Lam Research Breaks Ground on $620M Tualatin Chip Lab

Lam Research started building a new lab in Oregon, investing over $3 billion globally to accelerate AI chip development. The expansion supports the company's focus on advanced semiconductor technologies.

Lam Research began construction on a $620M lab in Tualatin, Oregon, to advance AI microchip development. The 120,000-square-foot cleanroom, part of a $3B global investment plan, is expected to create 400 jobs and open in 2028. Local officials praised the project for its economic impact and job creation, with Oregon providing $22M in incentives.

Lam Research Corp. (LRCX) began construction on a new $3B Oregon lab to accelerate AI chip R&D, expanding its global network. The 120,000 sq. ft. facility, set to open in 2028, will increase cleanroom space by 50%, supporting closer customer collaboration and creating 900 jobs during construction.

Lam Research (LRCX) has a consensus 'Strong Buy' rating from 33 analysts, with 23 'Strong Buy' ratings, 4 'Moderate Buys,' and 6 'Holds.' The mean price target is $370.28, a 17.9% premium to the current price. TD Cowen's Krish Sankar reiterated a 'Buy' rating and $700 price target, citing growth prospects.

Applied Materials (AMAT) reported Q3 earnings beating estimates, with revenue up 25% YoY to $9.12B, but shares fell 5%. Lam Research (LRCX) also beat estimates, with shares rising 6%. AMAT guided Q4 revenue to $10.25B, above expectations. Investors compared the two companies' performance in the AI-driven semiconductor equipment boom.

Lam Research said it will spend more than $3 billion over the next five years to expand its engineering and research labs, aiming to raise experiment capacity by over 50%. The Nasdaq-listed chipmaking equipment supplier serves memory makers including Micron, Samsung and SK hynix. The plan follows its Q2 results, with revenue up 15% to $6.72B.