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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001181431-08-057947.txt : 20081021
<SEC-HEADER>0001181431-08-057947.hdr.sgml : 20081021
<ACCEPTANCE-DATETIME>20081021173258
ACCESSION NUMBER:		0001181431-08-057947
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081018
FILED AS OF DATE:		20081021
DATE AS OF CHANGE:		20081021

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KLA TENCOR CORP
		CENTRAL INDEX KEY:			0000319201
		STANDARD INDUSTRIAL CLASSIFICATION:	OPTICAL INSTRUMENTS & LENSES [3827]
		IRS NUMBER:				042564110
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		160 RIO ROBLES
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95134
		BUSINESS PHONE:		4084344200

	MAIL ADDRESS:	
		STREET 1:		160 RIO ROBLES
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95161-9055

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KLA INSTRUMENTS CORP
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			WALLACE RICHARD P
		CENTRAL INDEX KEY:			0001196898

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09992
		FILM NUMBER:		081134035

	BUSINESS ADDRESS:	
		STREET 1:		KLA TENCO 160 RIO ROBLES
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95134
		BUSINESS PHONE:		4088753000

	MAIL ADDRESS:	
		STREET 1:		KLA TENCOR
		STREET 2:		160 RIO ROBLES
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95134
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd221312.xml
<DESCRIPTION>R. WALLACE FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-10-18</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000319201</issuerCik>
        <issuerName>KLA TENCOR CORP</issuerName>
        <issuerTradingSymbol>KLAC</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001196898</rptOwnerCik>
            <rptOwnerName>WALLACE RICHARD P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O KLA-TENCOR CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>ONE TECHNOLOGY DRIVE</rptOwnerStreet2>
            <rptOwnerCity>MILPITAS</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Executive Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-10-18</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2008-10-18</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>20556</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>44672</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-10-18</value>
            </transactionDate>
            <deemedExecutionDate>
                <value>2008-10-18</value>
            </deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>F</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>9404</value>
                    <footnoteId id="F2"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>21.45</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>35268</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock - Restricted Stock Units</value>
                <footnoteId id="F3"/>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>229096</value>
                    <footnoteId id="F4"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">On October 18, 2004, Mr. Wallace received a grant of restricted stock units (&quot;RSUs&quot;) covering 41,111 shares of KLA-Tencor Corporation common stock. On October 18, 2008, Mr. Wallace vested in fifty percent (50%) of such RSUs.</footnote>
        <footnote id="F2">Pursuant to the terms of the October 18, 2004 RSU grant, 9,404 shares of KLA-Tencor common stock were automatically withheld at vesting to cover required tax withholding.  Because the vesting date of such RSUs occurred on a day on which the NASDAQ Stock Market was closed for trading, the fair market value of KLA-Tencor common stock used for purposes of calculating the number of shares to be withheld was the closing price of KLA-Tencor common stock on the last completed trading day immediately prior to such vesting date.</footnote>
        <footnote id="F3">Each RSU represents a contingent right to receive one share of KLA-Tencor common stock.</footnote>
        <footnote id="F4">Does not include performance-based RSUs, if any, held by the Reporting Person for which an assessment has not yet been made regarding the achievement of the applicable performance goals.  Any such holdings will be reported on Form 4 within two business days of the date such assessment is made.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Brian M. Martin as Attorney-in-Fact for Richard P. Wallace</signatureName>
        <signatureDate>2008-10-21</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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