Slide 1: 2022 KLA Investor Day
2022 KLA Investor Day New York City • June 16, 2022 1
Slide 2: Disclaimer
Disclaimer Statements in this presentation other than historical facts, including but not limited to: (i) future trend of digitization, semiconductor and EPC industry growth and evolution; (ii) geographic breakdowns of future global semiconductor production; (iii) our results of operations and finan
Slide 3: Semi PC – Outperformance Roadmap
Semi PC – Outperformance Roadmap Ahmad Khan President, Semiconductor Process Control
Slide 4: Key Messages | Semi PC
Key Messages | Semi PC Semi PC enables chip manufacturing success with the broadest portfolio of 1 highly differentiated inspection, metrology and software products Our customers use our systems to solve technology inflections in R&D, and 2 we also see increased adoption in HVM1 as they strive to im
Slide 5: Semi PC at a Glance
Semi PC at a Glance $5.44B 19% 65%+ 54.4% 2 #1 100% ~6,500 WFE 15.8% including Semi PC service1 4x nearest competitor in 7 out of 9 markets ~1.6x increase from CY19 served3 % of Major Revenue Revenue CAGR Gross Margin Market Share Breadth of Portfolio Semiconductor Employees (CY21) (CY18 – CY21) Cus
Slide 6: Semi PC | CY18 – CY21 Revenue Bridge
Semi PC | CY18 – CY21 Revenue Bridge 19% $425M $5.4B ~$1.8B >$1B HVM driven Semi PC CAGR CY18 - CY21 Core $3.2B growth 15.8% industry WFE CAGR Semi PC outperformed by 3.2% Gained share during the same period Grew from 5.7% of WFE to 6.2% Outperformance driven by HVM growth Outperformed 2
Slide 7: Semi PC Continues to Lead the Industry
Semi PC Continues to Lead the Industry 54.4% Process Control Market Share 60% 54.4% KLA Process Control KLA Share in 2021 50% 40% Up 3.3% from 2018 >4X Nearest Competitor 30% Achieved target from 2019 20% Investor Day of 53.5% two years in advance Comp A 10% Comp B Comp C Key share gains in optical
Slide 8: Inflections in Every Segment Driven by Device Performance and Cost
Inflections in Every Segment Driven by Device Performance and Cost GAA 1 Transistor Wafer Backside Power Memory Packaging EUV Architecture Distribution Logic in HVM Transistor density Scalable power routing Vertical scaling High speed data communication Ramping in DRAM Process Control Challenges B
Slide 9: Transition to GAA Architecture Brings Additional Process Complexity
Transition to GAA Architecture Brings Additional Process Complexity number of inspection steps Gen4 Process Control Portfolio Gen4 50% Refresh Driven by increase in number of Industry Technology Gen5 critical inspection layers Gen5 Inflections Gen4 refresh leveraging Gen5 GAA technology FinFET M
Slide 10: Process Control Now Required in All Chip Manufacturing Stages
Process Control Now Required in All Chip Manufacturing Stages R&D Ramp HVM Traditionally, most investments Output 𝑓𝑓(Capacity, Yield) were made in R&D; as customers ramped into HVM, Faster Defect Discovery Actionable Line process control did not scale and Sourcing Monitoring Customer HVM…
Slide 11: Consistent R&D and Increasing HVM Investment
Consistent R&D and Increasing HVM Investment Revenue Spend 1 by Top 5 Customers for R&D and HVM Customers investing more in R&D and even more in HVM Customer R&D intensity increasing due to complexity Customer HVM intensity increasing due to smaller process margins and growing $M design starts
Slide 12: Customer Challenges in R&D and HVM
Customer Challenges in R&D and HVM Sensitivity Speed detect <10nm defects full wafer coverage 5nm 15 billion 8.5 trillion transistor transistors transistors gate length per chip per 300mm wafer Semi PC collaborates closely with customers to meet their sensitivity and speed requirements Note: Transis
Slide 13: Optical Inspection Delivers Unique Value
Optical Inspection Delivers Unique Value Sensitivity Coverage Yield enhancement requires wafer level signature analysis Gen4/Gen5 provides the widest wavelength range to find all defect Full wafer inspection is critically important as defects can occur types and sizes anywhere Broadband platfo
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Slide 15: Highly Extendible Optical Inspection Platform
Highly Extendible Optical Inspection Platform light source mechanics optics sensor image processing broadband plasma precision stage objectives TDI1 high speed data processing wavelength bands motion control lenses HPC robotics filters AI | ML | algorithms polarizers 10+ year roadmap for all key com
Slide 16: Optical Inspection Success Summary
Optical Inspection Success Summary >$5B >400 >100 10 31% Optical inspection revenue Gen4 systems shipped since Gen5 systems shipped since New optical inspection products Optical Inspection CAGR since 2019 Investor Day release (end of CY22) release (end of CY22) introduced since 2019 CY18 – CY21 Enab
Slide 17: e-Beam Market Overview
