On this page of StockholderLetter.com we present the 9/27/2023 shareholder letter from LAM RESEARCH CORP — ticker symbol LRCX. Reading current and past LRCX letters to shareholders can bring important insights into the investment thesis.

 •  9/27/2023 Letter Continued (Full PDF)
 •  9/25/2024 LRCX Stockholder Letter
 •  9/24/2025 LRCX Stockholder Letter
 •  More "Industrial Machinery & Equipment" Category Stockholder Letters
 •  LRCX Benford's Law Stock Score = 48

LRCX 9/27/2023 Shareholder/Stockholder Letter Transcript:

It   s a big moment for the semiconductor industry
The world is looking to us to help drive technological advancements that will
benefit people, industries, and our planet for generations. And at Lam, we   re
delivering in new and exciting ways. Because we believe that we are the ones
who will create the breakthroughs that make so many other world-changing
innovations possible.
We recognize the power of the work we do     and it fuels our passion for
taking on the world   s biggest technology challenges. That   s why we partner
with customers to unleash the power of innovation together for a better world,
and why we bring together passionate, talented people who boldly tackle the
next big inflections for our industry. We are breaking down barriers to
collaboration through a physical and virtual ecosystem connecting academia,
researchers, and manufacturers to leverage our combined expertise to enable
nanoscale-level precision. And along the way, we support communities around
the world and lead the semiconductor industry toward a more sustainable future.

LETTER TO OUR STOCKHOLDERS
Dear Lam Stockholders,
Lam delivered solid performance in fiscal year 2023, demonstrating resiliency and operational
execution amid a challenging global economic and semiconductor industry environment. Revenue
totaled $17.4 billion and diluted earnings per share were $33.21, both higher than the prior year. This
performance is despite worldwide supply chain constraints and further export restrictions in the first
half of the fiscal year, and a memory-led downturn in wafer fabrication equipment (WFE) spending in
the second half. The strength in our results was made possible by the dedication of our employees
and the continued partnerships with our customers and suppliers.
It   s widely expected that semiconductor industry revenue will reach $1 trillion within the current
decade. This near doubling of revenues from today   s levels reflects the increasingly indispensable
role semiconductors play in our daily lives, from the information and entertainment we consume
on everyday devices such as smartphones and PCs to the advanced servers that enable new
applications such as artificial intelligence (AI),
including generative AI. Specifically, for semiconductor
capital equipment, there are three fundamental trends
creating a strong tailwind for long-term growth:
increasing semiconductor content in advanced end
devices, growing complexity of device architectures,
and larger die sizes needed for higher performance
and reliability. Some of these drivers such as rising
device complexity are especially beneficial to Lam
as they drive greater deposition and etch intensity.
Our broad and differentiated product portfolio for
processing at the atomic scale is vital for this era of
3D scaling. We are the established leader in 3D NAND
and sit at the forefront of the move to 3D in other
device segments, including Gate All Around in logic,
3D DRAM, and advanced packaging. For example, as
advanced logic devices transition from FinFET to Gate All Around structures, new etch and deposition
capabilities are required, and our Selective Etch, Atomic Layer Deposition, and Atomic Layer Etch
product portfolios are solving for the geometric complexity of forming the transistor. Lam is also the

market leader in new applications for advanced packaging, such as high-bandwidth memory
and chiplet architectures, and we expect to benefit as these applications become more prevalent.
We have leadership positions in copper electroplating and thru silicon via (TSV) etch solutions
across all leading memory customers, leveraging our expertise in etching and filling high aspect
ratio geometry structures.
In addition to providing solutions to our customers    toughest technology challenges, we also focus
on optimizing productivity in their fabs. Through offerings such as high-quality parts and machine
learning-based Equipment Intelligence   solutions, our Customer Support Business Group (CSBG)
provides differentiated capabilities for our installed base of approximately 84,000 chambers. CSBG
also enables us to flex the existing installed base via technology, productivity, and reuse upgrades
that extend the life of our products and allow customers to capitalize on their investment. The Reliant  
systems business within CSBG supports customers   
mature node investments, providing Lam with favorable
exposure to specialty segments such as Autonomous
Driving, Internet of Things, and 5G, to name a few. Our
CSBG business sits in a key enabling position for the
massive semiconductor industry prospects ahead, while
providing strength and stability to Lam   s performance
through WFE investment cycles.
Our strategy revolves around delivering boundarybreaking technologies with the speed and scale
required by our customers. An important component
to this strategy relies on locating expertise and
infrastructure close to our customers. In just the past
two years, we have opened technology centers in
India, Korea, and Taiwan, grown manufacturing sites
in Malaysia and Taiwan, and strengthened our United
States and Europe operations. These strategic investments place critical Lam capabilities closer to
our partners which maximizes collaboration as well as enhances speed, flexibility, access to talent,
and business continuity.



 9/27/2023 Letter Continued (Full PDF)