2020 R E P O RT

Environmental,
Social, andGovernanceBusiness and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

A LETTER FROM OUR CEO

Building the roadmap
to the future.
When we started 2020, no one predicted that

It was the year we watched the world unite withAt Lam, our employees are known for theirMore than ever, we have demonstrated thatentire sectors of the global economy would comeacts of compassion through homemade masks

dedication to caring for one another and ourwhen the bar is raised, Lam delivers. And in thatto a sudden halt. That international travel would

for healthcare workers, donations to food banks,

customers, and 2020 confirmed yet again thatspirit, our goal is to operate 100% on renewablebecome nearly impossible. That our workplaces

and supplies to front line workers with meals

their resiliency does not waiver during a crisis.

energy by 2030 and become carbon net zerowould be transformed into a hybrid of sociallyand personal protective equipment (PPE). And

distanced on-site activities and a remoteamidst all of this, we also stood in solidarity

work reality.

against social injustice.

We witnessed amazing changes to our

The global pandemic illuminated how we could

most challenging of circumstances. We launched

While the challenges of our time are daunting,environment, from the remarkable boost in airtransform our planet and intensify the best in

new products, introduced industry-disrupting

Lam has spent 40 years diligently solving thequality in Los Angeles, to having a clear view

humanity when we all work towards a common

solutions, achieved financial milestones,

unsolvable, proving it can be done. That is whereof the Himalayas in India previously hidden by

goal. We caught a glimpse of how a better world

expanded our workforce, and answered the callyou will find Lam, working to build a better world,

pollution for the past 30 years.

is possible.

from our communities in need.

and I could not be prouder.

Because of the incredible efforts of Lam’s
workforce, we maintained our operations, andthose of our customers consistently through theby 2050. Developing our critical path to achievethese important milestones by year end is a toppriority for us.

Tim Archer
PRESIDENT & CHIEF EXECUTIVE OFFICER

L A M R ES E A RC H

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Appendix

BUSINESS AND GOVERNANCE

01

We display resiliencethrough the unknown
As a global leader in wafer fabrication equipment
manufacturing and services for the semiconductor
industry, we drive semiconductor breakthroughsthat define the next generation.

L A M R ES E A RC H

2
5

Business and GovernanceThis year, the COVID-19 pandemic
created global disruptions across all
aspects of everyday life. Like the restof the world, we faced ever-changing
circumstances and challenges. And wemet them with resiliency, innovation,compassion, and an unwaveringcommitment to our environmental,social, and governance (ESG) priorities.
We launched new products and industrydisrupting solutions, expanded andsafeguarded our workforce, and delivered
aid to our communities in need. From
our management team and Board of
Directors (Board) to our employees, ourCore Values guided us all in the face of
unexpected adversity.

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Appendix

Reaching the Sustainable Development Goals
The United Nations’ Sustainable Development Goals (SDGs) provide a blueprint for a more sustainable future
for all. We recognize the responsibility that we, other businesses, governments, and non-profit organizations
have in turning this blueprint into reality. As part of our commitment to sustainable, inclusive, and global
progress, we are focused on the five SDGs that are most relevant to our business activities. These SDGs,
which help to guide our short-term and long-term ESG strategies and plans, are:Accomplishments
Set goals across five ESG
strategic pillars
Developed two new ethics policies
and strengthened global suppliercode of conduct
Expanded and strengthened our
information security program

Our values
Our culture is built on our Core Values. These values guide our decisions in every aspect of our business –determining what we do and how we do it.

Achievement

Agility

Mutual trust
and respect

L A M R ES E A RC H

Sustainable Operations

Honestyand integrity

Opencommunication

Ownership andaccountability

Inclusionand diversity

Innovation andcontinuous improvement

Teamwork

3

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Appendix

2020 awards and recognition

L A M R ES E A RC H•

Forbes’ World’s Best Employers•

Barron’s Most Sustainable Companies•

Human Rights Campaign Corporate Equality Index•

Fortune’s World’s Most Admired•

Newsweek’s America’s Most Responsible Companies•

Wall Street Journal’s Management Top 250•

Investor Business Daily’s Best ESG Companies•

MSCI World ESG Leaders Index•

STOXX Global ESG Leaders Index•

American Heart Association’s Workplace Health Achievement –Silver Recognition•

San Francisco Business Times’ Top Bay Area Corporate
Philanthropists•

South Korean Ministry of Gender Equality and Family
Family-Friendly Company•

South Korean Ministry of Employment and Labor’s Excellenceand Innovation in the Workplace4

Business and Governance

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Appendix

ESG at Lam
We have a responsibility to contribute to a better world. And when we think beyond our ourselves, we getbetter results, advance our industry, and empower progress. To that end, we strive to incorporate ESG into
everything we do – from our operations and workplace practices, to how we source our materials and design
our products. Our ESG strategy is composed of six key pillars derived from our materiality assessment. This
framework focuses our attention on our most important topics and pressing challenges in the world while
helping us deliver value to our stakeholders.
Our management approach emphasizes financial performance while integrating ESG principles into day-today operations. From goal setting and regular progress assessments on material ESG topics, to investments
in environmental and social responsibility programs across our business, we actively involve our leadershipin the efforts we put forward. Doing so ensures that we adopt ESG best practices, like robust stakeholder
engagement, regular materiality assessment, and transparency.

Material topics
To ensure the salience of our ESG strategy, we conduct a materiality assessment every three to five years, orwhen notable shifts happen in our business. The purpose of this assessment is to identify those topics thatreflect the environmental, social, and economic impacts of our business that we regard as most significant.
In this report, we refer to these as “material” topics. Our most recent assessment identified 13 material topics
across six strategic pillars.
This framework provides the basis for all our ESG strategies and the structure for this report. Each category
has its own chapter where we identify the relevant SDG goals and the progress we’ve made.

Business andGovernance

Products andCustomers

Our Workplace

Responsible
Supply Chain

Sustainable
Operations

Our Communities

Integrate ESG into ourbusiness operations; foster
ownership and accountability;
set strategy and goals

Innovate with ESG in mind;
be a partner of choice forsupporting our customers’
ESG goals; design forenvironment principles

Build an inclusive, diverse,
and engaging workplace
while achieving top
performance in healthand safety

Ensure an ethical andresponsible businessecosystem focused on humanrights and environment

Minimize our environmental
impact through investments
in energy, water, waste, andgreenhouse gas emissions
reductions

Be a responsible corporate
citizen with programs
focusing on education,societal needs, and employee
engagement

Regulatory complianceand emerging regulations
Product safety
Product complianceNew product pipeline

Employee wellness andprofessional growth
Health and safety
Inclusion and diversity

Supplier screening andmanaging negative impacts
within the supply chain

Energy efficiency
Waste and recycling
Greenhouse gas emissions

Community engagement
and charitable giving

Material topics
Leadership participationin ESG

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Appendix

Stakeholder engagement
We approach engagement with our key stakeholders in a spirit of collaboration and trust and value theperspectives and insight they provide. We regularly engage through formal and informal channels and seek
feedback on ESG issues to advise our ESG strategy and goals.

Community

Customers

Employees

Lam actively partners with non-profit
organizations and community leaders
to create positive impact in places
where we operate.

Lam collaborates with customers
to identify their emerging
business needs. These needs
guide Lam’s product and service
delivery objectives, researchand development efforts, andmanufacturing plans.

Lam solicits employee feedback
through in-person and online
employee forums, engagement
sessions, all-employee meetings,
pulse surveys, conversations withmanagers, and our HR Support and
Employee Relations programs.

L A M R ES E A RC H

Industry
Organizations
Lam is a member of multiple industry
organizations, where we often
collaborate with our peers on topics
of mutual importance. We are active
participants in several groups that
discuss and develop best practices
to support the sustainable growth of
our industry.

Policymakers

Stockholders

Suppliers

Lam periodically interacts with
policy makers and community leaders
to discuss emerging trends
in legislative, regulatory, andcommunity matters.

Lam proactively seeks opportunities
to engage with stockholders
individually to understandtheir views on ESG topics. We
meet with investors to gather
input and exchange ideas via
investor conferences, meetings,
correspondence, and voting
on proposals presented at ourstockholder meetings.

Lam collaborates with suppliers
to meet customer needs andcreate an ethical supply chain bydeveloping social and environmental
requirements and processes.

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Appendix

Lam’s ESG governance structure

ESG leadership
The highest levels of our leadership are involved inour governance approach. While our Board is actively
engaged in ESG oversight, the Nominating and

Lam Research Board of Directors

Governance Committee has the primary responsibility
for our ESG priorities. For workforce-related issues, theCompensation and Human Resources Committee holds
responsibility. The Audit Committee is responsible foroversight on ethics and compliance and information
the Board and these committees and engages themto discuss ESG strategy, gain alignment on goals, andNominatingand GovernanceCommittee

Oversight

security. Management provides regular updates toCompensation and
Human Resources
Committee

Audit Committee

report on progress.

ESG Executive Steering Committee

Management

ESG Leadership Team
Implementation

We formed a new Executive Steering Committee in 2020 to guideour ESG strategy, approve and support initiatives, and help keep us
accountable. The CEO and members of the CEO staff participate
on this committee which oversees the work driven by our crossfunctional ESG Leadership Team. This includes proposing goals,
developing and executing strategy, and embedding ESG into ouroperations management system. In addition, we have topic-specificworking groups to tackle key issues. We’re proud of the progress
we’ve made thus far and are committed to further strengthening andaccelerating our ESG program and initiatives.

L A M R ES E A RC H

Topic-specific Working Groups7

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Appendix

ESG goals
Accountability drives progress. That’s why we

Responsible Supply Chaindeveloped 17 goals across 5 of our 6 pillars. We aim

5. Achieve more than 90% compliance rate with oursocial and environmental expectations across our
top tier suppliers

to achieve the majority of these goals by 2025, withsome exceptions.

6. Engage with at least 50% of our top tier suppliers on
environmental sustainability opportunities
7.

Governance1.

Continue to expand our disclosure andalignment with industry-recognizedframeworks and standards

Increase engagement with all suppliers on social andenvironmental topics through assessment, training,and capacity building

Sustainable Operations
8. Achieve 100% renewable energy globally by 2030
9. Reduce absolute scope 1 and 2 greenhouse gas(GHG) emissions 25% from a 2019 baseline
10. Achieve net zero carbon emissions by 2050
11. Achieve 12 million kWh in total energy savings
from a 2019 baseline

Workplace

12. Achieve zero waste to landfill for hazardous waste

2. Build on our high-performance culture with
best-in-class employee engagement at the
top 10% global benchmark as measured byour employee survey

13. Achieve 17 million gallons of water savings (15%)
in water-stressed regions from a 2019 baseline

Community

3. Increase number of women and underrepresented
employees across the company

14. Determine key targets for larger scale
impact aligned to a new strategic focus

4. Maintain a total recordable incident rate (TRIR)
below 0.4

15. Implement measurement of outcomes for
key program and large-scale grants
16. Increase community program uniqueemployee participation rate from
10% to 30%
17. Increase volunteer hours by 33%

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Appendix

ESG progress
As we gain greater knowledge of our impact, so should the world. We’re committed to increasingtransparency on ESG-related risks and performance over time and reporting on new information eachyear. We are increasing our alignment with the frameworks provided by the Task Force on Climaterelated Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and
the Global Reporting Index (GRI), which we’ve utilized to shape both our 2025 goal setting and risk
assessment. A full inventory of our disclosures is available in the appendix.

Task Force on Climate-related Financial Disclosures
In 2020, we engaged with a consulting firm to conduct an analysis of our TCFD practices. Results
indicated strong alignment with the framework in our metrics, targets, and governance, and highlighted
potential opportunities for improvement. In 2021, we intend to conduct a scenario analysis tofurther evaluate top risks and opportunities and integrate the relevant items into our enterprise risk
management system.

