Item 1. BUSINESS

Certain industry and technical terms used in this section are defined in the subsection entitled “Glossary” found at the end of this Item 1.

The Company

KLA Corporation and its majority-owned subsidiaries (“KLA” or the “Company” and also referred to as “we,” “our,” “us,” or similar references) is a global leader in process control and a supplier of process-enabling solutions for a broad range of industries, including semiconductors, printed circuit boards (“PCB”) and displays. We provide solutions for manufacturing and testing wafers and reticles, integrated circuits (“IC” or “chip”), packaging, light-emitting diodes (“LED”), power devices, compound semiconductor devices, microelectromechanical systems (“MEMS”), data storage, PCBs, flat and flexible panel displays, and general materials research, as well as providing contracted and comprehensive installation and maintenance services across our installed base.

KLA was formed as KLA-Tencor in April 1997 through the merger of KLA Instruments Corporation and Tencor Instruments, two long-time leaders in the semiconductor capital equipment industry that began operations in 1975 and 1976, respectively.

On February 20, 2019 (the “Acquisition Date” relating to this specific acquisition), KLA completed the acquisition of Orbotech, Ltd. (the “Orbotech Acquisition” and “Orbotech,” respectively ), a global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products, in order to target growth opportunities in new and expanding end markets. We transformed our organizational structure into four reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other.

Within the Semiconductor Process Control segment, our comprehensive portfolio of inspection, metrology and data analytics products, and related services, help integrated circuit manufacturers achieve target yield throughout the entire semiconductor fabrication process, from R&D to final volume production. KLA’s portfolio of differentiated products and services are designed to provide comprehensive solutions to help customers accelerate development and production ramp cycles, achieve higher and more stable semiconductor die yields and improve their overall profitability.

In the Specialty Semiconductor Process segment, KLA develops and sells advanced vacuum deposition and etching process tools, which are used by a broad range of specialty semiconductor customers, including manufacturers of MEMS, radio frequency (“RF”) communication semiconductors, and power semiconductors for automotive and industrial applications.

In the PCB, Display and Component Inspection segment, KLA enables electronic device manufacturers to inspect, test and measure PCBs, flat panel displays (“FPD”) and ICs to verify their quality, deposit a pattern of desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces.

KLA’s suite of advanced products, coupled with its unique yield management software and services, allow us to deliver the solutions our semiconductor, PCB and display customers need to achieve their productivity goals by significantly reducing their risks and costs and improving their overall profitability and return on investment (“ROI”).

Additional information about KLA is available at www.kla.com. The Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge on the website as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Information contained on KLA’s website is not part of this Annual Report on Form 10-K or KLA’s other filings with the SEC. Additionally, these filings may be obtained through the SEC’s website (www.sec.gov), which contains reports, proxy and information statements, and other information regarding issuers that file electronically.

Investors and others should note that KLA announces material financial information to investors using an investor relations website (ir.kla.com), which includes KLA’s SEC filings, press releases, public earnings calls and conference webcasts. The investor relations website is used to communicate with the public about the Company, products, services and other matters.

Industry

General Background

KLA’s core focus is enabling technological advances as well as improving manufacturing yields in the semiconductor industry. The semiconductor fabrication process begins with a bare silicon wafer—a round disk that is typically 200 millimeters

or 300 millimeters in diameter, about as thick as a credit card and gray in color. The process of manufacturing wafers is highly sophisticated and involves the creation of large ingots of silicon by pulling them out of a vat of molten silicon. The ingots are then sliced into wafers. Prime silicon wafers are then polished to a mirror finish. Other, more specialized wafers, such as epitaxial silicon (“epi”), silicon on insulator (“SOI”), gallium nitride (“GaN”) and silicon carbide (“SiC”) are also common in the semiconductor industry.

The manufacturing cycle of an IC is grouped into three phases: design, fabrication and testing. IC design involves the architectural layout of the circuit, as well as design verification and reticle generation. The fabrication of a semiconductor chip(or “semiconductor”) is accomplished by depositing a series of film layers that act as conductors, semiconductors or insulators on bare wafers. The deposition of these film layers is interspersed with numerous other process steps that create circuit patterns, remove portions of the film layers, and perform other functions such as heat treatment, measurement and inspection. Most advanced chip designs require hundreds of individual steps, many of which are performed multiple times. The majority of chips consist of two main structures: the lower structure, typically consisting of transistors or capacitors which perform the “smart” functions; and the upper “interconnect” structure, typically consisting of circuitry which connects the components in the lower structure. When the layers on the wafer have been fabricated, each chip on the wafer is tested for functionality. The wafer is then cut into individual chips, and the chips that pass functional testing are packaged. Final testing is performed on all packaged chips. Packaged chips are then mounted onto PCBs for connection to the rest of the electronic system. Additionally, FPDs are manufactured using processes similar to ICs (e.g., film deposition, photolithography, etching) except using glass as the starting substrate.

The semiconductor capital equipment industry is currently experiencing multiple growth drivers bolstered by demand for semiconductors from leading edge foundry and logic manufacturers to support computational power and connectivity for markets such as artificial intelligence (“AI”) and 5G wireless technology. Growth of virtual engagement has been driven by COVID-19 related travel restrictions and quarantines, as well as work from home requirements, and advances in healthcare and industrial applications. These factors together with the increasing adoption of electric vehicles and intelligence in automobiles are powering leading-edge node technology investments and capacity expansions. Intertwined in these areas, spurred by the requirements of big data, is the growth in demand for memory chips. Finally, China continues to emerge as a major region for the manufacturing of logic and memory chips, adding to its role as the world’s largest consumer of ICs. Government initiatives are propelling China to expand its domestic manufacturing capacity. China is currently seen as an important long-term growth region for the semiconductor capital equipment sector.

The semiconductor industry continually introduces numerous technology changes to support this multi-segmented market growth. KLA’s inspection, metrology and data analytics technologies play key roles in enabling our customers to develop and manufacture advanced semiconductor devices to support and innovate around these trends.

