p.3

"Sourcing and Supplier Selection"

"To become a key supplier to produce KLA’s goods and services, suppliers are evaluated through a selection and qualification process that is a critical part of the company’s SCM process. Typically, such evaluations include supplier visits and/or supplier quality audits of the supplier’s people, processes, and capabilities against pre-determined evaluation criteria. During these assessments, the team qualifies how well the supplier meets KLA’s standards, including KLA’s Global Human Rights Standards. Only the suppliers that meet KLA’s standards and that optimize or meet the overall selection criteria are selected. Those suppliers then become part of KLA’s supply base and are, as appropriate, managed for continuous improvement."