July 31 (Reuters) - KLA Corp ( KLAC ) forecast

first-quarter revenue above Wall Street estimates on Thursday,

expecting booming demand for AI processors to drive sales of its

chipmaking equipment.

New orders for chipmaking equipment are expected to benefit

from strong demand for advanced processors capable of supporting

artificial intelligence technology.

"These results reflect the unique and compelling opportunity

within semiconductor capital equipment for KLA's continued role

in enabling and supporting the AI infrastructure buildout," CEO

Rick Wallace said in a statement.

KLA forecast revenue to be $3.15 billion, plus or minus $150

million for the first quarter ending in September, compared with

analysts' average estimate of $3.05 billion, according to data

compiled by LSEG.

Chip industry bellwether and KLA customer TSMC is

expanding U.S. production, aligning with efforts by President

Donald Trump to onshore chip supply chains, potentially boosting

demand for KLA's equipment.

TSMC contributed more than 10% of KLA's total revenue in the

fiscal year ended June 30, 2024.

In the June quarter, demand for leading-edge logic,

high-bandwidth memory (HBM) and advanced packaging were key

contributors to sales, the company said.

These refer to complex manufacturing processes employed

in the production of AI chips and advanced memory chips used in

AI applications.

For 2025, the company said it is maintaining its

original forecast for mid-single-digit growth in the

wafer-fab-equipment market.

The company reported fourth-quarter revenue of $3.18

billion, beating estimates of $3.08 billion.

Adjusted profit for the quarter ended June 30, at $9.38

per share, also beat estimates.

CHINA WEAKNESS EXPECTED

KLA expects lower overall demand from China this year, the

company said in a letter to shareholders.

Shares of the Milpitas, California-based company fell about

1% in extended trading.

China, an essential market for semiconductor firms, was

KLA's largest revenue driver in the June quarter, accounting for

30% of total sales.

However, Sino-U.S. trade tensions and export restrictions

pose risks to American chip firms' ability to serve the market.