LRCX - Earnings call transcript Q2 2025 | Lam Research Corporation

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Operator

Good afternoon, and welcome to the Lam Research December 2024 Earnings Conference Call. [Operator Instructions]. Please note, this event being recorded.

I would now like to turn the conference over to Ram Ganesh, Vice President of Investor Relations. ahead. go Please

Ram Ganesh

Executive good Quarterly and Tim Welcome the Doug to President Officer. Chief Thank Conference afternoon, Call. Research Bettinger, and Officer; Earnings Chief are President With Lam and and Financial you, Executive everyone. Vice me Archer, today

we our XXXX little our a and today's detailing can today's we'll the distributed the March and The overview outlook business the was press X:XX our on p.m. Investor release results financial that of quarter call, call. with The During Time. our after website also the December financial accompany Pacific XXXX on environment, presentation quarter. slides release review results along found will share for be the the for Relations section company's

Q&A in are public Today's additional presentation uncertainties disclosed include risks and risk that slides in SEC information. in our forward-looking accompanying to the statements reflected see subject the factors for Please presentation filings. and

our A found be detailed afternoon reconciliation results of in call on p.m. to A and results non-GAAP last is Today's will GAAP this call be the later this Time. specified. until a be accompanying This available can presented non-GAAP basis Pacific the slides otherwise between replay discussion scheduled financial of in financial unless presentation. will X:XX on made website. our

to call Tim. And over with the I'll that, hand

Timothy Archer

finished the operational out with XXXX margin solid execution. consistent all spending thank and the we operating Ram, midpoints, our were reflecting billion in another you all Lam line for XXXX with equipment range you, fabrication above guided strong closed mid-$XX call December Thank gross EPS earlier for the quarter joining year. performance. Wafer in and margin, revenue, and guidance today.

highs chambers. muted was a record in System approximately logic XX,XXX revenues increased our levels. DRAM at NAND Lam, XXXX remained grew and as the to installed good base and size to foundry both Overall, spending of even for year

we demonstrates making market our semiconductors strategy that also broadening across our are show Lam's increasing AI into move good product as on era. the of of Our results It end exposure strength segments. the progress device portfolio

gate-all-around also grow memory. are and And we advanced billion deposition including to for etch $X enablers high-bandwidth are and as for each They GPUs nodes manufacturing, packaging saw and For exceed and highly a data example, intensive. critical shipments AI advanced Lam's all around in XXXX. technologies packaging result, device

gate-all-around distribution $X to opportunity as to we calendar in shipments In to slightly lead dry approximately packaging combined Lam see towards XXXX, device technology In the should nodes and applications package level and AI performance. backside Again, Lam greater expect spending migration Customer XXXX, we billion. to power inflections will technologies WFE rising demand add over for processing and growth year. $XXX faster resist advanced further coming billion. well

As we do for we outperform. differentiator importance Lam deposition and the technology look a opportunity of forward, increasing as and an to etch

over and speed. R&D With mind, years innovation strategic our this organization made our few we expand to our for process investments the infrastructure, transform in past have scale greater

advances. product important yield investments these seeing now are We

for Flex recently helping also X.X product ratio Cryo the best-in-class introduced Cryo delivering edge, etch of extend dielectric winning leading is capabilities on CX+ base and latest results high Our our technology Vantex our the upgrades. through large at applications aspect installed

devices fine higher impact. EUV and reduced reduced greater capability for dry productivity breakthrough is patterning precision, -- with device resist defectivity, features enabling Our of extremely environmental

in major solution leading selected memory spending the earlier an seen that just environment, and have a DRAM unique may calendar production to is achieved tool upgrade dry Aether as line been a high logic, setup a Lam having that and XXXX. milestone DRAM bandwidth create customer. what of Technology record WFE combined has bottom for You our in we believe foundry with announced today, we outgrow for NAND focused strengthen resist our at inflections

the to is capacity to at the industry looking NAND, performance transition bit higher current achieve layer In lower cost. installed better counts device to

play to our trends sequential is One molybdenum differentiated favor. our Lam's process to us sequence patented and product employ multi-station customers. the moly. transition is moly is momentum with The or allows to a be liner fill several deposition Here, to proving strong. a that technology for winner new

cost is through A gap fill higher and density to of adoption carbon second multi-tier the trend enable bit stacking. lower

pure properties simplified TCBD-based innovative high-edge provides removability. gap fill dry process and carbon mechanical selectivity, Our superior process

overall, calendar early drive While XXXX. gap we several for adoption cycle of million in shipments industry in are Lam in moly in the upgrade of and dollars these and hundred expect the transitions, carbon to we early innings NAND fill

future delivering Lam's wafer of as opportunity The than itself. the million-plus grow more further higher in the process in customers deeper we are for converts will month installed per layer starts capacity technology years differentiation X runs to counts.

