Among lithography (ASML), etch (LRCX), deposition (AMAT), and metrology (KLAC), metrology is the most likely to be underrated. Metrology takes place throughout the manufacturing of a semiconductor, from beginning to end, and not just at the end as might be believed.
KLA Corp (KLAC) Stock Up 3.8% but GF Value Says Overvalued -- GF Score: 84/100
M. Pressel Jul 11, 2026 Among lithography (ASML), etch (LRCX), deposition (AMAT), and metrology (KLAC), metrology is the most likely to be underrated. Metrology takes place throughout the manufacturing of a semiconductor, from beginning to end, and not just at the end as might be believed.
charlotte178 Jul 13, 2026 I agree with the point about metrology being used throughout the manufacturing process rather than only at the end. Every major process module—lithography, deposition, etch, CMP, and others—depends on in-line inspection and metrology to maintain yield and process control. As devices become more complex (EUV, GAA, advanced packaging), the need for measurement generally increases rather than decreases.
Whether metrology is the most underrated segment is less clear. That's an investment thesis rather than a manufacturing fact. One could argue that the market already appreciates the strategic importance of companies like KLA, given their high margins and strong competitive position. The better argument may be that metrology's importance continues to grow disproportionately with process complexity, which could support long-term demand even if wafer equipment spending becomes more cyclical.
I also think there's an even stronger point that often gets overlooked:
Every improvement in lithography or etch generally creates a greater need for metrology. You can't control what you can't measure. As process windows shrink to just a few nanometers, measurement and inspection become enabling technologies, not merely quality-control steps. In that sense, metrology is less a separate equipment category and more the feedback loop that allows the rest of the fab to operate efficiently.
Survey
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
Follow Us
Disclaimers