Annual Statement of Changes in Beneficial Ownership

   
FORM 5
[ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
[ ] Form 3 Holdings Reported
[ ] Form 4 Transactions Reported 		UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

                                                                                  

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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

NICHOLS STUART J

2. Issuer Name and Ticker or Trading Symbol

KLA TENCOR CORP [klac]

5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                      _____ 10% Owner
__ X __ Officer (give title below)      _____ Other (specify below)
VP and General Counsel

(Last)          (First)          (Middle)

C/O KLA-TENCOR CORP,  160 RIO ROBLES

3. Statement for Issuer's Fiscal Year Ended (MM/DD/YYYY)
6/30/2003 
(Street)

SAN JOSE, CA 95134

(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form Filed by One Reporting Person
___ Form Filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 		2. Transaction Date (MM/DD/YYYY) 2A. Deemed Execution Date, if any (MM/DD/YYYY) 3. Transaction Code
(Instr. 8) 		4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4) 		6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4) 		7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Amount (A) or (D) Price
Common Stock               D    

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3) 		2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YYYY) 3A. Deemed Execution Date, if any (MM/DD/YYYY) 4. Transaction Code
(Instr. 8) 		5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5) 		6. Date Exercisable and Expiration Date
(MM/DD/YYYY) 		7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4) 		8. Price of Derivative Security
(Instr. 5) 		9. Number of Derivative Securities Beneficially Owned at End of Issuer's Fiscal Year
(Instr. 4) 		10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4) 		11. Nature of Indirect Beneficial Ownership
(Instr. 4)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Qualified Stock Option   $26.25                 11/10/2001   11/10/2010   Common Stock   4300     4300   D    
Non-Qualified Stock Option   $29.31                 10/2/2002   10/2/2011   Common Stock   12000     12000   D    
Non-Qualified Stock Option   $32.75                 4/4/2002   4/4/2011   Common Stock   6000     6000   D    
Non-Qualified Stock Option   $33.75                 10/27/2000   10/27/2009   Common Stock   21000     21000   D    
Non-Qualified Stock Option   $34.67                 11/8/2003   1/28/2013   Common Stock   6500     6500   D    
Non-Qualified Stock Option   $37.05                 11/8/2003   11/8/2012   Common Stock   3250     3250   D    
Non-Qualified Stock Option   $44.6875                 8/13/2000   8/13/2010   Common Stock   12000     12000   D    

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
NICHOLS STUART J
C/O KLA-TENCOR CORP
160 RIO ROBLES
SAN JOSE, CA 95134

VP and General Counsel

Signatures

Stuart J. Nichols 8/11/2003
** Signature of Reporting Person Date

 
Remarks:
Form 5 filed to voluntarily report all holdings

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
( 1)  Securities adjusted for Non-Reportable Transaction (384 ESPP shares acquired)

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.