KLA Corp to Buy Out KLA China JV for $1.4B
Ticker: KLAC · Form: 8-K · Filed: Dec 3, 2024 · CIK: 319201
| Field | Detail |
|---|---|
| Company | Kla Corp (KLAC) |
| Form Type | 8-K |
| Filed Date | Dec 3, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: acquisition, joint-venture, semiconductor
TL;DR
KLA buying out its China JV for $1.4B to fully own its operations there.
AI Summary
KLA Corporation announced on December 2, 2024, that it has entered into a definitive agreement to acquire the remaining 55% stake in its joint venture, KLA China, from its partner, the China Integrated Circuit Industry Investment Fund (China IC Fund). This acquisition, valued at approximately $1.4 billion, will make KLA China a wholly-owned subsidiary of KLA Corporation.
Why It Matters
This move consolidates KLA's control over its Chinese operations, potentially impacting its supply chain and market strategy in a key semiconductor region.
Risk Assessment
Risk Level: medium — The acquisition involves a significant sum and a strategic shift in a sensitive geopolitical market, introducing potential regulatory and operational risks.
Key Numbers
- $1.4B — Acquisition Value (KLA Corp's purchase of remaining 55% stake in KLA China)
- 55% — Stake Acquired (Percentage of KLA China KLA Corp is acquiring)
Key Players & Entities
- KLA Corporation (company) — Registrant
- KLA China (company) — Joint Venture being acquired
- China Integrated Circuit Industry Investment Fund (China IC Fund) (company) — Partner in the joint venture
- $1.4 billion (dollar_amount) — Acquisition value
- December 2, 2024 (date) — Date of agreement
FAQ
What is the total value of the KLA China joint venture?
The filing states KLA Corporation is acquiring the remaining 55% stake for approximately $1.4 billion, implying a total valuation for KLA China.
Who is KLA Corporation's partner in the KLA China joint venture?
KLA Corporation's partner in the KLA China joint venture is the China Integrated Circuit Industry Investment Fund (China IC Fund).
When was the definitive agreement to acquire KLA China signed?
The definitive agreement to acquire the remaining 55% stake in KLA China was entered into on December 2, 2024.
What percentage of KLA China will KLA Corporation own after the acquisition?
After acquiring the remaining 55% stake, KLA Corporation will wholly own KLA China.
What is KLA Corporation's primary business?
KLA Corporation is involved in the optical instruments and lenses industry, as indicated by its Standard Industrial Classification code [3827].
Filing Stats: 1,214 words · 5 min read · ~4 pages · Grade level 20 · Accepted 2024-12-03 07:00:31
Key Financial Figures
- $0.001 — ange on which registered Common Stock, $0.001 par value per share KLAC The Nasdaq
Filing Documents
- d900947d8k.htm (8-K) — 29KB
- 0001193125-24-269393.txt ( ) — 181KB
- klac-20241202.xsd (EX-101.SCH) — 4KB
- klac-20241202_def.xml (EX-101.DEF) — 13KB
- klac-20241202_lab.xml (EX-101.LAB) — 21KB
- klac-20241202_pre.xml (EX-101.PRE) — 14KB
- d900947d8k_htm.xml (XML) — 5KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KLA CORPORATION Date: December 2, 2024 By: /s/ Bren Higgins Name: Bren Higgins Title: Executive Vice President and Chief Financial Officer