Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is the outlook for the process control market in 2025, and how does KLA's share compare? A: Bren Higgins, CFO, stated that KLA expects the process control market to grow solidly in 2025, driven by increased investment in leading-edge technologies. KLA's share of the WFE market is expected to increase due to higher process control intensity, particularly in advanced DRAM and high-bandwidth memory, as well as growth in advanced packaging.
Q: How is KLA managing the impact of new US export controls on its revenue? A: Bren Higgins, CFO, mentioned that KLA estimates a revenue impact of approximately $500 million, plus or minus $100 million, due to recent export controls in China. The company is hopeful for licensing opportunities to mitigate some of this impact but remains cautious due to potential delays in processing license requests.
Q: Can you elaborate on the growth expectations for KLA's advanced packaging business in 2025? A: Richard Wallace, CEO, explained that KLA's advanced packaging revenue is expected to exceed $800 million in 2025, up from $500 million in 2024. The growth is driven by increased demand for complex heterogeneous chip integration and advanced packaging solutions, which enhance the value of process control.
Q: What are the key drivers for KLA's outperformance relative to the WFE market? A: Bren Higgins, CFO, highlighted that KLA's outperformance is driven by rising process control intensity at advanced technology nodes, particularly 3-nanometer and high-bandwidth memory. Additionally, KLA's strong market position and product momentum in various segments contribute to its growth.
Q: How is KLA addressing the potential decline in China sales due to export controls and market dynamics? A: Bren Higgins, CFO, indicated that KLA expects China sales to decline by about 20% year-over-year in 2025, with China contributing approximately 29% of total revenue. The company is focusing on opportunities outside China to offset this decline and maintain growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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