Specialty Semi & PCB is KLA's smallest segment, generating approximately $1B in annual revenue (~8% of total). This includes PCB inspection (from the 2019 Orbotech acquisition), flat panel display inspection, and specialty semiconductor inspection for MEMS, power devices, and packaging. While smaller and lower-margin (approximately 30% operating) than the core process control business, the specialty segment has upside potential from advanced packaging inspection demand, driven by the proliferation of chiplets, HBM stacking, and 2.5D/3D integration. KLA adapted its wafer-level inspection tools for packaging applications, creating a competitive moat in this emerging market. The PCB inspection business (Orbotech) is a market leader but faces competition from lower-cost Asian alternatives at the low end.
KLA acquired Orbotech in 2019 for $3.4B, gaining leadership in PCB inspection, flat panel display inspection, and specialty semiconductor markets. Orbotech's portfolio has been int...