Coventor
2017
Outcome
Accelerated virtual fabrication simulation, enabling chipmakers to simulate etch and deposition chemistry prior to running physical silicon wafers.
Lam Research
Acquisitions
Lam Research Acquisitions
3
Major Deals Covered
What are Lam Research's biggest acquisitions?
This page covers 3 major deals from 2008 to 2017, each with its price where disclosed and the reason behind it.
- Major deals covered
- 3
- First deal
- 2008
- Most recent
- 2017
| Company | Year | Price | Purpose |
|---|---|---|---|
| Novellus Systems | 2012 | Undisclosed | Acquired premier semiconductor deposition equipment supplier to combine world-class plasma etch with thin-film chemical vapor deposition. |
| SEZ Group | 2008 | Undisclosed | Acquired Swiss leader in single-wafer wet clean and surface preparation technology. |
| Coventor | 2017 | Undisclosed | Acquired specialist in semiconductor process modeling software and MEMS design automation. |
- What companies has Lam Research bought?
- Major acquisitions by Lam Research documented here include Coventor (2017), Novellus Systems (2012) and SEZ Group (2008).
- What is Lam Research's most recent acquisition?
- The most recent Lam Research acquisition documented here is Coventor, in 2017.
Novellus Systems
2012
Outcome
Transformed Lam Research into a top-tier semiconductor equipment titan, creating the industry's most complete etch-and-deposition ecosystem.
SEZ Group
2008
Outcome
Established Lam's Clean product group, giving it critical single-wafer spin clean and bevel etching tools.
Lam Research's Growth & Acquisition Strategy
Lam Research's forward growth strategy centers on three transformative semiconductor inflections: Gate-All-Around (GAA) nanosheet scaling, High-Bandwidth Memory (HBM) advanced packaging, and 3D DRAM architecture transitions. In advanced logic, the shift to Gate-All-Around nanosheets at 2nm requires Lam's selective isotropic etch tools to cleanly release horizontal silicon nanosheets without damaging adjacent gate structures. In AI memory, Lam's SABRE 3D electrochemical deposition tools command the market for copper through-silicon via (TSV) metallization, which connects stacked DRAM dies in High-Bandwidth Memory (HBM3e and HBM4) packs for Nvidia and AMD AI accelerators.
How Lam Research Makes Money
Lam Research generates revenue through the sale of advanced wafer fabrication equipment (Systems) and comprehensive recurring aftermarket support (Customer Support Business Group / CSBG). Equipment sales account for approximately 60% of total revenue, driven by multi-million-dollar shipments of flagship tools like Sense.i etch systems and VECTOR deposition platforms to leading semiconductor foundries and memory makers. The Customer Support Business Group (CSBG) represents roughly 40% of revenue, generating highly profitable recurring cash flow through maintenance services, spare parts, equipment upgrades, and chamber retrofits across an installed base surpassing 90,000 active process chambers worldwide. This extensive installed base ensures resilient cash generation even during cyclical pauses in new fab equipment orders.
Lam Research Acquisitions FAQ
Does Lam Research acquire other companies?
Yes, Lam Research executes targeted acquisitions to integrate complementary technologies, expand intellectual property, and enter new market verticals.
What is Lam Research's acquisition strategy?
Lam Research focuses on bolt-on acquisitions that can be rapidly integrated into its core technology architecture and commercial distribution channels.
How does Lam Research fund its acquisitions?
Acquisitions are typically funded through cash from operations, revolving credit facilities, and strategic equity considerations.
What was one of Lam Research's notable acquisitions?
Lam Research has acquired specialized technology assets that enhance its core platform capabilities and expand its addressable customer base.
How does Lam Research handle post-merger integration?
By migrating acquired codebases into its unified cloud infrastructure and retaining key engineering talent within specialized innovation pods.
Are acquisitions a primary or secondary growth driver?
Inorganic growth is secondary to robust organic product development, serving as a tactical accelerator for specific strategic capabilities.
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