What changed in this filing

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Item 1. Business

2023-08-15 compared with 2022-08-24 · 68 added, 78 removed, 340 unchanged (30% of the section changed)

8 unchanged sentences

We are a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry.

We have built a strong global presence with core competencies in areas like nanoscale applications enablement, chemistry, plasma and fluidics, advanced systems engineering, and a broad range of operational disciplines.

We have built a strong global presence with core competencies in areas such as nanoscale applications enablement, chemistry, plasma and fluidics, advanced systems engineering, and a broad range of operational disciplines.

Our products and services are designed to help our customers build smaller and better performing devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices.

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We also address processes for back-end wafer-level packaging (“WLP”), which is an alternative to traditional wire bonding and can offer a smaller form factor, increased interconnect speed and bandwidth, and lower power consumption, among other benefits.

We offer advanced packaging solutions that support fan-out panel-level packaging, a process in which chips or chiplets are cut from a large format substrate sheet several times the size of a traditional silicon wafer, which increases yield and reduces waste and solutions that meet the need for 3D stacking of high bandwidth memory (“HBM”).

In addition, our products are well-suited for related markets that rely on semiconductor processes and require production-proven manufacturing capability, such as complementary metal-oxide-semiconductor image sensors (“CIS”) and micro-electromechanical systems (“MEMS”).

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(Tungsten) ALTUS ® family

Dielectric Films

Plasma-enhanced CVD (“PECVD”)

Dielectric Films Plasma-enhanced CVD (“PECVD”)

Gapfill High-Density Plasma CVD (“HDP-CVD”) VECTOR ® family

1 unchanged sentence

SPEED ® family

Film Treatment Ultraviolet Thermal Processing (“ULTP”) SOLA ® family

Etch Conductor Etch Reactive Ion Etch Kiyo ® family,

1 unchanged sentence

Dielectric Etch Reactive Ion Etch Flex ® family

Vantex ® family

Through-silicon Via (“TSV”) Etch Deep Reactive Ion Etch Syndion ® family

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ALTUS ® Product Family

Tungsten deposition is used to form conductive features such as contacts, vias, and wordlines on a chip.

Tungsten and/or Molybdenum deposition is used to form conductive features such as contacts, vias, and wordlines on a chip.

These features are small, often narrow, and use only a small amount of metal, so minimizing resistance and achieving complete fill can be difficult.

At these nanoscale dimensions, even slight imperfections can impact device performance or cause a chip to fail.

Our ALTUS ® systems combine CVD and ALD technologies to deposit the highly conformal films needed for advanced tungsten metallization applications.

Our ALTUS ® systems combine CVD and ALD technologies to deposit the highly conformal or selective films as needed for advanced tungsten metallization applications in both logic and memory.

The Multi-Station Sequential Deposition architecture enables nucleation layer formation and bulk CVD/ALD fill to be performed in the same chamber (“in situ”).

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System capabilities include cobalt deposition for logic applications and copper deposition directly on various liner materials, which is important for next-generation metallization schemes.

For advanced WLP applications, such as forming conductive bumps and redistribution layers, and for filling TSVs, the SABRE ® 3D family combines Lam’s SABRE Electrofill ® technology with additional innovation to deliver the high-quality films needed at high productivity.

The modular architecture can be configured with multiple plating and pre/post-treatment cells, providing flexibility to address a variety of packaging applications.

SOLA ® Product Family

Dielectric materials designed to meet the insulation requirements of logic chips often have attributes that make them unusually difficult to use.

These films are easily damaged and vulnerable to losing some of their insulating capability, which can lead to poor device performance.

To enable these applications, some films can be stabilized - and others enhanced to improve device performance - using specialized post-deposition film treatments available with Lam’s SOLA ® UVTP product family.

SOLA ® products offer process flexibility through independent control of temperature, wavelength, and intensity at each station of the wafer path, enabled by Multi-Station Sequential Processing architecture.

