Lam Research Introduces Lam Cryo™ 3.0 Cryogenic Etch Technology to Accelerate Scaling of 3D NAND for the AI Era

Rhea-AI Summary

Lam Research Corp. (Nasdaq: LRCX) has introduced Lam Cryo™ 3.0, the third generation of its cryogenic dielectric etch technology for 3D NAND flash memory. This breakthrough technology is designed to meet the increasing demand for high-capacity, high-performance memory driven by the proliferation of generative AI. Lam Cryo 3.0 offers:

• Industry-leading precision and profile control
• Capability to etch memory channels up to 10 microns deep with less than 0.1% deviation
• 2.5 times faster etching compared to conventional processes
• 40% reduction in energy consumption and up to 90% reduction in emissions

The technology paves the way for 1000-layer 3D NAND, addressing key manufacturing challenges in the AI era.

Positive

• Introduction of Lam Cryo™ 3.0 technology extends LRCX's leadership in 3D NAND flash memory etching
• New technology enables production of 1000-layer 3D NAND to meet increasing AI data storage demands
• Lam Cryo 3.0 offers 2.5 times faster etching compared to conventional dielectric processes
• Technology provides 40% reduction in energy consumption and up to 90% reduction in emissions
• Nearly 1,000 out of 7,500 Lam HAR dielectric etch chambers already use cryogenic etch technology

Negative

• None.

Insights

Semiconductor Industry Analyst

Lam Research's introduction of Lam Cryo™ 3.0 represents a significant leap in 3D NAND manufacturing technology, addressing critical challenges in the era of AI-driven data storage demands. This advancement is particularly noteworthy for several reasons:

• Technological Breakthrough: The ability to etch memory channels up to 10 microns deep with less than 0.1% deviation is unprecedented. This level of precision is important for the development of 1000-layer 3D NAND, which is expected to be the next frontier in flash memory.
• Market Positioning: With 5 million wafers already manufactured using Lam's cryogenic etch technology, the company is solidifying its leadership in the semiconductor equipment market. This new offering could potentially increase Lam's market share and revenue in the highly competitive semiconductor equipment industry.
• Economic Implications: The 250% faster etching rate compared to conventional processes, coupled with improved wafer-to-wafer repeatability, suggests significant potential for cost reduction and yield improvement for NAND manufacturers. This could lead to more affordable and higher capacity storage solutions in the long term.
• Sustainability Factor: The 40% reduction in energy consumption and up to 90% reduction in emissions compared to conventional etch processes aligns with the growing emphasis on sustainable manufacturing practices in the semiconductor industry.

For investors, this development signals Lam Research's strong innovation pipeline and its ability to address future market needs. The company's focus on enabling 1000-layer 3D NAND production positions it well to capitalize on the growing demand for high-capacity storage driven by AI applications. However, the actual impact on Lam's financials will depend on the adoption rate of this technology by major memory manufacturers and the overall growth trajectory of the 3D NAND market.

AI and Data Storage Expert

The introduction of Lam Cryo™ 3.0 is a pivotal development in the context of AI's growing influence on data storage requirements. Here's why this matters:

• AI-Driven Demand: The exponential growth in AI applications, particularly generative AI, is creating unprecedented demand for high-capacity, high-performance memory. Lam's technology directly addresses this need by enabling the path to 1000-layer 3D NAND.
• Performance Implications: The ability to create high aspect ratio features with angstrom-level precision is important for maintaining and improving NAND performance as layer counts increase. This could lead to faster, more reliable storage solutions capable of handling the massive datasets required for AI training and inference.
• Scalability: By overcoming key manufacturing hurdles, Lam Cryo 3.0 paves the way for continued scaling of 3D NAND. This is essential to meet the projected storage demands of AI applications, which are expected to grow exponentially in the coming years.
• Edge Computing Impact: The mention of performance improvements "both at the cloud and the edge" suggests that this technology could also enable more powerful edge computing devices, potentially expanding the reach and capabilities of AI applications.

From an investor's perspective, this development underscores the symbiotic relationship between AI advancements and semiconductor technology. Companies that can successfully navigate this intersection, like Lam Research, are likely to see sustained demand for their products and services. However, it's important to note that the semiconductor industry is cyclical and highly competitive, so the long-term success of this technology will depend on its adoption by major memory manufacturers and the overall growth of the AI market.

