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New, Efficient Facility Accelerates Speed to Customers in Asia; Features Malaysia’s Largest Automated Storage and Retrieval System

May 7, 2024 – Lam Research Corp. (Nasdaq: LRCX), a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry, today announced the official opening of its new, automated warehouse in Batu Kawan, Penang. The new warehouse complements Lam’s manufacturing operations in Malaysia, home to the company’s largest manufacturing facility.

The state-of-the-art warehouse facilitates the efficient management of an extensive inventory of parts that are essential for producing Lam’s leading-edge wafer fabrication tools. The new warehouse utilizes a range of advanced systems, technologies, and robots, working in concert with Lam employees. These innovations enhance end-to-end operations, order fulfillment and overall productivity.

“We are proud to extend the capabilities Lam’s largest and most innovative manufacturing facility, with the opening our new state-of-the-art automated warehouse here in Penang,” said Eng Keat “EK” Lee, general manager at Lam Manufacturing Malaysia (LMM). “At this warehouse, our skilled logistics specialists utilize automated solutions to seamlessly deliver thousands of parts each day, up to nine times faster than conventional methods, to support the manufacturing operation right next door. I would like to thank the tremendous efforts of our employees and partners to complete this project.”

“As AI and advanced computing continue to drive the demand for next generation semiconductors, the opening of our new facility is an important step in further enhancing Lam’s operational excellence and positioning our company for long-term growth,” said Pat Lord, executive vice president and chief operating officer of Lam Research. “Utilizing record-setting innovations, this highly automated warehouse enhances our executional efficiencies in Penang. Moreover, it enables Lam to exceptionally serve its customers in Asia and beyond.”

The facility features several automated solutions, including Malaysia’s largest automated storage and retrieval system (ASRS). The facility was recognized in the Malaysia Book of Records for the largest ASRS storage bin capacity in the country. It is also equipped with Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) to automate repetitive and time-consuming tasks. The strategic implementation of high-density automated storage systems enables optimal utilization of the facility’s vertical space. This approach maximizes space efficiency, occupying just one quarter of the footprint compared to a standard warehouse implementation.

Designed with Sustainability in Mind
Lam continues to make progress towards achieving its company-wide goals of 100% renewable electricity usage by 2030, net-zero emissions by 2050, and 80-million-gallons in water savings by 2025.

Lam’s focus on reducing its environmental impact is reflected in the facility’s design. It uses an automated building management system that optimizes lighting and cooling for energy conservation. Its co-location with the manufacturing facility at LMM also further minimizes carbon emissions from transportation needs. This efficiency complements the focus on energy savings of the manufacturing site, which generates an average of 13 MWh of its power from solar energy per day*. The new warehouse also promotes sustainable water reuse by collecting and channeling rainwater back to storage tanks.

“With the inauguration of Lam Research’s automated warehouse in Batu Kawan, we’ve not only achieved a significant milestone but also ‘laid out a roadmap’ for what we aspire to in the fast-paced world of technology,” remarked Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA. “This ‘short sprint’ towards rapid development underpins our New Industrial Master Plan 2030, designed to propel our manufacturing sector to new heights and cement our position in the global high-tech arena. Lam Manufacturing Malaysia today works on the entire portfolio of leading-edge products, collaborating closely with customers to create some of the world’s most sophisticated wafer fabrication equipment. At MIDA, we are dedicated to fostering investments that accelerate our strategic initiatives and broaden opportunities for our local economy and workforce.”

In 2021, Lam opened its state-of-the-art manufacturing facility located at Batu Kawan in Penang, Lam’s largest and most advanced manufacturing facility to date. It is focused on assembly and production of innovative equipment and processes used by customers to produce the world’s most advanced memory and logic devices.

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About Lam Research
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam’s equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com.

Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: the innovations associated with Lam’s facilities and the benefits to be realized from those innovations; demand for semiconductors and the drivers of that demand; Lam’s operational execution and prospects for growth; the executional efficiencies to be realized; Lam’s ability to serve its customers; Lam’s goals with respect to 100% renewable electricity usage, net-zero emissions, and water savings; and the environmental, energy conservation, and carbon emissions benefits to be realized. Some factors that may affect these forward-looking statements include: trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain cost increases and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to meet demand for our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 25, 2023 and quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this press release.

* As of 2022. Source: Lam Research 2022 Environment, Social and Governance Report.

Source: Lam Reseach