Companies that anticipate future market demands by developing and advancing new technologies and manufacturing processes are better positioned to lead in the semiconductor market. Accelerating the yield ramp and maximizing production yields of high-performance devices are key goals of modern semiconductor manufacturing. Ramping to high-volume production ahead of competitors can dramatically increase the revenue an IC manufacturer realizes for a given product. Leading semiconductor manufacturers are investing in simultaneous production integration of multiple new process technologies, some requiring new substrate and film materials, new geometries, advanced multi-patterning optical and extreme ultraviolet (“EUV”) lithography, and advanced packaging techniques. While many of these technologies have been adopted at the development and pilot production stages of semiconductor manufacturing, significant challenges and risks associated with each technology have affected the adoption of these technologies into full-volume production. For example, as design rules decrease, yields become more sensitive to the size and density of defects. Device performance characteristics (namely speed, capacity or power management) also become more sensitive to parameters such as linewidth and film thickness variation. New process materials, such as photoresists for EUV lithography, require extensive characterization before they can be used in the manufacturing process. Moving several of these advanced technologies into production at once only adds to the risks that chipmakers face.

The continuing evolution of semiconductors to smaller geometries and more complex multi-level circuitry has significantly increased the performance and cost requirements of the capital equipment used to manufacture these devices. Construction of an advanced wafer fabrication facility today can cost well above $10 billion, substantially more than previous-generation facilities. In addition, chipmakers are demanding increased productivity and higher returns from their manufacturing equipment and are also seeking ways to extend the performance of their existing equipment.

By developing new process control and yield management tools that help chipmakers accelerate the adoption and production of these new technologies at scale, KLA enables customers to better leverage increasingly expensive facilities and improve ROI. Once customers’ production lines are operating at high volume, KLA’s systems monitor to ensure yields are stable and process excursions are identified for quick resolution. In addition, each new generation’s smaller design rules, coupled with new materials, device innovation and increased in-process variability, require a subsequent increase in inspection and metrology sampling, which drives demand for KLA’s portfolio of products.

KLA systems not only analyze defectivity and metrology issues at critical points in the wafer, reticle and IC manufacturing processes, but also provide information to our customers so they can identify and address the underlying process issues. The ability to locate the source of defects and resolve the underlying process issues enables KLA customers to improve control over their manufacturing processes, increasing their yield of high-performance parts and delivering products to market faster, thus maximizing profits. With a broad portfolio of application-focused technologies and dedicated yield technology expertise, KLA is a key supplier of comprehensive yield management solutions for customers’ next-generation products. KLA helps customers anticipate and respond to the challenges posed by shrinking device sizes, the transition to new production materials, new device and circuit architectures, more demanding lithography processes and new packaging techniques.

KLA’s business under SPTS Technologies Ltd. (“SPTS”), which KLA acquired through the acquisition of SPTS’s parent company, Orbotech, develops and sells differentiated custom deposition and etching solutions for fast-growing markets, such as power and analog devices, RF communication semiconductors, photonics devices and MEMS. These devices, which are often built on non-traditional substrates like SiC and GaN, have become critical to accelerating some of the secular trends in automotive, industrial and communication industries. For instance, infrastructure for 5G creates demand for RF components, sometimes built on GaN substrate. New SiC based power devices are moving into volume production for electric vehicles. In addition, high-density packaging is growing to support premium smartphones and AI computing chips in data centers.

KLA’s Orbotech business provides a comprehensive portfolio of PCB services and solutions to accelerate technology transitions and production ramp. Our portfolio includes inline inspection tools to monitor the quality of PCB fabrication, equipment to repair defective boards, digital imaging technologies to print fine geometry according to the design, and computer aided manufacturing (“CAM”) software. Growth in the PCB business is driven mainly by investments in 5G technology and its supporting applications: smartphones, autonomous vehicles, AI and cloud servers/high performance computing. These applications will be based on several technological segments including flexible printed circuits (“FPC”), high density interconnect (“HDI”), PCBs, and IC substrates.

KLA’s Orbotech business also provides complete yield management solutions for the FPD market including automated optical inspection (“AOI”) systems, repair technologies and electrical testers. An accelerated transition to organic light emitting diode (“OLED”) displays to serve the mobile market, introduction of OLED technology for large size televisions, and a steep ramp in liquid crystal display (“LCD”) production for televisions in China are driving the FPD business. New technologies, such as microLED, represent a growth opportunity for KLA in the display market.

Products

KLA develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers, reticles, ICs, packaging, PCBs, and flat and flexible panel displays.

KLA’s inspection, metrology and data analytics products and related offerings can be broadly categorized as supporting customers in the following groups: Chip and Wafer Manufacturing; Reticle Manufacturing; Packaging Manufacturing; Compound Semiconductor and Hard Disk Drive Manufacturing; and General Purpose/Lab Applications. Orbotech’s inspection, repair, imaging, additive printing, laser drilling, electrical testing, CAM, and software solutions, support customers in PCB Manufacturing and Flexible and FPD Manufacturing. SPTS’s wafer processing equipment supports customers in Advanced Packaging Manufacturing and manufacturing of semiconductor devices such as MEMS and Sensors, high speed RF ICs, power semiconductors and LED/microLEDs. The Company’s significant product categories are described below, followed by the broader product table.

Semiconductor Manufacturing:

Chip and Wafer Manufacturing

KLA’s comprehensive portfolio of defect inspection, review, metrology, patterning simulation, in situ process monitoring and data analytics products, and related service, software and other offerings, helps substrate and chip manufacturers manage quality throughout the wafer and chip fabrication processes. These offerings are designed to help our customers accelerate their development and production ramp cycles, achieve higher and more stable semiconductor die yields and improve their overall profitability.

Defect Inspection and Review

KLA’s wafer defect inspection and review systems cover a broad range of applications for IC and substrate manufacturers, including R&D, wafer qualification, reticle qualification, and tool, process and line monitoring. Patterned and unpatterned wafer inspectors find particles, pattern defects and electrical issues on the front surface, back surface and edge of the wafer, allowing engineers to detect and monitor critical yield and reliability excursions. Our defect review systems capture

high resolution images of the defects detected by inspection tools, helping substrate manufacturers and chipmakers identify and resolve yield issues. Fabs rely on our high sensitivity reticle inspection systems to identify defects on reticles at an early stage and to prevent reticle defects from printing on production wafers. By implementing our defect inspection and review systems, chipmakers and substrate manufacturers can take quick corrective action, resulting in faster quality improvement and better time to market.

Metrology

KLA’s metrology solutions address IC and substrate manufacturing, as well as scientific research and other applications. Precise metrology and control of pattern dimensions, film thicknesses, layer-to-layer alignment, pattern placement, surface topography, electro-optical and electromagnetic properties are important in many industries as devices are becoming more complex with shrinking critical dimensions and narrowing film thicknesses.

