KLA Corp at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Toshiya Hari - Goldman Sachs - Analyst : No, I appreciate that. Thanks, Bren. Maybe kicking off with thoughts on WFE. You did go through your '24 expectations. You touched a little bit on '25 as well. I know it's early, but as you think about '25, I think you've given directional guidance, how are you thinking about the various applications? Again, I know you touched on that, but if you can expand on leading edge where things are healthy, trailing edge, DRAM demand into '25, that would helpful.

Question: Toshiya Hari - Goldman Sachs - Analyst : Awesome. Thank you. I wanted to ask about N2. I think TSMC has made very constructive, bullish comments as it pertains to N2. What are your expectations from a design starts perspective? And how do you see that translating to your business?

Question: Toshiya Hari - Goldman Sachs - Analyst : Got it. That's really helpful. Just as a quick follow-up. Given what you guys know about N2 and given your positioning as the key provider of process control, I'm sure you've got visibility into what comes next, whether it be at TSMC or other leading edge logic and foundry suppliers. How do you think about process control intensity given N2 and what's to come? Is the flow positive? Is it -- you're already at a pretty high base, are you thinking flat? Any thoughts on that?

Question: Toshiya Hari - Goldman Sachs - Analyst : Yeah, okay. You definitely conveyed the intensity.

Question: Toshiya Hari - Goldman Sachs - Analyst : I felt it.

Question: Toshiya Hari - Goldman Sachs - Analyst : So I guess the competitive arms race that you've seen at the leading edge logic foundry space, all else equal, that tends to be a good thing, not just for you guys but for the overall industry. There's one logic company that's going through quite a bit right now, and I'm sure you guys are getting questions as well. They've reduced CapEx publicly. Is this sort of a zero sum where if one of your big customers is sort of declining in share, there's another one that picks it up. So net-net, you're all good, or should we sort of consider this as a net albeit mild negative?

Question: Toshiya Hari - Goldman Sachs - Analyst : Great. That's helpful. High-NA EUV, any thoughts on timing? Does it matter for KLA? And also maybe talk a little bit about the actinic reticle inspection tool that you guys have been working on.

Question: Toshiya Hari - Goldman Sachs - Analyst : Great. Very insightful. Thank you. I did want to squeeze in a question on China. As a percentage of total sales, you've sort of been tracking in the low to mid-40s. You're guiding absolute revenue levels to stay relatively stable, I believe, but as a percentage of revenue to come down, are there any puts and takes by application type, that's part one. And part two is you probably heard this as well, but investors are concerned that a lot of this buying is pull in, and it's actually not going into use. Do you have the ability to see whether or not they're just being pulled in or there is real demand there?

Question: Toshiya Hari - Goldman Sachs - Analyst : That's great. We have time for maybe one question from the audience, if anyone has one. There's a questions right there. Thank you. Unidentified Participant Maybe just an observation you might want to comment on, but you have some longer-term financial targets, yet consensus is not near them. What do you think the community is missing versus your longer-term financial targets? And are they still relevant even though you've had this transition here in the middle? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2024 / 4:30PM, KLAC.OQ - KLA Corp at Goldman Sachs Communacopia & Technology Conference

Question: Toshiya Hari - Goldman Sachs - Analyst : I'd love to go on. Unfortunately, we're out of time. Bren, Ahmad, thank you so much for the insightful conversation. Appreciate it.