LRCX - KLA: Benefiting From The Need For High Yields In Sub-5nm Chip Production
2024-05-15 15:51:25 ET
Summary
- KLA designs and sells "metrology and inspection" equipment, which plays a crucial role in yield enhancement for semiconductor manufacturing.
- KLA reported higher than expected EPS and revenue for Q3 2024.
- KLA holds a dominant market position in the metrology/inspection sector with a greater than 55% share.
- KLA is expected to benefit from increasing demand for advanced process control solutions for sub-5nm node chip production.
One of the key issues about KLA ( KLAC ) is that it is not like any of the other major equipment companies, and therefore any competitive analysis with them is pointless. Specifically, KLAC designs and sells “metrology and inspection” equipment. These are very different from the “processing” equipment from companies including Applied Materials ( AMAT ), Lam Research ( LRCX ), or Tokyo Electron ( TOELY )....
KLA: Benefiting From The Need For High Yields In Sub-5nm Chip Production