TCFD Category

Aligned Practices at Lam

Metrics and Targets

2025 GHG reduction goal aligned with Science Based Targets
Initiative (SBTi) methodology
Scope 3 emissions inventory to understand impacts in thevalue chain

Risk Management

Multiple leading enterprise risk management practices
Strong governance to manage and escalate risk to appropriate
levelsStrategy

Leadership involvement and oversight on ESG strategy

Governance

Board-level ESG oversight
Regular ESG reports to the Board and the Nominating andGovernance Committee

ReportingConsistent climate-related metrics reported to CDP and inannual ESG Report

L A M R ES E A RC H

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Appendix

Pandemic response
We took a holistic approach in response to the pandemic,
safeguarding our employees and caring for ourcommunities while ensuring continuity for our customers.
•

Created a $25 million COVID-19 Relief and Recovery
Fund to support employees and communities•

Implemented strict procedures consistent with publichealth guidelines and best practices for the healthand safety of on-site workers•

Enabled staff to remain productive whileworking remotely•

Regularly and consistently communicated with
employees to ensure ongoing engagement andsense of community•

Transitioned training and development programs
to enable remote learning•

Worked closely with customers to understand theirneeds, provide best-in-class service and support,
and share and execute best practices for healthand safety protocols•

Enhanced employee benefits to support telehealthservices, remote work, and physical and mental
well-being•

Implemented global continuity plans to ensure wemet customer demand

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Appendix

Fiscal performance
Revenue by
Region FY 2020

Despite the disruption of COVID-19, we delivered a solid financial performance in FY 2020. We
generated over $10 billion in revenue, representing a five-year compound annual growth rate ofnearly 14% and net income per diluted share of $15.10. This was nearly a 10% increase over fiscal
year 2019. Lam’s performance in 2020 demonstrates the resiliency of our business, driven by

EUROPE

best-in-class products and services, high quality operational execution, and exceptional talent

3%

throughout our employee base. These financials are presented in conformity with U.S. Generally
Accepted Accounting Principles. For more information about our financial performance, please

SOUTHEAST ASIA

6%visit our investor page.
FY 2018

FY 2019

FY 2020% Change

UNITED STATESFY 20/FY 19

8%(in thousands except per share data and percentages)

Revenue$11,076,998$9,653,559$10,044,736

4.1%

Gross margin$5,165,032$4,358,459$4,608,693

5.7%

46.6%

45.1%

45.9%

1.8%

Total operating
expenses$1,951,733$1,893,727$1,934,891

2.2%

Research anddevelopment (R&D)$1,189,514$1,191,320$1,252,412

5.1%

R&D as a percent ofoperating expenses

60.9%

62.9%

64.7%

2.9%

$2,380,681$2,191,430$2,251,753

2.8%$13.17$13.70$15.1010.2%

Gross margin asa percent of total
revenue

Net Income
Net income per
diluted share

L A M R ES E A RC H

CHINA

31%

JAPAN

9%

TAIWAN

19%
KOREA

24%

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Appendix

Key locations
Corporate headquarters Fremont, CA
Manufacturing sites

Tualatin, OR
Eaton, OH
Springfield, OH

Fremont, CA

Villach, Austria

Gyeonggi-do, Korea

Livermore, CA
Taoyuan City, Taiwan1

Global employee distribution
Japan

3.7%

China

5.8%

Taiwan6.6%

Europe7.1%

South Korea

8.5%

Southeast Asia and India

10.2%

United States

58.1%

Bayan Lepas, Malaysia

Global employee population 12,228

1. Joint venture company

L A M R ES E A RC H

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Business and Governance

Products and Customers

Ethics andCompliance at Lam

In alignment with our Core Values, and in accordance with applicable laws andregulations in locations where we operate, we are proud to conduct business withthe highest integrity. Our ethics and compliance policies apply to all employees,
temporary workers, contractors, and consultants around the world.
Our Ethics and Compliance team conducts its activities subject to Board
oversight. The program is managed by our chief compliance officer who reports
to the chief legal officer with dotted line reporting to the Audit Committee Chairof the Board. Our program encompasses five major areas: risk management,
policies and procedures, communications, training, and the Ethics Helpline.

Our Workplace

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Appendix“At Lam, we arebuilding a world-class
Ethics and Complianceprogram rooted in ourCore Values. Honesty
and Integrity, andOwnership andAccountability are
the foundation of our
Global Standards ofBusiness Conduct andhow we do business.”

Details on these topics can be found in the Global Reporting Index (GRI) index.

Ava Hahn

Chief Legal Officer
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Ethics and Compliance risk management

Policies and procedures

We consistently assess internal and external risks — refining our programs and adjusting ourannual plan as needed to further support responsible governance and ethics within our business.
And because our global presence includes regions with differing governmental structures, wideranging regulatory environments, and bribery and corruption challenges, enhancing our risk
management program is a high priority.

Global standards of business conduct

In 2020, we strengthened our Global Supplier Code of Conduct to expand existing coverageof human rights, conflicts of interest, labor laws, health and safety, environment, and reporting
concerns. In addition, we enhanced our Third-Party Compliance Questionnaire to further address
and mitigate third-party risk to the company. We take a risk-based approach to third-party due
diligence and conduct due diligence exercises on higher risk suppliers and customers. We expect
all of our third parties to operate in a legal, ethical, and compliant manner and to abide by all
applicable laws, rules, and regulations including those related to anti-bribery and corruption.

L A M R ES E A RC H

Our Workplace

Our success has stemmed from a variety offactors, but the top two are customer trust andour employees’ dedication to a values-driven
culture. To reinforce this culture and to help our
employees navigate a variety of circumstances,
we created our Global Standards of BusinessConduct (GSBC) policy. This is a written
standard of appropriate business conduct,
addressing various issues including:protecting confidential information, giving
and receiving gifts or entertainment, avoiding
bribery and corruption, engaging in accurate
accounting practices, appropriately retaining
records, properly using mobile devices andother company assets, avoiding conflictsof interest, promoting fair competition,
working outside of Lam, prohibiting insider
trading, and acceptable practices for public
communications, donations, and politicalactivities. It also addresses workplace conduct
issues such as harassment, discrimination, andimproper relationships.

Our Communities

Appendix

Effective compliance policies ensure
systematic, consistent methods and protocols
across our global business units and play afundamental role in driving compliance andbest practices. To this end, we have additional
policies and procedures to provide further
guidance on specific ethics and complianceareas, including:•Insider Trading•

Conflicts of Interest•

Conflicts of Interest Createdby Relationships•

Anti-Harassment

As the world around us evolves, so does our
Ethics and Compliance program. For example,
we published a Global Gifts, Meals, Traveland Entertainment Policy and Procedure in2020 and will release an Anti-Bribery andCorruption Policy in early 2021. This robust
practice demonstrates our zero-tolerance
stance towards bribery and corruption andour commitment to comply with global anticorruption laws and regulations.

14Business and Governance

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AppendixBusiness Resilience
Training
To ensure widespread understanding of the topics covered by the
GSBC, we require that all our employees take an annual online
training course that reinforces their understanding of selected
topics covered by the GSBC. We accomplished a 98% completion
rate for this training in 2020. Our risk-based approach determines
the topics that will be covered each year. In 2020, Ethics &Compliance developed and delivered additional focused training
sessions for leadership teams and higher-risk employees.

Government Affairs
We support our business strategy through regular, constructive
engagement with government officials and policymakers andthrough participation in the political process. Leading these
efforts is our Global Government Affairs (GGA) group, formalized
and strengthened by the addition of our vice president of Global
Government Affairs in 2020. Our lobbying and political activities
are governed by our Global Standards of Business Conduct andPolitical Activity and Government Affairs Procedures. We work
to engage the policy process in the areas of taxes, trade, export
control policy, research and development, business operations,and other areas key to our business strategy. We remain activein various business and trade associations that align with ourcompany imperatives, such as the National Association of
Manufacturers, SEMI, and the Semiconductor Industry
Association.

L A M R ES E A RC H

We continually plan for the unexpected, preparing ways to mitigate the impact of any
unexpected business interruption on our customers, employees, and suppliers. Rather
than let the challenges posed by 2020 hold us back, we are leveraging the knowledge
gained and applying it throughout our entire business, creating a strategic roadmap forincreased business resilience. Our Business Resilience Team works with leaders acrossthe enterprise to develop and implement best practices in risk assessment, policies,
infrastructure, and protocols. Business continuity plans are in place to minimize disruption
for our customers, keep our employees safe, and meet future challenges.

Employee safety
and well-being

Minimum disruption
impact for customers

Protect Lam’s
reputation

Executive
Infrastructure

Incident
Management
Teams

Business
Continuity
Plans (BCP)

Business
Needs and
Risk
Assessments

Recovery/Response
Time Objectives

Business Impact
Analyses

Meet unplanned
demand spikes

InfoSec Protocols

Risk Register

Forward-looking BCP Inventory Sizing

Global Taxation
Our approach to global taxation for all types of taxes is to consistently comply withlegal, regulatory, and internal control requirements as well as support our businessand commercial strategy. We are committed to adhere to all applicable global tax
laws, filings, and reporting disclosures. We account for tax risks in accordance withthe applicable accounting standards and have internal controls in place over our tax
reporting processes. Our transfer pricing policies are aligned with the guidelines of
the Organisation of Economic Co-operation and Development (OECD), as well as withall of the jurisdictions in which we operate. We apply the arm’s length principle when
conducting intercompany transactions. We have an established network of internal andexternal tax and finance professionals who are knowledgeable in various direct andindirect taxes and who monitor ongoing tax law and business changes, so that we may
adapt processes and deliverables accordingly. This network, along with our framework
regarding internal policies and controls, seeks to ensure the complete and accurate
communication of tax positions and risks, through established governance and reporting
processes to our Management and Board of Directors.
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Appendix

Information Security
Information security plays a significant role in safeguarding
our valuable intellectual property (IP) along with the data of
our customers, employees, and suppliers. Retaining trust andcombating new emerging threats is critical, which is why ourcybersecurity strategy actively evolves in real time. For example,
as our remote workforce significantly expanded in 2020, wequickly adjusted our controls to support data protection.

We hold International Standards Organization(ISO) 27001 certifications for information
security for nine sites and have implemented
various global ISO 27001 compliant
information security policies and procedures,
demonstrating our management system andprograms align with global best practices.
In addition, we selectively screen and audit
suppliers for information security controls that
protect our information as well as that ofour suppliers.

We have multiple security measures in place for the criticalinformation systems that we operate and for those hosted bythird parties. Our global information security program is led byour chief information security officer (CISO), who reports on aregular basis to the Audit Committee and the full Board. In 2020,
we strengthened our information security program by creating a
new framework with three pillars:•

Security Engineering and Architecture focused on driving
enhanced security in product and application development•

Governance, Risk and Compliance, and Identity Access
Management focused on risk management, compliance,
and identity governance for internal/external users andaccess control•

Security Operations Center responsible for detecting,analyzing, and responding to potential cybersecurity threats“Our Information Security programis centered around protecting ourmost important information, thatof our customers.”

To ensure that our employees understand theirroles in preserving information security, we
conduct annual training courses on various
cybersecurity topics, including cybersecurity
awareness, phishing defense, and social
engineering defense. A random user population
is tested periodically to determine which users
are vulnerable to real attacks and reinforce
security awareness training. In 2020, we did notexperience any cyber incidents that resulted ina material adverse impact.

Jason Callahan,Chief Information Security Officer

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Appendix

PRODUCTS AND CUSTOMERS

02

We meet every demandwith ingenuity
We continue to challenge assumptions anddefy conventions as the pace of technologicaladvancement presses on. Our innovations drive
breakthroughs that help our customers achieve
what was once thought impossible.

L A M R ES E A RC H

17

Business and GovernanceIn 2020, the demand for semiconductors
rapidly increased as more people reliedon technology for remote work, learning,
entertainment, and medical services.
And when our customers looked to us
for help, we delivered — meeting ourcustomers’ requirements and launching
cutting-edge products and technologies,
all while keeping our employees safe andoperating sustainably. We continued topush further and work smarter, with asingular focus that business success is
inclusive of its impact on society and theplanet. For us, that means environmental
and social impacts inform our productdesign and R&D efforts. We take pridein our sustainable product featuresand services that extend the life of our
products, increasing value for customers
and lowering environmental impact.

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Appendix

Accomplishments
Launched three new products andtechnologies – Dry Resist, Sense.iTM,
and Striker FE®
Collaborated on innovation projects
with 61 universities in 17 countries
Launched a Remote Product Training
Center for customers

Our products
Deposition

Etch

Strip & Clean

Advanced Equipment& Process Control

Metal Films
Dielectric Films
Film Treatment

Dry Strip
Wet Clean

Conductor Etch
Dielectric Etch
Through-Silicon Via (TSV) Etch
Selective Etch

Mass Metrology
Integration Modeling Software

Customer Support
Service
SparesUpgradesReliant Systems™

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Appendix

Our customers
Our global customer base includes leading semiconductor
memory, logic, and specialty technology chipmakers. Together,
we prove that devices with greater performance can be achieved.
Making semiconductors requires highly sophisticated process
technologies to integrate an increasing array of new materials
with precise control. Our equipment delivers cost-effective,
high-productivity capabilities that enable customer success.

