KLA Corporation stands as the dominant player in semiconductor process control and yield management equipment. The company designs and manufactures inspection and metrology systems that chip manufacturers use to detect defects and measure critical dimensions during production.
Headquartered in Milpitas, California, KLA serves nearly every major semiconductor fabricator worldwide. The company’s products help chipmakers identify problems early in manufacturing, reducing waste and improving profitability.
KLA holds over 50% market share in process control equipment, more than four times that of its nearest competitor. The company’s customers include leading foundries like TSMC and major integrated device manufacturers across Asia, North America, and Europe.
KLA Corporation History
KLA Corporation Co-founders
KLA Corporation Market Cap
KLA Corporation’s market capitalization reached approximately $168 billion as of December 2025. This valuation places KLA among the 125 most valuable companies globally. The stock price increased over 90% in the past year as semiconductor equipment demand surged.
KLA Corporation Revenue
KLA Corporation reported $12.16 billion in revenue for fiscal year 2025, a 24% increase from the prior year. The semiconductor equipment maker benefits from growing demand for AI chips and advanced packaging technologies that require more process control steps.
KLA Corporation Acquisitions
KLA has grown through strategic acquisitions that expanded its technology portfolio and market reach. The company targets firms with complementary inspection and metrology capabilities that fill gaps in its product offerings.
The 1997 merger between KLA Instruments and Tencor Instruments created the modern company. Valued at $1.3 billion in a stock swap, this deal combined KLA’s defect inspection expertise with Tencor’s metrology leadership. The merger established KLA-Tencor as the dominant process control player.
Between 1998 and 2010, KLA made numerous acquisitions to broaden its capabilities. The company purchased Amray for electron microscopy, Nanopro for wafer measurements, and Therma-Wave for optical metrology. In 2006, KLA acquired ADE Corporation to strengthen its silicon wafer inspection business. The 2008 purchase of ICOS Vision Systems added advanced packaging inspection.
The Orbotech acquisition in 2019 marked KLA’s largest deal at $3.4 billion. Orbotech brought printed circuit board inspection, flat panel display testing, and advanced packaging capabilities. The acquisition also included SPTS Technologies, which makes etch and deposition equipment. This deal diversified KLA beyond traditional wafer fabrication into electronics manufacturing.
KLA continues to evaluate acquisition targets that strengthen its position in emerging markets. The company focuses on technologies that support AI chip production, high-bandwidth memory, and advanced packaging. Each acquisition adds engineering talent and intellectual property that reinforces KLA’s competitive position against rivals like Applied Materials and ASML.
KLA Corporation Competitors
KLA competes in the semiconductor equipment market against companies that make lithography, deposition, and etch systems. In process control specifically, KLA holds majority market share and faces limited direct competition from smaller specialists.
| Company | Headquarters | Primary Focus |
|---|---|---|
| ASML Holding | Netherlands | Lithography Systems |
| Applied Materials | United States | Deposition, Etch, Inspection |
| Lam Research | United States | Etch, Deposition Equipment |
| Tokyo Electron | Japan | Coater/Developer, Etch |
| Hitachi High-Tech | Japan | Electron Beam Inspection |
| Onto Innovation | United States | Metrology, Inspection |
| Lasertec | Japan | Mask Inspection |
| Nikon | Japan | DUV Lithography |
| Canon | Japan | Lithography, Nanoimprint |
| PDF Solutions | United States | Yield Analytics Software |
FAQs
What does KLA Corporation do?
KLA Corporation manufactures process control and yield management equipment for semiconductor production. The company makes inspection and metrology systems that detect defects and measure chip features during manufacturing.
When was KLA Corporation founded?
KLA Instruments was founded in 1975 by Ken Levy and Bob Anderson. The company merged with Tencor Instruments in 1997 to form KLA-Tencor, later renamed KLA Corporation in 2019.
Where is KLA Corporation headquartered?
KLA Corporation is headquartered in Milpitas, California, in Silicon Valley. The company also operates a second U.S. headquarters near Ann Arbor, Michigan.
What is KLA’s market share in process control?
KLA holds over 50% market share in semiconductor process control equipment. This share is more than four times larger than its nearest competitor, Applied Materials.
Who are KLA Corporation’s main customers?
KLA’s main customers include leading chip manufacturers like TSMC, Samsung, Intel, and Texas Instruments. The company serves foundries and integrated device manufacturers worldwide.