KLA Gains From Advanced Packaging: Can it Outpace ONTO & AMAT?

KLA expects its advanced packaging process-control business to surge as AI and high-performance computing (HPC) chips demand more complex integration of logic and memory. The company said rising package complexity and higher chip values are increasing the need for inspection, metrology, and process-control tools. KLA projects advanced packaging process-control systems revenues of about $1.1 billion in calendar 2026—more than 70% year over year—driven by higher process-control intensity and technology transitions such as hybrid bonding. That added complexity increases the number of inspection and measurement steps during manufacturing. KLA also expects specialty process and PCB/component inspection products to grow more than 25% in 2026. Competition is intensifying: Onto raised its 2026 growth outlook for advanced packaging to about 80% and reported Dragonfly orders exceeding $200 million for shipments scheduled in 2027, while Applied Materials expects over 50% growth.