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Lam Research Pioneers Breakthrough Chip Technologies

Fremont, California - Lam Research Corporation (Nasdaq: LRCX), a leading provider of innovative wafer fabrication equipment and services to the global semiconductor industry, has once again demonstrated its commitment to driving the next generation of chip technologies. With a rich history spanning over four decades, Lam Research continues to push the boundaries of what is possible, collaborating closely with the world's most innovative chip manufacturers to deliver cutting-edge solutions.

Founded in January 1980, Lam Research has grown into a powerhouse in the semiconductor industry, reporting revenues of 14.3 billion in fiscal year 2023. The company invested heavily in research and development (R&D), allocating 1.7 billion towards innovative projects in the same fiscal year. With a workforce of approximately 17,200 employees worldwide, Lam Research remains at the forefront of the fourth industrial revolution, enabling the development of advanced semiconductors that define the future of digital technology.

Selective Etching Technology for 3D Chip Architectures

On February 9, 2022, Lam Research announced a groundbreaking suite of selective etching products designed to support the development of chip 3D architectures. The new products, Argos®, Prevos™, and Selis®, leverage breakthrough semiconductor manufacturing techniques and novel chemistries to enable chip manufacturers to develop gate-all-around (GAA) transistor structures.

The transition to 3D chip architectures is a complex process requiring ultra-high selectivity, precision etching, and uniform isotropic material removal without altering or damaging other critical material layers. Lam Research's selective etching solutions offer the ultra-high and tunable selectivity and non-damaging material removal needed to support the formation of advanced logic nanosheets or nanowires. This enables chip manufacturers to achieve the next evolutionary leap from planar structures to 3D structures as DRAM reaches its planar scaling limits.

Argos® utilizes revolutionary MARS™ (Metastable Activated Radical Source) technology to selectively modify and purify wafer surfaces. Its pioneering processing and conditioning capabilities allow chip manufacturers to precisely treat wafer surfaces, optimizing them for optimal performance. Prevos™ combines novel chemistries and innovative vapor technologies with flexible temperature control to achieve atomic-layer precision and ultra-high selectivity etching of oxides, silicon, and metals. Selis® uniquely employs radical etching and thermal etching capabilities to achieve ultra-high selective etching and consistent top-down process control without damaging the wafer structure.

These selective etching products have been developed in collaboration with the world's most innovative logic and foundry chip manufacturers and are already in use at industry leaders such as Samsung Electronics for critical steps in advanced logic wafer development. Dr. Keun Hee Bai, an expert from Samsung Semiconductor R&D Center, commented, "The semiconductor industry is continuously evolving towards more powerful and faster device capabilities. As device density and complexity significantly increase, selective etching technology is crucial for manufacturing our most advanced logic devices. With global demand for Samsung technology soaring, we rely on the extensive innovation and capabilities of selective etching to support production and accelerate our logic device roadmap towards advanced logic GAA and beyond."

Driving Revenue Growth with AI Semiconductor Demand

Lam Research's latest announcement indicates that the company expects its revenue for the December quarter to exceed Wall Street expectations due to increased orders from chip manufacturers for equipment used in manufacturing semiconductors for artificial intelligence (AI) applications. The company's stock price rose 5% in after-hours trading. Following the attention garnered by OpenAI's ChatGPT, businesses across various industries are racing to integrate AI capabilities, benefiting companies like Lam Research.

The proliferation of AI has also helped chip manufacturers mitigate the decline in demand for PCs and smartphones post-pandemic. Lam Research, Applied Materials, and ASML of the Netherlands are among the few major suppliers of wafer fabrication equipment, which are complex and expensive machines used in semiconductor manufacturing. According to data compiled by the London Stock Exchange, the company expects revenue for the current quarter ending December 29 to be 43billion,withaplusorminus3 billion range, compared to analysts' expectations of $42.4 billion.

Lam Research reported revenues of 41.7billionforthethreemonthsendedSeptember29,exceedingexpectationsof40.5 billion. The growing demand for memory chips with AI capabilities and cloud computing companies has benefited Teradyne, another key player in the semiconductor industry. Teradyne, which provides technology for testing chips and electronic devices, forecast fourth-quarter profits and revenues to exceed Wall Street expectations, driving its stock price up 2.5% in after-hours trading.

Continuing Innovation and Leadership

Tim Archer, President, and CEO of Lam Research, stated, "Lam Research is driving advancements in wafer fabrication to support the chip industry's transition to 3D architectures and make the next generation of digital technologies a reality. For over 40 years, Lam has led the industry in etching innovation, and we are proud to continue this tradition by providing the most advanced selective etching solutions for today's advanced logic and memory markets."

The manufacturing process of a single chip is incredibly complex, involving thousands of steps, each presenting unique challenges. Lam Research's latest innovations address these challenges head-on, ensuring that chip manufacturers can continue to push the boundaries of what is possible.

A Commitment to Collaboration and Excellence

Lam Research's success is rooted in its commitment to collaboration, precision, and delivery. The company's guiding principles emphasize putting customers, the company, and individuals first, ranking highest in customer trust. Lam Research attracts, retains, and develops the best talent, delivering optimal solutions while achieving financial goals to provide shareholder value. The company's core values of achievement, agility, honesty and integrity, inclusion and diversity, innovation and continuous improvement, mutual trust and respect, open communication, and ownership and accountability guide its actions and decisions.

With a strong leadership team and a culture that fosters innovation, Lam Research is well-positioned to continue driving breakthroughs in semiconductor technology. The company's executive team includes seasoned professionals such as Doug Bettinger, Executive Vice President and Chief Financial Officer; Audrey Charles, Senior Vice President of Corporate Strategy; Neil Fernandes, Senior Vice President of Global Customer Operations; Steve Fine, Corporate Vice President and Chief Communications Officer; Rick Gottscho, Executive Vice President and CEO Strategic Advisor; Mary Hassett, Senior Vice President and Chief Human Resources Officer; Pat Lord, Executive Vice President and Chief Operating Officer; Vahid Vahedi, Senior Vice President and Chief Technology and Sustainability Officer; and Sesha Varadarajan, Senior Vice President of the Global Product Group.

Looking Ahead

As the semiconductor industry continues to evolve, Lam Research remains committed to being at the forefront of innovation. The company's investments in R&D and collaborations with industry leaders position it well to address the challenges and opportunities of the future. With a focus on delivering superior solutions and driving semiconductor breakthroughs that define the next generation, Lam Research is poised to continue its legacy of excellence and leadership in the global semiconductor industry.

In conclusion, Lam Research's commitment to innovation, collaboration, and precision has made it a trusted partner to the world's leading semiconductor companies. With its groundbreaking selective etching products, strong financial performance, and dedicated leadership team, Lam Research is well-equipped to support the chip industry's transition to 3D architectures and enable the next generation of digital technologies. As the demand for AI and advanced semiconductors continues to grow, Lam Research will remain at the forefront, driving advancements that shape the future of technology.

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