Data Analytics

The data generated by our inspection, metrology and in situ process monitoring systems are compiled and reduced to relevant root cause and yield analysis information with our suite of data analytics and management tools.

In Situ Process Monitoring

KLA’s sensor product portfolio includes advanced wireless and wired wafers and reticles that enable in situ monitoring of the production process environment for many semiconductor, FPD and reticle fabrication processes, and fab-wide monitoring of automated wafer handling.

Patterning Simulation

KLA’s computational lithography software is used by researchers at advanced IC manufacturers, lithography hardware suppliers, track companies and material providers to explore critical feature designs, manufacturability and process-limited yield of proposed lithographic and patterning technologies without the time and expense of printing hundreds of test wafers using experimental materials and prototype process equipment.

Reticle Manufacturing

Error-free reticles, or masks, are necessary to achieve high semiconductor device yields, since reticle defects can be replicated in every die on production wafers. KLA offers high sensitivity reticle inspection, metrology and data analytics systems for mask blank manufacturers and reticle manufacturers (“mask shops”) to help them manufacture reticle blanks and patterned reticles that are free of defects and meet pattern placement and critical dimension uniformity specifications.

Packaging Manufacturing

KLA’s extensive portfolio of packaging solutions accelerates the manufacturing process for outsourced semiconductor assembly and test (“OSAT”) providers, device manufacturers and foundries for a wide range of packaging applications. Innovations in advanced packaging, such as 2.5D/3D IC integration using through silicon vias (“TSV”), wafer-level chip scale packaging (“WLCSP”), fan-out wafer-level packaging (“FOWLP”) and heterogeneous integration as well as a wide range of IC substrates create new and evolving process requirements. KLA offers systems for packaging inspection, metrology, die sorting and data analytics focused on meeting quality standards and increasing yield before and after singulation. SPTS provides a broad range of etch and deposition process solutions for advanced packaging applications. Orbotech offers a portfolio of technologies that includes AOI, automated optical shaping (“AOS”), direct imaging (“DI”), UV laser drilling, inkjet/additive printing and software solutions to ensure manufacture of the highest quality of IC substrates.

Wafer Inspection and Metrology

KLA’s wafer inspection and metrology systems for advanced wafer-level packaging provide the data required for chip manufacturers to increase yield by providing traceability throughout their increasingly complex manufacturing processes. Smaller feature sizes, new integration schemes and the heterogeneous integration of multiple components into single packages result in tighter process control requirements. Our systems allow engineers to quickly detect, resolve and monitor excursions to provide greater control of quality for improved device performance.

Die Sorting and Inspection

KLA’s die sorting and inspection system provides inspection before die assembly to help engineers quickly identify any issues during the dicing process of wafer-level packages. The evolution of wafer-level packaging technologies has introduced new materials into the process that can be susceptible to cracking during dicing such as low-k materials in fan-in wafer-level

packages. Our system assists chip manufacturers to decrease production risk by identifying defects quickly during die sorting to ensure higher outgoing quality to the next step in the assembly process.

IC Component Inspection and Metrology

KLA’s packaged component inspection and metrology systems characterize key features of advanced and traditional package types with varying size and interconnect styles. Our systems provide sensitivity to a variety of defect types as well as accurate and repeatable 3D metrology measurements, which together provide packaging manufacturers the data required to improve their yield while effectively sorting components so that defective parts are quickly removed. By providing flexible systems capable of handling a large variety of package types, engineers can further increase overall operational effectiveness in a dynamic manufacturing environment.

Wafer Processing Systems

SPTS offers a range of plasma etch and deposition process technologies for advanced packaging schemes – from High Density FOWLP to the most advanced 3D packages where two or more die, potentially for different functions, are stacked and connected in the vertical direction with TSVs filled with metal. Leveraging decades of expertise in silicon etching, SPTS also offers the most advanced plasma dicing solutions for dicing before grind (“DBG”) or dicing after grind (“DAG”) of wafers up to 300mm in diameter. SPTS’s production-proven processes and precise process control allow chip manufacturers to lower production costs and improve reliability, performance and multi-function integration.

IC Substrate Production Processes

Based on decades of experience, Orbotech's portfolio of technologies for IC substrates includes a variety of DI, AOI, AOS of defects, UV laser drilling, inkjet/additive printing and software solutions. Orbotech's advanced solutions for IC substrates enable manufacturers to build high capacity, high quality, high precision interconnection products for advanced IC packaging while optimizing their productivity and cost efficiency.

Compound Semiconductor, Power Device, LED, MEMS and Data Storage Media/Head Manufacturing

KLA has a comprehensive portfolio of inspection, metrology, and data analytics systems to support power devices, RF communications, LED, photonics, MEMS, concentrator photovoltaic (“CPV”) solar and display manufacturing. With the adoption of high brightness LEDs for solid-state lighting and automotive applications, LED device makers are targeting aggressive cost and performance improvements, requiring more emphasis on improved process control and yield. Similarly, leading power device manufacturers are targeting faster development and ramp times, high product yields and lower device costs, and are implementing solutions for characterizing yield-limiting defects and processes. KLA’s inspection, metrology and data analytics systems help these manufacturers control their processes and increase yield.

General Purpose/Lab Applications

A range of industries, including general scientific and materials research and optoelectronics, require measurements of surface topography and film thickness to either control their processes or research new material characteristics. Offered under the KLA Instruments brand, the typical surface metrology parameters that our tools address include flatness, roughness, curvature, peak-to-valley, asperity, waviness, texture, volume, sphericity, slope, density, stress, hardness, bearing ratio and step height (mainly in the micron to nanometer range). Film thickness measurements can also include determination of refractive index. We also offer a portfolio of high-throughput nanomechanical testers for material characterization, including hardness, modulus and adhesion.

Previous-Generation KLA Systems

Our KLA Pro business provides fully refurbished systems, remanufactured legacy systems, and enhancements and upgrades for previous-generation KLA systems. When a customer needs to move to the next manufacturing node, or improve their manufacturing productivity, KLA’s Pro offerings can help maximize the value of the customer’s existing assets.

Specialty Semiconductor Process:

Our SPTS business designs, manufactures and markets wafer processing solutions for the global semiconductor and related industries. It provides etch and deposition processes on a range of single wafer handling platforms for wafer sizes up to 330mm, as well as 400mm taped frame assemblies. These products include etch and deposition equipment designed to address advanced IC packaging manufacturing, and also manufacturing of semiconductor, compound semiconductor and microelectronic devices such as MEMS and Sensors, high speed RF IC, power semiconductors, and LED/MicroLEDs. The technology and products of SPTS are used by universities, research institutes, and full-scale production companies.