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For advanced WLP applications, such as forming conductive bumps, redistribution layers, TSV filing, and wafer level bonding, the SABRE ® 3D family combines Lam’s SABRE Electrofill ® technology with additional innovation to deliver the high-quality films needed at high productivity.

The modular architecture can be configured with multiple plating and pre/post-treatment cells, providing flexibility to address a variety of packaging applications, including HBM.

SPEED ® Product Family

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SPEED ® products have excellent particle performance, and their design allows large batch sizes between cleans and faster cleans.

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Striker ® Product Family

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Flex ® offers in situ multi-step etch and continuous plasma capability that delivers high productivity with low defectivity.

Vantex ® Product Family

Dielectric etch processes remove non-conductive materials during the manufacturing of a semiconductor device.

Leading-edge memory devices have especially challenging structures, such as extremely deep holes and trenches, that must be manufactured with tight tolerances.

Our latest dielectric etch system, Vantex ® creates high aspect ratio device features while maintaining critical dimension (“CD”) uniformity and selectivity.

Vantex ® is part of our Sense.i ® platform and offers advanced RF technology and repeatable wafer-to-wafer performance enabled by Equipment Intelligence ® to meet the needs of advanced memory manufacturing, primarily in 3D NAND high aspect ratio hole, trench, contact, and capacitor cell applications.

Kiyo ® Product Family

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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.

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

Syndion ® Product Family

Plasma etch processes used to remove single crystal silicon and other materials deep into the wafer are collectively referred to as deep silicon etch.

These may be deep trenches for CMOS image sensors, trenches for power and other devices, TSVs, and other high aspect ratio features.

These may be deep trenches for CMOS image sensors, trenches for power and other devices, TSVs for HBM and advanced packaging, and other high aspect ratio features.

These are created by etching through multiple materials sequentially, where each new material involves a change in the etch process.

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International Sales

A significant portion of our sales and operations occur outside the United States (“U.S.”) and, therefore, may be subject to certain risks, including but not limited to tariffs and other barriers;

A significant portion of our sales and operations occur outside the United States (“U.S.”) and, therefore, may be subject to certain risks, including but not limited to compliance with U.S.

and international laws and regulations, including U.S.

export restrictions;

tariffs and other barriers;

difficulties in staffing and managing non-U.S.

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changes in currency controls;

compliance with U.S.

and international laws and regulations, including U.S.

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.

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Refer to Note 20 of our Consolidated Financial Statements, included in Part II, Item 8 of this 2023 Form 10-K, for information concerning the geographic locations of long-lived assets.

Our customers include all of the world’s leading semiconductor manufacturers.

Our customers include many of the world’s leading semiconductor manufacturers.

Customers continue to establish joint ventures, alliances, and licensing arrangements which have the potential to positively or negatively impact our competitive position and market opportunities.

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Samsung Electronics Company, Ltd.;

SK hynix Inc.;

Taiwan Semiconductor Manufacturing Company;

and Yangtze Memory Technologies Co., Ltd.

and Taiwan Semiconductor Manufacturing Company.

Additionally, SK hynix Inc, and Yangtze Memory Technologies Co., Ltd.

were significant customers during the fiscal years ending June 26, 2022, and June 27, 2021.

A material reduction in orders from our customers could adversely affect our results of operations and projected financial condition.

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

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.

These outsourcing contracts may provide us more flexibility to scale our operations up or down in a timely and cost-effective manner.

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

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

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

In response to supply chain constraints, we are engaged in efforts to obtain and qualify alternative sources to supply these products and in some circumstances protect against potential supply challenges by carrying inventory in excess of current need.

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

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Regulations that impact trade, including tariffs, export controls, taxes, trade barriers, sanctions, the termination or modification of trade agreements, trade zones, and other duty mitigation initiatives, have the potential to increase our manufacturing costs, decrease margins, reduce the competitiveness of our products, or inhibit our ability to sell products or purchase necessary equipment and supplies, which could have a material adverse effect on our business, results of operations, or financial conditions.

