Lam Research is like Caterpillar for the semiconductor industry, providing the specialized equipment needed to 'build' chips.

Lam Research is like Schlumberger for semiconductor factories, supplying the critical equipment and services needed for chip production.

• Deposition Equipment: Tools that apply thin layers of various materials onto semiconductor wafers, forming the foundational structures of integrated circuits.
• Etch Equipment: Systems designed to precisely remove material from specific areas of semiconductor wafers, critical for creating the intricate patterns of microchips.
• Clean Equipment: Solutions developed to remove contaminants from semiconductor wafers at various stages of the manufacturing process, ensuring device reliability and yield.
• Atomic Layer Etch (ALE) and Advanced Patterning Systems: Highly precise etch technologies and related systems for sub-nanometer material removal and advanced patterning capabilities essential for next-generation chip manufacturing.

Lam Research (LRCX) primarily sells its advanced wafer fabrication equipment and services to other companies within the semiconductor industry, specifically to leading manufacturers of integrated circuits.

While Lam Research's financial reports indicate that no single customer accounts for more than 10% of its total revenues, its major customers are the world's largest and most technologically advanced semiconductor manufacturers. These companies represent the primary segments of the semiconductor market that require Lam Research's specialized equipment for chip production.

The major customers and categories of customers for Lam Research include:

• Leading Foundries and Logic Device Manufacturers: These companies produce advanced logic chips for a wide range of applications, including processors, GPUs, and specialized ASICs.
  • Taiwan Semiconductor Manufacturing Company (TSMC) (Symbol: TSM)
  • Intel Corporation (which also operates a significant foundry business, Intel Foundry Services) (Symbol: INTC)
  • Samsung Electronics (a major global player with significant foundry operations) (Symbol: KRX:005930)
• Memory Manufacturers: These companies specialize in producing DRAM (Dynamic Random-Access Memory) and NAND flash memory for storage and computing.
  • Samsung Electronics (a leading producer of both DRAM and NAND) (Symbol: KRX:005930)
  • Micron Technology (Symbol: MU)
  • SK Hynix (Symbol: KRX:000660)
• Integrated Device Manufacturers (IDMs): Companies that design, manufacture, and sell their own integrated circuits. While some IDMs also operate foundries or memory fabs, this category broadly covers companies like:
  • Intel Corporation (Symbol: INTC)
  • Samsung Electronics (Symbol: KRX:005930)
  • Texas Instruments (Symbol: TXN)

• MKS Instruments (MKSI)
• Advanced Energy Industries (AEIS)
• Brooks Automation (BRKS)
• INFICON (IFCNF)
• VAT Group (VACN.SW)

Timothy M. Archer, President and Chief Executive Officer

Timothy M. Archer is the President and Chief Executive Officer at Lam Research, a position he has held since December 2018. He joined Lam Research in 2012 as executive vice president and chief operating officer following the company's acquisition of Novellus Systems, Inc.. Prior to joining Lam Research, Mr. Archer spent 18 years at Novellus Systems, Inc., where he served as Chief Operating Officer from January 2011 to June 2012, and held various other executive positions in technology development, business leadership, worldwide sales, marketing, and customer satisfaction. He began his career in 1989 at Tektronix, Inc., where he focused on process development for high-speed bipolar integrated circuits.

Douglas R. Bettinger, Executive Vice President, Chief Financial Officer

Douglas R. Bettinger is the Executive Vice President and Chief Financial Officer at Lam Research, overseeing finance, tax, treasury, investor relations, and corporate analytics. He joined Lam Research in 2013. Before his tenure at Lam, Mr. Bettinger served as Senior Vice President and Chief Financial Officer of Avago Technologies Ltd. (now Broadcom) from 2008 to 2013, and held executive finance positions with Xilinx, Inc., 24/7 Customer (a privately held company), and Intel Corp.. During his 19 years at Intel, he held various senior-level finance roles, including Vice President of Finance and Treasurer.