PCB and Display Manufacturing:

Printed Circuit Board Manufacturing

PCBs are the basic interconnect platforms for the electronic components that comprise all electronic equipment. An assembly of one or more PCBs on which desired components have been mounted forms an essential part of most electronic products. PCBs are manufactured in a series of complex steps, generally starting with a sheet of epoxy-fiberglass (or other material with electric insulating qualities), laminated with a conducting material such as copper. The conductor pattern is subsequently transferred to a photo-imageable layer which is coated over the conductive layer substrate either through a DI or masked based photolithographic process followed by a chemical development and etching removal process of excess conducting material, leaving the desired conducting metal pattern printed on the layer.

Because of the complexity of each step in the process of PCB manufacturing, sophisticated equipment is required in order to enable manufacturing, especially of high complexity boards where high accuracy is required. Dimensions of PCB boards change during the manufacturing process and digital printing is required in order to compensate for these changes and meet demand for high accuracy. PCBs are susceptible to various defects (electrical shorts, open circuits and insufficient or off-measure conductor widths), inspection is required throughout PCB production to identify such defects, which are then repaired, if possible. Early detection of these defects increases the possibility of successful repair and reduces the number of unusable boards, thereby reducing the overall cost to the manufacturer. Early detection and repair are particularly valuable in cases of multilayered and “build-up” boards, wherein PCB layers are embedded inside the finished board.

The Orbotech PCB businesses offer several solutions intended for use by manufacturers of PCBs to streamline and increase the efficiency and yield of PCB production, including the integrated pre-production software solutions that automate the entire process from quotation to the production floor.

Display Manufacturing

FPDs, which include LCDs, OLED displays and other types of displays, are currently used for laptop and desktop computers, tablets, televisions, smartphones, public electronic signs, automotive displays, digital and video cameras, augmented reality/virtual reality (“AR/VR”), wearable devices and a variety of other devices for technical, medical, aerospace and consumer electronics applications. LCDs and OLEDs are susceptible to various defects, many of which result from the deposition, photolithography and etching processes used in their production. Detection and repair of these defects during the production process allow manufacturers to improve monitoring of their production processes, avoid the expense of further costly material and improve their yields.

The Orbotech FPD businesses provide AOI and electrical testing systems to identify and classify defects that may impact the performance of the display panel, while our repair systems are designed to enable customers to repair defects, thereby further improving the manufacturer’s yield and grade (quality) of displays. MicroLED, a new emerging technology, is evolving for high-end applications such as smartwatches and televisions that will enable revolutionary interactive products.

KLA Services:

Our service programs enable our customers in all business sectors to maintain the high performance and productivity of our products through a flexible array of service options. Whether a manufacturing site is producing wafers, reticles, ICs, display or PCB products, our highly trained service teams collaborate with customers to determine the best products and services to meet technology and business requirements.

Product Table

			MARKETS			APPLICATIONS			PRODUCTS
			Chip and Wafer Manufacturing
			Defect Inspection | Review
						Patterned Wafer			39xx, 29xx Series eSL10™ C205 Puma™ Series Voyager® Series
			High Productivity and All Surface			CIRCL™ with 8 Series, CV350i, BDR300™ and Micro300 modules 8 Series
			Unpatterned Wafer/Surface			Surfscan® SPx Surfscan® SP Ax Series
			Electron-beam Review			eDR7xxx™ Series
			Metrology
						Overlay			Archer™ Series ATL™ Series
			Optical CD and Shape			SpectraShape™ Series
			Film Thickness/Index			SpectraFilm™ Series Aleris® Series Filmetrics® F Series products
			Wafer Geometry and Topography			WaferSight™ Series PWG™ Series MicroSense UltraMap® Series
			Edge Bead Removal			CIRCL™
			Ion Implant and Anneal			Therma-Probe® 680XP
			Resistivity			OmniMap® RS product family CAPRES CIPTech® CAPRES microHall® Series CAPRES microRSP® Series
			Magnetic Metrology			MicroSense PKMRAM MicroSense KerrMapper
			Surface Metrology			HRP® Series Tencor™ P Series Zeta™ Series
			Data Analytics
						Inspection and Metrology Data Analysis			Klarity® product family 5D Analyzer® SPOT™ RDC FabVision® ProDATA™ Qoniac OVALiS I-PAT®
			In Situ Process Management
						Lithography, Plasma Etch, Deposition, Chemical Mechanical Planarization/Polishing, Ion Implant, Wet Processing, e-beam Mask Write, Reticle Processing, Wafer Handling			SensArray® product family
			In Situ Data Analytics
						Lithography, Plasma Etch, Deposition, Chemical Mechanical Planarization/Polishing, Ion Implant, Wet Processing			SensArray® PlasmaSuite, LithoSuite, ThermalSuite

			Patterning Simulation
						Lithography and Patterning Simulation			PROLITH™
			Metal Deposition
						Physical Vapor Deposition			Sigma® fxP PVD
			Reticle Manufacturing and Quality Control
						Defect Inspection (mask shop)			Teron™ 600 Series TeraScan™ 500XR
			Defect Inspection (wafer fab)			Teron™ SL6xx Series X5.3™
			Defect Inspection (mask blanks)			FlashScan®
			Pattern Placement Metrology			LMS IPRO Series
			Data Analytics			RDC Klarity® product family
			Packaging Manufacturing
						Wafer Inspection and Metrology			CIRCL™-AP Kronos™ Series 8 Series Zeta™-5xx/6xx, WI-2280
			Die Sorting and Inspection			ICOS™ F16x
			IC Component Inspection and Metrology			ICOS™ T3/T7/T8 Series MV9xxx™ Series
			Data Analytics			Klarity® product family
			Wafer Processing Systems			Omega® Series Mosaic™ Series Sigma® Series Delta™ Series
			IC Substrate Production Processes			Paragon™ Series Ultra Fusion™ Series Ultra PerFix™ Series Emerald™ 160 Series Orbotech Magna™ Series, Orbotech Jetext™ Series
			Compound Semiconductor | Hard Disk Drive Manufacturing
						LED, Photonics, RF Communications			8 Series WI-2280 Candela® 8720 Zeta™-388 MicroXAM Series Tencor™ P Series HRP® Series MicroSense UltraMap® Series
			Power Devices			8 Series WI-2280 Candela® 8520 MicroXAM Series Tencor™ P Series HRP® Series
			MEMS			8 Series Tencor™ P Series HRP®Series MicroXAM Series Zeta™-20 Zeta™-300 Zeta™-388 Nano Indenter® G200X

