Lam Research Unveils AI Chipmaking Tools, Projects Big Returns

On Wednesday, U.S. chip equipment maker Lam Research Corp LRCX launched two new tools for building advanced artificial intelligence chips. The company introduced Akara, an innovative plasma etch and advanced conductor etch tool.

Akara delivers novel plasma processing technologies that enable the etch precision and performance needed for 3D chipmaking.

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Akara enables the scaling of gate-all-around (GAA) transistors, 6F2 DRAM, and 3D NAND devices and is extendible to 4F2 DRAM, complementary field-effect transistors, and 3D DRAM.

These devices require etch steps and Extreme Ultraviolet (EUV) lithography patterning to form complex 3D structures. 

Taiwan Semiconductor Manufacturing Co TSM co-COO Dr. Y.J. Mii noted critical plasma etch capabilities will be integral to solving the many semiconductor production challenges the new, more powerful device architectures pose.

Lam Research also showcased ALTUS Halo, an atomic layer deposition (ALD) tool that harnesses the metal molybdenum’s capabilities in producing leading-edge semiconductors.

ALTUS Halo delivers exceptional feature fill and high-precision deposition of low-resistivity, void-free molybdenum metallization for advanced semiconductor devices. ALTUS Halo could pave the way for scaling advanced memory and logic chips for future AI, cloud computing, and next-generation smart devices.

Early adoption has begun at leading high-volume 3D NAND manufacturers with fabs in Korea and Singapore and advanced logic fabs, while development continues with DRAM customers.

Lam Research’s ALTUS Halo tool has enabled Micron Technology, Inc MU to bring molybdenum into mass production.

During the 2025 investor day, CFO Douglas Bettinger said Lam expects revenue of between $25 billion-$28 billion in 2028 and adjusted EPS of $6-$7. Bettinger noted that adjusted gross margins will reach about 50% by 2028.

Lam Research plans to return over 85% of free cash flow in the near term. It expects Customer Support Business Group (CSBG) growth to be flat in 2025.

The company expects wafer fabrication equipment growth to be mid-high for the next several years. It also noted that customers are cost-conscious and sensitive to the return on investment and the speed with which they can ramp new fabs.

Recently, Lam Research committed $1.2 billion to boost India’s semiconductor ecosystem, which could be worth $63 billion by 2026.

Cantor Fitzgerald analyst Matthew Prisco reiterated Lam Research with an Overweight and a $100 price target.

Price Action: LRCX stock is up 1.24% at $88.75 at the last check on Thursday.

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