simulation, advanced competitiveness most to analytics, defend machine key dielectric intelligence etch performance process our successfully modeling, apply a learning enhance and equipment and artificial Semiverse timing our reduce further we memory Semiverse the manufacturer. the used our This to and capabilities science, capabilities strengthening Our is application data recently, for at major Solutions optimization. Solutions

is provide Through semiconductor engineering India address industry's of Furthermore, decade. the capabilities of solutions leveraging to and already rest we of the generation industry States, Korea, in United being are educate tens software to to with Semiverse universities global simulation the next innovators. semiconductor And students shortage. these used collaborations our semiconductor of thousands technology the goal the access help to Lam's through aspiring is to workforce

intelligence and installed a the CSBG, cobot Since services in shipped Dextro announced agreement. collaborative it first equipment then, of we have traction third we a is and memory In as our industry's month, significant major Last maintenance their being in-fab with seeing customers. multiyear robot. are part to manufacturer solutions service fab automation our

precise and beyond what and capacity offers cobot and is fab important semiconductor strong the alone next Over technology enable decade, globally maintenance workers industry our the an achieve. a to repeatable to solution human witness of expected can expansion cost-effective

strategic our off. in operations scaling our Lastly, are investments paying

remarks. our helped meaningful Doug demand in improvement detail additional efficiently, provide drive in operations prepared approximately gross to a new of rising infrastructure will and some calendar fuel growth. XXX margin. in our Asia basis I and Our both responsiveness and delivered am future even his continue ramp But as to products XXXX, in pleased customer very margin XXXX, we points we heavily in expansion operating headline, as invested to

manufacturing, is product sharing key position in to investments on So to to etch more forward we have the year. up, enter becoming semiconductor Day. I at Lam Deposition look upcoming are this Investor strong as we to new a increasingly and made vital Lam's portfolio. our strengthen and wrap

I'll you, to on and pass Thank now it Doug.

Douglas Bettinger

for calendar with joining with call Great. of afternoon, execution. a Thank $XX.X I results year today earnings obviously very and revenue of the billion thank $X.XX. everyone, Tim. financial company's per know what you, earnings continued season. busy strong and share XXXX, strong our diluted is in you during We pleased Good delivered We're

merged calendar in XXXX, annual Gross margin increased Lam to $X.X exceeding highest Novellus revenue which For since result at CSBG XX% came XX.X%, billion, year the in with was XXXX. our expectations.

details the December Let's quarter of look our results. financial at

of our range. quarter. and margin of quarter billion, earnings from gross margin, $X.XX the December midpoint for revenue, an X% Revenue above operating per the which was were guided prior Our increase the all share was

quarter the flat quarter. balance calendar at trend was deferred revenue our do quarter-to-quarter. deferred essentially I but September lower year end will likely fluctuate believe balance $X into from XXXX, with Our revenue billion, will

XX% This XX% up market from by systems spending memory in Xxx-layer from perspective, in from the XX% the our XX%, end of up Memory was layer. class reached revenue December in tech revenue, conversions segment From in Within at point Memory, nonvolatile market coming systems the the devices prior quarter segment to prior has quarter. a since XXXX, on of quarter. driven NAND XXX high increased

calendar in conversions year these expect We to XXXX. continue

XX%. compared be with in X-gamma to spending. September high-bandwidth represented DRAM represented of of silicon DRAM to in partially Foundry focused offset strong. was from quarter DDRX node concentration X-alpha, our spending nodes in of enable XX% quarter. percentage our investments for the node in decline capability systems through spending ramp the the X-beta Growth upgrades September initial a revenue, some enabling systems XX% tools of via memory. on the tech and to and XX% HBM mature decrease the continues gate-all-around revenue

technology systems decrease The was our XX% Logic the specialty revenue nodes. December and spending as the as quarter, driven leading-edge both was prior of The down from in reduced XX%. in Markets Other segment level well of by quarter

at our regional come which December customers. down was the in I'll XX% quarter September of the was XX% region Most Taiwan from quarter, for largest composition in prior than quarter. revenue of The quarter the higher continued our group Chinese an of level and XX%, China and same accounted consistent Generated next China The And rounded the our in Business quarter, in X geographic concentration XX% XXXX. the XX%. the Korea United for revenue out billion of discuss finally, remainder with Support regions. Customer revenue. $X.X revenue September the total from to compared the with domestic December of Now The almost top States the period increase

the Sequentially, saw that Systems. growth we decline revenue in Reliance largely offset upgrade in

the that installed X upgrade continue of in growing components of spares record CSBG base. achieved product line revenue While Reliant to largest the we be demonstrating the generation, revenue, strength

of from earnings XXX as customer The by performance. in more December the XXXX. level elements the at a was the little midpoint down last We've guided quarter Asia This our years exited was XX.X%, a strategies September margin quarter operation gross call. the above of the in and primarily unfavorable from contribution range, margin cost during to points came we Turning of X basis XX.X%. improved we was expanded but gross than foreshadowed structure which year our our result calendar which mix, of past

a gross incremental strategy. scale to expect go-forward this production as basis We we benefit from on continue to margins

our margin margin of and the operating level with due in current for increased R&D that below The the line a of higher total because gross end expenses. Operating the primarily to revenue of higher was September the and quarter expenses accounted expectations prior bit in up quarter range, increase guidance million. to stronger XX.X%, little primarily XX.X% incentive were performance. the the $XXX was of for from amount XX% compensation $XXX at near our quarter December high million, Operating of company's profitability. tied

delivered improvement in And year calendar Tim mentioned I'd point what basis for margin XXXX. that just reiterate we operating XXX

rate of tax range for quarter within non-GAAP was Our XX.X%, the our expectations.