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Appendix

Our innovative new offerings
Dry Resist

Sense.i™

To address critical needs for next-generation
device scaling, we, in collaboration with ASML and
imec, introduced a groundbreaking dry photoresist
technology that offers significant improvement in
extreme ultraviolet (EUV) lithography resolution,
productivity, and yield. This technology uses 5 to 10
times less chemistry and 2 times less energy to create
the same result, delivering significant cost savings anda more sustainable solution for our customers.

As the semiconductor industry continues to drive
device performance and cost scaling, there is anever-growing need for innovation in device processcapability and extendibility. Our groundbreaking
Sense.iTM product family delivers the high-performanceetching technology required to support logic andmemory device roadmaps well into the coming decadeand beyond. New innovations in radio frequency (RF)power and controls technology not only improve
performance but also increase efficiency and enable
customers to reduce the RF power used by 10-20% foreach wafer etched. With new design and advanced
manufacturing approaches, we eliminated 15,000
pounds of aluminum raw material per Sense.i™ tool.
This reduces the resources consumed in the initial
production of the unnecessary aluminum plate andin the recycling stream of 1.5 million pounds per year.
In addition, the vertical design structure of the tool
results in less space per tool within a fab and overall,
the potential for a smaller factory footprint generating
significant value for our customers.

The Dry Resist project is a collaborative effort acrossthe deposition, etch, office of the chief technology
officer (OCTO), and field organizations. The team iscreating disruptive processes and exciting results,
often coordinating experiments across continents toenable next-generation devices.

On our success in creating
the groundbreaking
Dry Resist technology inthe midst of a pandemic:“We had to create an environment of mutual trustand open communication to overcome barriers tocollaboration. Effective communication, teamwork,and creativity were important given the scope ofthe challenges in bringing a paradigm shift to an
important step in semiconductor fabrication.”Rich Wise

Striker® FE
Striker® FE, a first-of-its-kind atomic layer deposition
technology, addresses the challenge of fillingincreasingly deep and narrow structures with highquality materials. This innovation is the result of theteam finding the right combination of chemistry,source technology, and process conditions.

Vice President, Dry Resist Technology Development

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Appendix

How we work
We innovate
As an essential business within the technology
industry, we enable the fourth industrial
revolution — Industry 4.0. Therefore, it is vitalthat we continuously innovate and connect
technologies – artificial intelligence, smart
manufacturing, big data, and others – to power
more productive, responsive, and connected
devices and solutions.
Consistently developing timely new products
and solutions, in addition to enhancing
existing ones, is what helps us achieve
our competitive edge. Each year, we makesignificant investments in our R&D programs,
and maintain close, strategic collaborations
with our customers. We also invest in a variety
of internal and external programs designed
to inspire new ideas and ways of working,foster technological advances, and provide
differentiated solutions to grand challenges
which include atomic scale precision, surface
integrity, affordability, sustainability, equipment
intelligence, and speed to solution.

L A M R ES E A RC H

We collaborate
Industry 4.0
Industry 4.0 (i4.0) refers to the collection oftechnologies that enable human-to-machine
and machine-to-machine communication —changing the face of manufacturing. In 2020,
we enhanced our i4.0 Steering Committee anddeveloped our vision, objectives, and guiding
principles for the successful implementationof i4.0. The committee is led by our CTO andincludes leaders across our business. The teamis focused on strategic initiatives involving
the connectivity of data, optimized workflows
across the entire supply chain, human-machineinterfaces, and intelligent systems that will
create more time for people to focus on
innovation.

Tech Vision is our approach to technology
innovation, providing a shared purpose acrossour global technical community around areasof strategic relevance, customer device
inflections, grand challenges, and criticalenabling technologies. It also serves as theframework for our innovation programs andevents that encourage our employees toconnect, learn, innovate, and be inspired.
Two key components contribute to thisapproach. Our Discover Together programs
offer a series of educational opportunities andevents to embolden our technical community
to share knowledge, collaborate, and spark
new ideas. Accelerate Innovation is a series ofinternal and open innovation programs thatleverage external partnerships — enabling
better solutions and faster cycles of learning.

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AppendixInnovation and technical seminars
Our technical seminar series acts as a regular opportunity for our engineeringcommunity to share work with peers. We create exciting catalysts for new ideas
by inviting distinguished faculty to present on their latest research and findings,
in addition to hosting innovation speakers on a quarterly basis. In 2020, we hosted
39 events and increased participation by 10% over 2019.

Innovation book series
We hold a regular, company-wide book series that aims to cultivate our employees’
creative and innovative minds. Collectively, our employees read 1,000 books including
2 children’s titles to share with their families, with group discussions held in India andNorth America. In 2020, we selected several books to support conversations about
inclusion and diversity, which we believe are key components of innovation.

Tech Scouting
Our Tech Scouting open innovation program identifies and co-develops technologies
with third parties to drive innovation and growth, and enable our product groups todeliver the highest quality, highest performance products to our customers.

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Appendix

University collaborations
Universities are incubators for the semiconductor industry and an important source of both
emerging technologies and future employees — that’s why we collaborate with universities
and research consortia around the globe. We engage with a wide variety of global institutions
to fill research gaps, gain access to specialized facilities, and collaborate with top experts. We
believe these engagements help increase our speed to solution for our customers and realize ourTech Vision. Our ongoing relationships with professors and students fuels our diverse technology
and talent pipelines.
Our University Committee, comprised of cross-functional team members across our business,
provides oversight and continuity across our collaborations. In addition, the Global University
Council engages regional leadership to foster our global engagement activities.
In addition to research collaborations, our university engagements include capstone projectsponsorships, scholarships, fellowships, and thesis awards, as well as scholarly competitions,
events, research consortia, and lab affiliations. In 2020, we continued our academic
collaborations through virtual implementation of projects and events with more than
61 universities in 17 countries.

“Working on an Unlock Ideas projectis helping me achieve speed tosolution, and it has reinvigorated
my passion for innovation.”
Karthik Srinivasan,

Senior Field Service Engineer,
Southeast Asia and 2020
Unlock Ideas awardee

Every year since 2014, we’ve held an annual University Collaboration Showcase. Held virtually in
2020, this event gives our global technical employees the opportunity to learn from our academic
research collaborations and be inspired towards their own work.

Unlock ideas
One of the ways we collaborate with professors and universities
around the world is through Unlock Ideas, a university gift
program that supports feasibility testing of innovative concepts.
Funded jointly by the Lam Research Foundation and the officeof the chief technology officer (OCTO), each winning proposal
earns a $25,000 USD donation for the corresponding academic
partner. In 2020, 25 awards were distributed for a broad range oftechnologies. As a result, funded research will be conducted at
19 universities in 7 different countries​.

L A M R ES E A RC H

Unlock Ideas

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Appendix

We continuously improve
University capstone projects
Though most of our academic collaborations focus on solving advanced technical challenges
that require deep subject matter expertise, university capstone projects differ. A team of students
solve a challenge across broader disciplines such as engineering, manufacturing, business, andinformation systems — which, in turn, allows us to more broadly leverage university partners
across the company. Projects give students the opportunity to apply academic learning to real-life
challenges while providing additional resources for us and our talent pipeline.

Pritha Hait, Product Manager, Conductor
Etch, Fremont, CA is a graduate of
the University of California, Berkeley,Department of Chemical and ​BiomolecularEngineering’s Product Development
Program. Pritha wants to build a relationshipbetween the program and Lam saying,“Capstone projects provide us with extra
bandwidth and allow us to bring technologicallearning from professors and the program toLam. We also appreciate the unbiased view
students provide.”

L A M R ES E A RC H

Maintaining a rapid pace of innovation in
our industry is key for delivering value to ourcustomers. We do this by listening closely andcollaborating with our customers to deliver the
product and service offerings that meet theirneeds, while also anticipating what is next ina swiftly evolving technological environment.
We continue to invest in R&D to extend the lifeand capability of our products and solutions,creating opportunities for materials andenergy savings.

Since 2015, we have achieved a cumulative
reduction in energy use of approximately 35%
in multiple deposition product lines and a 25%
reduction for our EOS® wet clean product lines.
Our deposition products have environmental
features offering up to 9% energy reduction
by adding Eco pump and scrubber modes,
optimizing exhaust flows, and adding more
efficient chiller options. And we are also proudthat our clean products have the highest
chemical reclaim efficiencies in the industry,
which reduces chemical consumption
and waste.

Product efficiency
We strive to deliver the most advanced
solutions while being mindful of theenvironment. We embrace our role in identifying
opportunities that enable our customers tocurb energy use, GHG emissions and chemical
consumption within their operations. Our
approach to power usage reduction is twofold:productivity improvements (reducing theamount of energy consumed in making eachwafer) and pure energy savings (building ourequipment with more energy-efficient heaters,
radio frequency power sources, and othercomponents).

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Appendix

Customer Support Business Group (CSBG)
Our CSBG organization provides products and services that maximize installed equipment performance, improvepredictability, and drive operational efficiency. By the end of 2020, we had an installed base of approximately 66,000
chambers with a dedicated service team to maintain those tools for maximum productivity. We offer a broad rangeof services and products through our CSBG business that deliver value throughout the life cycle of our equipment,
including customer service, spares, upgrades, and refurbishment, of our products. Our Advanced Services go beyond
the traditional break/fix type of equipment support services by combining tool data, software, and expertise to help
optimize tools beyond the process results they deliver. These support services are designed for our customers toachieve greater value from their capital investment and maximum productivity from their purchase.

Delivering value to customers through the equipment lifecycle
Ship New Systems

Repurpose

SparesUpgradesAdvanced
Services

Repurpose

SparesAdvanced
Services

UpgradesAdvanced
Services

Advanced
Services

Throughout the product lifecycle we are working to ensure customers maximize the value of their capital assets.

L A M R ES E A RC H

Extending the equipment lifecycle

Remote product training

Supporting our customers to extend the life of
their existing equipment is an important aspectof our CSBG strategy. Many of the technicaladvances we introduce in our newest products
are available as upgrades, providing customers
with a cost-effective strategy for extending theperformance and capabilities of their existing
installed base. Additionally, CSBG provides
refurbished previous-generation equipment
for applications that do not require the mostadvanced wafer processing capability, which
results in avoiding the environmental impactsof manufacturing a new tool.

Training our customers to use our products
is a critical business exercise. With travel
limited during the pandemic, our CSBG
organization quickly adapted to enabling ourworkforce to continue providing high-quality
training. We enhanced our field training
delivery capabilities to provide online training
for all of our key products in addition toaccelerating development and expanding
many of the virtual reality courses offered by
the company. Due to the success of online
training demonstrated by cost savings to ourcustomers as well as a positive environmental
contribution, we will continue to offer
remote training.

Our spares offerings enable the re-use of highvalue spare parts such as electrostatic chucks,
RF hardware, and showerheads through avariety of re-cleaning, repair, refurbishment,
and re-coating services. Part lifetime extension,
enabled by re-cleaning services, translates
to approximately $400 million of reduction inmaterials consumption per year. Part re-use
enabled by repair and refurbishment services
translates to approximately $150 million of
reduction in materials consumption per year.

Equipment Intelligence™
Customer demand for increasingly faster cyclesof learning and lower cost of development
and production are accelerating the adoptionof i4.0 in semiconductor manufacturing. We
proudly lead the industry with our Equipment
Intelligence™ solutions, which use machinelearning, artificial intelligence, and big data
combined with our equipment and processexpertise to deliver improved productivity,
efficiency, and performance for our customers.

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AppendixCommitment to quality
Our holistic approach to enhancing the quality of products, services, andoperations differentiates us with our customers. Our commitment to quality
and continuous improvement is shown through our certification for ISO 9001,
an international standard that provides a framework for an effective quality
management system.
As we work to accelerate knowledge sharing and establish scalable businessprocesses that support quality improvement, we must also ensure that quality
is a value embraced with pride by our employees — and that it is evident toour customers. Our Quality Leadership Team (QLT) is a cross-functional senior
management team that drives us to deliver company-wide quality performanceand awareness. The team’s role is to understand our customers’ perspectives andensure that safety and quality are designed into every product. The QLT includes
members from our product groups as well as representation from departments
such as Engineering, Global Quality, Global Operations, Manufacturing, Supplier
Quality, Sales Operations, and Customer Service.

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Appendix

OUR WORKPLACE

03

We shape our culture towork better for everyone
An inclusive work environment demands that talent feel
welcome and valued, each employee’s potential be seen,
their voice heard, and their strengths leveraged.