e-Beam Market Overview Optical Inspection vs. e-Beam 1 Optical Inspection vs. e-Beam Inspection 2 3,000 100% 3,000 100% 2,400 80% 2,400 80% Three e-beam segments – 1,800 60% 1,800 60% inspection, metrology and $M $M 1,200 40% 1,200 40% review – all targeted towards 600 20% 600 20% optical assist 0
Slide 18: KLA e-Beam Platform Innovation
KLA e-Beam Platform Innovation e-Beam Platform with Unique Architectural Elements Multiple e-beam systems support inspection, review and metrology applications Industry-Unique Industry’s Widest Industry-Unique Industry-Unique Industry-First High Beam Current Density Wide Optics Range Simul-6™ Yellow
Slide 19: Case Study: Optical Inspection + e-Beam Assist
Case Study: Optical Inspection + e-Beam Assist Gen5 eDRX1™ Critical Metal Layer BBP optical inspection e-beam review defect results Mixed Nuisance high capture of critical defects accurate nuisance filtering Critical defect Critical defect at full wafer coverage at high review speed Standard New Tec
Slide 20: Case Study: Optical Overlay Metrology + e-Beam Assist
Case Study: Optical Overlay Metrology + e-Beam Assist Overlay Measurements Archer™ SEMREG™ E200 Overlay Inaccuracy through the Life of One Lot imaging-based overlay e-beam overlay Number of Overlay Measurements 4.5x reduction in nm optical overlay inaccuracy with e-beam calibration high throughput o
Slide 21: R&D Investment Results in Differentiated Products
R&D Investment Results in Differentiated Products Semi PC R&D Investment Innovation In Core Technologies 800 600 light optics sensors sources $M 400 200 image processing software mechanics AI, DL, ML data 0 analytics CY15 CY16 CY17 CY18 CY19 CY20 CY21 Continued investment in innovative technologies
Slide 22: R&D Investment to Optimize Reticle Inspection Product Portfolio
R&D Investment to Optimize Reticle Inspection Product Portfolio R&D Investment for Current and Next Generation Reticle Products Optical technology continues 100% to be the workhorse for all advanced reticle inspection applications Percent R&D Investment by System Type 75% Majority of advanced re
Slide 23: Reticle Quality Control Market Overview
Reticle Quality Control Market Overview Established Reticle inspection market has Well understood; $1B+ two segments Growing Established segment: 25 years Evolutionary improvements based on optical inspection workhorse Patterned reticle inspection Reticle IC re-qual Reticle blank ins
Slide 24: EUV and Reticle Inspection Landscape
EUV and Reticle Inspection Landscape >4xnm Semi PC mission: release the best cost of ownership solution by leveraging the portfolio 4xnm Optical reticle inspection is the Minimum Pitch Optical Extension workhorse of today’s EUV in 90% HVM Pitch Relaxation 3xnm Multiple 8xx e-beam systems 10% s
Slide 25: Advanced Reticle Inspection Tools: Progress to Date
Advanced Reticle Inspection Tools: Progress to Date 8xx 7xx Unique Die-to-Database Inspection On Schedule for High NA EUV Multiple 8xx e-beam systems shipped to address gap layers Actinic EUV tool in development, intersecting with High NA EUV All reticle inspectors come with KLA’s industry-sta
Slide 26: ALA i
ALA i Complete EUV Reticle Quality Solution optical reticle e-beam reticle optical reticle optical wafer mask shop IC fab
Slide 27: Semi PC EUV Reticle Inspection Summary
Semi PC EUV Reticle Inspection Summary >$2.2B >30 >50 >85% >300 Cumulative KLA EUV reticle Teron™ 640e systems shipped Teron™ SL670e systems + Gen5 Percent of EUV reticles Die-to-database systems qualification revenue (mask shop) Print Check systems shipped inspected by KLA in HVM installed worldwid
Slide 28: Process Control Software Solutions Is a Significant Growth Area
Process Control Software Solutions Is a Significant Growth Area Petabytes of Data Analytics | AI Actionable Information Fab Data Solutions for Accurate Petabytes of data generated Process Control Semi PC collects, organizes and leverages all data types Experts developing algorithms to develop
Slide 29: Semi PC | Driving Sustainable Outperformance
Semi PC | Driving Sustainable Outperformance CY21 – CY26E ~$1.2B ~$9.0B ~$2.4B Technology inflections 7-8% HVM growth WFE Industry $5.4B CAGR Portfolio strength Digitization Supply chain resilience 10-11% KLA Semi PC CAGR Achieving our CY26 targets through continued HVM adoption 29
Slide 30: Semi PC | Key Takeaways
Semi PC | Key Takeaways 1 2 3 4 Semi PC enables chip Our customers use our We create deep We expect sustainable manufacturing success systems to solve customer relationships outperformance driven with the broadest technology inflections to understand key by Semi PC R&D portfolio of highly in R&D, an
Slide 31: Semi PC Summary
Semi PC Summary 10-11% 54.4% ~6,500 1 Semi PC CAGR ~$9.0B process control CY21 – CY26E CY26E revenue market share employees >400 Gen4 systems shipped $5B >100 Gen5 systems shipped since release optical inspection revenue since 2019 Investor Day since release >$700M Semi PC R&D CY21 1Gartner April 20