KLA Flags Stronger Chip Equipment Demand, Rare 2027 Visibility at JPMorgan Conference

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KLA (NASDAQ:KLAC) is seeing stronger momentum crossed semiconductor instrumentality markets than it expected earlier successful the year, with request improving crossed leading-edge logic, representation and precocious packaging, Chief Financial Officer Bren Higgins said astatine J.P. Morgan’s 54th yearly Global Technology, Media and Communications Conference.

In a treatment with Harlan Sur, J.P. Morgan’s caput of U.S. semiconductor and semiconductor superior instrumentality research, Higgins said KLA present views wafer fab instrumentality spending arsenic “$140 billion-plus” this year, with apt upside based connected lawsuit engagement and the industry’s reporting cycle.

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“Certainly 2026 is mounting up to beryllium a precise constructive twelvemonth with expanding momentum successful the manufacture and successful our business,” Higgins said. He added that spending spot is broad-based, including leading-edge logic, representation and precocious packaging.

Wafer instrumentality outlook continues to amended

Higgins said KLA has seen expanding clarity astir second-half demand, with customers moving to align instrumentality deliveries with fab ramp schedules. He said the stronger outlook is being driven much by firming schedules and lawsuit urgency than by attempts to compression much from existing capacity.

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“Everybody wants their tools sooner,” Higgins said, adding that customers person returned with revised plans that marque antecedently agreed transportation timelines look late.

KLA expects its second-half show to amended arsenic proviso catches up with lawsuit demand. Higgins said the 2nd fractional could beryllium successful the “mid-to-high teens, possibly 20%” scope supra the archetypal half. He said the company’s pb times are often tied to optical components utilized successful its inspection tools, which helium described arsenic “high-performance microscopes.”