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Business and GovernanceIn response to the ongoing pandemic
challenges, we focused on the safety
and holistic wellness of our employees
while developing new methods of
employee engagement, recognition, andprofessional development. Because webelieve a diverse, inclusive, and engaged
workforce will drive a sustainable future,
we empower everyone to bring theirwhole self to work and share values andoperating principles that enable us to act
as one company.

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Appendix

Accomplishments
Developed an organization-wide inclusionand diversity strategy and plan
Enacted global safety protocols, expanded
remote work, and provided additional
benefits to support our employees throughthe pandemic
Increased our employee engagement survey
score to 80, which accounts for areas of ourculture including inclusion, diversity, andrespectful treatment

A global approach
As we endeavor to be a great place to work across our global footprint, we invest in a multifaceted strategy that is rooted in building an inclusive and diverse workplace. Our efforts are ledby the senior vice president of Human Resources under the oversight of the Board, ensuring thehighest level of attention is devoted to achieving our goals. To support our employees, we tailor our
programs to meet the unique cultural needs and priorities within different regions around the world
while promoting a unified company culture and set of Core Values.
In 2020, we developed goals to measure our progress in inclusion and diversity (I&D), employee
engagement, and safety. Progress on these goals is reported to the Board on a quarterly basis.

Workplace goals
We aim to make yearly incremental strides towards achieving these goals by 2025.

L A M R ES E A RC H•

Build on our high performance culture with best in class employee engagement at the top 10%
global benchmark as measured by our employee survey•

Increase the number of women and underrepresented employees across the company•

Maintain a total recordable incident rate below 0.4

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Appendix

Fostering a culture that isinclusive and diverse
Our diverse and talented workforce offers
invaluable perspectives that fuel our innovation.
We embrace I&D and proactively create
opportunities to attract, retain, develop, andreward our employees. The events of 2020
underscored the importance of these efforts
more than ever — thus, we elevated I&D to
one of our six areas of strategic focus for thecompany, resulting in a comprehensive review
of our policies, employee benefits, and programs
through an I&D lens. This elevated focus allows
us to accelerate our progress on a variety of
initiatives over the next several years.
The three core pillars of our strategy include
fostering inclusion, increasing diversity, andsharing our progress. We expanded thisapproach by creating specific goals for I&D
and developing an organization-wide strategy
to achieve them. We reinforced this strategy
with leadership by hiring our first executive
leader of I&D, who is responsible for driving ourstrategy, building partnerships, and aligningwith best practices.

“We are building a workplace
where people can perform attheir best by strengthening
I&D awareness, connecting todiverse communities within ourorganization, integrating I&D
processes, and planning for
our future success. Diversity
and inclusion is a never-ending
journey, and we remain steadfast
in fostering a stronger, more
inclusive culture at Lam.”
Antoinette Hamilton,
Global Head of I&D

Fostering inclusion
To achieve their full potential, we believe it is important for every person to feel valued, included,and empowered. We stand for this by continuing to foster a positive and productive work
environment and recognize inclusion as a key driver. Our culture of inclusion encompasses all
aspects of the employee experience, and we are intentional with this mindset in recruiting, training,leadership, decision-making, engagement, and company policies.

L A M R ES E A RC H

Supporting gender equality
A number of policies and practices are in place
to promote a holistic view of gender equality in
our workplace, which includes a commitment
to women’s representation in leadership
positions, remote work options, support for
flexible work-life balance, recruiting efforts
to bring more women into our workforce,
employee affinity groups promoting women’sissues within the company, and women’s
leadership development programs. We regularly
measure the progress of our efforts to recruit,
hire, and retain female employees as well as
conduct an annual pay equity assessment.

Training and employee support
Embedding I&D throughout the organizationis critical to our progress, and one way weachieve this is by providing educational
resources to our employees. Our internal I&D
website provides information to recognize andmitigate microinequities​, cross-cultural training,and mentoring opportunities. I&D training isrequired annually for all employees globally. In
2020, 98% of all employees participated in our
web-based microinequities training.

​ o support our managers’ skills in leadingTwith inclusion, our Grow, Lead, and Edge
management development programs focus onbuilding an inclusive culture. Additionally, we
kept these learnings top of mind by introducing
Inclusion Every Day, an ongoing program
delivered through our new leadership app
which features “inclusion nudges” — practicalreminders to be inclusive in daily actions,leadership, and decision-making.

“Inclusion and diversity training helped
me better reflect on the impact that small,unintended, and unconscious behaviors may
have on others. I now make a more conscious
and concerted effort to actively solicit inputs
from all individuals involved on a given
matter while trying to identify the method ofengagement that is most comfortable for eachindividual. I have no doubt that this simple
act has led to insights that would have beenotherwise overlooked or missed.”
Tim Cooper,

Senior Manufacturing Director,
Livermore, CA

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Appendix

Corporate Equality Index
The company scored 100% on the Human Rights
Campaign Foundation’s 2020 Corporate Equality
Index (CEI), a premier benchmarking survey
and report measuring corporate policies andpractices related to LGBTQ workplace equality.

Employee resource groups
Our variety of employee resource groups (ERGs) connect employees, provide learning anddevelopment opportunities, support recruitment, and engage in our local communities. Activities
offered across the company include mentorship programs, coaching, career development
workshops, and community events. These groups were formed to foster inclusion andunderstanding while giving employees the chance to connect on shared experiences. Asof 2020, ERG membership stands at over 1,100 and continues to grow.
Current groups include:

L A M R ES E A RC H

Women
in
Engineering

Women
in
Customer Service
Business Group

Women
in
Lam Leadership

Women@
Fremont

Veterans
@
Lam

Pride

Women
in
Global Operations

Community of
Latinos and African
Americans forStudent Success(C.L.A.S.S.)

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Appendix

Increasing diversity
Answering the call for social justice
As a response to the senseless and horrificacts of racism that took the lives of George
Floyd and many more, we supported our
employees through several actions.
Support for dealing with trauma and stress•

Access to counseling professionals
through our Employee Assistance Program(EAP) for employees and their dependents

Recruiting a diverse workforce•

A conversation guide and resource withtips to have meaningful conversations
about gender, race, and ethnicity in theworkplace

A key component of our I&D strategy is toencourage our recruitment team and hiring
managers to seek a diverse slate of candidates.
In 2020, we expanded our recruitment efforts
to include Historically Black Colleges andUniversities in the U.S., Howard University,
and North Carolina A&T. We also increased
engagement with external organizations,
including the addition of new relationships tosource diverse talent.

•

Resources in I&D website and Lam library•

Women Impact Tech

Read about our support for social justice in ourcommunities on page 72.

•

Out in Science, Technology, Engineering,and Mathematics (oSTEM)•

Grace Hopper Celebration•

National Association of Womenin Manufacturing•

A guide, “Coping after Trauma,” thatprovides resources and support forrecovery.

Inclusion and diversity resources

L A M R ES E A RC H

We recognize the importance of diversity andbelieve it leads to better decision-making andgreater innovation. This year, we expanded
our disclosure of diversity to include theintersectionality of ethnicity and genderalong with data on the gender makeup of ourtechnical staff and new hires.

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31%

of all U.S. new hires at theexecutive level in 2020
were female.
Our recruitment efforts at the new college
graduate and intern level are also moving us
towards a more diverse future. In India, wepartnered with three women-only engineeringcolleges and participated in an exclusive pool
event with nine engineering colleges to identify
internship candidates. These expanded efforts
resulted in 32% of Lam India’s new college
graduate and 54% of internship offers going
to women.

Global and U.S. Gender

81.4%

Female

Male

U.S.

21.3%

78.7%

U.S.

24.2%

75.8%

Global

10.4%

89.6%

U.S.

13.9%

86.1%

Global

16.6%

83.4%

U.S.

20.1%

79.9%

Global

15.4%

84.6%

U.S.

16.1%

83.9%

33.0%

67.0%

U.S. GenderTechnical
Employees

Appendix

18.6%

Global and U.S. Gender

New College
Graduate

Our Communities

GlobalAll Employees
We are actively recruiting women acrossall levels, particularly at the executive level(directors and above). Our progress isin the numbers:

Sustainable Operations

Managers

FemaleFemaleFemaleFemaleFemale

Male

Male

Male

Male

Male

Global and U.S. Gender

FemaleFemaleMale

Male

Executives

Global and U.S. Gender

Board of Directors
GenderFemaleFemaleMinimum rounding has been applied to this data.

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Male

Male

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U.S. ethnicity

Sustainable Operations

0.5%

2.1%

2.2%

Appendix

U.S. gender and ethnicity
Other Race/Ethnicity

Chose not to disclose

0.3%

Our Communities

American Indian/Alaskan Native

6.6%
6.9%

Native Hawaiian or Other Pacific Island
5.6%
Male

Black or African American
Two or More Races

50.5%

1.3%
FemaleHispanic or Latino
30.9%

Blank / Chose not to Disclose
Asian

White

41.4%
Male

8.3%
Female0.7% 2.3%
Female Male

22.6%
Male

Asian

0.4% Female
1.7% MaleWhite

1.5% Female

Global employees by generation

9.1%
Female

5.1%
MaleBlack or African American
Hispanic or Latino

2.92%

0.04%

U.S. Veteran status12.59%
Silent (<1945)

U.S. Veteran 8%

Boomers (1946-1964)
Gen X (1965-1979)
Millennials (1980-1995)
49.36%

35.09%

Non-U.S. Veteran 92%

Gen Z (1996 or after)

Minimum rounding has been applied to this data.

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Appendix

Advancing I&D across the industry
Our support for I&D across the technology andengineering industries includes collaborations
and sponsorship of conferences andsymposiums.

Director of Global University Engagements,
and Tammy Sanders, Senior Manager of I&D,
participated in the Women in Tech Leadership
Round Tables to discuss equity, inclusion, andthe disproportionate effects of COVID-19 onunderrepresented groups.
Conference for Engineering Diversity (CED)EDGE in Tech Initiative
We participated in the annual Women In Tech
Symposium and two leadership roundtablesat the University of California’s Expanding
Diversity and Gender Equity (EDGE) in
Tech Initiative. The initiative addresses
disproportionate participation in engineeringand computer science fields by serving asa trusted center and resource. It integrates
research with action and is anchored at the
University of California. Nerissa Draeger, ourWe sponsor CED, a collection of professional
and personal development workshops that
increase understanding of how to contribute to
the advancement of diversity in the workplace.
Tammy Sanders, Senior Manager of I&D, spoke
on a panel at the 2020 virtual event about
solutions to gender inequity and burnout during
the pandemic.
SEMICON West 2020
Our employees participated in the annual
semiconductor conference in separate
panels focused on I&D. Lubab Sheet-Davis,
Vice President of Strategy and Innovation,
presented on the I&D imperative for companies
while Antoinette Hamilton, Head of I&D, sharedstrategies for attracting and retaining a diverse
workforce.

New relationships
In 2020, we created new relationships with three leading organizationsin the inclusion and diversity community:
Anita B. Org – a non-profit that supports women technologists
Out & Equal – an organization that helps LGBTQ people thrive andsupports others to create a culture of belonging for all
Watermark – an association and conference series dedicated to increasing
the number of women leaders in the industry

L A M R ES E A RC H

GEM
We proudly partner with the National GEM
Consortium (GEM), a premier organization
for the best and brightest underrepresented
minority STEM talent in the country. In our thirdyear of partnership, we sponsored 13 graduate
fellowships and hosted 21 graduate students insummer internships.
GEM aims to increase the participation ofunderrepresented groups in STEM graduate
programs. Partners of GEM help support thedevelopment and advancement of thesegroups across approximately 120 colleges
and universities by providing full-tuition
fellowships at the master’s and doctorate
levels. In 2020, Tim Archer, our CEO, became
Chairman of the Board of Directors at GEM.
Brennan Marcano, CEO of GEM, said, “I canthink of nobody better to help us shift into aneven higher gear than Tim Archer.”
Theron Smith, a GEM Fellow who interned withus before joining full time in 2020, shares what
the relationship has meant to him.

“Being selected as a GEM Fellow has been atremendous experience. I received funding
to help me complete my Ph.D., formed many
meaningful relationships, and acquired multiple
internships with Lam Research. Interning
has been very gratifying and given me theopportunity to utilize my technical aptitude,
intellectual curiosity, and passion for research.”“Lam shares GEM’s belief that greater
diversity amplifies the technology
industry’s positive impact on ourcommunities. Partnering with
GEM is about opening doors for the
next generation, while advancing
innovation within the semiconductor
and technology industries.”
Tim Archer,President and CEO

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Appendix

Celebrating a highly
engaged workforce
To build on our progress in employee engagement and voice, we deployed our global pulse survey
twice in 2020 with excellent participation, gathering input from employees on culture, I&D, career
opportunity, and manager effectiveness. Our efforts to foster employee engagement and createa values-based culture are reflected in our employee feedback and key recruitment andretention metrics.