Patrick Lord, Executive Vice President and Chief Operating Officer

Patrick Lord is the Executive Vice President and Chief Operating Officer at Lam Research, responsible for driving efficiency, productivity, and business resilience across global operations. He joined Lam Research in 2012 following the acquisition of Novellus Systems. At Novellus, Mr. Lord held various executive leadership positions, including Senior Vice President and General Manager of the company’s Direct Metals, GapFill, Surface Integrity Group, and Integrated Metals Business Units. Earlier in his career, he worked at KLA-Tencor Corp., where he held several product management and marketing roles.

Audrey Charles, Senior Vice President of Corporate Strategy and Advanced Packaging; President of Lam Capital

Audrey Charles serves as Senior Vice President of Corporate Strategy and Advanced Packaging, and President of Lam Capital at Lam Research. In this role, she is responsible for leading the development of strategic priorities and key initiatives for the company's long-term growth and accelerating its market position in advanced packaging.

Sesha Varadarajan, Senior Vice President of Global Products Group

Sesha Varadarajan is the Senior Vice President of the Global Products Group at Lam Research, where he is responsible for all aspects of product groups, the worldwide lab network, and Lam India. He has held various technical and leadership positions during his 25-year tenure at Lam Research. Prior to his current role, he led the Deposition Business Unit and the PECVD/Electrofill Business Unit. Before Lam's acquisition of Novellus in 2012, he held several leadership roles at Novellus Systems, including General Manager of the PECVD and Electrofill Business Units.

Lam Research (LRCX) faces several key business risks, primarily stemming from its global operations, the cyclical nature of the semiconductor industry, and complex supply chain dynamics.

1. Geopolitical Risks and Dependence on International Sales

   A significant portion of Lam Research's revenue is derived from international sales, particularly in Asia, which accounts for approximately 87.9% of its total revenue, with China alone contributing 42.2%. This heavy reliance on global markets exposes the company to substantial geopolitical risks, including trade regulations, export controls (such as U.S. restrictions on selling advanced semiconductor equipment to China), trade disputes, and other international tensions. These factors can inhibit Lam Research's ability to sell its products, disrupt its revenue streams, and adversely affect its financial results.

2. Cyclical Nature of the Semiconductor Industry and Demand Volatility

   The semiconductor capital equipment industry, in which Lam Research operates, is inherently cyclical, characterized by periods of rapid growth followed by downturns. This cyclicality can lead to significant fluctuations in the company's financial performance, revenue, and operating results. Variability in customers' business plans and overall industry demand can negatively impact the demand for Lam Research's equipment and services, making its financial outlook prone to change.

3. Supply Chain Disruptions and Manufacturing Constraints

   Lam Research is susceptible to risks associated with disruptions in its global supply chain and manufacturing capacity constraints. Such disruptions can arise from various factors, including natural disasters, political unrest, or other events beyond its control, potentially leading to delays in product development and deliveries to customers. These challenges can increase operational costs, limit the company's ability to meet customer demand, and ultimately impact its profitability and business relationships.

null

Lam Research (symbol: LRCX) is a leading global supplier of wafer-fabrication equipment and related services to the semiconductor industry. Its main products and services include equipment for thin film deposition, plasma etch, photoresist strip, and wafer cleaning processes, primarily used in front-end wafer processing.

The addressable markets for Lam Research's main products and services can be identified within the broader semiconductor manufacturing equipment market, as well as more specific segments like etch and deposition equipment.

• Global Semiconductor Manufacturing Equipment (WFE) Market:
  • The global semiconductor manufacturing equipment market size was valued at approximately USD 101.78 billion in 2024 and is projected to grow to USD 123.13 billion in 2025, with an anticipated growth to USD 280.97 billion by 2035 at a CAGR of more than 8.6% from 2026-2035.
  • Lam Research itself anticipates global Wafer Fabrication Equipment (WFE) spending to be in the mid-$90 billion range for calendar year 2024 and to rise slightly to approximately $100 billion in calendar year 2025.
  • The Asia Pacific region dominated the semiconductor manufacturing equipment market, accounting for 68.7% of the global revenue share in 2024.
• Global Wafer Processing Equipment Market:
  • The global wafer processing equipment market size was estimated at USD 9.19 billion in 2024 and is projected to reach USD 12.89 billion by 2030, growing at a CAGR of 5.9% from 2025 to 2030.
  • The Asia Pacific region held the largest revenue share of 47.58% in this market in 2023.
• Global Semiconductor Etch and Deposition Equipment Market:
  • This combined market is estimated at USD 15 billion in 2025 and is projected to exhibit a Compound Annual Growth Rate (CAGR) of 8% from 2025 to 2033.
  • North America and Asia-Pacific are expected to dominate this market geographically.
• Global Semiconductor Etch Equipment Market:
  • The global semiconductor etch equipment market size was valued at approximately USD 14.51 billion in 2024 and is projected to grow from USD 15.67 billion in 2025 to USD 28.26 billion by 2032, exhibiting a CAGR of 8.8% during the forecast period. Another estimate places the market size at USD 28.15 billion in 2024, increasing to USD 30.16 billion in 2025 and reaching approximately USD 56.1 billion by 2034, with a CAGR of 7.14%.
  • The Asia Pacific region dominated the global semiconductor etch equipment market, holding a 61.69% share in 2023 and 70% share in 2024.

