News
Advanced packaging WFE market projected to reach $12 billion in 2026 as KLA and Lam Research report revenue growth
Thursday, January 29, 2026 at 11:02 AM
KLA projects its advanced packaging process control market share will reach 50% by 2025 with $950 million in revenue, a 70% year-over-year increase, before decelerating to mid-to-high teens growth in 2026. Meanwhile, Lam Research is estimated to have exceeded $1 billion in advanced packaging revenue for 2025 and forecasts over 40% growth for 2026. The total advanced packaging wafer fab equipment market is expected to grow from $11 billion in 2025 to $12 billion in 2026.
Context
KLA reported record CY25 revenue of $12.745 billion, a 17% year-over-year increase supported by a strong 62.8% gross margin. The company ended the year with $3.3 billion in December revenue, beating margin guidance by 60 basis points. This momentum carries into the QMar period, with revenue projected at $3.35 billion. These figures underscore KLA’s dominance in the metrology and inspection market as chipmakers prioritize yield for increasingly complex AI-driven architectures.
The company also significantly upgraded its CY26 wafer fab equipment (WFE) outlook, mirroring recent optimism from Lam Research. Total market guidance was raised to the mid-$130 billion range, driven by a low $120 billion core WFE market and $12 billion for advanced packaging. KLA anticipates growth will accelerate throughout next year, with 1H26 revenue rising mid-single digits followed by high-single to low-double-digit growth in 2H26, signaling a sustained expansion in global semiconductor capital intensity.
Related Companies
KLA
KLAC
Western Digital
WDC
Apple
AAPL