Manufacturing Process Engineer

Lam Cryo™ 3.0 represents a significant advancement in semiconductor manufacturing processes, particularly for 3D NAND production. Here are the key technical implications:

• Process Innovation: The use of ultra-cold temperatures, high power confined plasma reactor technology and novel surface chemistry allows for unprecedented control over the etching process. This level of control is important as 3D NAND structures become increasingly complex.
• Precision and Uniformity: Achieving less than 0.1% deviation in critical dimensions from top to bottom of a 10-micron deep channel is a remarkable feat. This uniformity is essential for ensuring consistent electrical properties across all layers of the 3D NAND structure.
• Productivity Gains: The 250% increase in etching speed compared to conventional processes, combined with improved wafer-to-wafer repeatability, could significantly enhance throughput and yield in 3D NAND production.
• Flexibility: The compatibility with Lam's existing Flex® HAR dielectric etchers provides manufacturers with the flexibility to upgrade their existing equipment, potentially reducing the capital expenditure required to adopt this new technology.

For investors, these technical advancements translate to potential market advantages for Lam Research. The company's ability to offer solutions that address critical manufacturing challenges positions it well in the competitive semiconductor equipment market. However, it's important to consider that the adoption of new manufacturing technologies in the semiconductor industry can be a gradual process and the full impact of this innovation may take time to materialize in Lam's financial results.

FREMONT, Calif., July 31, 2024 /PRNewswire/ -- Lam Research Corp. (Nasdaq: LRCX) today extended its leadership in 3D NAND flash memory etching with the introduction of Lam Cryo™ 3.0, the third generation of the company's production-proven cryogenic dielectric etch technology. As the proliferation of generative artificial intelligence (AI) continues to propel the demand for memory with higher capacity and performance, Lam Cryo 3.0 provides etch capabilities critical for the manufacturing of future leading-edge 3D NAND. Leveraging ultra cold temperatures, high power confined plasma reactor technology, and innovations in surface chemistry, Lam Cryo 3.0 etches with industry-leading precision and profile control.

Lam Cryo 3.0 cryogenic etch breakthrough paves the way for 1000-layer 3D NAND to meet AI rising data storage demands

"Lam Cryo 3.0 paves the way for customers on the path to 1,000-layer 3D NAND," said Sesha Varadarajan, senior vice president of Global Products Group at Lam Research. "With five million wafers already manufactured using Lam cryogenic etch, our newest technology is a breakthrough in 3D NAND production. It creates high aspect ratio (HAR) features with angstrom-level precision, while delivering lower environmental impact and more than double the etch rate of conventional dielectric processes. Lam Cryo 3.0 is the etch technology our customers need to overcome the AI era's key NAND manufacturing hurdles."

To date, 3D NAND has primarily advanced through the stacking of vertical layers of memory cells, which are enabled by etching deep and narrow HAR memory channels. Slight, atomic-scale deviations from the target profile of these features can negatively affect electrical properties of the die and potentially impact yield. Lam Cryo 3.0 is optimized to address these and other etch challenges to scaling.

"AI is driving exponential demand in capacity and on the performance of flash memory both at the cloud and the edge. This is compelling chipmakers to scale NAND flash in the race to achieve 1000-layer 3D NAND by the end of 2030," said Neil Shah, co-founder and vice president of research at Counterpoint Research. "Lam Cryo 3.0 cryogenic etch technology is a significant leap beyond conventional techniques. It etches memory channels that are more than 50 times deeper than their width with near perfect precision and control, achieving a profile deviation of less than 0.1%. This breakthrough significantly enhances advanced 3D NAND yields and overall performance to enable chipmakers to compete well in the AI era."

The Industry's Most Advanced Cryogenic Etch Technology
Lam Cryo 3.0 utilizes the company's unique, high powered confined plasma reactors, process improvements and temperatures well below -0^oC, which permit the harnessing of new, novel etch chemistries. When combined with the scalable, pulsed plasma technology of Lam's latest Vantex® dielectric system, etch depth and profile control is significantly increased. Using Lam Cryo 3.0 technology, 3D NAND manufacturers can etch memory channels with depths of up to 10 microns with less than 0.1% deviation* in the feature's critical dimension from the top to the bottom.

