[News in Business] What Kind of Company Is 'KLA' That Received a Notice to Halt Deliveries to Its Factory in China?

Wafer inspection and metrology equipment from the US semiconductor equipment company 'KLA.' KLA's equipment plays a crucial role in identifying defects in semiconductors during production. / Photo by KLA website capture

[Asia Economy Reporter Lim Juhyung, Intern Reporter Song Hyundo] 'KLA,' which reportedly halted equipment deliveries to Chinese factories of major semiconductor companies such as SK Hynix due to new export regulations by the U.S. Department of Commerce, is an American company specializing in wafer defect and inspection yield management. It primarily manufactures semiconductor inspection and metrology equipment. According to market research firm 'Information Networks,' KLA held a 62.6% market share in semiconductor inspection and metrology equipment as of last year, leading overwhelmingly among the top six companies.

Founded in 1997 in California, USA, KLA is the result of a merger between 'KLA Instruments' and 'Tenco Instruments.' The synergy between KLA Instruments' computer chip defect inspection equipment and Tenco's semiconductor thickness and contamination metrology technology rapidly expanded its business. Since nanometer (nm)-scale ultra-fine processes are essential in the semiconductor industry, where even the smallest defect can be fatal, KLA's equipment plays a crucial role in stabilizing the production capacity of semiconductor companies.

As of last year, KLA recorded sales of $6.9 billion and operating profit of $2 billion. Although it is a U.S. company, the North American market accounted for only about 11% of its sales last year. Export shares to Taiwan (27%), China (25%), and Korea (17%) are significant. KLA established a branch in Korea in 1993 and supplies equipment to memory semiconductor companies such as Samsung Electronics and SK Hynix. It operates facilities in Hwaseong, Pyeongtaek, and Icheon in Gyeonggi Province, and Cheongju in North Chungcheong Province, employing 570 technical staff. Currently, approximately 3,480 KLA devices are installed in domestic companies.