Lam Research to invest $3 billion in R&D over five years

Semiconductor equipment provider Lam Research Corp said on Wednesday it plans to invest $3 billion in research and development over the next five years, aiming to strengthen its position in advanced chip manufacturing.

The company, which supplies tools used in semiconductor fabrication, said the investment would focus on next-generation technologies, including those required for 2-nanometer and smaller process nodes. The expansion follows strong demand for high-performance computing and artificial intelligence-related chips.

Lam Research, which competes with peers such as Applied Materials and ASML, said the R&D push would support its long-term growth strategy amid a cyclical upturn in semiconductor capital expenditures. The company did not provide a breakdown of the spending allocation beyond the total amount and timeframe.

Chief Executive Officer Tim Archer said in a statement that the investment reflects the company's commitment to innovation in an evolving market. 'Our customers are pushing the boundaries of what's possible in chip design, and we are investing to meet those challenges,' Archer said.

The announcement comes as global chipmakers increase spending to meet surging demand for AI, data center, and mobile devices. Lam Research reported revenue of $24.6 billion for the fiscal year ended June 30, up 15% from the prior year.

Shares of Lam Research were up 1.2% in premarket trading on Wednesday following the news.