KLA's service business accounts for 25% of its revenue and grew at 13% CAGR between 2020 and 2025. KLA maintains it will grow at 12-14% in CY26 too. Unlike Lam and others, KLA doesn't include mature node equipment and upgrades in service business. Service business is less consumable-intensive for KLA (unlike Lam). AMAT recently removed equipment part of service business to give a clean picture of its service business.
KLA's equipment ASPs up 150bps vs 2013 and average equipment life went to high teens of years from 12-13 years. 50,000 tool installed base.Source: Sravan Kundojjala
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