FREMONT, Calif. - Lam Research Corp . (NASDAQ:LRCX) has launched its latest cryogenic etch technology, Lam Cryo 3.0, marking a significant advancement in the production of 3D NAND flash memory. This new technology is designed to meet the growing demand for high-capacity and high-performance memory driven by the expansion of generative AI applications.
Lam Cryo 3.0 is engineered to create high aspect ratio features with angstrom-level precision, which is essential for manufacturing future leading-edge 3D NAND. The technology is said to etch more than twice as fast as traditional dielectric processes, with a reduced environmental footprint, boasting a 40% reduction in energy consumption per wafer and up to a 90% reduction in emissions.
According to Sesha Varadarajan, senior vice president of Global Products Group at Lam Research, the technology has already been used to manufacture five million wafers, demonstrating its efficacy in addressing NAND manufacturing challenges. The company's cryogenic etch technology, which was first introduced into volume production in 2019, has been part of Lam's two-decade leadership in wafer fabrication etch technologies.
Neil Shah, co-founder and vice president of research at Counterpoint Research, highlighted that Lam Cryo 3.0's ability to etch memory channels more than 50 times deeper than their width with near-perfect precision significantly enhances advanced 3D NAND yields and performance. This breakthrough is crucial for chipmakers to scale NAND flash in the race to achieve 1000-layer 3D NAND by the end of 2030.
Lam Cryo 3.0 is now available to leading memory manufacturers and is compatible with Lam's portfolio of Flex (NASDAQ:FLEX) HAR dielectric etchers, which are used by all major memory manufacturers for 3D NAND mass production. The technology represents the latest addition to Lam's broad portfolio of etch, deposition, and clean solutions for 3D NAND manufacturing.
In other recent news, Lam Research Corporation (NASDAQ:LRCX) is making significant moves. The company announced a $10 billion share repurchase program, adding to the remaining $1.06 billion from a previous authorization. Wells Fargo has maintained an Equal Weight rating on Lam Research, while Citi reaffirmed its Buy rating. Deutsche Bank, however, continues to hold a cautious stance with a Hold rating.
In addition to the buyback program, Lam Research has declared a 10-for-1 stock split, set to take effect after the market closes on October 2, 2024. This action is expected to broaden participation in the company's employee stock plans across its global workforce.
On the international front, Lam Research has been affected by U.S. restrictions on advanced chip shipments and chipmaking gear to China, initiated in 2022. The U.S. is currently in talks to add more Chinese chipmaking factories to an already restricted list, as part of a broader strategy to control additional chipmaking technology. These recent developments reflect the company's strategic moves and the external factors influencing its operations.
InvestingPro Insights
Lam Research Corp. (NASDAQ:LRCX) continues to demonstrate its commitment to innovation with the launch of its Lam Cryo 3.0 technology. As the company forges ahead in the semiconductor industry, InvestingPro data provides a snapshot of its financial health and market performance. With a market capitalization of approximately $120.42 billion, Lam Research stands as a significant player in its sector. The company's Price/Earnings (P/E) ratio is currently at 33.55, reflecting investor expectations of future earnings. However, the P/E Ratio (Adjusted) for the last twelve months as of Q3 2024 is slightly lower at 32.8.
The company's revenue growth has seen a downturn, with a decrease of 24.48% for the last twelve months as of Q3 2024, which aligns with the concerns expressed by analysts about a potential sales decline in the current year. Despite this, Lam Research maintains a robust Gross Profit Margin of 47.19%, indicating effective cost control and strong pricing power in its operations.
InvestingPro Tips suggest that Lam Research has a history of rewarding its shareholders, having increased its dividend for 10 consecutive years. This consistent dividend growth, including a 15.94% increase in the last twelve months as of Q3 2024, underscores the company's commitment to returning value to its investors. Furthermore, with analysts having revised their earnings upwards for the upcoming period, there is optimism about the company's ability to navigate through industry challenges. As of now, there are 17 additional InvestingPro Tips available for Lam Research, which can be accessed for more in-depth analysis and insights at https://www.investing.com/pro/LRCX.
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