Lam Research Unveils Advanced AI Chipmaking Tools, Projects Significant Growth

Lam Research Unveils AI Chipmaking Tools, Projects Big Returns - Lam Research (NASDAQ:LRCX)

On Wednesday, U.S. chip equipment maker Lam Research Corp LRCX launched two new tools for building advanced artificial intelligence chips. The company introduced Akara, an innovative plasma etch and advanced conductor etch tool. Akara delivers novel plasma processing technologies that enable the etch precision and performance needed for 3D chipmaking. Also Read: Lenovo Q3 Earnings: 20% Revenue Jump, AI PCs and Smartphones Power Market Expansion Akara enables the scaling of gate-all-around (GAA) transistors, 6F2 DRAM, and 3D NAND devices and is extendible to 4F2 DRAM, complementary field-effect transistors, and 3D DRAM. These devices require etch steps and Extreme Ultraviolet (EUV) lithography patterning to form complex 3D structures. Taiwan Semiconductor Manufacturing Co TSM co-COO Dr. Y.J. Mii noted critical plasma etch capabilities will be integral to solving the many semiconductor production challenges the new, more powerful device architectures pose. Lam Research also showcased ALTUS Halo, an atomic layer deposition (ALD) tool that harnesses the metal molybdenum's capabilities in producing leading-edge semiconductors. ALTUS Halo delivers exceptional feature fill and high-precision deposition of low-resistivity, void-free molybdenum metallization for advanced semiconductor devices. ALTUS Halo could pave the way for scaling advanced memory and logic chips for future AI, cloud computing, and next-generation smart devices. Early adoption has begun at leading high-volume 3D NAND manufacturers with fabs in Korea and Singapore and advanced logic fabs, while development continues with DRAM customers. Lam Research's ALTUS Halo tool has enabled Micron Technology, Inc MU to bring molybdenum into mass production. During the 2025 investor day, CFO Douglas Bettinger said Lam expects revenue of between $25 billion-$28 billion in 2028 and adjusted EPS of $6-$7. Bettinger noted that adjusted gross margins will reach about 50% by 2028. Lam Research plans to return over 85% of free cash flow in the near term. It expects Customer Support Business Group (CSBG) growth to be flat in 2025. The company expects wafer fabrication equipment growth to be mid-high for the next several years. It also noted that customers are cost-conscious and sensitive to the return on investment and the speed with which they can ramp new fabs. Recently, Lam Research committed $1.2 billion to boost India's semiconductor ecosystem, which could be worth $63 billion by 2026. Cantor Fitzgerald analyst Matthew Prisco reiterated Lam Research with an Overweight and a $100 price target. Price Action: LRCX stock is up 1.24% at $88.75 at the last check on Thursday. Also Read: Analog Devices Beats Q1 Estimates, Raises Dividend As Automotive Revenue Declines LRCXLam Research Corp$88.931.45%OverviewMUMicron Technology Inc$103.75-0.59%TSMTaiwan Semiconductor Manufacturing Co Ltd$199.51-0.72%Market News and Data brought to you by Benzinga APIs

Complex AI chips will drive demand for Lam Research chipmaking tools, CEO says

* Lam Research expects revenue of $25 billion -28 billion by 2028 * New tools focus on depositing, etching materials on silicon wafers * Shift to molybdenum marks significant industry change from tungsten SAN FRANCISCO, Feb 19 (Reuters) - Lam Research chief executive said Tim Archer on Wednesday the thirst for complex artificial intelligence silicon will push the likes of TSMC to purchase more of the U.S. company's tools over the next three years. The remarks were part of the first analyst day Lam Research has hosted in five years. At the two-and-a-half-hour presentation in New York, executives discussed two new chipmaking tools in technical detail, gave a market overview and issued a financial forecast through 2028. "(Artificial intelligence) is probably the biggest fundamental technology revolution of our lifetimes," Archer said in an interview with Reuters. Investors sent Lam shares up about 1% on Wednesday. The Fremont, California-based Lam is one of three U.S. chip equipment makers that produce tools that Taiwan Semiconductor Manufacturing Co. use to make the world's most advanced AI and other processors. The business has suffered in recent years as memory prices and supply gluts pushed a slowdown in capital spending among companies like Micron in the U.S. During the presentation, finance chief Douglas Bettinger said Lam expects revenue of between $25 billion and $28 billion in 2028, compared with $16.2 billion in 2024. Adjusted 2028 earnings will reach $6 to $7 a share, compared with per-share profit of $3.36 last year. "The chipmakers depend on companies like Lam to keep them on their roadmap," Archer said. TWO NEW TOOLS The company also announced two new chip making tools, one focused on depositing material on silicon wafers. The new tool replaces tungsten with an element called molybdenum, which is used to place material and create the tiny features of chips. The shift to molybdenum, or moly, marks a significant change as the industry had been using tungsten for roughly 30 years prior, Archer said. The company began working on the new technology roughly seven years ago in conjunction with the customers that will deploy it. The second tool is designed to remove material from wafers, a process called etching. When moving to 2-nanometer and below, Archer said the increased accuracy of the new tool is necessary to help draw the atomic-sized features needed. "To people in the industry, they would recognize that as a true breakthrough, given that it is something that had not been accomplished before," Archer said, referring to the new etching tool. (Max A. Cherney in San Francisco; Editing by Sam Holmes)

Lam Research Unveils Two New Chipmaking Tools for AI Chips

(Reuters) - Lam Research on Wednesday introduced two new tools for building advanced artificial intelligence chips, as the chipmaking tools supplier aims to benefit from a growing AI-driven semiconductor demand. It unveiled ALTUS Halo, a deposition tool that adds molybdenum, a metal, to form precise layers on chips. The metal improves chip performance and enables scaling for next-generation semiconductor devices. "Lam's ALTUS Halo tool has made it possible for Micron to bring molybdenum into mass production," said chipmaker Micron Technology executive Mark Kiehlbauch. The company also launched Akara, an etching tool that removes unwanted material from the semiconductor wafer to create tiny chip structures. Lam competes with other major suppliers of wafer fabrication equipment, which are sophisticated and expensive tools to make chips, including Applied Materials, Dutch firm ASML and KLA Corp. The company's customers include firms such as Micron Technology, Samsung Electronics and Taiwan Semiconductor Manufacturing Co (TSMC). "As global demand for semiconductors continues to grow, innovative technology solutions from our partners are required to enable new, more powerful device architectures," said Simon Jang, vice president of research and development at TSMC. In January, Lam forecast third-quarter revenue above market estimates, signaling growing demand from chip firms. (Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore)