What changed in this filing

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Item 1. Business

2022-08-24 compared with 2021-08-17 · 41 added, 27 removed, 377 unchanged (15% of the section changed)

20 unchanged sentences

These trends are driving significant inflections in semiconductor manufacturing, such as the increasing importance of vertical scaling strategies like three-dimensional (“3D”) architectures as well as multiple patterning to enable shrinks.

We believe we are in a strong position with our leadership and competency in deposition , etch, and clean to facilitate some of the most significant innovations in semiconductor device manufacturing.

We believe we are in a strong position with our leadership and expertise in deposition , etch, and clean to facilitate some of the most significant innovations in semiconductor device manufacturing.

Several factors create opportunity for sustainable differentiation for us:

88 unchanged sentences

Conductor etch helps shape the electrically active materials used in the parts of a semiconductor device.

Even a slight variation in these miniature structures can create an electrical defect that impacts device performance.

In fact, these structures are so tiny that etch processes are pushing the boundaries of the basic laws of physics and chemistry.

Our Kiyo ® product family delivers the high-performance capabilities needed to precisely and consistently form these conductive features with high productivity.

Even a slight variation in these miniature structures can degrade device performance.

In fact, these structures are so tiny and sensitive that etch processes push the boundaries of the basic laws of physics and chemistry.

Our Kiyo ® product family delivers the high-performance capabilities needed to precisely and consistently form these features precisely and with high productivity.

Proprietary Hydra technology in Kiyo ® products improves critical dimension (“CD”) uniformity by correcting for incoming pattern variability, and atomic-scale variability control with production-worthy throughput is achieved with plasma-enhanced ALE capability.

8 unchanged sentences

Metal etch processes play a key role in connecting the individual components that form an IC, such as forming wires and electrical connections.

These processes can also be used to drill through metal hardmasks that pattern features too small for conventional masks, allowing continued shrinking of feature dimensions.

These processes can also be used to drill through metal hardmasks that are used to form the wiring for advanced devices.

To enable these critical etch steps, the Versys ® Metal product family provides high-productivity capability on a flexible platform.

Superior CD and profile uniformity are enabled by a symmetrical chamber design with independent process tuning features.

Superior CD, profile uniformity, and uniformity control are enabled by a symmetrical chamber design with independent process tuning features.

Clean Processes and Product Families

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Based on our pioneering single-wafer spin technology, the DV-Prime ® and Da Vinci ® products provide the process flexibility needed with high productivity to address a wide range of wafer cleaning steps throughout the manufacturing process flow.

As the latest of Lam’s wet clean products, EOS ® delivers exceptionally low on-wafer defectivity and high throughput to address progressively demanding wafer cleaning applications, including emerging 3D structures.

As the latest of Lam’s wet clean products, EOS ® delivers exceptionally low on-wafer defectivity and high throughput to address progressively demanding wafer cleaning applications.

With a broad range of process capability, our SP Series products deliver cost-efficient, production-proven wet clean and silicon wet etch solutions for challenging WLP and IoT applications.

26 unchanged sentences

export restrictions;

the effects of the COVID-19 pandemic and the related governmental, public health and business responses to it;

and economic and political conditions.

21 unchanged sentences

We have agreements with third parties to outsource certain aspects of our manufacturing, production warehousing, and logistics functions.

These outsourcing contracts provide us more flexibility to scale our operations up or down in a timely and cost-effective manner, enabling us to respond quickly to any changes in our business.

These outsourcing contracts may provide us more flexibility to scale our operations up or down in a timely and cost-effective manner, with the potential to enable us to respond more quickly to changes in our business.

We believe that we have selected reputable providers and have secured their performance on terms documented in written contracts.

3 unchanged sentences

Certain components and sub-assemblies that we include in our products may only be obtained from a single supplier.

We believe that, in many cases, we could obtain and qualify alternative sources to supply these products.

Nevertheless, any prolonged inability to obtain these components could have an adverse effect on our operating results and could unfavorably impact our customer relationships.

In response to ongoing supply chain constraints, we worked diligently to obtain and qualify alternative sources to supply these products.

Any prolonged inability to obtain these components could have an adverse effect on our operating results and could unfavorably impact our customer relationships.

Compliance with Government Regulations

2 unchanged sentences

Efforts to comply with new and changing regulations have resulted in, and are likely to continue to result in, decreased net income and increased capital expenditures.

If we are alleged or found by a court or regulatory agency not to be in compliance with regulations, we may be subject to fines, restrictions on our actions, reputational damage, and harm to our competitive position, and our business, financial condition, and/or results of operations could be adversely affected.

For additional

If we are alleged or found by a court or regulatory agency not to be in compliance with regulations, we may be subject to fines, restrictions on our actions, reputational damage, and harm to our

Lam Research Corporation 2022 10-K 8

details, please refer to “Legal, Regulatory and Tax Risks – We Are Exposed to Various Risks from Our Regulatory Environment” in Item 1A:

competitive position, and our business, financial condition, and/or results of operations could be adversely affected.

For additional details, please refer to “Legal, Regulatory and Tax Risks – We Are Exposed to Various Risks from Our Regulatory Environment” in Item 1A:

Risk Factors .

13 unchanged sentences

Risk Factors .

Environmental, Social, and Governance

We strive to incorporate environmental, social and governance ("ESG") consi derations into everything we do – from our operations and workplace practices, to how we source our materials and design our products.

Our ESG report for calendar year 2021 details, among other items, a number of ESG goals.

One such goal is to achieve net zero emissions by 2050, which we intend to achieve in part by meeting a number of interim targets related to our environmental impact.

There have been no material impacts to capital expenditures or our results of operations associated with this goal, and there are no material cash commitments associated with the goal as of fiscal year ended June 26, 2022.

Information contained on our website or in our annual ESG Report is not incorporated by reference into this or any other report we file with the Securities and Exchange Commission, or the SEC.

Refer to “Item 1A.

Risk Factors” for a discussion of risks and uncertainties we face related to ESG.

The semiconductor capital equipment industry is characterized by rapid change and is highly competitive throughout the world.

1 unchanged sentence

Semiconductor manufacturers evaluate capital equipment suppliers in many areas, including but not limited to process performance, productivity, defect control, customer support, and overall cost of ownership, which can be affected by many factors such as equipment design, reliability, software advancements, and similar factors.

Our ability to succeed in the marketplace depends upon our ability to maintain existing products and introduce product enhancements and new products that meet customer requirements on a timely basis.

Our ability to succeed in the marketplace depends upon our ability to manufacture and ship products on a timeline that meets our customers’ needs, maintain existing products, and introduce product enhancements and new products that meet customer requirements on a timely basis.

In addition, semiconductor manufacturers must make a substantial investment to qualify and integrate new capital equipment into semiconductor production lines.

10 unchanged sentences

and Tokyo Electron, Ltd.

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We face competition from a number of established and emerging companies in the industry.

3 unchanged sentences

There can be no assurance that we will continue to compete successfully in the future.

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Patents and Licenses

19 unchanged sentences

The three core pillars of our strategy include fostering inclusion, increasing diversity, and sharing our progress.

In 2020, we added an executive leader of I&D who is responsible for driving our I&D strategy, building partnerships, and aligning with best practices.

We employ an executive leader of I&D who is responsible for driving our I&D strategy, building partnerships, and aligning with best practices.

Employment, Recruitment and Development

17 unchanged sentences

We recognize the importance of time away from work for personal reasons, and we offer annual paid holidays and time off.

Additionally, several financial benefits were added to support our employees through the pandemic, including, but not limited to, pay continuity for those affected by closures, expanded medical and family care leave options for employees with COVID-19 related absences, and funding for home office provisions.

Additionally, several financial benefits were added to support our employees through the pandemic, including, but not limited to, pay

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continuity for those affected by closures, expanded medical and family care leave options for employees with COVID-19 related absences, and funding for home office provisions.

Employee Health and Safety, Pandemic Response

1 unchanged sentence

We invest in education, awareness, monitoring, and prevention programs to help recognize and control safety hazards.

Our goal is to apply our environmental health and safety (“EHS”) policies, programs, and response plans applies to anywhere we operate and extends to anyone who works on our sites with the intent to provide a safe environment during both routine and extraordinary circumstances.

People managers in field support, manufacturing, R&D, warehouse, and logistics operations undergo formal safety leadership training biannually to enhance

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their skills in safety management and communication.

Our goal is to apply our environmental health and safety (“EHS”) policies, programs, and response plans to anywhere we operate and to extend them to anyone who works on our sites with the intent to provide a safe environment during both routine and extraordinary circumstances.

People managers in field support, manufacturing, R&D, warehouse, and logistics operations undergo formal safety leadership training biannually to enhance their skills in safety management and communication.

We screen contractors’ safety performance and require contractor compliance with specified safety standards.

1 unchanged sentence

By using our global incident tracking system, our corporate EHS team can assess and monitor safety trends to report to business units and executive leadership as a part of quarterly reviews.

We maintain multi-site certifications for ISO 45001, the globally recognized standard for occupational health and safety management systems and achieved validation for two new sites.

We maintain multi-site certifications for ISO 45001, the globally recognized standard for occupational health and safety management systems.

We have taken a holistic approach in response to the COVID-19 pandemic, safeguarding our employees and caring for our communities by implementing strict procedures consistent with medical guidelines and best practices for the health and safety of on-site workers;

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He started his career in 1989 at Tektronix, where he was responsible for process development for high-speed bipolar ICs.

Archer serves as chairman of the board for the National GEM Consortium, a nonprofit organization that is dedicated to increasing the participation of underrepresented groups at the master’s and doctoral levels in engineering and science.

Archer currently serves on the International Board of Directors for SEMI, the global industry association representing the electronics manufacturing and design supply chain.

From 2020 to 2022, Mr.

Archer served as chairman of the board for the National GEM Consortium, a nonprofit organization that is dedicated to increasing the participation of underrepresented groups at the master’s and doctoral levels in engineering and science.

Archer completed the Program for Management Development at the Harvard Graduate School of Business and earned a B.S.

5 unchanged sentences

Bettinger worked at Intel Corporation from 1993 to 2004, where he held several senior-level finance positions, including corporate planning and reporting controller and Malaysia site operations controller.

Bettinger currently serves on the SEMI Board of Industry Leaders and the Industrial Advisory Board of the University of Wisconsin School of Engineering.

Bettinger earned an M.B.A.

3 unchanged sentences

Gottscho previously served as executive vice president, Global Products Group beginning in August 2010;

and group vice president and general manager, Etch Businesses beginning in March 2007 .

and group vice president and

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general manager, Etch Businesses beginning in March 2007 .

He joined us in January 1996 and has held various director and vice president roles spanning across deposition, etch, and clean products.

2 unchanged sentences

National Academy of Engineering;

and in 2020, he was named a semiconductor all-star by VLSI Research.

He is the recipient of many awards, including the American Vacuum Society’s Peter Mark Memorial Award, the Plasma Science and Technology Division Prize, the Dry Process Symposium Nishizawa Award, and the Tegal Thinker Award.

7 unchanged sentences

Prior to that , Dr.

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the position of group vice president and deputy general manager of the Global Products Group from September 2013 to December 2016.

Lord held the position of group vice president and deputy general manager of the Global Products Group from September 2013 to December 2016.

He served as the head of the Direct Metals, GapFill, Surface Integrity Group, and Integrated Metals (“DGSI”) Business Units between June 2012 and September 2013.

9 unchanged sentences

Hahn is our senior vice president, chief legal officer.

She joined us in January 2020 and is responsible for global legal matters.

She joined us in January 2020 and is responsible for global legal matters, ethics and compliance, and government affairs.

Prior to joining us, Ms.

33 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business