Advanced Packaging

A New Growth Engine for KLA

Oreste Donzella

Executive Vice President, EPC Group

KLA Corporation

June 11, 2024

Forward Looking Statements

Statements in this presentation other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors and WFE; (ii) our market position for the future and timing for the resumption of growth in demand for our products; and (iii) our revenues from advanced packaging for 2024 and beyond, are forward-looking statements and subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995.

These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the U .S. Department of Commerce rules and regulations and their impact on our ability to sell products to and provide services to certain customers in China; costly intellectual property disputes that could result in our inability to sell or use the challenged technology; risks related to the legal, regulatory and tax environments in which we conduct our business; increasing attention to ESG matters and the resulting costs, risks and impact on our business; unexpected delays, difficulties and expenses in executing against our environmental, climate, diversity and inclusion or other ESG target, goals and commitments; our ability to attract, retain and motivate key personnel; our vulnerability to disruptions and delays at our third party service providers; cybersecurity threats, cyber incidents affecting our and our business partners' systems and networks; our inability to access critical information in a timely manner due to system failures; our ability to identify suitable acquisition targets and successfully integrate and manage acquired businesses; climate change, earthquake, flood or other natural catastrophic events, public health crises such as the COVID-19 pandemic or terrorism and the adverse impact on our business operations; the wars between Israel and Hamas and Russia and Ukraine, and the significant military activity in that region; lack of insurance for losses and interruptions caused by terrorists and acts of war, and our self-insurance of certain risks including earthquake risk; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in interest rates and the market values of our portfolio investments; risks related to tax and regulatory compliance audits; any change in taxation rules or practices and our effective tax rate; compliance costs with federal securities laws, rules, regulations, NASDAQ requirements, and evolving accounting standards and practices; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end-markets, or changes in customer capital spending patterns; our vulnerability to a highly concentrated customer base; the cyclicality of the industries in which we operate; our ability to timely develop new technologies and products that successfully address changes in the industry; our ability to maintain our technology advantage and protect proprietary rights; our ability to compete in the industry; availability and cost of the materials and parts used in the production of our products; our ability to operate our business in accordance with our business plan; risks related to our debt and leveraged capital structure; we may not be able to declare cash dividends at all or in any particular amount; liability to our customers under indemnification provisions if our products fail to operate properly or contain defects or our customers are sued by third parties due to our products; our government funding for R&D is subject to audit, and potential termination or penalties; we may incur significant restructuring charges or other asset impairment charges or inventory write offs; and risks related to receivables factoring arrangements and compliance risk of certain settlement agreements with the government . For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this press release, please refer to KLA's Annual Report on Form 10-K for the year ended June 30, 2023, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA assumes no obligation to, and does not currently intend to, update these forward-looking statements.

2 KLA Non - Co nfiden tia l | Unr estr icted

KLA is a Diversified Leader and Critical Technology Enabler

Global Technology Leader

Global Market Share

>4x

Nearest Competitor 2

$2B / >75% u nd er co n tract

Services Revenue

  • As of 12/31/23
  • Ga r tne r Ap ril 2024

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KLA at a Glance1 (NASDAQ: KLAC)

~14,700

Employees

$9.7B

CY23 Revenue

-8% Y/Y Growth

$22.77 / 27%

CY23 EPS CAGR (19-23)

>65%

PhD/Master's among professional roles

61.7% / 39.5%

Industry Leading Gross/Operating Margins

$3.2B / 33%

CY23 FCF / CY23 FCF Margin

KLA's Role in the Electronics Ecosystem

CHIPS

WAFER-LEVEL

COMPONENTS

PRINTED CIRCUIT

PACKAGING

BOARDS

Logic | Foundry

Memory

Specialty | Legacy

WAFERS

RETICLES

SEMI OEMs

CHEMICALS |

IC SUBSTRATES

MATERIALS

END MARKETS

Data Center

Artificial

5G Infrastructure

Mobile

Automotive

PC / Tablet

Metaverse (AR/VR)

Intelligence

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KLA Organizational Structure

Ri ck W a l l a ce

P r e s i d e n t a n d

C h i e f E x e c u t i v e

O f f i c e r

Semiconductor

Electronics, Packaging

& Components (EPC)

Process Control

Or e st e Do n ze l l a

A h m a d K h a n

E x e c u t i v e V i c e P r e s i d e n t

P r e s i d e n t

E l e c t r o n i c s , P a c k a g i n g a n d

S e m i c o n d u c t o r P r o c e s s

C o m p o n e n t s ( E P C )

C o n t r o l ( S e m i P C )

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KLA Services

Br i a n L o r ig

E x e c u t i v e V i c e P r e s i d e n t ,

K L A S e r v i c e s

Semiconductor Key Market Drivers

Semiconductor End Demand has Become More Diversified

Semiconductor Revenue $B

1,000

750

500

250

PCs

PC + Mobile

Data

A I

5G

0

2007

2016

2020

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So ur ce s: KL A A na lysis, Te chI nsigh ts Sep t 2023

AI: The New Driver of the Semiconductor Industry

M40

GPU Package

12 x 1 GB GDDR5 chips

I m a g e s o u r c e :

N v i d i a

B100

2 reticle-sized chips

CoWoS package

192 GB: 8x24 GB HBM3e chips

K 4 0

M 4 0

P 1 0 0

V 1 0 0

A 1 0 0

H 1 0 0

B 1 0 0

Year

2013

2015

2016

2017

2020

2022

2024

Area (mm2)

551

601

610

815

826

814

~2x800

Transistors

7.1 B

8.0 B

15.3 B

21.1 B

54.2 B

80 B

208 B

Node

N28

N28

N16

N12

N7

N4

N4P

Memory Type

GDDR5

GDDR5

HBM2

HBM2

HBM2e

HBM3

HBM3e

Memory Size

12 GB

12 GB

16 GB

40 GB

60 GB

80 GB

192 GB

Package Type

FCBGA

FCBGA

CoWoS

CoWoS

CoWoS

CoWoS

CoWoS

So ur ce : KL A A na lysis

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AI: Driving Industry Momentum | Semiconductor Content

AI Drives End Markets

AI Requires Advanced Process Control

GPU

  • Leading-edgelogic: ≤3nm design nodes and advanced transistor architectures
  • Large die size: ≥800mm2
  • Increased design starts

HPC

Mobile

PC

I m a g e s o u r c e : N v i d i a H1 0 0

Memory

  • Multiple HBM chips / GPU
  • ~2.2x more memory vs regular
    DRAM
  • Increased design starts

Advanced Packaging

  • Large, complex, expensive package
  • High semiconductor content

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H B M : h i g h b a n d w i d t h m e m o r y

Semiconductor Technology Roadmap

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Disclaimer

KLA Corporation published this content on 11 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 June 2024 10:36:05 UTC.