for to in the XXXX the range. tax be low is quarter for March to estimate mid-teens rate the Our

offset little somewhat $XX quarter. September to The income the lower Other compared believe sit exchange And slight income to cause $XX today, of with negative in interest came in OI&E income, bit volatility continue in investments. which lower gain the be as to will the quarter was in some here OI&E that was in in million income I at fluctuation expense by level due December for we in and do equity OI&E will a quarter. foreign fluctuations and quarter-to-quarter. losses subject million have bias March will a slight related of

capital open return million market the million the and share allocated repurchases, of quarter. in to $XXX side On things, $XXX December we approximately dividends paid in we

calendar the For XXX% flow, capital XX% end long-term free XX% was flow. of cash $X we which of XXXX high billion, to totaling returned return of at plans cash of year, our the free

a X.XX per billion December the diluted in at from diluted shares, The the reduction $X.XX. count September roughly share quarter. came share For quarter, was was which earnings

program, repurchased we $X.X board-authorized we XX XXXX, our billion repurchase on share buyback plan. shares and million During through our remaining have nearly share

balance to me Let pivot the sheet.

XX the down the totaled the from billion decrease short-term Our return at September This increase December December an the cash our quarter, investments September capital the obviously $X.X main activity. in at quarter. outstanding end $X.X sales days was the quarter, of The end quarter. billion of XX cash and in was from of the driver days

the quarter prior Inventory in Inventory as prepare X.Xx, XXXX the end increase were revenues we $X.X quarter. billion, September the quarter at March flat level. the totaled higher from turns quarter for December from a slight

to $X inventory to our pleased the billion ability manage to We with revolving announce that customer facility align of upsized credit our We're will from to we levels billion. continue best to demand. $X.X

the intend this just million on may unsecured and choose I monitor to balance the We simply have March mentioned that By sheet. cash in to which notes in as future refinance we the interest facility, off Additionally, pay we to amount this notional $XXX continue the bolstering using maturing year, credit liquidity of with environment. flexibility created here. rate we some we've our optionality

on of million, million in million Noncash depreciation investments the Spending and included strategy approximately Capital expenses manufacturing expenditures $XXX $XX the Asia $XX global quarter in quarter compensation, mainly in September the were facilities to our close lab supporting up centered quarter. development $XX the equity December and and and to December States $XX for million was from customers' United locations. million related manufacturing in amortization. be

We which full-time tool an ended and roles regular to is XX,XXX employees, well the field Growth December which as installation quarter from factory approximately support with XXX increase growing activities. manufacturing approximately of quarter. the in increased prior people predominantly as is

or revenue operating for Now to at of non-GAAP XX%, minus of levels share of percentage of March finally, X let's minus XXXX expecting a plus $XXX we anticipate our $X.XX count or $X.XX, consistent customer shares. the Gross This minus $X minus or of roughly or on million. guidance Operating based calendar concentration. expenses XX%, in billion, margin, plus plus beginning point. turn approximately for plus margin X per quarter. percentage guidance the We're up that year. of increase the And normal see seasonal billion always X.XX earnings point. share We accounts

be XXXX, look of project the enable transformation XXXX. P&L these February. initially continue that we investment bottom will show the in incremental Each to to benefits the digital to mention continuing grow growing you deliver to I same we is time, in into line. plan a to that At we to leverage and as expected R&D in future that launched would plan we we financial to investments

investments executed XXX me We a calendar which wrap margin well operating exceeded let expectations up. in from both point delivered growth improvement year CSBG basis XX% We in our and in the our XXXX. So available of key beginning to customers. of innovative we've and global to infrastructure our for the drive opportunity, deliver share made portfolio served solutions and last We've collaborate in grown product year. and market

program. grew digital spending that in We also transformation

an We model look portfolio hope product as forward to We financial as to XX. more of in you our on Day on City Investor well our York at details see sharing the New there. strength long-term updated February

our like concludes now questions. call and Tim remarks. to up that Operator, the would for prepared open I

Operator

Instructions]. [Operator

first with Tim today from question Arcuri is UBS. Our

Timothy Arcuri

good. mix about speak the And you pretty the is you basically can tailwind. about turning Doug, a The Malaysia talked margin? I gross guidance is China is now to And that reset. know

rest puts takes and March the for about gross as of margin move year? the think to how So and you through the

Douglas Bettinger

or be Tim, puts we've a customer to the past, some about you're from in in tight where And think a pretty I in kind little the Yes. as going of to the this to headwinds and been see range we're going because you we've minus last continue quarter, takes, know, concentration. bit. plus talked

a as I by we likely go through year, extent operation Asia that certain headwind think the to offset strategy. more most there's

as right just tiny year. about. bit go we we So a away little fact, are I those where though, the things are the little think in trim maybe to wouldn't a from now, run through

Timothy Arcuri

you're then that going And doubling up But I before, by asked to million, color? $X maybe one -- is give any know any but NAND year-over-year. $X end WFE year. provide about you color it. talking can you $X I've know I is saying and you this million peers basically million your market? of can this be Got

that it it So doubles do think can And you there? year? possible any that you is give color this

Douglas Bettinger

of will of Understand with that to. I'll going give color. But NAND we double specific a little Tim, occur We're a sell NAND don't if will not be up unpack to a China Yes, I it will spending, know year. also be bit can't NAND that little spending details. to maybe though just customer in this necessarily. there bit going it's

little may period about. be that asking So the from a you're different

edge I foundry think to leading this is strong year. going be pretty

or pretty I think a plus well And last understood. that's very coming year. be, strong DRAM will year minus, off

continue I year. pretty will strong think it to be this

Operator

question is and Company. next Cowen The Krish with Sankar from

Sreekrishnan Sankarnarayanan

of, us for kind controls calendar of export of is you recent visibility help also, for I had these of terms in a impact I Doug, quantify And Lam one, the in can lead have follow-up. And times? then on China 'XX? First China. What was your a, kind you

