive industry to eliminate latent Power reliability defects SiC Low Reliability passes test Bad Die Good Die fails in the field fails test entering a new e
Slide 29: KLA is in Unique Position to Enable the New Automotive Industry
KLA is in Unique Position to Enable the New Automotive Industry Identify Challenges Define Standards Latent Reliability Defect Automotive Electronics Council Industry Standard Develop Innovative Solutions I-PAT ( I n l i n e D e f e c t P a r t s A v e r a g e T e s t i n g ) SiC Etching for EV Powe
Slide 30: Thank You
Thank You Oreste Donzella, Executive Vice President September 21, 2021