Other highlights include:

• Outstanding Productivity: Compared to conventional dielectric processes, Lam Cryo 3.0 etches two-and-a-half times faster, with better wafer-to-wafer repeatability, helping 3D NAND manufacturers to achieve high yield at lower cost.
  
  
• Higher Sustainability: Lam Cryo offers 40% reduction in energy consumption per wafer, and up to a 90% reduction in emissions compared to conventional etch processes.**
  
  
• Maximize Equipment Investment: For the optimal profile control and the fastest and deepest dielectric etch, Lam Cryo 3.0 can be integrated into Lam's newest Vantex system. It is also compatible with the company's portfolio of Flex® HAR dielectric etchers, used by all major memory manufacturers for 3D NAND mass production.

Leading 3D NAND Dielectric Etching

Lam Cryo 3.0 further extends to the company's two-decade-leadership in wafer fabrication etch technologies, which includes seven generations of 3D NAND. Lam introduced the world's first cryogenic etch offering into volume production in 2019. Of the over 7,500 Lam HAR dielectric etch chambers utilized in NAND production today, nearly 1,000 of them use cryogenic etch technology.

Lam Cryo 3.0 is now available to leading memory manufacturers. It is the latest addition to Lam's broad portfolio of etch, deposition and clean solutions for 3D NAND manufacturing. To learn more about Lam Cryo 3.0, visit https://www.lamresearch.com/products/our-solutions/cryogenic-etching/ .

Media Resources:

• Lam Newsroom Media Center: Contains Lam Cryo 3.0 images and press materials
  
  
• Counterpoint Research, white paper, "How to Scale to 1,000-Layer 3D NAND in the AI Era," July 2024
  
  
• Lam Blog, "Lam Cryo 3.0: What You Need to Know"

About Lam Research

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com.

* Profile deviation calculated by maximum critical dimension minus minimum critical dimension divided by memory channel depth.
** Source: Lam Research. Based on new etch chemistries possible with Lam Cryo 3.0. 90% reduction in Kg CO₂ per wafer. Estimated emissions reduction calculated using IPPC (Intergovernmental Panel on Climate Change) guidelines for greenhouse gas inventories. The estimated reduction has not been independently verified.

Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: market, industry and industry segment expectations; product performance and benefits to customers from the use of our technologies and products; and emissions and energy savings to be realized through the use of our technologies and products. Some factors that may affect these forward-looking statements include: trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 25, 2023 and our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release

Company Contacts:
Laura Bakken
Media Relations
(510) 572-9021
publicrelations@lamresearch.com

Ram Ganesh
Investor Relations
(510) 572-1615
investor.relations@lamresearch.com

Source: Lam Research Corporation, (Nasdaq: LRCX)

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SOURCE Lam Research Corporation

FAQ

What is Lam Cryo™ 3.0 and how does it impact LRCX's position in the market?

Lam Cryo™ 3.0 is Lam Research's third-generation cryogenic dielectric etch technology for 3D NAND flash memory. It strengthens LRCX's leadership position in the market by enabling the production of 1000-layer 3D NAND, which is important for meeting the increasing data storage demands driven by AI.

How does Lam Cryo 3.0 improve 3D NAND manufacturing for LRCX customers?

Lam Cryo 3.0 improves 3D NAND manufacturing by offering industry-leading precision and profile control, etching memory channels up to 10 microns deep with less than 0.1% deviation. It also provides 2.5 times faster etching compared to conventional processes, enhancing productivity and yield for LRCX customers.

What are the environmental benefits of Lam Cryo 3.0 for LRCX and its customers?

Lam Cryo 3.0 offers significant environmental benefits, including a 40% reduction in energy consumption per wafer and up to a 90% reduction in emissions compared to conventional etch processes. This helps LRCX and its customers improve their sustainability efforts in semiconductor manufacturing.

How many Lam Research etch chambers currently use cryogenic etch technology?

Out of over 7,500 Lam HAR dielectric etch chambers utilized in NAND production, nearly 1,000 of them currently use cryogenic etch technology. This demonstrates the growing adoption of Lam Research's cryogenic etch solutions in the industry.