Is KLA the Biggest Process Control Winner From AI Spending? - The Globe and Mail

As artificial intelligence reshapes the semiconductor industry, KLA Corporation appears to be one of the biggest beneficiaries. While AI demand is driving increased investment in advanced logic chips ... Read original →

The AI compute arms race has thrust process control into the semiconductor manufacturing bottleneck. KLA’s surge isn’t accidental—it’s the direct consequence of converging demands from sub-3nm logic, HBM4 stacking, and CoWoS advanced packaging, where each added heterogeneous layer exponentially increases defect inspection density. This cements KLA’s irreplaceability in EUV mask inspection, wafer geometry metrology, and die-to-die alignment. Geopolitically, while U.S. export controls temporarily boost KLA’s capex exposure in Taiwan, China and Korea, China’s accelerated self-reliance in mature nodes could erode its service revenue share long-term. Rivals like Applied Materials or ASML lack KLA’s closed-loop data architecture across the fab floor. Over the next 18 months, as NVIDIA’s Blackwell Ultra and TSMC’s A16 ramp, KLA’s $1B+ advanced packaging control revenue will become a key valuation anchor, with its high-margin services business further insulating it from cyclicality.