Taiwan Ministry OKs NT$9.8 Billion Investment by Lam Research

Lam Research (LRCX) is benefiting from a memory chip supply crunch, with revenue up 26% and earnings up 39% in fiscal 2026. The company expects 52% revenue growth and 71% earnings growth in the current quarter. Deloitte projects memory manufacturer capex to rise significantly, favoring Lam's semiconductor equipment sales. Analysts forecast 62% EPS growth for fiscal 2027, with potential for further upside.

Taiwan's Ministry of Economic Affairs approved Lam Research's NT$9.835 billion (US$310 million) investment in its Taiwan subsidiary for semiconductor equipment R&D. Other approved investments include Zhen Ding Technology's NT$3 billion in Boardtek Electronics, Nuvoton's 15 billion yen in its Japan unit, and Foxconn's US$57.01 million in Mitsubishi Fuso Bus.

Lam Research is expanding its R&D operations in Tualatin, Oregon, with a $1.7B investment through 2041. The project could create 450 direct R&D jobs and 1,400 construction jobs. The expansion is part of Oregon's Prosperity Roadmap and includes a tax agreement with local authorities, expected to generate $111M in revenue over 15 years.

Lam Research (LRCX) shares fell 3.5% due to concerns over China trade risks, despite a 27% dividend increase and expansion plans. China remains its largest market, exposing it to U.S.-China policy risks. Analysts have set price targets ranging from $400 to $500.

Lam Research (LRCX) shares rose 7% since its last earnings report, beating estimates with Q4 revenue of $6.72B and EPS of $1.82. Growth was driven by NAND and customer support. Management raised 2026 wafer fabrication equipment spending outlook to $150B. Q1 guidance projects $8.1B revenue and $2.15 EPS. Analysts have revised estimates upward, giving LRCX a Zacks Rank #2 (Buy).

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.