Lam Research Corporation (NASDAQ:LRCX) Q2 2024 Earnings Call Transcript

Thomas O’Malley: I was curious if you guys had a view on the HBM market. Clearly, with the accelerator market growing as quickly as some think. There’s concerns that the HBM market may actually be shipping above peak in ’24 and ’25. Do you guys have a view internally on just how fast HBM is growing as a market segment? And just — could you just give us the perspective of when you look at an acceleration of a tool road map with a customer on HBM. How much of that has pulled in, in the last 6 months from what you would typically see from a DRAM customer when they’re looking for a tool?

Timothy Archer: Well, I think that as a real key supplier into the HBM market, as I mentioned, the strong position we have in the processes required before the stacking, this is an area where we’re seeing very, very strong demand. I think that whether or not at some point, it’s shipping above peak, I think that this AI market is continuing to evolve at a very, very fast rate. And all we’re focused on right now is ensuring we are building out our own capacity and capabilities. And ensuring that we maintain that technology leadership that’s allowing us to hold 100% market share of the TSV formation in HBM. And so really, that’s our focus is hold the position and let the market grow as fast as the market grows.

Thomas O’Malley: Helpful. And then just one on the makeup of inventory. You guys have talked about working down inventory throughout the year. Is there any color you can give us on the makeup of that inventory? Is it more memory related or foundry logic related? I know you don’t want to give specifics, but just where do you see that inventory coming down through the first half of the calendar year?

Douglas Bettinger: Yes, Tom, it’s — the rate of decline in memory as we went into ’23 was pretty dramatic, and we ended up taking more inventory than we needed specifically for memory. So there’s a bigger component of it targeted at memory and as memory recovers, the inventory will come down. Thanks for the question.

Operator: This concludes our question-and-answer session, and the conference has also now concluded. Thank you for attending today’s presentation. You may now disconnect.