Douglas Bettinger

our lead specific no a really asking the rest changed pretty obviously, if Krish, impacted much. too that know some haven't to world. the restricting early times there were handful different certainly than customers And us. the you're times are regulations of China, December, is came but much Yes, don't Geographically, China out I of same. yes, And lead in that new

The forecast that And know, footprint at the looking of to when weighted we from customers. ship would were forecast that to been so had half or obviously little that million be customers was have those XXXX. we in $XXX won't second don't I able we a bit originally revenue group probably,

about from that's that don't the think that that's it. our I what way Krish. than different So all know heard to you've peers,

Sreekrishnan Sankarnarayanan

for very That's quick a And helpful follow-up. then it. that, Got just quantifying Doug.

about spoke on about WFE rest you evolves and in think the the year? that How a split year-over-year your how do CSBG X between year growing the of and this basis. X, maybe You through systems March

Douglas Bettinger

outside There's of are I'm said, to like how amount handful a that's China. well of some within of is headwinds systems. get China, spending and got right? mature of Reliant not I the in understood. that I grouping, would of much tell much restricted. think not CSBG that, CSBG pretty And huge in going now detail into there's node customers the a to how we've related is I you kind then

and related, that's CSBG. benefit we've strong be upgrade NAND going upgrades, largely for within to is line been believe We year it's going talking right? that, product spending about upgrade a the and though, Offset, be to going to

Operator

Muse Cantor Fitzgerald. with next The C.J. is question from

Christopher Muse

if you. upgrade maybe or to product thinking of are should speak that had rank to about question. we order Could to be or biggest piggyback incremental on guess, by whatnot, the you what kind for how you drivers I

I an and you about relevant think incremental advanced of moly? and $X package we gate-all-around is in 'XX. growing Anything in that upgrades, NAND Could kind of thinking add you 'XX? be terms talked in that to calendar that else should billion about

Timothy Archer

me that C.J., start one. Yes, let with

I spent the every starting have change of and think again, And across -- most us, tools of that NAND a that's year-on-year, the of NAND. the It's the to upgraded. And NAND I it's from it's that dollar kind impactful be we board, perspective position the etch back. to strong such come on think very for kind need within upgrade.

the the at on point nodes I the And of this bids below being XXX what manufactured same time, But about last layers. that call, as happens on mentioned are X/X still you have tools, the XXX adding to deal to of tools you existing you additional not only is move with complexity layers transition. have to but that above do the upgrade start

is that's as start that why XXX tools XXX, moly, the gap you stacking, in new the and transition. to so key see like seeing about new And which generations. fill beyond, layer you layers like you XXX multi-tier added to talk we get tool, which get start carbon to And

what no strong on to packaging depends probably and new it is there's show upgrade which tool for and year-on-year leading-edge advanced and alluded packaging foundry to customer an from difference. So advanced But they're that growth in means but Doug our doubt the exactly that both largest within that and strength our which position NAND continues to transitions there. switching shipment

there's nice of where really investing year. are here said, together And to a feel starting setup this as the like, many we've so been areas come I in, I

Christopher Muse

not outlined. year-on-year implied you're suggest WFE annualize this. and to guess, top relative would I growth for sure a I want to that growth if helpful. March, very you shipments to follow-up, answer the that That's But pretty to going meaningful line Doug, I'm as were

be So tremendous second highlighting should the are XXXX? lower outperformance thinking about in half? in we Or revenues really you

Douglas Bettinger

Yes. question. I know, C.J., don't I'm that answer going not to

time to a is to been grow profile get guidance. I know forth. making giving the bit those So you going going confident don't annualize question. little of of Listen, it quarter-by-quarter spending it. WFE of rest We're so way outperform own not kind March, depend about just on for going I'm at a look and it bit. The a of answered now. statements. We've that's to your you if little you We're WFE. making to into if will right

Like I quarter I X to a said, know. guide we're at going time. don't

sight the to weighted. of China ship do lose a of to work. Don't of sudden, longer, second second about some what that can't a little would a did I little bit that we own say, been got of have your You all pencil on any half though, half weighting that customer

you build your as that model year. comprehend for So the

Operator

question The from next Harlan is with Sur JPMorgan.