Engagement

80

Engagement
Score

93%

Response
Rate(top 20% of global
benchmark)Recruitment and retention

2000
New
Hires

95%

Retention
Rate1

7.7

Providing recognition

Years Average Tenure

We believe recognition motivates employee engagement. To encourage a culture of recognition,
we created Above and Beyond, a program that allows employees to acknowledge innovative
contributions, problem solving, and demonstration of Core Values by an individual or a team. This
“everyone-to-everyone” program allows employees to nominate each other for their contributions,and in 2020, employees recognized fellow colleagues with over 60,000 awards. Individual and teamaccomplishments are recognized through our Vista, Outstanding Technical Achievement, andPatented Innovation awards.

Upholding respect
Respectful treatment is fundamental to our culture, and thus we strive to amplify the best in
one another. In 2020, we launched a range of global initiatives focused on respectful treatment
including leader training sessions, conversation guides, and an intranet article series on how tobolster respectful treatment and inclusive leadership. Karthik Rammohan, Group Vice President,
CSBG, is one leader who shared his approach: “Respectful treatment starts with getting the fullstory, without bias. I try to determine what the other team’s end goal is and work collectively. It’s
all about going back to the Core Values.”

1. Retention rate is calculated as the inverse of attrition.

L A M R ES E A RC H

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Total recordable incident rate (Lam vs. Industry)

Number of incidents per 100 employees per year

Industry Avg
Lam Rate

0.7

0.35

2017

0.29

2018

0.33

2019

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Our Communities

Prioritizing the health, safety, and well-being of our employees is critical to our ongoing success.
This was exemplified in 2020, as the pandemic caused a major shift in the way we work, live, learn,
and connect. Our product and services are essential to the electronic devices the world counts
on. We understand the important role we play in providing critical enabling technologies and at
the same time, our responsibility to ensure the safety of our employees at the workplace. Our top
priority in 2020 focused on keeping our employees safe while continuing to meet and exceed ourcustomer commitments.

Below
0.4

We invest in education, awareness, monitoring, and prevention programs to help recognize andcontrol safety hazards. The holistic approach of our environmental, health, and safety (EHS)
policies, programs, and response plans apply to everywhere we operate and extends to everyone
who works on our sites with the intent to provide a safe environment during both routine andextraordinary circumstances. People managers in field support, manufacturing, R&D, warehouse,and logistics operations undergo formal safety leadership training to enhance their skills in safety
management and communication. We screen contractors’ safety performance, and our contracts
require contractor compliance with the safety standards set forth in our Contractor Handbook.
Safety incidents concerning our contractors are reported to us, and we can take formal actions in
the event that contractors fail to adhere to our standards.

0.25

2020

Note: 2020 industry average for TRIR data was not available at time of publication. Data shown does not reflect our Silfex Ohio operations.

Safety performance

Appendix

Keeping our people
safe and well

Lam Target

0.7

0.6

Our Workplace

We monitor our safety performance at the enterprise, regional, and site levels. By using our global
incident tracking system, our corporate EHS team can assess and monitor safety trends to reportto business units and executive leadership as a part of quarterly reviews. We maintain multi-site
certifications for ISO 45001, the globally recognized standard for occupational health and safety
management systems, and achieved validation for two new sites.

0.25 - global recordable incident rate 64% less than the industry average

43,000 hours of safety training
922,000 hours worked on new construction projects
with no contractor injuries>60% of all injuries attributed to strains, sprains
and slips, trips, and falls

L A M R ES E A RC H

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Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Assessing risk
With a layered approach to risk identification
and reduction, site and regional EHS teams
conduct annual safety risk assessments of
their local operations. We conducted more than
170,000 Risk Management by Walking Around(RMBWA) inspections in 2020, a process which
continues to identify and track safety issues
as well as implement corrective actions in our
offices and manufacturing sites. In addition, ourRapid Field Risk Assessment (RFRA) process
helps field teams manage risks at customer sites
and our Safety Awareness for Everyone (SAFE)
program keeps employees informed of emerging
safety issues and shares lessons learned frompast incidents.

L A M R ES E A RC H

37

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Ensuring employee safety and wellness during COVID-19
In response to the pandemic, we developed a holistic approach that covered the safety, health,wellness, and financial well-being of our employees.

Prioritizing safety
At the onset, our EHS team developed response plans in accordance with guidelines set forth
by the Center for Disease Control (CDC), the World Health Organization (WHO), and local andnational governments. We deployed our incident management teams (IMT), which include
representatives from all areas of discipline within the company at the executive, corporate, andsite level, to develop the necessary safety protocols. Through close coordination between the siteteams and the Corporate IMT, we adapted quickly to changing circumstances and ensured teams
were informed with timely and comprehensive guidance.
In bringing our essential workers back to the workplace, we used a conservative, phased
approach guided by public indicators and on-site readiness. Additional safety measures were
instituted at our sites with customized plans for each location, which have been continuously
updated with new information. We kept our employees informed with training, updated signage,
videos, and frequent communication from leadership. Our newly created COVID-19 internal
website provided a single resource for all employees globally to access critical information
relevant to their safety and changing guidelines and policies.
Our plans utilized administrative, engineering, and environmental controls such as face masks,
temperature monitoring, social distancing, sanitization, workforce segmentation, and indoor
air quality controls. EHS leadership created a roles and responsibilities guide for managers
responding to employees or contractors who had potential exposure to the virus. The team also
kept our remote workers safe by assisting with remote office setups, ergonomic assessments,
and planning for when and how remote workers will return to their office locations.

L A M R ES E A RC H

Reducing transmission risks through controls
Administrative controls•

Health monitoring questions & temperature scan•

Social distancing requirement•

Occupancy limits•

Scheduled and on-site task limits•

Travel from building-to-building and shift-to-shift restricted•

Face mask and added PPE requirements

Engineering controls•

Ventilation meets best practice standards•

Increase HVAC filter changes•

Physical barrier/dividers to help maintain social distancing

Environmental controls•

Furniture and fixture reconfiguration to enable social distancing•

Increased frequency of janitorial services•

Hand sanitizer and other cleaning supplies available•

Lunch service provided

38

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Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

AppendixEngineering protection
The everyday actions of our employees, inaddition to some innovative engineering, aided
our safety efforts. A group working with 3D
printing created face shields for their colleagues
by pairing a 3D-printed visor with transparent
plastic — forming a shield that can be wornwith a surgical mask. In the early stages ofthe pandemic, a viable temperature scanningsystem wasn’t readily available in Villach, Austria
so an engineering team created a contactless
temperature measurement solution in just a
couple of hours using highly sensitive thermal
cameras from our operations.

Giving thanks to our onsite employees
Thousands of Lam team members continued critical work on-site during the pandemic,
so our remote workers from around the world created a video to show these colleagues
their appreciation.

“Your tremendous dedication has been critical to ensuring thesemiconductor supply chain can keep up with the rapidly growing
demand for technology. Technology that has enabled people allover the world to see doctors remotely, to educate their children
safely at home, to utilize artificial intelligence to acceleratevaccine development, and even to stay entertained. I believethat what you have accomplished this year is extraordinary
and I know that all Lam employees feel the same way.”
Tim Archer,President and CEO

L A M R ES E A RC H

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Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Physical healthOffering holistic support•

Telehealth accessA significant portion of our $25 million COVID-19 Relief Fund was directed tohealth and safety, work-life management, and financial well-being measures
to holistically support our employees. We leveraged many existing resourcesand events, converting a number of them to digital and on-demand platforms,
and added new programs and resources to support employees through thisextremely challenging time.

•

Virtual Health Fair•

COVID-19 tests and treatment
covered at 100% with no co-payment•

COVID-19 resources for those who aresick, in quarantine​, or caring for others•

Personalized nutrition plans,
nutrition challenges, healthy cooking
demonstrations, and webinars•

Virtual fitness experts, classes, daily
workout ideas, and personal training

Financial well-being$25 million
COVID-19 Relief Fund

L A M R ES E A RC H•

Pay continuity for employees affected byclosures for cleaning, social distancing,and other safety measures•

Emergency pay of up to 80 hours fordays when an employee stays home due
to COVID-19 related absences•

Two paid wellness days added to PTO•$1,000 (or globally scaled equivalent)relief funding provided to employees touse for their own needs or where they
believe it would have the greatest impact•

Penalty free COVID-19 related 401(k)distributions allowed of up to $100k•

Funding up to $1,000 for home officeprovisioning•

Financial seminars and webinars

Our Communities

Appendix

Work-life management•

WorkLife Resource Connection, a collectionof important information from the CDC,
UNICEF, and other experts on how to keep
kids safe at school•Childcare support through Care.com (U.S. only)•

Leave of absence of up to 12 weeks paid familyleave for purpose of caring for children
at home because of school/daycare closure(U.S. only)•

Webinars on stress management, family
support, and family wellness•

Lifestyle account allowances for air purifiers,
tutoring, etc. (U.S. only)•

Expanded leave policy to include remoteschool and care for sick family members•

Employee Assistance Program (EAP) thatoffers confidential, professional careand resources including information, advice,and support in 14 languages•

The Virgin Pulse App, a wellness platform
for employees, families, and friends that
focuses on needs such as sleeping better,stressing less, being more active, andfeeling more energized•Life Hacks Campaign, a crowdsourcing
campaign we created to share tips and tricks
to manage life during the pandemic; 827
participants contributed more than 180 ideas
in three weeks, with 12,460 messages read by
our global community40

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Time away“I think it is important to understand what matters toyour people and Lam does exactly that. Lam enables
a culture that promotes employee well-being andis strengthened by positivity, meaningfulness, andtrust even in these difficult times. Multiple programs
were launched throughout this year that made thisbelief even stronger.”
Rejna Vasudevan,
Software Manager, India

We recognize the importance of time away from work for personal reasons, and offer annual paid holidays andtime off, which we extended in 2020 with two new wellness days. We also shut down the company periodicallyduring the year to provide employees a chance to unplug and reset. The opportunity for growing families toconnect with each other is an important part of supporting our employees, which is why we offer 12 weeks of paid
family leave at 100% of salary for new parents of biological, adopted, and foster children in the U.S. We also offer
up to $10,000 for adoption expenses.

Extra support
Our long-time focus on health and well-being, financial well-being, and stress management became even moreprevalent during the pandemic as we expanded our LiveWell programs and resources available to our employees
and their families. Activities are customized to each location around the world, and include health and wellness
education, events and seminars, health and genetic screenings, personalized nutrition and plans, and fitness
programs. In 2020, we hosted 96 employee events, one of which was our first global virtual health fair thatfeatured sessions on wellness topics such as healthy cooking, gardening, mindfulness, and self-defense.

Employee well-being

Lam Korea — a certified family-friendly company

We believe employees need holistic support to flourish. We design and prioritize programs thattake care of their physical, mental, and financial well-being inside and outside the workplace.

Lam Korea became certified as a family-friendly company by
the Ministry of Gender Equality and Family in 2020. Selectedcompanies were recognized for operating an excellent familyfriendly work system and fostering a supportive corporate
culture. All Lam Korea locations were recognized for systems
that harmonize flexibility in the workplace, compensation, andbenefits. Our programs that focus on caring for families include
encouraging the use of parental leave and providing parent
education classes to help employees with elementary schooland preschool children.

Safety during wildfires​​​​Thedevastating wildfires in the Western U.S. also directly impacted many of our employees in
2020. We acted quickly to ensure their safety by controlling air quality within our buildings andproviding employees and their families in evacuation areas with temporary lodging assistance,
reimbursement of expenses related to the fire, and up to one week of pay if they were unable
to work.

Total rewards
Our Total Rewards program incorporates a comprehensive compensation and benefits package
aimed at supporting employees’ financial, physical, and mental well-being. Our annual review ofsalaries and benefits packages, using third-party benchmarking surveys, ensures our offerings arealigned with the marketplace and attractive to top talent. We offer a competitive 401(k) benefit,
an employee annual stock purchase plan, and annual bonuses. Employee directors and above andother selected employees are eligible to receive stock awards.

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Recruiting the best
and brightest

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

AppendixJessica Mar,
Learning & Organizational
Development Intern,
Fremont, CA
Why did you choose to intern at Lam?

