What KLA Corporation told the SEC could break it.

Customers in China accounted for 33% of KLA's total revenues in fiscal 2025 (down from 43% in 2024, partly due to more stringent U.S. export controls); international revenues were ~89% of total, with Taiwan at 27%.

“There was a decrease in revenues from our customers in China, accounting for 33% of total revenues in fiscal 2025 compared to 43% of total revenues in fiscal 2024.”

Certain key parts and raw materials in KLA's systems are available only from a single supplier or a limited group, and some incorporate suppliers' proprietary IP — making KLA increasingly reliant on third parties for high-performance, high-technology components with reduced control.

“certain key parts are available only from a single supplier or a limited group of suppliers. Also, key parts we obtain from some of our suppliers incorporate the suppliers' proprietary IP; in those cases, we are increasingly reliant on third parties for high-performance, high-technology components, which reduces the amount of control we have”

In fiscal 2025 one customer accounted for ~19% of KLA's total revenues; TSMC and Samsung each individually exceeded 10% of total revenues (primarily Semiconductor Process Control), and two customers each represented >10% of net accounts receivable.

“In the fiscal year ended June 30, 2025, one customer accounted for approximately 19 % of total revenues.”

The U.S. government has tightened export controls for commodities, software and technology destined to China over the past several years, which could significantly harm KLA's business unless it obtains required licenses, and has contributed to declining China revenue share.

“The U.S. government has tightened export controls for commodities, software, and technology (collectively, “items”) destined to China over the past several years.”