						CPV Solar			ZetaScan Series Zeta™-20 Zeta™-300 MicroSense PV-6060 UltraMap® Series
			Display			ZetaScan Series SensArray® Process Probe 2070 Zeta™-300 Tencor™ P-17 OF Nano Indenter® G200X
			Data Storage Media | Head Manufacturing			8 Series Candela® 71xx Candela® 63xx HRP® Series Tencor™ P Series Zeta™-20, MicroXAM Series MicroSense Polar Kerr MicroSense DiskMapper
			Data Analytics			Klarity® product family
			General Purpose/Lab Applications
						Surface Metrology: Stylus Profilometer			Tencor™ P Series Alpha-Step® product family HRP® Series
			Surface Metrology: Optical Profilometer			MicroXAM Series, Zeta™ Series, Filmetrics® Profilm3D Series
			Nanomechanical and Micromechanical Testers			Nano Indenter® G200X, T150 UTM, uNano™ iMicro, iNano®
			Thin Film Reflectometers			Filmetrics® F Series
			Sheet Resistance Measurement Tools			Filmetrics® R Series
			Semiconductor Manufacturing
						Etch			Omega® Series Primaxx® Series Xactix® Series
			Plasma Dicing			Mosaic™ Series
			Deposition			Sigma® Series Delta™ Series MVD® Series
			Printed Circuit Boards
						Direct Imaging			Nuvogo™ Series Paragon™ Series Orbotech Diamond™ Series Orbotech Infinitum™ Series
			Automated Optical Inspection			Ultra Dimension™ Series Ultra Fusion™/ Fusion™ Series Discovery™ II Series
			Automated Optical Shaping			Precise™ Series Ultra PerFix™/ PerFix™ Series
			Inkjet / Additive Printing			Sprint™ Series

						UV Laser Drilling			Emerald™ 160 Series
Computer Aided Manufacturing and Engineering			Frontline InCAM® Pro, InFlow™, InPlan® and InPlan® Flex
Industry 4.0			InShop®
Display
			Inspection			Orbotech Quantum™ Series
Electrical Testing			Array Checker™ Series Accelon Series
Repair			Orbotech Prism™ Series
Software Platform			Orbotech OASIS (Orbotech Advanced Software Integrated Solution)

Customers

To support our growing global customer base, we maintain a significant presence throughout Asia, the United States and Europe, staffed with local sales and applications engineers, customer and field service engineers and yield management consultants. We count among our largest customers the leading semiconductor, semiconductor-related and electronic device manufacturers in each of these regions.

For the fiscal years ended June 30, 2021, 2020 and 2019, the following customers each accounted for more than 10% of total revenues, primarily in the Semiconductor Process Control segment:

Year Ended June 30,
2021						2020						2019
Taiwan Semiconductor Manufacturing Company Limited						Taiwan Semiconductor Manufacturing Company Limited						Taiwan Semiconductor Manufacturing Company Limited
Samsung Electronics Co., Ltd.						Samsung Electronics Co., Ltd.

Our business depends upon the capital expenditures of semiconductor, semiconductor-related and electronic device manufacturers, which in turn is driven by the current and anticipated market demand for ICs, products utilizing ICs and other electronic components. We do not consider our business to be seasonal in nature, but it has historically been cyclical with respect to the capital equipment procurement practices of semiconductor, semiconductor-related and electronic device manufacturers, and it is impacted by the investment patterns of such manufacturers in different global markets. Downturns in the semiconductor or other industries in which we operate, or slowdowns in the worldwide economy as well as customer consolidation could have a material adverse effect on our future business and financial results.

Sales, Service and Marketing

Our sales, service and marketing efforts are aimed at building deep long-term relationships with our customers. We focus on providing comprehensive resources for the full breadth of process control, process-enabling and yield management solutions for manufacturing and testing wafers and reticles, ICs, packaging, LEDs, power devices, compound semiconductor devices, MEMS, data storage, PCBs and flat and flexible panel displays, as well as general materials research. Our customers benefit from the simplified planning and coordination, as well as the increased equipment compatibility, that are realized as a result of dealing with a single supplier for multiple products and services. Our revenues are derived primarily from product sales and related service contracts, mostly through our direct sales force.

We believe that the size and location of our field sales, service and applications engineering, and marketing organizations represent a competitive advantage in our served markets. We have direct sales forces in Asia, the United States and Europe. We maintain an export compliance program that is designed to meet the requirements of the United States Departments of Commerce (“Commerce”) and State.

In addition to sales and service offices in the United States, we conduct sales, marketing and services out of subsidiaries or branches in other countries, including China, Germany, Israel, United Kingdom, Japan, Singapore, Korea and Taiwan. International revenues accounted for approximately 89%, 89%, and 87% of our total revenues in the fiscal years ended June 30, 2021, 2020 and 2019, respectively. Additional information regarding our revenues from foreign operations for our last three fiscal years can be found in Note 19 “Segment Reporting and Geographic Information” to our Consolidated Financial Statements.

We believe that sales outside the United States will continue to be a significant percentage of our total revenues. Our future performance will depend, in part, on our ability to continue to compete successfully in Asia, one of the largest markets for our equipment. Our ability to compete in this area is dependent upon the continuation of favorable trading relationships between countries in the region and the United States, and our continuing ability to maintain satisfactory relationships with leading semiconductor companies in the region.

International sales and operations may be adversely affected by the imposition of governmental controls, restrictions on export technology, political instability, trade restrictions, changes in tariffs and the difficulties associated with staffing and managing international operations. In addition, international sales may be adversely affected by the economic conditions in each country and by fluctuations in currency exchange rates, and such fluctuations may negatively impact our ability to compete on price with local providers or the value of revenues we generate from our international business. Although we attempt to manage some of the currency risk inherent in non-U.S. dollar product sales through hedging activities, there can be no assurance that such efforts will be adequate. These factors, as well as any of the other risk factors related to our international business and operations that are described in Item 1A “Risk Factors,” could have a material adverse effect on our future business and financial results.