We’re only as good as our ability to engage top talent, and our university programs are how wereach them. Many of our senior executives began their careers with us right out of college —demonstrating that our university program contributes to our leadership pipeline. To tap into thebest and brightest students, we prioritize core initiatives including an internship program, newcollege graduate rotation program, campus events, and thesis awards and scholarships.
Our New College Graduate (NCG) program combines educational training with real-life experiencesthat help prepare them for their careers. In 2020, we recruited 13% of our new hires through our
NCG program from over 85 universities globally.

Portland Community College partnershipAs part of its vision to build leaders for the future, Global Operations launched a new internshipprogram with Portland Community College (PCC) in Oregon. This partnership provides associatedegree students in the Microelectronics Technology program with the opportunity to gain industry
experience over an 18-month period while applying the knowledge obtained through their classes.
Our goal is to hire interns once they achieve their Associate Degree in Microelectronics Technology
and successfully complete their internship.

I chose to intern at Lam because I wanted tobe part of an organization that not only strives
for the best but also truly cares and invests intheir people.  

What skills did you develop during
your internship?
Interning at Lam further developed my problemsolving abilities and helped me understand how
we can utilize effective communication to identify
and find solutions to problems.

“We’re excited to offer this program as a new bridge to the community and local educational
institutions,” says Amanda York, Director of Manufacturing, Tualatin, OR. “We hope the program will
help propel future leaders within our industry.”  “I enjoy working in a friendly and professional environment with the chance to work on real tools to
help me understand what I’m learning at school,” says PCC Intern Emily Nguyen, working in Sabre
Manufacturing, Tualatin. “I’m excited to continue my journey at Lam.”

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Products and Customers

Developing every individual at Lam
By fostering our employees’ professional growth at every level of the organization, we spark
innovation and next-generation ideas. In reaction to the pandemic, we built, expanded, andpivoted development programs to adapt to our new environment, implementing remote learning,and converting more than 70% of our offerings. “At Lam, we believe that everyone is a leader, andeveryone is a learner,” says Jessie Lockhart, Senior Director of Global Learning and Organizational
Development.
We want to ensure our remote employees have access to flexible development opportunities, so in2020 we introduced three new resources to support their personal and professional development.

Learning
Connect

Learning Connect - A new platform that houses all learning anddevelopment resources. Employees can access training, track progress,
and plan their development activity.

iLearniLearn - On-demand, online content integrated within Learning Connect.
Content includes training modules, videos, and audio books on topics
covering business operations, leadership, collaboration, andpersonal well-being.

Learning@Lam

L A M R ES E A RC H

Learning@Lam - Brings all of Lam’s development and training sites
together to showcase the development opportunities across theentire company.

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

AppendixTraining at Lam~624,000
Employee training hours~4,700Different courses offered~600
Management training participants$1.65M
Remimbursement dollars for educational expenses

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Our Communities

Cultivating leadership

Fostering mentorship

For us, leadership is defined as creating
positive change, developing yourself and others
to be better, motivating and inspiring people toachieve their goals, and harnessing the powerof inclusive teams. Our leadership development
programs are designed to scale leadership
across our business by guiding managers tomotivate, inspire, and lead employees throughchange. Our three leadership programs,
Grow, Lead, and Edge, are designed tomeet managers at different stages of theircareers. Grow focuses on new managers andeffective communication, Lead is designed forexperienced managers to up-level leadershipskills, and Edge equips executives to drive
positive change. Across these three programs,
we engaged virtually with nearly 600 managers
in 2020.

We accelerate employee development,
broaden career opportunities, and expand
professional networks for employees throughour mentorship, coaching, and rotation
programs. In 2020, we launched Mentor
Match, a new technology expanding ourability to facilitate mentorship relationships
across the company. In addition, we piloted
BetterUp, an online coaching platform witha group of 180 managers. The first six-monthcoaching engagement focused on support for
leading through a pandemic as well as generalleadership development.

Our technical program, Leap, provides
engineers with 4 levels of skills certification
across 11 disciplines. Over 300 courses
are available, shaped from the collective
knowledge of over 100 subject-matterexperts globally. Since inception, nearly
1,000 employees have achieved their
Leap certification. In 2020, the team that
implemented the Leap program received
recognition for their efforts with aprestigious Vista Award.

Growing talent
As part of our organizational audit process,each CEO staff member identified highpotential diverse employees for a talent review
with the entire CEO team. Development
plans were created for each employee in thisdiverse talent pool, which include exposure,experience, education, and CEO staff
sponsorship. In total, 70 people were chosen
for this development opportunity.
L A M R ES E A RC H

Sustainable Operations

Appendix“In my career, I’ve had several excellent
mentors who helped me in many ways. I
wouldn’t be where I am without them,and I feel that it’s now my turn to offer that
guidance and help to others.”
Amber Barber,
Lean Six Sigma Master Black
Belt and Lam mentor, Oregon.

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Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

AppendixRESPONSIBLE SUPPLY CHAIN

04

We collaborate
towards a better future
Building a supply chain that is responsible, resilient,and diverse supports the success of Lam, ourcustomers, and our suppliers. With our Core Values
at the foundation of our business, we approach our
supply chain with the same focus on human rights,
the environment, and diversity that we apply to ourown business — and we hold our suppliers to thesesame standards.

L A M R ES E A RC H

45

Business and GovernanceSourcing the specialized components
needed for our process equipment andservices requires a robust, global supply
chain. We work closely with our suppliers
to address critical issues including
human rights, mineral sourcing,environmental impact, and supplier
diversity. We are committed to complying
with laws and regulations and expect our
direct material suppliers to conduct theirbusiness in the same manner.

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Accomplishments
Enhanced our Global Supplier Codeof Conduct by integrating additional
compliance requirements
Established a global strategic framework
for responsible supply chain anddeveloped our 2025 goals
Released a new supplier survey focusedon environmental sustainability

Responsible supply chain goals
We set goals to guide our progress in building a responsible supply chain and aim
to achieve them by 2025:

L A M R ES E A RC H•

Achieve more than 90% compliance with our social and environmental expectations
across our top tier suppliers•

Engage with at least 50% of our top tier suppliers on environmental
sustainability opportunities•

Increase engagement with all suppliers on social and environmental topics throughassessment, training, and capacity building46

Business and Governance

Products and Customers

In 2020, we augmented our management approach with a new strategic framework:•

Transparency - Increase level of transparency to meet expectations set byindustry standards•

Responsibility - Increase level of human rights commitments to maintain best practices
within industry•

Governance - Enhance global supply chain governance systems with clear accountability
and escalation process•

Training – Increase training for employees and Tier 1 suppliers on ESG topics•

Risk Assessment and Audit - Establish and integrate a comprehensive supplierrisk assessment and audit process•

Supplier Diversity – Continue to grow and expand our supplier diversity program

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Responsible Business Alliance(RBA) partnershipAs part of our commitment to creating a
responsible and transparent supply chain thatis pursuant to RBA requirements, we conduct
self-assessments to identify the greatest social,environmental, and ethical risks. Our RBA
scores at corporate and site levels range from
87% to 91%, which the RBA rates as low risk.
We actively encourage our suppliers to join
us in becoming members of the RBA and will
request all of our top-tier suppliers complete
the RBA self-assessment questionnaire in
2021. As of 2020, nearly one-third of our top
32 suppliers are RBA members, representing
29% of our global spend.

We also participate in two multi-industry
RBA initiatives:

L A M R ES E A RC H•

Responsible Labor Initiative – An initiative
focused on ensuring the human rights ofworkers vulnerable to forced labor in global
supply chains•

Responsible Mineral Initiative –A respected resource for addressing
issues related to the sourcing of minerals
in supply chains

47

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Products and Customers

Our Workplace

Responsible Supply Chain

Supplier management
We actively engage with our suppliers to manage risk and promote an ethical, responsible supply
chain and uphold the guidelines published by the Institute for Supply Management (ISM) and the
RBA, of which we are a member. The RBA is the world’s largest industry coalition dedicated tocorporate responsibility in global supply chains, and our Global Supplier Code of Conduct requires
suppliers’ adherence to both the RBA Code of Conduct and ISM Guiding Principles. We require our
new suppliers to acknowledge and agree to our Global Supplier Code of Conduct as part of theonboarding process. In 2020, we enhanced our Global Supplier Code of Conduct by integrating
additional compliance requirements provided in the RBA Code of Conduct.
Our management approach includes surveys, verifications and certifications, training andcommunications, compliance audits and inspections, and corrective actions when warranted.
We regularly survey our suppliers and review responses to evaluate their performance and risks,
utilizing our supplier scorecard which incorporates ESG factors. One way we measure progress
is by using third-party scoring entities such as the Corporate Human Rights Benchmark andKnowtheChain.
Our Global Supply Chain Management Operations has a dedicated ESG manager who leads our
supply chain risk assessment and compliance efforts. The head of global supply chain managementbusiness operations is responsible for our supply chain ESG performance. Our cross-functional
Supply Chain Committee is comprised of representatives from our direct and indirect supply chain
teams, environmental health and safety, legal, and ESG. The Committee meets regularly to identify
opportunities, develop plans, and provide input on the implementation of responsible supply
chain initiatives throughout our business. In 2020, the Committee launched several foundational
initiatives including:

L A M R ES E A RC H•

Creating a baseline of current supplier performance based on ESG criteria•

Leveraging advanced technology solutions for supplier surveys, risk assessment,
and engagement•

Implementing an engagement platform for communicating compliance, regulatory,
and ESG issues and trends with suppliers•

Establishing a cross-functional approach to supplier diversity​•

Identifying opportunities within key commodities to address environmental impacts

Sustainable Operations

Our Communities

Appendix

Supplier spend by geography
Europe, the Middle East,
and Africa 3.8%

Asia 26.8%

Americas 69.5%

48

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Sustainable Operations

Our Communities

Appendix

Supplier footprint
As of 2020, we have a global supply chain footprint with suppliers in over 30 countries. Our minerals are responsibly
sourced from a variety of smelters in 52 countries.
Locations with suppliers
Possible locations of origin for tin, tantalum, tungsten, and gold (3TGs)
Locations with suppliers and possible locations of origin for 3TGs

RussiaFinlandSwedenNorwayEstonia
Denmark

CanadaLatviaUnitedKingdom

Lithuania

Kaliningrad
OblastBelarus

Ireland

PolandNetherlands

Belgium

Germany
Luxembourg

Czech Republic

Switzerland

Uzbekistan

Bulgaria

Armenia

North
Macedonia
Albania

Kyrgyzstan

TurkeyGreeceIsraelMoroccoEgypt

MexicoDominican
Republic

Mali

Suriname

Liberia

Sudan

Nigeria
Ivory
Coast

Sierra
Leone

Niger

India

Myanmar

Ghana

Philippines
Vietnam

Ethiopia

CentralAfrican Republic

UgandaEcuadorJapan

TaiwanHong Kong

ThailandDjibouti

GuineaGuyanaUnitedArab
Emirates

Laos

Mauritania

Colombia

Saudi
Arabia

South
Korea

China

Afghanistan
BermudaMongolia

Romania

BosniaandHerzegovina

Montenegro

Spain

Portugal

Moldova

Hungary

Croatia

KosovoAndorraUnited States

Austria
Slovenia

Italy

Kazakhstan

UkraineSlovakia

FranceDRC

Kenya

Indonesia

RwandaPapua New Guinea

BurundiTanzania

Peru

BrazilAngolaZambiaBolivia
Zimbabwe

Madagascar
Mozambique

Namibia

Australia
South Africa

Chile

L A M R ES E A RC H

Argentina

New
Zealand49

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Appendix

Protecting
human rights
Wherever we do business, we respect human rights and adhere to humane business practices.
Our Global Supplier Code of Conduct is intended to promote safe working conditions andrespectful, dignified treatment to those working in our supply chain. We support workers’ rights tofreedom of association and collective bargaining (to the extent permitted under local laws) anddeclare our support in our Global Employment Practices statement. This statement is distributedor communicated via email, published through our intranet, and made publicly available on our
external website. We expect our suppliers to adhere to these same practices. We also train our
employees in the supply chain management organization annually on how to carry out inspections
and recognize potential signs of human rights abuses. In 2020, over 200 employees participated inthis training.
One way we hold suppliers accountable for upholding human rights is by surveying our top 100
suppliers located in countries the International Labor Organization identifies as high-risk for humantrafficking. We utilize the Slavery and Trafficking Risk Template (STRT) developed by the Social
Responsibility Alliance, which helps us prioritize our due diligence and risk mitigation actions. In
2020, we had an 80% response rate to the STRT survey.
Our Ethics Helpline is available to our suppliers and their employees as well as Helpline informationon our corporate website and in our Global Supplier Code of Conduct. We did not receive any
reports made from our supply chain or their workforce regarding human trafficking and forced laborin 2020.