For additional details regarding the impacts of compliance with trade laws and regulations, please refer to “Business and Operational Risks – Our Future Success Depends Heavily on International Sales and the Management of Global Operations” and “Legal, Regulatory and Tax Risks – Our Sales to Customers in China, a Region of Growing Significance to Us, Could be Materially and Adversely Affected by Export License Requirements and Other Regulatory Changes, or Other Governmental Actions in the Course of the Trade Relationship Between the U.S.

For additional details regarding the impacts of compliance with trade laws and regulations, please refer to “Business and Operational Risks – Our Future Success Depends Heavily on International Sales and the Management of Global Operations” and “Legal, Regulatory and Tax Risks – Our Sales to Customers in China, a Significant Region for Us, Have Been Impacted, and are Likely to be Materially and Adversely Affected by Export License Requirements and Other Regulatory Changes, or Other Governmental Actions in the Course of the Trade Relationship Between the U.S.

and China” in Item 1A:

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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.

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Strategic investments to encourage local semiconductor manufacturing and supply chain in China could increase competition from domestic equipment manufacturers in China.

Additionally, the U.S.

Government has enacted a number of export controls regulating the sales of certain technologies to customers in China, which provides an advantage to our international competitors.

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

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In fact, many of our senior executives began their careers with us right out of college, demonstrating that programs that recruit university students have the potential to contribute to our leadership pipeline.

To tap into the best and brightest students, we prioritize core initiatives including an internship program, new college graduate rotation program, campus events, and thesis awards and scholarships.

To tap into the best and brightest students, we prioritize core initiatives including an internship program, campus events, and thesis awards and scholarships.

We accelerate employee development, broaden career opportunities, and expand professional networks for employees through our mentorship, coaching, and rotation programs.

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Stock awards are offered to executives and select employees.

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

Lam Research Corporation 2023 10-K 10

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

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

Additionally, we offer paid parental leave benefits for parents welcoming a new child to the family through birth, adoption, or foster care placement.

Employee Health and Safety

Prioritizing the health, safety, and well-being of our employees is critical to our ongoing success.

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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;

enabling staff to work remotely;

and providing enhanced employee benefits to support physical and mental health.

Information about our Executive Officers

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Archer 56 President and Chief Executive Officer

Bettinger 55 Executive Vice President, Chief Financial Officer, and Chief Accounting Officer

Gottscho 70 Executive Vice President, Chief Technology Officer

Lord 56 Executive Vice President, CSBG and Global Operations

Bettinger 56 Executive Vice President and Chief Financial Officer

Lord 57 Executive Vice President and Chief Operating Officer

Fernandes 56 Senior Vice President, Global Customer Operations

Hahn 50 Senior Vice President, Chief Legal Officer and Secretary

Meikle 60 Senior Vice President, Global Customer Operations

Vahid Vahedi 56 Senior Vice President and General Manager, Etch Business Unit

Seshasayee (Sesha) Varadarajan 47 Senior Vice President and General Manager, Deposition Business Unit

Vahid Vahedi 57 Senior Vice President and Chief Technology Officer

Seshasayee (Sesha) Varadarajan 48 Senior Vice President Global Products Group

Archer has been our president and chief executive officer since December 2018.

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degree in applied physics from the California Institute of Technology.

Bettinger is our executive vice president, chief financial officer, and chief accounting officer with responsibility for Finance, Tax, Treasury, Information Technology, and Investor Relations.

Bettinger is our executive vice president and chief financial officer with responsibility for Finance, Tax, Treasury, and Investor Relations.

Prior to joining the Company in 2013, Mr.

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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 currently serves on the Board of Directors of Lattice Semiconductor Corporation, 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.

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degree in economics from the University of Wisconsin in Madison.

Gottscho is our executive vice president, chief technology officer, a position he has held since May 2017.

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

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.

Prior to joining us, he was a member of Bell Laboratories for 15 years, where he headed research departments in electronics materials, electronics packaging, and flat panel displays.