Backlog

Our backlog, which represents our performance obligation to deliver products and services, totaled $4.69 billion and $2.13 billion as of June 30, 2021 and 2020, respectively, and primarily consists of sales orders where written customer requests have been received and a majority of the delivery is anticipated within the next 12 months. Orders for service contracts and unreleased products are included in the backlog. All orders are subject to risk of delays, pushouts, and cancellation by the customer, usually with limited or no penalties.

Because customers can potentially change delivery schedules or delay or cancel orders, and because some orders are received and shipped within the same quarter, our shipment backlog at any particular date is not necessarily indicative of business volumes or actual sales for any succeeding periods. The historical cyclicality of the semiconductor industry combined with the lead times from our suppliers sometimes result in timing disparities between, on the one hand, our ability to manufacture, deliver and install products and, on the other, the requirements of our customers. In our efforts to balance the requirements of our customers with the availability of resources, management of our operating model and other factors, we often must exercise discretion and judgment as to the timing and prioritization of manufacturing, deliveries and installations of products, which may impact the timing of revenue recognition with respect to such products.

Research and Development

The market for semiconductor and electronics industries is characterized by rapid technological development and product innovation. These technical innovations are inherently complex and require long development cycles and appropriate professional staffing. We make significant investments in product R&D for the timely development of new products and enhancements necessary to maintain our competitive position. Accordingly, we devote a significant portion of our human and financial resources to R&D programs and seek to maintain close relationships with customers to remain responsive to their needs. In addition, we may enter certain strategic development and engineering programs whereby certain government agencies or other third parties fund a portion of our R&D costs.

Our key R&D activities during the fiscal year ended June 30, 2021 involved the development of process control and process-enabling solutions for a broad range of industries including semiconductors, PCBs and displays. For information regarding our R&D expenses during the last three fiscal years, see Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report on Form 10-K.

The strength of our competitive positions in many of our existing markets is largely due to our leading technology, which is the result of our continuing significant investments in product R&D. Even during down cycles in the semiconductor industry, we have remained committed to significant engineering efforts toward both product improvement and new product development in order to enhance our competitive position. New product introductions, however, may contribute to fluctuations in operating results, since customers may defer ordering existing products, and, if new products have reliability or quality problems, those problems may result in reduced orders, higher manufacturing costs, delays in acceptance of and payment for new products, and additional service and warranty expenses. There can be no assurance that we will successfully develop and manufacture new products, or that new products introduced by us will be accepted in the marketplace. If we do not successfully introduce new products, our results of operations will be adversely affected.

Manufacturing, Raw Materials and Supplies

We perform system design, assembly and testing in-house and utilize an outsourcing strategy for the manufacture of components and major subassemblies. Our in-house manufacturing activities consist primarily of assembling and testing components and subassemblies that are acquired through third-party vendors and integrating those subassemblies into our finished products. Our principal manufacturing activities take place in the United States, Singapore, Israel, Germany, United Kingdom, Italy and China.

Some critical parts, components and subassemblies (collectively, “parts”) that we use are designed by us and manufactured by suppliers in accordance with our specifications, while other parts are standard commercial products. We use numerous vendors to supply parts and raw materials for the manufacture and support of our products. Although we make reasonable efforts to ensure that these parts and raw materials are available from multiple suppliers, this is not always possible, and certain parts and raw materials included in our systems may be obtained only from a single supplier or a limited group of suppliers. Through our business interruption planning, we endeavor to minimize the risk of production interruption by, among other things, monitoring the financial condition of suppliers of key parts and raw materials, identifying (but not necessarily qualifying) possible alternative suppliers of such parts and materials, and ensuring adequate inventories of key parts and raw materials are available to maintain manufacturing schedules.

Although we seek to reduce our dependence on sole and limited source suppliers, in some cases the partial or complete loss of certain of these sources, or disruptions within our suppliers’ often complex supply chains, could disrupt scheduled

deliveries to customers, damage customer relationships and have a material adverse effect on our results of operations.

Competition

The worldwide market for technologically advanced process control, process-enabling and yield management solutions used by semiconductor and electronics manufacturers is highly competitive. In each of our product markets, we have many competitors, including companies such as Applied Materials, Inc., ASML Holding N.V., Hitachi High-Technologies Corporation, Onto Innovation, Inc. and Lasertec, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. We may also face future competition from new market entrants from other overseas and domestic sources. We expect our competitors to continue to improve the design and performance of their current products and to introduce new products with improved price and performance characteristics. We believe that, to remain competitive, we will require significant financial resources to offer a broad range of products, to maintain customer service and support centers worldwide, and to invest in product R&D.

We believe that, while price and delivery are important competitive factors, the customers’ overriding requirement is for systems that easily and effectively incorporate automated capabilities into their existing development and manufacturing processes to enhance productivity, improve yields and reduce waste. Significant competitive factors in the market for process control and process-enabling systems include system performance, ease of use, reliability, interoperability with the existing installed base and technical service and support, as well as overall cost of ownership.

Management believes that we are well positioned in the market with our industry-leading portfolio of products and services. However, any loss of competitive position could negatively impact our prices, customer orders, revenue, gross margin and market share. Should this occur, it could negatively impact our operating results and financial condition.

We continuously evaluate strategic acquisitions and alliances to expand our technologies, product offerings and distribution capabilities. Acquisitions involve numerous risks, including management issues and costs in connection with integration of the operations, technologies and products of the acquired companies, and the potential loss of key employees of the acquired companies. The inability to manage these risks effectively could negatively impact our operating results and financial condition.

Patents and Other Proprietary Rights

We protect our proprietary technology through reliance on a variety of intellectual property laws, including patent, copyright and trade secret. We have filed and obtained a number of patents in the United States and abroad and intend to continue pursuing the legal protection of our technology through intellectual property laws. In addition, from time to time we acquire license rights under United States and foreign patents and other proprietary rights of third parties, and we attempt to protect our trade secrets and other proprietary information through confidentiality and other agreements with our customers, suppliers, employees and consultants and through other security measures.

Although we consider patents and other intellectual property significant to our business, no single patent, copyright or trade secret is essential to us as a whole or to any of our business segments.

No assurance can be given that patents will be issued on any of our applications, that license assignments will be made as anticipated, or that our patents, licenses or other proprietary rights will be sufficiently broad to protect our technology. No assurance can be given that any patents issued to or licensed by us will not be challenged, invalidated or circumvented or that the rights granted thereunder will provide us with a competitive advantage. In addition, there can be no assurance that we will be able to protect our technology or that competitors will not be able to independently develop similar or functionally competitive technology.