Harlan Sur

in year and on call. you On $XXX packaging packaging with know revenues started guys advanced I million, view would the that your do a advanced last $XXX high memory, bandwidth business April about earnings million

and true upped that number billion. you was packaging? what XXXX then up Can billion, over drove $X that up, $X us to just on advanced further You calendar you revenue was to in guys actual the

the And XX% high year XX next move The years. X from growth then over to of with per high. HBM to this demand couple grow targeted for XX%,

You've next the mid- we advanced over in packaging think packaging/HBM profile XD do for the we how SOIC, year? growth X.XD advanced to years, from how your few profile? of think longer-term this general, like And sort about the about in to got move should growth

Douglas Bettinger

going to but die. all and I'll I'm that, that by right, We X you. but number it and in in I XD going precise year, Yes, $X think a surprises being on. of to for give in to to going XX, billion. year, end going at it's going certainly not XXXX, all X not the the grow going you chime above let number, XXXX, talked this again Yes, add driven I you is then don't going Harlan, mean, those things TSV. to And you to give HBMX I'm a do maybe potentially about, Tim to finished XX to we precise

well. it. So We're we're to up really pretty excited about do set

want to... you if Tim, know, don't I

Timothy Archer

No.

it a Harlan, processes the add think, been while yield on that I right productivity for you've and the advanced thing in saying been is hearing and I easy. marketplace, I'd and that, isn't we've packaging only think getting the these

is has there. this process with like copper things We're plating a And where so etching. critical delivering expertise and value Lam supplier in

very positions. do very And and to about with feel we going good our well. So to market continue we're grow that

can't on an it, again number will about exact indicate again, say. I that's can put did this but I we So we think grow we And all year.

Harlan Sur

this geography, That's gross guidance March better helpful. quarter The third, And are for and where in expected, then right? the of margins than the Doug, been our gross overall coming is consecutive your fourth sustainability very, the continued growth margins strength for on has quarter, very I've been consolidated ramped actually also, think, base part have facility, supplier higher at At got I aligned time, the your strategically you've solid. a manufacturing the significant surprised cost same region. you've in manufacturing of base. Malaysia you how rapidly this low-cost guys

any incremental through of better it help on flow to margin is this us and flowing of that? going revenue And is most fair quantify maybe So to growth forward, so incremental -- Malaysia assume way gross through? that kind

Douglas Bettinger

Yes, headwind going little the go I for a been going more of that a quantify to strategy I'm talking bit we're Don't have already. lose we've not number, about that to XXX basis delivered mix you that for from gave while. There's mean, sure. customer fact, the a we've right, though, just from I it. to points the sight over

to as that well. you telegraph I'm trying to So

gross done turned So what's and This pretty right guys We have deal was got right? organization gals frankly, run writing in strategy, I concentration with a we're was here. listen, to that all guess, jumped it customer We're the 'XX. don't on. but and early like to said, this we us, headwind right? super by away this keep phenomenal going we've our Frankly, pleased here, performance the too with that operations driving now down going with because done I job happy things the global with margin. a in on And down trail. our started horse on yes, proactive got much

Timothy Archer

Malaysia And in Harlan, think sustainable I that a Lam from to performance. investments add take did. we talking a that's And the would we how we're see making I as committed headwind. should what only and that thing yet that about step-up to is and it it going. Doug, you quarters, was up was That this ramped is many investment wasn't make for away

we have investment structure. going we're seeing we a digital a view semiconductor cost going There's little keep to and are and bigger, transformation. talking you're the period same our the our in investing. be now where term, a long that in of about bit But with here And to this be general in to want the improvements we industry fundamental and have operations company thing

commitment yet company. And the we just transformation financials I still come, done. something what very to think of is sign to Malaysia this is we've the a of and think long-term that's great so improving And I digital it shows that have a

Operator

next Sachs. Hari with Goldman from Toshiya question is The

Toshiya Hari

as had I X well.

outperformance highest market? of both to you WFE etch. growing you percentage The the a within year. function WFE a Is if the have guys Or is perspective? do the first deliver of you to expect as one, dep and it's this winning mostly etch guys plus that relative guys and from on -- the market applications latter, which share expectations gain share that in it And dep a overall

Timothy Archer

Well, it the at didn't is that But way described new share of exist which we've of often, look some gains in market wins before. the past we as the is both. applications,

stacking with carbon of I gas so fill, gets application. tier example in fight gave an always that because created And new NAND. the head-to-head results of simply for an growing winner that one not that a and complexity application it's of the

also market our our in and of measured results that share gain SAM itself. our Ultimately, of as share by the share

So there those. are number a of

we haven't competed markets are share through tool before obviously, win into market move product become technology is performance. pure and our talked where where SAM that record there previously expansion today. think the Aether where We we announcement superior do wins. about, I created on and of based

it's beginning. but as many it's makeup you a so said hard the we it outperform, at really why is really different And driven and of to we Etch by what structures, deposition things -- the these gate-all-around, and to important are incredibly building the the whether it's structures. more multi-tier DRAM. of complex It's becoming architectures stacking NAND. XD in new the It's it's packaging, advanced think

All processes new, and leading in. is that of those Lam accomplished complex etch very through are dep

Toshiya Hari

Got Doug, Reliance CSBG, of to business. about been full guide to you're of chamber continues I for the on The maybe your the upgrade it. then not to That's a a think part year. great. obviously way part account, year-over-year business, in for correlated going And Historically, which the spares basis? there it's with grow. 'XX know Is

Douglas Bettinger

and is analog, not down node as Reliance that's to in of softer specialty going and 'XX be investment, occurring areas you right? on in year-over-year, WFE look China. year-over-year, Yes, to think microcontrollers, as of puts Toshi, outside what's node And think lot a don't surprising, mature investment then be If think customers of 'XX, I that's spending -- there's handful and I China lost takes, we is about I to a like going probably at going well.

of that will relative all there contribute So that to Reliant. to

year plus a things giving That of to though, right we color we're been I year, about as right? We've going And through such probably change. think it's little or the talking was to about now, think upgrade again, keep as minus. go if flattish, updates I CSBG, that be giving you that, Offsetting a good we'll you bit