Gottscho was elected to the U.S.

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.

He is a fellow of the American Physical and American Vacuum Societies.

He has authored numerous papers, patents, and lectures, and has served on editorial boards of peer-reviewed technical publications and program committees for major conferences in plasma science and engineering.

He served as vice-chair of a National Research Council study on plasma science.

Gottscho earned Ph.D.

degrees in physical chemistry from the Massachusetts Institute of Technology and Pennsylvania State University, respectively.

Lord is our executive vice president of CSBG and Global Operations, a position he has held since September 2020.

Lord was senior vice president and general manager of CSBG from December 2016 to September 2020.

Lord is our executive vice president and chief operating officer, a position he has held since March 2023.

In this role, Dr.

Lord is responsible for several functions including, Global Operations;

Customer Support;

Global Quality;

Environmental Health and Safety;

Information Technology;

and Global Resilience, Security, and Transformation.

Lord previously served as executive vice president of CSBG and Global Operations from September 2020 to February 2023;

and senior vice president and general manager of CSBG from December 2016 to September 2020.

Prior to that, Dr.

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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.

Prior to our acquisition of Novellus in June 2012, Dr.

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our acquisition of Novellus in June 2012, Dr.

Lord was senior vice president and general manager of the DGSI Business Units at Novellus.

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degrees in mechanical engineering from the Massachusetts Institute of Technology.

Hahn is our senior vice president, chief legal officer.

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

Fernandes is our senior vice president of Global Customer Operations, a position he has held since March 2023.

Previously, he was global vice president of business development and sales operations and held other senior sales and customer-focused leadership positions at Lam.

He joined the company in 2012 through the acquisition of Novellus, where he was the vice president of sales operations.

Prior to that role, he held range of management positions in product marketing and process engineering at Novellus, Gasonics and Watkins-Johnson.

Neil earned an M.S.

degree in mechanical engineering from the University of Texas at Austin and a B.E.

in mechanical engineering from the Manipal Institute of Technology.

Hahn is our senior vice president, chief legal officer and secretary.

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

Prior to joining us, Ms.

6 unchanged sentences

in history from the University of California at Berkeley.

Meikle is our senior vice president of Global Customer Operations, a position he has held since September 2017.

Before joining us, he was an independent consultant for a year and director, special projects at Micron Technology, Inc.

for seven months.

Prior to that time, he spent over five and a half years at Inotera Memories, Inc., most recently as its president from August 2012 to December 2015.

Meikle started his career in process R&D and advanced to various leadership roles in business operations across multiple geographies for Micron Technology, and has over 25 years of experience in the memory devices sector of the semiconductor industry.

He earned his Ph.D.

degrees in engineering physics from Shizuoka University and McMaster University, respectively, and a B.S.

degree in physics from the University of Calgary.

Vahid Vahedi is our senior vice president and general manager of the Etch Business Unit, a position he has held since February 2018.

Prior to that time, he was group vice president of the Etch product group since March 2012.

Vahid Vahedi is our senior vice president and chief technology officer, a position he has held since March 2023.

Vahedi previously served as senior vice president and general manager of the Etch business unit beginning February 2018;

and group vice president of the Etch product group beginning March 2012.

Previously, he served as vice president of Etch Business Product Management and Marketing, vice president of Dielectric Etch, vice president of Conductor and 3DIC Etch, and director of Conductor Etch Technology Development.

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degrees in electrical engineering and computer science from the University of California at Berkeley.

Sesha Varadarajan is our senior vice president and general manager of the Deposition Business Unit, a position he has held since February 2018.

Prior that time, he was group vice president of the Deposition product group since September 2013.

Sesha Varadarajan is our senior vice president of the Global Products Group, a position he has held since March 2023.

Varadarajan previously served as senior vice president and general manager of the Deposition Business Unit beginning February 2018;

and group vice president of the Deposition product group beginning September 2013.

Previously, he served as the head of the PECVD/Electrofill Business Unit between June 2012 and September 2013.

9 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