Four Key Takeaways from Lam’s 2018 Investor Meeting

March 13, 2018
Kerry Farrell |

Members of the financial analyst community gathered in New York on March 6 for Lam’s 2018 Investor Meeting. Martin Anstice, Lam’s chief executive officer, spoke about value creation and capture, wafer fab equipment (WFE) growth, and Lam’s vision and strategy. Tim Archer, president and chief operating officer, detailed Lam’s execution plan for outperformance, including Lam’s growth and differentiation strategy. Doug Bettinger, executive vice president and chief financial officer, reviewed Lam’s plan for financial performance and capital allocation. Following are some highlights from the meeting.

1. There is a rising importance of the data economy.

Martin opened the morning by talking about how data fuels the engine of the global economy, and the data center is a fundamental accelerator. Martin asserted, “We are literally just scratching the surface of what is possible in the world of data.”

Expanding on these thoughts, Martin emphasized how the data economy is no longer just about collecting, storing, analyzing, and synthesizing. In fact, the data economy that we live in today is a world of intelligence which means it’s a world where the value proposition is improved insights and enhanced quality of action. For that reason, Martin said, “We believe that the fundamental future of Lam Research is inextricably linked to the rising importance of a data economy.”

2. We are at an extraordinary moment in the history of our industry.

Martin shared his excitement for the current industry shift that is allowing technology to truly transform the world. “The reality of our world today is that several forces have come together at one time to create this platform for applications and service and value and business model innovation that is pervasive in the global economy.”

Martin underscored, “This is an extraordinary moment in the history of our industry,” highlighting the significance of four key points.

  • Connect: We live in a world of ubiquitous connectivity. There are more than five billion connected people in the world today, with a portfolio of devices to connect them.
  • Cloud: In the last five years, the world has delivered an economic and performance platform called the cloud. The cloud creates a massive scale for storage and computation.
  • Compute: The world today is facilitated by our ability as a semiconductor ecosystem to pack tens of billions of transistors onto a single piece of silicon and to put tens of terabytes of storage capability onto a single solid-state drive.
  • Cost: The delivery of underlying technical competency and the delivery of economics have the potential to literally transform all aspects of the economy of our world.



3. There is an explosion of data.

Martin articulated how various devices in the world today are becoming sources of data and processes in their own right. “A cell phone is no longer just a cell phone. Soon, a car will no longer be just a car. The evidence of this transition is everywhere. There is literally an explosion of data. Not surprisingly, as stakeholders, we must together take custody not just of the technology challenges, but of the ethical and social transitions in this revolution,” Martin told the audience.

Martin explained how some of the pieces of the system are already in place, such as the cloud’s capability and the cell phone as the primary vehicle of personalized connectivity. He added there are still many other elements of this are yet to come.

This is only just the beginning. “This change is explosive, and the role of silicon is very fundamental,” Martin affirmed.


4. Lam is executing for outperformance.

During his portion of the presentation, Tim Archer spoke about the foundation of how Lam differentiates in the markets, with a focus on technology leadership, productivity, speed to solutions, and collaboration. He spent time discussing Lam’s focus on technology innovation and new products, which springs from a company culture that rewards innovation and continuous improvement.

Tim also talked about how Lam has been successful at acquiring and integrating new companies into the product portfolio. This comes from a culture that values mutual trust and respect, that fosters teamwork and collaboration, not only within Lam but also, again, with customers in the ecosystem. “We have a culture that teaches every employee to think customer, company, individual, which differentiates us because it sets us all to one mind that our success is only achieved through the success of our customers,” Tim stated.


Doug delivered the final presentation. In his summary, which included highlights of the company’s extraordinary year, he shared, “We are really pleased with the performance of the company and I truly believe this is a great industry.”

To see the full presentation and access the event webcast, please visit our Investors website.


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