Lam Research to Invest Over $3 Billion in Global R&D Labs to Speed Up AI Chip Development

Chipmaking equipment supplier Lam Research to spend $3B+ on new labs

Lam Research Corp., a major supplier of chipmaker equipment, plans to spend more than $3 billion over the next five years to enhance its engineering capabilities. The company detailed the initiative on Thursday. Nasdaq-listed Lam sells machines that chipmakers use to produce memory chips, advanced packaging and other products. It also has a presence in certain adjacent markets including the fab robotics segment. The company's customer base includes Micron Technology Inc., Samsung Electronics Co. and SK hynix Inc., the world's three largest memory producers. Lam operates a network of research and engineering hubs that spans three continents. The company says that its newly announced investment will finance a "multi-site expansion," which hints it plans to build multiple new labs. The initiative is expected to grow Lam's experiment capacity by more than 50%. The company's labs already run more than 1 million experiments annually. Some of the hubs carry out basic research in areas such as materials science and mechatronics, a field that encompasses robotics. The other facilities focus on productizing the new technologies that Lam develops. The company's lab network regularly brings new chipmaking machines to market. The latest addition to Lam's product portfolio, a system called Vector Teos 3D, debuted in September. It can be used to make three-dimensional artificial intelligence accelerators in which chiplets are stacked atop one another. Vector Teos 3D produces so-called dielectric gapfill films. Those are thin layers of insulating material deposited in the space between a processor's stacked chiplets. According to Lam, they provide mechanical support that makes AI accelerators less susceptible to damage. Additionally, gapfill films play a role in heat dissipation. The space between a processor's chiplets contains not only insulating support layers but also microbumps. Those are tiny metal structures with a diameter of a few dozen micrometers, or millionths of a meter. They're responsible for moving data and electricity between chiplets. Lam offers a microbump production machine called SABRE 3D. It works by submerging chips in a specialized liquid that gives them a negative electrical charge. From there, the machine adds in metal particles that have a positive electrical charge. The positively-charged particles attach themselves to the surface of the negatively-charged chips to form microbumps. The process of turning a silicon wafer into chips comprises hundreds of steps. After fab operators complete a step, they clean the wafer to remove any debris that may have been deposited on its surface. Lam makes machines that speed up the workflow. Additionally, it sells mass metrology systems that verify the cleaning was carried out correctly. The company also competes in the robotics market. In 2024, it introduced a robotic arm that fab technicians can use to automate equipment maintenance tasks. The launch of the company's lab expansion initiative comes about two weeks after it reported second quarter results. Lam's revenue grew 15% year-over-year to $6.72 billion, $50 million more than analysts had expected. The company attributed its stronger-than-anticipated growth to strong demand for AI chips.

What's Going On With Lam Research Stock Friday? - Lam Research (NASDAQ:LRCX)

Lam Research Plans $3 Billion R&D Blitz As AI Raises the Stakes for Chipmakers The semiconductor equipment maker said the investment should increase its experiment capacity by more than 50%. The expansion will begin this year and span facilities in the U.S., Asia and Europe. CEO Tim Archer said the AI era requires new chip architectures, materials and increasingly complex features. Lam aims to use the investment to shorten development cycles from early research through deployment in semiconductor fabrication plants. Stock Performance And Technical Analysis LRCX stock fell about 1% in premarket trading Friday after closing 3.34% higher in the previous session. Nasdaq futures rose 0.20%, while S&P 500 futures gained 0.10%. Lam Research traded at $334.56 in Friday's premarket session. The stock sits 0.9% below its 50-day simple moving average of $337.70. However, shares remain 9.5% above the 20-day SMA of $305.42 and 34.5% above the 200-day SMA of $248.68. Those levels suggest the longer-term uptrend remains intact despite the recent volatility. The 20-day SMA remains below the 50-day SMA, signaling some near-term weakness. However, the 50-day SMA remains above the 200-day SMA, supporting the longer-term bullish trend. Meanwhile, the MACD is above its signal line, and the histogram is positive. That suggests momentum has improved and selling pressure may be easing. Key support sits near $313. That level is also close to the 20-day exponential moving average of $314.67. Lam Research Analyst Outlook The stock carries a consensus Buy rating and an average price forecast of $384.84. Recent analyst moves include: Morgan Stanley maintained an Overweight rating on July 30 but lowered its price forecast to $367. B. Riley Securities maintained a Buy rating and cut its forecast to $350. Wells Fargo also maintained an Overweight rating and lowered its forecast to $350. Benzinga Edge Rankings Lam Research has strong Momentum, Growth and Quality scores in the Benzinga Edge Rankings. Its Momentum score stands at 96.94, while Growth is 93.91 and Quality is 97.36. However, its Value score is just 5.06. The readings point to strong growth and momentum but also highlight the stock's premium valuation. Lam Research Price Action LRCX Stock Price Activity: Lam Research shares were down 0.73% at $334.56 during premarket trading on Friday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Lam Research Commits $3 Billion to Expand AI Chip R&D - Lam Research (NASDAQ:LRCX)

Lam Research to Spend More Than $3 Billion Expanding Its Global Chip R&D Network, CEO Tim Archer Says 'The Pace of Innovation Is Relentless' Faster R&D for AI Era Chips The company said the expansion will support a network of specialized labs across the U.S., Asia, and Europe that already handle more than one million experiments annually. Lam said the investment is designed to compress the time it takes to move new chip technologies from early research to production, with some customer engagements already shortening process development by up to 2.5 times. "In the AI era, the pace of innovation is relentless, requiring chips with new architectures, different materials, and complex features engineered with nanoscale precision," CEO Tim Archer said, adding that faster R&D has become "a decisive advantage." Lam's Role in Chipmaking Lam makes wafer-fabrication equipment used in processes such as etching and deposition, which are critical to manufacturing advanced logic and memory chips. Its customers include major chipmakers such as Micron Technology Inc. (NASDAQ:MU), which called Lam's equipment central to advancing "memory and storage solutions that power the AI ecosystem." Part of a Broader Wave of AI Infrastructure Spending Lam plans to begin expanding the lab network this year. Price Action: The shares climbed 3.34% on Thursday to $337.01 and fell 0.69% in early pre-market trading on Friday. Benzinga edge rankings indicate Lam Research's stock has a Momentum score in the 96th percentile and a Growth score in the 93rd percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Lam Research Plans More Than $3 Billion Investment in Global R&D Labs

Lam Research plans to invest more than $3 billion across the next five years to expand its global research-and-development laboratory network as it seeks to accelerate semiconductor innovation driven by artificial intelligence. The investment is expected to increase the company's experiment capacity by more than 50%, Lam said Thursday. The company's R&D network spans the U.S., Asia and Europe and supports more than one million experiments annually. Lam said the expanded network will help shorten product-development cycles, from early research through deployment at semiconductor manufacturing facilities. Chief Executive Tim Archer said the pace of innovation in the AI era requires new chip architectures, materials and features, making faster R&D a competitive advantage. Lam said it plans to begin expanding the lab network this year.