Market Share
~35% etch
Key Product
Dielectric etch and ALD systems
Full briefing▼ Expand
Lam Research is a leading supplier of etch and atomic layer deposition (ALD) equipment, controlling approximately 35% of the global etch market. Its systems are used in critical steps like 3D NAND memory fabrication and high aspect ratio contact etching for advanced logic. Lam's equipment is integral to TSMC's leading-edge logic process and to every major memory manufacturer's NAND and DRAM production. US export controls have required Lam to obtain licenses before shipping its most advanced etch tools to Chinese customers, significantly impacting its China revenue. The company is also developing new etch technologies required for the sub-2nm gate-all-around era.
Connected companies
Tap a chip to trace that company's chain.
Critical path — raw silicon to deployment
The tightest single-source dependencies, in order.
RAW MATERIALS
Rare Earths (CN)
Neodymium, Dysprosium refined oxides
RAW MATERIALS
High-Purity Quartz (US)
Fused silica blanks and quartz process tubes
EQUIPMENT
Lam Research
Dielectric etch and ALD systems
FOUNDRIES
TSMC
CoWoS advanced packaging, N3/N2 logic
MEMORY (HBM)
CXMT
DDR4 and LPDDR4X DRAM (19nm class)
Export controls touching Lam Research
U.S.–Netherlands–Japan Trilateral Chip Equipment Alignment (Jan 2023)
Following extensive diplomatic negotiations, the United States, the Netherlands, and Japan reached an informal multilateral agreement — announced on or around January 27, 2023 — to align their semiconductor equipment export control frameworks. The Netherlands subsequently imposed DUV licensing requirements on ASML (effective September 2023), and Japan expanded its controls to 23 categories of advanced fab equipment (effective July 2023). The trilateral alignment effectively closed the most significant loopholes in restricting China's access to the equipment needed for leading-edge chip production, since restrictions by any single ally could previously be circumvented through the others.
▲ 12 companies affected
U.S. Entity List: SMIC (Dec 2020)
The U.S. Department of Commerce added SMIC — China's largest foundry — to the Entity List on December 18, 2020, citing the risk that equipment and materials supplied to SMIC could be diverted to military end uses. The listing subjects exports of advanced semiconductor manufacturing tools destined for SMIC to a presumption-of-denial license review for items that could enable production at 10nm or below. Existing licenses for mature-node tooling were largely allowed to continue, keeping SMIC operational at 14nm/28nm nodes while freezing its path to sub-10nm leading-edge production.
▲ 9 companies affected
U.S. Entity List: YMTC (Dec 2022)
The U.S. Department of Commerce added YMTC — China's largest 3D NAND flash maker — to the Entity List on December 15, 2022. The action was motivated by concerns that YMTC had supplied NAND chips to Huawei in violation of U.S. restrictions, and by the broader goal of preventing YMTC from acquiring U.S.-origin equipment and technology needed to scale its 232-layer Xtacking NAND to volume production. Apple's plan to qualify YMTC chips as an iPhone supplier was halted following the listing.
▲ 6 companies affected
QWho supplies Lam Research?
Lam Research relies on 2 upstream suppliers across the AI chip supply chain.
Rare Earths (CN) (Dominant refined rare-earth supplier (Nd, Dy for precision equipment magnets)), High-Purity Quartz (US) (Unique ultra-pure quartz deposits for fused-silica optics and quartz process chambers).
QWhat does Lam Research make?
Leading supplier of etch and deposition equipment
Key products Dielectric etch and ALD systems