KLA to exit FPD business by 2024 – DIGITIMES
Credit: AFP
KLA decided to exit the Flat Panel Display business (FPD) by the end of 2024 and will continue to provide services to the installed base.
According to the released files in its 8-K document, KLA’s decision stems from various factors, including the termination of its major customer’s significant new technology project, leading KLA to investigate alternatives for its FPD business.
KLA said exiting the FPD business will not affect its revenue expectation for the quarter, which is expected to be at US$2.3 billion, plus or minus US$125 million. However, KLA said it expected to incur US$60 million to US$70 million in non-cash expenses related to written-off inventory and US$50 million to US$70 million on goodwill impairment and purchased intangible assets.
KLA’s PCB, Display, and Component Inspection segment accounted for 5% of the company’s revenue in the fiscal second quarter ending in December. The reporting segment experienced a downward trend over the past quarters.
According to KLA’s latest financial results, the company saw its revenue decrease 17% to US$2.4 billion in the fiscal second quarter, the third sales decline in a row. Meanwhile, the memory market is expected to recover in 2024, and customers will increase spending on DRAM, which would benefit KLA.
KLA sales distribution (US$m)
Quarter
Semiconductor Process Control
Specialty Semiconductor Process
PCB, Display & Component Inspection
Corporate
2021/9/30
1,779.08
102.03
202.81
-0.08
2021/12/31
2,052.20
112.74
187.98
-0.29
2022/3/31
1,979.30
117.25
192.53
-0.41
2022/6/30
2,114.24
124.56
248.86
-0.92
2022/9/30
2,397.76
127.87
200.75
-1.95
2022/12/31
2,657.40
158.09
169.96
-1.55
2023/3/31
2,171.56
128.44
131.92
0.69
2023/6/30
2,097.48
129.01
128.98
-0.33
2023/9/30
2,135.48
126.72
136.04
-1.28
2023/12/31
2,194.08
150.07
143.03
-0.45
Source: KLA, January 2024
