Lam Research breaks ground on Oregon lab expansion for AI chip development

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 began construction on a $620M R&D lab in Tualatin, part of a $1.5B investment over 15 years. The project, approved with tax incentives, aims to add 400 jobs and enhance AI chip development. The company expects the expansion to create 1,420 construction jobs and 445 permanent roles with an average salary of $173K. Lam Research reported $20.6B in 2025 revenue and plans further global investments.

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.