Timothy Archer

we obviously, sort of add Toshi, of CSBG only different Yes. CSBG recognize is components the around. move that each I'd the of And on thing

how growers. I intelligence think the that helpful ultimately equipment and And are talked you highlighted it's and inside that about to done the areas maybe the some to one today future still productivity long-term about value the while is cobots recently we've use fab disrupt lot in delivering customer. capture a which other So of therefore, of to is that and service way things the

So that's that than I that much. so Reliant spares our still I tapped, think is and would area an we less about and talked upgrades business say,

these there's onto we and so products to lot fabs. as And out start come a into there to of opportunity still new platforms new roll

Operator

Pajjuri Raymond The Srini next with is question James. from

Srinivas Pajjuri

want the answer just I Doug, CSBG. to previous on gave you clarify

that is is 'XX for talking are -- next flattish, sequentially sorry, I you mean, the are guess? calendar few say So being fiscal Or when or calendar I flattish? you 'XX we flattish? it being quarters, talking Or

Douglas Bettinger

never about It's never. 'XX. almost so I talk year-over-year. Calendar year, fiscal

think flattish. of total in as should You CSBG

Srinivas Pajjuri

Got of said customers hundred trying what and utilization you I lowering Tim. loadings. are it. I'm for their the reconcile actually million are great are we a hearing levels question contribution. B, then And on factory dollars customers, and just moly some is not demand maybe lower know to several Obviously, your is Tim, from

of broad-based transition know are seeing? are customers? a maybe us, but you there customers, I a it a Is like So of only help of yes. handful handful can how you

year, us give as the will do some could through color the feel you additional be If of we go sustainability as that B moly how you to about helpful.

Timothy Archer

Yes.

those nodes, the I are Those the We mentioned that, industry moly. fact under being we last manufactured large bits. are being all think -- about without of we've said mean, like it's of I the call, XXX the all talked sustainability. layers. X/X bits I are on the bits manufactured the number still

over this and a transition. we've is so And time, multi, said multiyear

capacity exists move starts As you that counts. month higher layer start per towards million-plus this to wafer

detail says different point. as customers can't moly have customer we're to Now intercept transition different that layer coming reaches go in, is to into when see what comes as But each what customer. exactly it count. that I points moly customer it's by going in whether

fact how they statements as moly that reconcile are spending. spending Now new we might carbon higher cut gap like well with their to introduce go wanting and do to the that layer technologies to fill counts be customers and

Well, forward the a I move technology. mean, first efficient are way to upgrades very all, of

counts. for a WFE lower counts And applications, which result manufacturing higher bid and in performance. for higher you And frankly, get by reduced requirements. And bits layer certain cost that's meet higher means need layer to to higher to performance those so end

think several it's you'll continues those I a number that large wafers so years, the signs, to is And that's broad starting upgrade and and the next at counts numbers. of continue move see layer early the to as contribute our and improvement we're more higher in But very not moly why but more over to this see increase.

Operator

is with question America from next Vivek of Arya Bank Securities. The

Vivek Arya

And growth we think how or in CSBG X year? then be about X clarifications. Just flat should 'XX? Doug, this will OpEx calendar Why

Douglas Bettinger

next strong kind be be believe, a pretty Tim for that, just places, Reliant NAND. on Offsetting other strong equipment upgrades an on year. based year Vivek, right? Yes, line. less coming in described. off probably We're There's going There's I product it's the what will upgrades what I the to spending That's of told you, set aging too. of

it, the sense? that Vivek. down, is guess, to think about that's So the I makes Did up way and the

Vivek Arya

OpEx and growth, Yes. the Doug?

Douglas Bettinger

year, remarks. that's transformation leverage to talked going growing to this I on going scripted We're we're investing digital some deliver in I R&D. right? too, project the listen delist deliver also future the this to benefit. plan We a increase we're We're said to Listen, to year, the right? leverage But going to spending financial what P&L. in about

faster So is it. OpEx than about way to revenue should grow the think

Vivek Arya

just that very was of it we given the Doug, from growth So different kind Should assume OpEx up projects? rate? mid-teens. so Or last OpEx run year, a be transformation would -- similar digital

Douglas Bettinger

Yes. Vivek, a to quarter I'm going at X time. you guide

leverage You'll get this little us bit of year. a from

much as to you that's right give as So I'm now. going

Operator

next is Malik Atif The with Citi. question from

Atif Malik

well? clarification. billion are indigenous meaning quick are $XXX question. expectations, what sales number competitors your in your to includes it WFE the a earn WFE, That going as unrestricted That's first is First,

Douglas Bettinger

our best restricted all We're customers of Atif, all were it's the in right? 'XX. It's There it in. restricted to everything, in customers There 'XX. in describing were ability.

Atif Malik

customer Doug, to drop see are a I the just concentration in if sales China And that in I'm you expecting as trying quarter. in come if And the well. regional wondering you're Okay. concentration the was expecting to going the March quarter. similar down after quarter you're comment then, December made similar again March

Douglas Bettinger

to Customer tied when to You it pretty got actually to listen describe is euphemisms about concentration when I stuff. my talk I right now. concentration geographic

should the again, versus down believe, a be December in March, to concentration be consistent 'XX this to roughly for year roughly. said I again, will expect that call, last China you on do we So 'XX.

