Halyk Finance Trading Idea: Lam Research

Lam Research (LRCX) – is one of the world's leading suppliers of semiconductor manufacturing equipment (Wafer Fabrication Equipment). The company specializes in critical stages of the manufacturing process, developing and supplying advanced systems for plasma etching, thin film deposition, and wafer cleaning. Lam Research maintains strong market positions in the memory equipment segment (DRAM and 3D NAND), while expanding its presence in logic and advanced packaging technologies. The resilience of the business model is supported by the Customer Support Business Group (CSBG) segment, which generates stable cash flow through maintenance, spare parts supply, and equipment upgrades.

Growth drivers:

• Acceleration in the HBM4 memory segment – the AI market growth will increase demand for high-capacity memory from 123 million GB in 2022 to 972 million GB by 2027. The transition to 16-layer HBM4/HBM4E complicates production and increases the need for specialized equipment for etching, metal deposition, and TSV connections (Syndion, SABRE 3D, and ALD systems).
• NAND memory upgrade cycle – growth in the NAND segment is driven by the modernization of existing fabs, as new factory construction is not expected before mid-2028. The key driver is the transition of 3D NAND to 200–300+ layers, requiring deep etching and atomic layer deposition of materials.
• Development of advanced packaging (Advanced Packaging) – advanced packaging is a key growth driver for Lam Research, with expected revenue growth of over 50% in 2026. The slowdown in classical transistor scaling is forcing the AI industry to transition to chiplets and 2.5D and 3D architectures, stimulating demand for ultra-dense TSV interconnections and micro-bumps.
• Contribution of the Chinese market – China accounts for 34–35% of Lam Research's revenue due to sustained demand for mature process technologies in the automotive, industrial, and electronics sectors, despite U.S. export restrictions.