Addressing forced
and bonded labor
We work with specific suppliers to trace the journeys of migrant workers from their home countries
to places of work, enabling us to identify and manage risks. As a result of an 18-month pilot,
suppliers returned employment fees to 172 foreign migrant workers and implemented corrective
action plans. We required all participating suppliers to enact policies that prohibit forced andbonded labor in any form. We are using the findings from the pilot program to expand our scope
and augment our supplier risk assessments.

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Products and Customers

Sourcing minerals
responsibly
Our goal is to use only responsibly sourced
minerals in our products. We do not directly
purchase conflict minerals nor have any
direct relationship with the mines or smeltersthat process them. We use the conflictminerals reporting template developed by
the Responsible Minerals Initiative to assess
our suppliers. In 2020, 97% of our suppliers
responded to the survey.

Protecting ourenvironment
The environmental sustainability commitment
we uphold extends to our supply chain, so ourGlobal Supplier Code of Conduct includes
requirements for environmentally responsible
manufacturing processes. We encourage
suppliers to adopt adequate measures andwork towards improving environmental
performance. In 2020, we released a new
supplier survey that requests information on

L A M R ES E A RC H

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Supporting
supplier diversity
GHG emissions, CDP scores, environmental
sustainability goals, supplier environmental
practices, third-party certifications, and RBA
membership. We had 100% of our top tiersuppliers respond to the survey this year.

We value a diverse supply chain and aim to
identify and select diverse suppliers that offer
goods and services that meet our company’s
standards, supplier selection criteria, andcustomer requirements. By supporting industry
and customer initiatives around supplier
diversity, we enable and promote a morediverse supplier base. Diversity is also included
in our supplier scorecard, and we track andreport spending with diverse direct material
suppliers on a quarterly basis. We are using thisdata to facilitate a cross-functional approachto supplier diversity.

Environmental survey results

Supplier diversity highlights

100% of Top Tier suppliers responded
to Lam’s ESG survey

25 - total number of diverse suppliers

50% of Top Tier suppliers are ISO

14001 certified

25% of Top Tier suppliers havepublic environmental goals

525% increase over 2019$75.5M - total spend with diverse

suppliers

95% increase over 201951

Business and Governance

Products and Customers

Supplier Excellence Awards
Since 2005, we’ve recognized companies
who demonstrate exceptional commitment tooutstanding performance with Supplier ExcellenceAwards. In 2020, we added an Environmental,
Social, and Governance (formerly Corporate Social
Responsibility) Award at our annual SupplierDay event. This gathering of our top suppliers
strengthens collaborative partnerships and creates
opportunities to drive continuous improvements inthe supply chain. We awarded the first-ever Supplier Excellence Award for ESG
to Celestica, Inc. for their support and progress in their human trafficking and

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Maintaining a resilient supply
chain during COVID-19
During the global disruption due to COVID-19, we worked closely with suppliers toensure our supply chain remained resilient and flexible. We proactively addressed
potential vulnerabilities and mitigated risks across the network, and we continue
to monitor and manage risks in real-time through a dynamic scoring process.
This work helped us prepare for future disruption, and we intend to continue
collaborating with suppliers to build a supply chain that can handle prolonged
demand increase and disruptions with minimal impact to our customers and toLam. We shared best practices and business resiliency success factors at ourannual Supplier Day and through outreach to our supplier base.

forced and bonded labor program. Khairiah Jaafar accepted the award on
Celestica’s behalf.
“As members of the Responsible Business Alliance, we are vocal advocates for
the RBA’s Code of Conduct that establishes standards for how all companies
in the electronics industry should behave to ensure that people are treatedwith respect and dignity, are provided with a safe work environment, and that
manufacturing processes and supply chain practices are environmentally
responsible,” says Greg Marvell, Vice President of Celestica.

L A M R ES E A RC H

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Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

SUSTAINABLE OPERATIONS

05

We seek out moresustainable ways to operate
Tackling climate change and preserving the planet
is paramount, and we strive to do our part. We do
this by integrating environmental considerations
into our operations.

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Business and Governance

Incorporating environmental
sustainability into business leads to better
products, more efficient operations, andadded value for our customers. As ourbusiness grows, and with it our footprint,
we implement a global approach thatembraces energy efficiency, GHG
emissions reductions, water conservation,
waste reduction, and chemical
management.

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Accomplishments
Achieved 2.6 million kWh savings
through energy efficiency
Completed waste audits at our sites in
California, Oregon, and Ohio
Decreased the total global amount of
hazardous waste disposed to landfill
from 1.10% in 2019 to 0.005%

Achieved a 4.2% reduction

Sustainable operations goals
We set 2025 goals that guide our strategy and in 2020 we
made gains across all five goals.

Achieved a 4.2% reduction

Reduce scope 1 and 2 absolute
Achieved a 4.2%
reductionby 25%
greenhousegas emissionsfroma 2019baseline
Achieved
a 4.2%
reduction
Saved 2.6 million kWh

New goals:
Achieved a 4.2% reduction•

Achieve 100% renewable energy
Saved
million kWh
globally
by 2.6
2030•

Achieve net zero carbon emissions
Saved 2.6 million kWhby 2050
Conducted waste audits at four sites
Conducted waste audits at four sites

Saved 2.6 million kWh

Reduced waste to landfill to 0.005%

Saved 2.6
Achieve
12million
million kWh
kWh in total energy
Conducted waste audits at four sites
savings from a 2019 baseline

Achieve zero waste to landfill for
Reduced waste to landfill to 0.005%
hazardous waste

Conducted waste audits at four sites

Saved 7.2 million gallons

Reducedwaste
to audits
landfillat
tofour
0.005%
Conducted
waste
sites

Saved 7.2 million gallons

Conduct waste audits in 2020 at
Reduced waste to landfill to 0.005%
applicable factory sites to establish
Saved
7.2wastemillionReducedtogallonslandfill
to 0.005%
non-hazardous
waste
reduction
goals
for 2025

Achieve 17 million gallons ofSaved 7.2 million gallons

water savings (15%) in waterstressed regions regions froma 2019 baseline

Saved 7.2 million gallons

L A M R ES E A RC H

54

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Energy and climate
Climate change is one of the most substantial challenges of our time, with environmental,social, and economic implications and we recognize our responsibility to act. Our climate impacts
come from our R&D and manufacturing activities, supply chain, and use of our products. Our
management approach focuses on reducing our energy use and GHG emission in our operations
and we are currently developing a strategy to proactively address all of our scope 3 emissions for
future activation.

Six points of action in our energy and climate strategy

L A M R ES E A RC H•

Improving and optimizing the energy efficiency of our operations•

Implementing grid scale energy solutions with a bias towards renewables and investingin on-site renewables where feasible•

Applying point-of-use abatement to mitigate process gas usage•

Purchasing offsets to address portions of our scope 3 emissions•

Engaging employees to encourage energy conservation•

Setting goals, benchmarking ourselves against the industry, and applying best practice
approaches across our sites

55

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Energy use
Energy efficiency
Energy use highlights
351 million kWh in total energy usage
6.3% increase over 2019
2.6 million kWh in energy savings

400

Million kilowatt-hours (kWh)Energy use is a key focus for reducing ourenvironmental and climate impacts, especiallyas the company grows. Improving the energy
efficiency of our operations by optimizing
existing systems and implementing new
efficiency projects ensures we minimize
energy use, while still meeting the needsof our customers.

0.00035

350

1.4

1.3

300

0.3

0.2

250

0.000250.00020.00015

150
100

94

58

57

200

89

0.0003

240

196

172

256

0.00010.00005

50
0

0
2017

2018

2019

Million kWh per US $1,000 R&D
spending

Advanced technologies that support
our customers’ needs are increasing ourenergy use in R&D and manufacturing.
In 2020, the total energy use from ourprimary manufacturing and office locations
increased. Primary contributors include
expanded operations at our Ohio and Oregon
manufacturing sites, and start-up operationsat our new site in Malaysia.

As part of our 2025 goals, we aim to achieve
12 million kWh of energy savings from a 2019baseline. In 2020, we completed projects thatwill yield 2.6 million kWh in annual energy
savings. Initiatives that contributed to thesesavings include:•

Continuing the work from 2019 to replacevacuum pumps at our Tualatin, Oregon
campus. The project will result in saving
or avoiding 1.2 million kWh per year ofadditional energy use•

Improvements in the controls andinterconnections of our compressed air
system resulting in approximately 277,000
kWh in savings•

Continued progress on our LED
replacement project in Tualatin, saving
approximately 634,000 kWh throughadditional LED installations

2020

Calendar year
Electricity

Natural gas

Other (solar + diesel + vehicles)

Normalized energy use

Per guidance in the GHG Protocol, we recalculated our energy use for the baseline year 2019 to include our world-wide leased offices. This resulted ina 9.0% increase in our total energy consumption in 2019 from 303 million kWh to 330 million kWh.

L A M R ES E A RC H

56

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

GHG emissions
Renewable energy
In addition to conserving energy, we use
renewable energy as part of our environmental
management approach. At the end of 2020,
renewable energy and energy with anequivalent amount of voluntary renewable
attributes made up 30% of our U.S. energy use,and 32% of our global use. Our Villach, Austria
facility meets 100% of site energy needs withrenewable energy.

In 2020, we purchased approximately 21
million kWh of renewable energy certificates(RECs), equivalent to 48% of the electricity
consumption in Eaton, Ohio. With these RECs,
Lam was able to avoid the emission of 10,210
metric tons CO2e.

We are committed to doing our part to mitigate climate change by managing
our GHG emissions: setting goals, closely tracking our emissions, and reporting
progress annually. Energy use is a primary driver of our emissions, so energy
management is a key aspect of our strategy. We also actively address our carbon
footprint through procurement strategies, GHG abatement, renewable energy
credits, and carbon offsets.

Greenhouse gas emissions

U.S. % renewable energy andvoluntary renewable attributes

Scope 3

% Renewable energy
and energy with renewable attributes

Indirect50%

1,327,895
MT CO2e

40%

37%

33%

32%

2018

2019

30%
20%

Scope 2Market-based
Indirect

Scope 1

Scope 3

DirectIndirect

75,884
MT CO2e37,599MT CO2e

1,543,485
MT CO2e

30%

16%

10%
0%
2016

2017

Calendar year

2020

Upstream Activities

Lam Facilities and Operations

Downstream Activities

Scope 3 emissions are based on 2019 data.

L A M R ES E A RC H

57

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Scope 1 and 2 emissions
In 2020, we made progress towards our
2025 goal to reduce absolute scope 1 and 2
emissions by 25%. Our combined scope 1 andscope 2 market-based emissions decreased by
4.2% over 2019 through the procurementof RECs.

GHG emissions highlights
113,482 MTCO2e scope 1 and 2 market-based emissions
7.8% decrease in scope 2 market-based emissions via

RECs

4.3% increase in scope 2 location-based emissions
4.0% increase in scope 1 emissions

0.12

160,000
140,000

Metric tons CO2e

120,000

0.10
0.09

0.1

0.08
0.08

100,000

0.08

0.06

80,00060,00040,00082,29675,88477,08864,026

26,603

27,41536,16237,599

2017

2018

2019

2020

0.02

20,0000

0.04

0Metric tons CO2e / US $1,000 R&D spending

Scope 1 and 2 greenhousegas emissions

Calendar year
Scope 1

Scope 2, market-based

Normalized scope 1 + 2 emissions

Per guidance in the GHG Protocol, we recalculated our scope 1 and 2 emissions for the baseline year 2019 to include our worldwide leased offices. The inclusion of the leased offices resulted in a
6.3% increase in GHG emission in 2019 from 111,479 MTCO2e e to 118,458 MTCO2e.

L A M R ES E A RC H

58

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Scope 3 emissions
More than half of our scope 1 emissions can be attributed to process gases
used for customer demonstrations and R&D activities. We mitigate our scope
1 emissions through optimization of our semiconductor processes and theuse of best-available emission control technologies. Our scope 2 emissions
are attributed to our purchased electricity. Investing in energy efficiency andrenewable energy credits are our top strategies for addressing our energy use
and scope 2 emissions.

We recognize the importance of measuring,
tracking, and evaluating the GHG impacts ofboth our upstream and downstream businessactivities. In 2020, we initiated an effort tobetter understand our scope 3 emissions byconducting an inventory utilizing standard
accounting protocols.2 The inventory serves
as both a baseline to track future GHG
reductions and a launching point to accelerate
sustainability efforts across the entire
value chain. The most significant emissions
categories include the use of sold products andpurchased goods and services.