Operator

The next question is from Stacy Rasgon with Bernstein Research.

Stacy Rasgon

to it, back CSBG on Doug, harp I flat. don't to to want but the I go mean outlook,

And run quarter driven, December. presumably, strength where rate on I'm would a upgrade lot be just the million of just ran you CSBG. given that's a like you'd confused So basis, down in $XXX be NAND like versus a that

Reliant So amount be is conservatism must why I year-over-year there what Or wasn't am outlook. there? to like trying falling is I just... built a some fit wrong? aware that like for I that I huge by me Or just in -- getting just mean, like -- mean, just I'm

Douglas Bettinger

is bunch just systems. not down, Reliant Reliant be of to We largely conservatism. customers going a that No, in China lost right? there's purchase

So too. that's part going what's of on,

Stacy Rasgon

Okay.

So that in in that China was have the million that 'XX you XXXX? -- calendar in like away Was is big? goes $XXX for did CSBG in Reliant

Douglas Bettinger

have customers, $XXX 'XX. revenue would for million was spent what forecasted they our Stacy, of in set that

Now they're been of that lot spending. would And not Stacy. have a Reliant,

Stacy Rasgon

Okay.

maybe the I go the go Okay. to going year. go second Did as it we All And down right. mix, increase those that I said that I like sounds mix, does again, along half? true, percentage through into China right? as lines, customer China be the back like that's to get imply guess, mean, that to headwinds you ought the customer we if

Douglas Bettinger

in be 'XX. I said versus percentage 'XX the down should China revenue

Stacy Rasgon

rate about increasing. versus you're grow I'm the like headwinds the rest the you in half. of missing back of the customer sounds will talked because it sort talking run revenue China and And the current business about

running that's... versus So does that percentage go down now? Sounds in like you're the back where half

Douglas Bettinger

because than going down. X changes. though, not Year-over-year, going it's I'm stuff quarter Stacy, more to guide a to go at time

Operator

Moore question Morgan is next with from Stanley. The Joe

Joseph Moore

a bit terms because you of where surprising WFE strongest but we utilization a know can growth economic and be demand why strong basis? is transitions, NAND NAND more cuts we're color alluded seem the seeing just at little it's time on guess, to these things And of like kind the NAND characterize are that. In to And I technology when business, you from being had a maybe I softening? little a

Timothy Archer

would the spending today I think Yes. migration. NAND Well, that, technology as very characterize one, we much

so think and device bit is into different it performance. I does comes And for as also that, One improve play cost I said, help reasons. reduce

some And on there so that there changes looking have. customers to lines are certain make they are

WFE Lam, WFE number will would on spoke that Now we a growth, capture year grower And NAND a in the spent the is Lam, when being if the because in strongest upgrades, off segment. for of say coming you again, very upgrades. XXXX, we specifically our about know, strength for what low about growing a of on of all as haven't strong that spending this we very but our be talk obviously base. high Then rate primarily it's we given of,

seeing. year. to desire customer higher every strong say is to And is certain But so and we can forward going that's we're and to of still I technology, this lines move they're spending there speak a what what can't levels be all that to

Operator

The next Rakesh Mizuho. with Vijay question is from

Vijay Rakesh

Just quick a on question the side. NAND

-- I -- come much in somebody Sorry, on late. this calendar any you how much given I NAND you year look NAND full 'XX as year, already, down, the Nice rebound joined growing 'XX? this if thoughts asked question there. has how at see But

Douglas Bettinger

Yes, though. we're up, not going be going number, to to give you Vijay. It's a

Vijay Rakesh

got Yes, it.

what you 'XX, guys for on on NAND. with that about QLC guess? think -- the I private seeing I you're do an And you How see you talk talked the have to then Okay. can side? opportunity

Timothy Archer

being can same remarks, dielectric in last my etch able a prepared and to DRAM breakthrough had very that what call on for mentioned very terms performance memory. etch. Cryo for technology, late year a also our of And in is which flash vertical holes X.X deep, need like that NAND for Yes. I also, release we we used other really high devices be technology spectrature

happy that's progress very been made. with we're the so And

also on is for attractive not install cryo cryo attractive also used upgrade -- What these makes it which can our our technology existing new but very only very systems sold customers base, forward, in the is tools we going be that financially. have to

Operator

Quatrochi with from Fargo. Joe Wells comes next The question

Joseph Quatrochi

Yes.

longer December quarter, was clarify, the you that Chinese you there wanted to? customer strength just the revenue, is from kind want of that I just in upgrades. customer core the really the NAND For to to I can you understand saw strength ship there NAND anything that saw no the in

Douglas Bettinger

customer. NAND, a Nothing. Chinese Chinese from NAND nothing there's indigenous No,

Joseph Quatrochi

exiting NAND think below just of like calendar this change mean, we as I the layers, follow-up, we about X/X mix? think like a terms that XXX as should that about And helpful. of Okay, in how year capacity trajectory of

Timothy Archer

on of which a number hearing is, the that's think call, the that question I predict we've and the we times rate Well, pace. been quite can

we're the over to more to have of that installed one of you more time, look think I higher of levels be thing technology. to upgraded certain and will continue -- is base

state we device at this the the I the will think a pace. way NAND little that individual and any about now. bit for and in But it to of requirements with look can't market, application each you detail holds. really point, at you us of the more end right that have requirements rate And tell

Operator

question from is next Tom The O'Malley with Barclays.

