By Max A. Cherney
SAN FRANCISCO (Reuters) -Lam Research chief executive said the thirst for complex, artificial intelligence silicon will push the likes of TSMC to purchase larger numbers of the company’s tools over the next three years, Lam chief executive Tim Archer told Reuters in an interview on Wednesday.
The remarks were part of the first analyst day Lam Research has hosted in five years. At the two-and-a-half hour presentation in New York, executives discussed two new chipmaking tools in great technical detail, gave a market overview and issued a financial forecast through 2028.
“(Artificial intelligence) is probably the biggest fundamental technology revolution of our lifetimes,” Archer said.
Investors sent Lam shares ended up about 1% on Wednesday.
The Fremont, California-based Lam is one of three U.S. of chip equipment makers that produce tools that Taiwan Semiconductor Manufacturing Co. use to produce the world’s most advanced AI and other processors. The business has suffered in recent years as memory prices and supply gluts pushed a slowdown in capital spending among companies like Micron in the U.S.
During the the presentation, finance chief Douglas Bettinger said Lam expects revenue of between $25 billion to $28 billion in 2028 and adjusted earnings of $6 to $7 a share. Adjusted gross margins will reach about 50% by 2028, the CFO said.
“The chipmakers depend on companies like Lam to keep them on their roadmap,” Archer said in the interview
The company also announced two new chip making tools, one focused on depositing material on silicon wafers. The second tool is designed to remove material from wafers, a process called etch.
The new equipment will help companies build more advanced versions of flash storage, random access memory and artificial intelligence chips.
(Max A. Cherney in San Francisco; Editing by Chris Reese)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.