Lam Research (LRCX) is expected to drive future revenue growth over the next two to three years through several key factors:

1. Demand from Artificial Intelligence (AI) and Advanced Memory Technologies: The increasing demand for generative AI and other smart applications is fueling the need for advanced semiconductor technology. This translates into strong demand for high-bandwidth memory (HBM) and ongoing NAND upgrades, both of which are significant drivers for wafer fab equipment (WFE) spending. Additionally, industry trends such as Gate-All-Around (GAA) technology and advanced packaging further contribute to the demand for Lam Research's specialized etch and deposition solutions.
2. Growth in Domestic China Spending: The China region has been a notable contributor to Lam Research's revenue, with spending from domestic Chinese customers expected to increase year-over-year in 2024. While the company anticipates a potential decline in its revenue contribution from China later in 2024, strong sales in this market are still cited by analysts as a positive factor.
3. Broader Wafer Fab Equipment (WFE) Market Recovery and Increased Customer Utilization: The overall WFE cycle is in a recovery phase, which is beneficial for Lam Research. An observed uptick in fab utilization has led to double-digit quarter-over-quarter growth in spares revenues, signaling a broader resurgence in customer activity and spending on equipment maintenance and upgrades. This wider market recovery is projected to positively impact Lam Research's revenue.
4. Expansion in Advanced Foundry-Logic Segments: Lam Research has demonstrated gains in the logic segment, with foundry's share of total systems revenue increasing. Growth in leading-edge spending within foundry logic, along with some support from mature nodes in China, is expected to be a continued driver of revenue.

Share Repurchases

• Lam Research's Board of Directors approved a $10 billion share repurchase authorization in May 2024, which supplements prior authorizations and has no termination date.
• In fiscal year 2025, Lam Research returned $4.5 billion to stockholders through share repurchases and dividends.
• The company executed share buybacks of approximately $3.866 billion in 2022, $2.017 billion in 2023, and $2.843 billion in 2024.

Share Issuance

• Lam Research's shares outstanding have generally declined over the past few years, indicating net repurchases rather than significant issuances. For instance, shares outstanding for the quarter ending September 30, 2025, were 1.269 billion, a 2.66% decline year-over-year.
• The company's outstanding common shares were 1,291,958 as of September 29, 2024, and decreased to 1,259,176 as of September 28, 2025.

Outbound Investments

• Lam Research has made 8 acquisitions across 6 countries over time, with acquisition activity peaking in 2022 with two acquisitions, and one in 2023.
• The most recent acquisition was Esgee Technologies in January 2023, a provider of plasma, reactive flows, gas-phase, and surface chemistry mechanism development services.
• In November 2022, Lam Research acquired Semsysco, an Austria-based provider of wet-processing semiconductor equipment.

Capital Expenditures

• In fiscal year 2025, Lam Research's capital expenditure (CapEx) was -$759.19 million.
• Capital expenditures in the third quarter of fiscal 2025 were $288 million, with a major part of this increase attributed to a land purchase in India for planned lab expansions.
• Lam Research is investing over ₹10,000 crore (approximately $1.2 billion USD) in Karnataka, India, to build a manufacturing facility and expand equipment supply chains, focusing on advancing India's semiconductor ecosystem and R&D capabilities.