Lam Research is poised to see a rise in demand for its chipmaking tools, driven by the growing complexity of artificial intelligence (AI) chips, according to CEO Tim Archer. Over the next three years, major chipmakers, including Taiwan Semiconductor Manufacturing Company (TSMC), are expected to increase their purchases of tools from the U.S.-based company.
During Lam Research’s first analyst day in five years, held in New York, the company provided insights into its new chipmaking technologies and a market outlook. The event highlighted two new tools, discussed in technical detail, as well as a financial forecast through 2028. Archer emphasized that AI represents a significant technological shift, expected to fuel demand for more advanced chipmaking equipment.
Lam Research, headquartered in Fremont, California, is one of three major U.S. suppliers of tools used by companies like TSMC to produce advanced AI processors. In recent years, the company has faced challenges due to a slowdown in capital spending among memory chip manufacturers, including Micron. However, the company’s finance chief, Douglas Bettinger, forecasted revenue growth, predicting between $25 billion and $28 billion in revenue by 2028, compared to $16.2 billion in 2024. Adjusted earnings per share are expected to reach $6 to $7 by 2028, up from $3.36 in the previous year.
In addition to the market outlook, Lam Research introduced two new chipmaking tools. One tool focuses on material deposition, replacing tungsten with molybdenum, a shift that marks a significant change for the industry, which has used tungsten for about 30 years. The new technology was developed over a seven-year period in collaboration with Lam’s customers.
The second tool targets material removal from silicon wafers, a process known as etching. As chipmakers move to two-nanometre nodes and smaller, the enhanced precision of the new etching tool is critical for producing the atomic-scale features required in modern chips.
The introduction of these tools represents a major advancement in chip manufacturing technology, positioning Lam Research to meet the increasing demands of AI-driven innovation in the semiconductor industry.
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