Government Regulations

We are subject to a variety of federal, state and local governmental laws and regulations worldwide, including laws and regulations related to anti-corruption, antitrust, data privacy, employment, environmental, foreign exchange controls, health and safety, immigration, import/export, intellectual property and tax. Compliance with these laws and regulations did not have in fiscal 2021, and is not expected to have in fiscal 2022, a material effect on our capital expenditures, financial condition, results of operations or competitive position.

However, any failure to comply with laws and regulations may subject us to a range of consequences including fines, suspension of certain of our business activities, limitations on our ability to sell our products, obligations to remediate in the case of environmental contamination, and criminal and civil liabilities or other sanctions. Changes in environmental laws and regulations could require us to invest in potentially costly pollution control equipment, alter our manufacturing processes or use substitute materials. Our failure to comply with laws and regulations could subject us to future liabilities.

Human Capital Management

Our employees are our greatest asset, and our key management, engineering and other employees are difficult to replace. In order to compete and succeed in highly competitive markets and industries that are subject to rapid technological change, we believe it is critical to attract, motivate and retain a dedicated, talented and innovative team of employees who exhibit our core values.

Our Core Values

At KLA, our core values – demonstrating perseverance; striving to be better; being honest, forthright and consistent; building high-performing teams; and being indispensable to our customers – serve as a foundation for our relationships with employees, customers, suppliers, and other stakeholders and reflect a commitment to ethical business practices and corporate citizenship in the places where we do business:

Our Workforce

As of June 30, 2021, we had approximately 11,300 regular full-time employees and approximately 250 part-time and temporary employees in facilities located in 19 countries. Approximately 30% of our regular full-time employees are located in the United States, 23% in Europe and Middle Eastern countries and 47% in Asia Pacific and Japan, with approximately 19% engaged in manufacturing, 27% in R&D, 31% in customer service, 4% in sales and marketing, and 19% in other roles. Except for our employees in Belgium (where a trade union delegation has been recognized) and our employees in the German operations of our MIE business unit (who are represented by employee works council), none of our employees are represented by a labor union. We have not experienced work stoppages and believe that our employee relations are good.

In fiscal year 2021, our overall turnover rate was 5.6%.

Compensation and Benefits

We seek to achieve our objective of attracting, retaining, and motivating our workforce by linking a significant portion of compensation to Company and business unit performance. We enable employees to share in the success of the Company through various programs including an Employee Stock Purchase Plan (“ESPP”), equity compensation, profit sharing and bonus plans. We seek competitiveness and fairness in total compensation with reference to peer comparisons and internal equity. In addition to providing our employees with competitive compensation packages, we offer benefits designed to meet the needs of employees and their families, including paid time off, parental leave, bereavement leave, health insurance coverage, flexible work arrangements, contributions to retirement savings, and access to employee assistance and work-life programs.

Inclusion and Diversity

We believe in fostering a diverse workforce and an equitable and inclusive culture in order to build a stronger and more resilient company for our customers, our employees and our communities. We have established programs for recruiting and hiring candidates from diverse backgrounds and experiences. We have conducted audits in the United States and Israel on gender pay equity that have shown no significant pay equity exist in the employee populations tested. We are an equal opportunity/affirmative action employer and have increased our efforts to recruit, develop, and retain a more diverse workforce with a focus on those historically underrepresented in the technology field, including women, Black, and Hispanic candidates. In fiscal year 2021, we created the role of Chief Inclusion & Diversity Officer to provide additional focus to this area.

We have promoted several Employee Resource Groups to further our diversity initiatives. These include a women’s group, as well as groups based on race and ethnicity such as the Black and Hispanic resource groups.

We have a tradition of amplifying the charitable actions of our employees and responding to the needs of the communities where we work. In 2020, in order to show support for effecting positive change in society, we joined countless others to donate to organizations fighting for social justice and racial equality.

As of June 30, 2021, our global workforce was 82% male and 18% female, and 8% of our workforce in the United States was composed of Black or African American, and Hispanic or Latino employees.

Learning and Development

We offer our employees opportunities to advance their careers at KLA. We emphasize experimentation, stretch assignments and on-the job learning and development. Our employees have access to a wide range of programs, workshops, classes, and resources to help them excel in their careers and share what they know with others. Our learning management platform offers robust training and development programs, as well as learning resources. Our Employee Educational Assistance

Program provides financial and management support to eligible employees, allowing them to pursue academic degrees related to their field of work. Employees may also participate in a tuition reimbursement program and distance learning degree programs with major universities. Our performance management process includes performance feedback and career development discussions that are dynamic and actionable throughout the year.

Many of our employees are required to take annual training courses and regular certifications related to their work, including those pertaining to the environment, data privacy, and workplace health and safety. We also have leadership development programs available to employees, including the New Manager Training Program, Corporate Values Training Program, and Executive Leadership Programs.

Employee Engagement

We conduct regular employee surveys to check in with our global workforce and obtain input on a number of topics. The feedback we receive from these surveys helps us assess employee sentiment, identify areas of improvement, and guides our decision-making as it relates to people management. In addition, our executives conduct regular weekly and quarterly webcasts. These global webcasts enable all employees to engage with senior leaders and ask questions in an open Q&A session.

Health and Safety and Pandemic Response

KLA is committed to providing a safe and healthy workplace for all employees. We accomplish this through strict compliance with applicable laws and regulations regarding workplace safety, including recognition and control of workplace hazards, tracking injury and illness rates, utilizing a global travel health program and maintaining detailed emergency and disaster recovery plans.

KLA’s top priority during the ongoing COVID-19 pandemic has been and continues to be protecting the health and safety of our employees and their families, our customers, and our community. The commitment to this effort is evidenced by the extensive planning and numerous actions KLA swiftly took to respond to the pandemic, including the development and implementation of an infectious disease playbook, a work from home program, health check protocols, screenings for all employees working on site, new process workflows at physical sites to ensure reduced contact for employees working on site, contact tracing processes and protocols, quarantining and testing protocols for exposure and positive tests, on-site vaccination clinics and travel guidelines and protocols to ensure employees who must travel for work can do so safely, and phased return-to-work plans and approval processes to enable non-manufacturing employees to return-to-work when permitted by local government regulations. KLA continues to maintain workplace flexibility such as working remotely where possible to reduce the number of people who are on site each day. In April 2020, KLA launched a worldwide survey of its people to better understand how remote workers were doing during the pandemic. The results of this survey have informed our continued response to the COVID-19 pandemic and were shared with all of our employees.