Thomas O'Malley

more with you test I'll one Doug, one. NAND

Forgive me. I a know you've here. lot gotten

really I coming of year. guide impressive to So in for flattish actually in the think CSBG that able strong, of the terms it's you're upgrades kind very

Just of I was that Reliant a the under bigger portion the assumption that of was bucket. mix

give I you've I seen last the take But when and struggle seen take is look or been single-digit with you that haven't that. offset like terms in So of high NAND and the I of the billions, surprising, think people X really like off this at good. market guess, years to kind totally very has spend. back But spend where are

bit describing for a What's to year urgency question the differently. the year? driving I need numbers this asking above be pretty you're XXX-layer upgrade robust. just this because why this the guess, next Like I'm

understand obviously for to happening quickly. that's It's why want you. a Just thing so really good

Douglas Bettinger

The beyond Yes, get of we're races NAND needs need that's it it's array. close It nowhere Tim Tom, at X/X to capability that the not out get upgraded. enterprise got like what Listen, and peak XXX to described. I QLC, structures But it's spending, are the to layer, which to the You evolving got to circuit SSDs guess right? it's you really under the needs that. sub-XXX back technology is layer. there,

wafer going these and have that. capability, to layer bonding sub-XXX need That's what's technologies that You enable on. don't are

to cost addition per get upgrade, when lower In a right, earlier, bit. you what Tim mentioned you

to economics that's there what we there's extent. still on And going sense largely year. a so And make see that certain this

anything? add know, don't Tim, you'd if I

Timothy Archer

that's No, no, think I right.

Douglas Bettinger

makes That sense, Tom?

Thomas O'Malley

It does.

Douglas Bettinger

Okay.

You have a follow-up Tom?

Thomas O'Malley

over I I'll logic pivot Obviously, a the percentage to side. of the smaller foundry Yes. guess, business.

call. this much it on focused really haven't We

impact may impact after to question view view to dynamics business change just your the of a market coming being the share the that we You're But of the are in you that year. CapEx you? update outlook guide TSMC, any and out in this pointing there. losing that kind leaders the saw given some How of been next does TSMC. this leader asked is your NAND how You've for from but wanted that year? Obviously, the other get to previously, print I growth

Douglas Bettinger

about leading-edge talk Tim foundry. let I'll Yes,

Timothy Archer

to Yes, years yes. people to we've back we're in -- thinking away Sure. start. to it's recovery walk focused No, just we on fact, been It's would many only hate waiting the NAND. for been for NAND

that's is the our to and these up able kind begun through fact that we're talk of numbers. in so about upgrades, showing And

expansion we the one and that had logic, our pivot reality strategy gave paying mentioned I gate-all-around foundry the is is and a to nodes. off. number We more into product DRAM R&D new our But of

all strength nearly Plus have leading-edge very packaging number by advanced well being logic. in driving inflection. of now shows We foundry Since logic leading-edge and right up our tools that a foundry play prominently packaging very into advanced capabilities. that is in driven the

And in so way. participating we're that

this at I customers gain leading-edge point. So as logic that is spending, opportunities see share say would Lam are foundry you -- those for

Douglas Bettinger

take to call. Yes. Thanks, Tom. Operator, one we're more going

Operator

question Stifel. And Chin from is Brian with

Brian Chin

A few questions.

maybe win? is development, or other potential magnitude your and you the DRAM the in resist For are opportunity wafer where of revenue revenue trying timing month? per SAM remind that, then XX,XXX with per can and tied to And And what of players? this to start you us deposition

Douglas Bettinger

what Listen, I We've Everybody because position. is everybody's excited super a at we're you. were I to We've for Brian, milestone position. tool dollars hardware to it's but generating DQR one about year, it using, right? talked of record is this, in real previously a got good is was R&D It's looking We going huge that's about revenue, be to production not it important ramp. in certainly going be this facility. guess, It's but this a going decision, tell us.

Brian Chin

Okay, guess, your bonding the NAND have on follow-up. quick maps, of does on for wafer that's What a of capture road rate great. spending? introduction I factor Maybe NAND

Timothy Archer

rate our impact. an of related In upgrade upgrade, I but very of the talking a and minimal itself. capture has certain what don't been we play of primarily, wafer the stack still an can other a say, go cycle elements been There we a are it's I'd high. I wafer in mean, bonding to that we've But about. things space, say lot do bonding our, tools mostly do mean, into is

-- etches, we the to gap to primarily we cetera. higher talked carbon et tools -- that's upgrade you about as aspect talked do And stack need fill, ratio about to other

selling We tools also counts. haven't that offset even for help higher we've talked of layer been stress about that many fact the years,

for And well, process complexity bonding the it adding opens up devices, supplier as so opportunities of a of really, wafer participating. a these now critical lot Lam like

Douglas Bettinger

to that, to rest Awesome. wrap in Thank to see management XX I super are you, Tim the February you Brian. the and going With and excited up. the team operator, in we're Listen, guys New to call of we're said, York hope at new talk be Day. like update our have going going model. make We'll I some about. the products interesting are you all And it. to financial able to I Investor

the call. let's that, with operator, off close So

Operator

you attending now today's for The conference has presentation. included. Thank

disconnect. now may You

Lam Research (LRCX) 29 Jan 252025 Q2 Earnings call transcript