Glossary

This section provides definitions for certain industry and technical terms commonly used in our business, that are used elsewhere in this this Annual Report on Form 10-K:

active matrix						A technology used in FPDs to control the imaging-produced active areas where the display pixels are located.
broadband						Of an illumination source, having a wide spectral bandwidth.
compound semiconductor						A semiconductor formed from chemical elements in two or more different groups in the periodic table (ex. III-V). The composition of these materials influences their properties, resulting in different performance than silicon when used in electronics. Primary examples include SiC, GaN, gallium arsenide (GaAs), and indium phosphide (InP).
computer-aided manufacturing (“CAM”)						An application technology that uses computer software and machinery to facilitate and automate manufacturing processes.
critical dimension (“CD”)						The dimension of a specified geometry (such as the width of a patterned line or the distance between two lines) that must be within design tolerances in order to maintain semiconductor device performance consistency.
design rules						Rules that set forth the allowable dimensions of particular features used in the design and layout of ICs.
design technology co-optimization (“DTCO”)						The methodology of optimizing semiconductor design and process simultaneously during the technology definition phase.
die						A single semiconductor chip on a wafer.
dice						The process of cutting through a wafer to separate the individual die from each other.
electron-beam						An illumination source comprised of a stream of electrons emitted by a single source.
epitaxial silicon (“epi”)						A substrate technology based on growing a crystalline silicon layer on top of a silicon wafer. The added layer, where the structure and orientation are matched to those of the silicon wafer, includes dopants (impurities) to imbue the substrate with special electronic properties.
etching						A process step in which layers of material are removed from a semiconductor wafer in a specific pattern.
excursion						For a manufacturing step or process, a deviation from normal operating conditions that can lead to decreased performance or yield of the final product.
fab						The main manufacturing facility for processing semiconductor wafers.
finFET						A type of field-effect transistor (FET), often with source and drain geometries that resemble fins.
flat panel display (“FPD”)						A display appliance that uses a thin panel design. Also includes flexible displays.
flexible printed circuit (“FPC”)						Flexible circuits provide mechanical support and connect various electrical and mechanical components together using material that can be shaped, bent, twisted or folded.
front end						The processes that make up the first half of the semiconductor manufacturing process, from wafer start through final contact window processing.
geometry						The surface shape of an object, such as the 3D shape of a semiconductor device structure or the shape of base or patterned wafers

high-density interconnect (“HDI”)						HDI PCBs have a higher wiring density per unit area, finer lines and spaces, smaller vias, smaller capture pads and higher connection pad density than conventional PCBs.
in situ						Of processing steps or tests, done without moving the wafer. Latin for “in original position.”
ingot						A piece of pure metal intended to be processed. In semiconductors, a silicon ingot is typically created in such a way that slicing cross-sections creates bare wafers.
interconnect						A highly conductive material, usually copper or aluminum, which carries electrical signals to different parts of a die.
internet of things (“IoT”)						A network of devices with the ability to transfer data without human interaction.
light emitting diode (“LED”)						A semiconductor device that releases electromagnetic radiation (light) when current flows through it. The bandgap of the semiconductor material determines the wavelength (color) of the light emitted.
liquid crystal display (“LCD”)						A FPD technology that uses a backlight to provide light to individual pixels arranged in a grid.
lithography						A process in which a masked pattern is projected onto a photosensitive coating that covers a substrate.
mask shop						A manufacturer that produces the reticles used by semiconductor manufacturers.
metrology						The science of measurement to determine dimensions, quantity or capacity. In the semiconductor industry, typical measurements include critical dimension, overlay and film thickness.
microelectromechanical systems (“MEMS”)						Micron-sized mechanical devices powered by electricity, created using processes similar to those used to manufacture IC devices.
microLED						A FPD technology wherein an array of microscopic LEDs act as the pixels.
micron						A metric unit of linear measure that equals 1/1,000,000 meter (10-6m), or 10,000 angstroms (the diameter of a human hair is approximately 75 microns).
Moore’s Law						An observation made by Gordon Moore in 1965 and revised in 1975 that the number of transistors on a typical integrated circuit doubles approximately every two years.
multi-layer boards (“MLB”)						A PCB made up of three or more conductive layers that are pressed together.
nanometer (“nm”)						One billionth (10-9) of a meter.
organic light emitting diode (“OLED”)						A FPD technology containing thin flexible sheets of an organic electroluminescent material, used for visual displays.
patterned						For semiconductor manufacturing and industries using similar processing technologies, substrates that have electronic circuits (transistors, interconnects, etc.) fabricated on the surface.
photoresist						A radiation-sensitive material that, when properly applied to a variety of substrates and then properly exposed and developed, masks portions of the substrate with a high degree of integrity.
photovoltaic						The property of semiconductor devices to create electric current through exposure to sunlight.
printed circuit board (“PCB”)						A board used to mechanically support and electrically connect various electrical and mechanical components.

process control						The ability to maintain specifications of products and equipment during manufacturing operations.
reticle						A very flat glass plate that contains the patterns to be reproduced on a wafer.
silicon on insulator (“SOI”)						A substrate technology comprised of a thin top silicon layer separated from the silicon substrate by a thin insulating layer of glass or silicon dioxide, used to improve performance and reduce the power consumption of IC circuits.
Substrate-like PCB/modified semi-additive process (“SLP/mSAP”)						An advanced manufacturing process or technique that enables fine line and space patterns with higher manufacturing precision that maximizes circuit density.
substrate						A wafer or other material on which layers of various materials are added during the process of manufacturing semiconductor devices (circuits), FPDs or PCBs.
unpatterned						For semiconductor manufacturing and industries using similar processing technologies, substrates that do not have electronic circuits (transistors, interconnects, etc.) fabricated on the surface. These can include bare silicon wafers, other bare substrates or substrates on which blanket films have been deposited.
yield management						The ability of a semiconductor manufacturer to oversee, manage and control its manufacturing processes so as to maximize the percentage of manufactured wafers or die that conform to pre-determined specifications.

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The definitions above are from internal sources, as well as online semiconductor dictionaries such as https://www.semiconductors.org/semiconductors-101/frequently asked questions/.