Scope 1 Greenhouse gas emissions
40,000Metric tons CO2e

15,00010,513

340

18

8,780

6,068

5,000
0

7,756

7,342

•

Perfluorocarbons
Other flourinated

6,888

16,9482017

Other refrigerants
Hydrofluorocarbons

7,858

10,00011,163

Some ways in which we currently address ourscope 3 emissions include:

11,424662

592

25,00020,000713

913

35,00030,0000

33

18,11911,6682018

2019

Calendar year2020

Non-flourinated•Purchasing offsets: In 2020, we offset
100% of our emissions associated with air
travel and car rental via carbon credits.
The credits funded two projects – a 40 MW
wind power project in Nicaragua and awind farm in Oklahoma.
Providing inter-campus shuttles: We
offer daily shuttle services between
our California facilities (Fremont andLivermore). We also offer a Commuter
Benefit program that helps employees saveon eligible commuting costs through pretax pay deductions.

•

Investing in charging stations: Sites
in California and Oregon feature onsite
electric vehicle charging stations that
contribute to reducing commuter
emissions. We installed 3 more charging
stations in 2020, for a total of 37 charging
stations in operation.

Scope 3 emissions highlights
2.9 million MTCO2e total scope 3 emissions
74% decrease in business travelemissions

Offset 100% of air travel and car rental via
carbon credits

Shuttle buses
Avoided 500 MTCO2e
in 2020. Equal to 1.5 million
vehicle miles or taking
270 cars off the road each
workday.

EV charging stations
49 MTCO2e in emissions
reduction

14,000 gallons
in gasoline savings

2. We used the GHG Protocol Corporate Accounting and Reporting Standard, GHG Protocol Corporate Value Chain (scope 3) Accounting and Reporting Standard,
and the GHG Protocol Technical Guidance for Calculation scope 3 Emissions (version 1.0.) Total scope 3 emissions are based on 2019 data. Business travel data andoffsets based on 2020. data.

L A M R ES E A RC H

59

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Disclosing our climate impact
We communicate our climate change, carbon, water, and waste risks andopportunities through CDP, a non-profit organization that assesses corporate
climate impacts on behalf of the investor community. In 2020, we received a B
grade on both the Climate Change Survey and the Water Survey. Our scores arecomparable or higher than average for the North America region and the electricaland electronic equipment sector.
We are also in the early stages of communicating our approach to climate
governance, strategy, risk management, metrics, and targets via the framework
developed by the Task Force on Climate-Related Financial Disclosures (TCFD).
Several elements of our approach are outlined in this report.

B

CDP climate and water surveys

L A M R ES E A RC H

60

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Waste management
Waste reduction, recycling, and reuse continue to be a focus for us. We monitor and manage both
hazardous and non-hazardous wastes generated by our operations and work to find ways torecover and recycle materials. Most of the waste we generate is a result of our manufacturing and
R&D activities, with roughly 71% of our waste being non-hazardous. As accepted materials andrecycling regulations change, we work with local partners to identify new recycling opportunities
for hard-to-recycle items. The other 29% of our waste is considered hazardous, the management of
which is strictly monitored and regulated.

Non-hazardous waste
The major non-hazardous wastes that we generate are wood pallets, cardboard and packaging
materials, and municipal wastes. We have management systems in place at each site that alignwith local regulations to ensure we capture a variety of waste streams. When municipal recycling
services are not available for specific items, we explore options to contract vendors that repurposeor recycle those materials.

Non-hazardous waste
generation and diversion

80%

70%
8,000

Metric tons

54%

59%
6,939

6,000

5,890

50%

5,053

40%

4,077

4,000

70%
60%

55%
6,528

3,613

4,120
30%

2,741
20%
2,000
10%
0

0
2017
Total non-hazardous waste

2018

Calendar year2019

Non-hazardous waste recycled

In 2020, we decreased our non-hazardous
waste generation — primarily because of thedecreased onsite personnel in response to

COVID-19 restrictions. We achieved a 70%
diversion rate globally, an increase over 2019
due to a recategorization of non-hazardous
wastewater to offsite wastewater treatment3.

Non-hazardous waste highlights
5,891 metric tons of non-hazardous waste
10% decrease over 2019
70% diversion rate

Non-hazardous
waste recycling(Total recycling / total generation) * 100

10,000As part of our 2025 environmental goals, we
audited non-hazardous waste in 2020 to gain
greater understanding of our waste streams
and establish a goal for reduction. The audit
results provided insights into key opportunities
to eliminate waste, improve our recycling
efforts, and repurpose specific materials. With
this new data, we are working to set a newlong-term target for 2025.

Metal 5%
Silicon scrap 7%

Paper 2%Mixed plastic
and packaging 5%

Other recycling 4%
Mixed recycling
and cardboard 22%

Production waste 7%
Wood pallets 46%

2020
Diversion rate

Compost 2%

3. Starting in 2020, we aligned with the Sustainability Accounting Standards Board (SASB) framework and excluded the non-hazardous wastewater disposed or recycled offsite in our overall diversion rate for non-hazardous waste. Any non-hazardous wastewater is now reported under wastewater management.

L A M R ES E A RC H

61

Business and Governance

Products and Customers

Hazardous waste
We increased hazardous waste generationin 2020, primarily due to the processwastewater generated from our Austria andOhio facilities which are disposed at an offsite treatment facility. The main hazardous
wastes we generate are corrosive wastes,
flammable wastes, and lab debris from ourmanufacturing and R&D activities. We havestrict controls to ensure responsible handlingof these hazardous wastes and prioritize
treatment and recycling.

Our Workplace

Responsible Supply Chain

As part of our 2025 goals, we committed toachieve zero hazardous waste to landfill. In
2020, we made progress by working directlywith our hazardous waste disposal vendors toseek out alternative disposal methods suchas thermal treatment or waste-to-energy.
This resulted in disposing only 0.005% (or 0.1
metric ton) of our total global hazardous
waste generated to landfill, as compared to
1.10% in 2019.

Hazardous waste highlights
2,415 metric tons of hazardous waste
14% increase over 2019
0.005% hazardous waste to landfill

We diverted most of our hazardous waste to
offsite wastewater treatment and recycling.
Common recycling methods are fuel blending,Hazardous waste
generation and diversion

2,415

30%

Metric tons

1,500

25%

1,788

1,654

20%
20%

20%

15%

1,000

500

505

642

540

284

10%
5%
0

0
2017

2018

2019

2020

(Total recycling / total generation) *100

30%
2,113

2,000

Landfill 0.005%

35%

30%

Our Communities

Appendixsolvent recovery, and metal recycling. Other
hazardous wastes were disposed to either
deep-well injection or off-site wastewater
treatment.
As part of our due diligence, we continue topartner with CHWMEG, a non-profit tradeassociation whose members strive to efficiently
steward waste, to audit our major off-site
hazardous waste treatment, storage, anddisposal facilities (TSDF). The CHWMEG’scomprehensive audit is an integral part of our
TSDF selection and risk assessment process.

Hazardous
waste disposal

3,000

2,500

Sustainable Operations

Waste-to-energy 0.9%
Thermal treatment 2.9%

Recycled 22.3%

Deep-wellinjection 17.7%

Offsite wastewater
treatment 56.1%

Calendar year
Total hazardous waste

L A M R ES E A RC H

Hazardous waste recycled

Diversion rate

62

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Chemical management

We understand the criticality of water, especially in areas of the world where water scarcity is an
issue, so we work to manage our water use and industrial wastewater responsibly with a localized
approach across our footprint. This may include upgrading equipment to more efficient models andinstalling onsite water treatment systems to reuse water for other purposes.

Water use
Water stewardship is an important component of our overall environmental impact, as we consume
water for tool testing and manufacturing of silicon parts, general facilities, industrial cooling, anddomestic usage. We track and monitor our water use on a site-by-site basis. In 2020, the total water
use from our primary manufacturing and office locations increased. Primary contributors include
expanded operations at our Ohio manufacturing sites and start-up operations at our new sitein Malaysia.
As part of our 2025 environmental goals, we set a goal to achieve 17 million gallons of water savingsin water-stressed areas through water efficiency projects. In 2020, we made progress towards thatgoal by achieving 7.2 million gallons of water savings through the addition of water reduction units
on the new point-of-use abatement systems installed at our facilities in California.

L A M R ES E A RC H

350
300

Million gallons

Water management

Appendix

Water use, treatment,
and reclamation

In 2020, we enhanced our chemical information management system (CIMS) training modules topromote accountability and ownership. The new modules provide better guidance to all employees
on how to submit and expedite approval of their chemical requests, as well as how to access andupdate their own chemical inventory in the CIMS portal.
We also implemented new EHS design requirements for new construction and operations, including
the greenfield facilities in Malaysia and South Korea. These EHS standards include secondary
containment of chemicals, spill prevention control (i.e., safe valves, sumps, leak detection),prohibition of direct buried chemical tanks and pipes regardless of controls, fall protection tie-off
points, and confined space safety features.

Our Communities

250
200
150

0.0002
228

197
124

100

276

0.00020.00020.000250.0002292

0.00020.00015

150

142

87

86

80

124

0.000172

0.00005

50

0

0
2017

2018

2019

2020

Calendar year
Water usage

Wastewater treated

In 2020, our operations consumed 292
million gallons of water globally and 114
million in water-stressed regions. We are
adopting the World Resources Institute(WRI) Aqueduct Water Risk Atlas in
identifying water risk and water stress.
With this, we consider our facilities in
California, South Korea, and Malaysia aswater-stressed areas.

Wastewater reclaimed

Million gallons / $1,000 R&D spending

Business and Governance

Normalized water usage

Water use highlights
292 million gallons of total water usage
6% increase over 201939% of usage occurs in water-stressed areas
7.2 million gallons of water savings

63Business and Governance

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Water use inwater-stressed areas

120

Million gallons

Products and Customers

0.2

115

1.4

1.4

110

112

110

105

100
2019

Korea

Facility managers and employees in Tualatin continue to demonstrateenvironmental leadership by spearheading a variety of initiatives addressing
energy, water, and biodiversity, including:•Completing 17 energy use reduction projects, resulting in significant
incentives from the Energy Trust of Oregon, a non-profit thatencourages energy efficiency•

Releasing 75,000 ladybugs as a natural aphid control method toprotect the Linden trees around the building•

Planting Oregon native plant species to support bees and stop
their decline•

Installing smart irrigation controllers, leading to more efficientirrigation, and reducing water use•

Controlling invasive blackberry thickets with goats, eliminating
the use of mowers and pesticides•

Recycling the wood pruned from our hazel trees into materials
for a local artisan

2020

Calendar year
California

Tualatin, Oregon facility

Malaysia

Wastewater management
To be a good steward in our communities, we monitor our industrial wastewater in accordance withlocal regulatory requirements. Beyond wastewater, we also implement best management practices
to control our stormwater discharges. Our Tualatin, Oregon facility also reclaims treated processwastewater, using it as feed water to the house scrubbers and point-of-use abatement units in the
R&D labs. The reclaimed water helps to reduce our total global water withdrawals and the amountof municipal water needed to support our facility infrastructure. Approximately 72 million gallons ofwastewater were reclaimed at this site last year, which represents 58% of the wastewater treatedon-site at our global facilities.
In 2020, our Ohio facilities generated 0.46 million gallons of non-hazardous wastewater containing
less than 5% glycol. The glycol is recovered by a third-party, and the treated wastewater isdischarged to the local sewer.

“We get excited when we try something that is new, uniqueto Lam, or has a visible impact. We have now had enoughsuccess that folks in Tualatin go out of their way to broaden
our scope and help us achieve the ESG goals.”
John Niggley,
Tualatin Facilities Manager,
Tualatin, OR

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Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Promoting sustainability
through our people
We engage employees and work collaboratively to manage our
impact on the planet as part of our ongoing commitment. Our
employees around the world take action to protect biodiversity,
such as planting specific flowers and trees to protect pollinators
around our Austria, Oregon, and Taiwan facilities.
In 2020, we launched our Employee Environmental
Stewardship Award to recognize outstanding group andindividual contributions towards environmental protection andconservation either at Lam or in our communities. Our winners:•

Greg Novacek, Technical Program Manager, Livermore, CA won
the individual award. He has volunteered for the Arnold Rim Trail
Association as a Trail Director for four years.

•

Our team award went to the “Be Friends with Butterfly” teamin Taiwan. The group partnered with the Butterfly Conservation
Society of Taiwan to organize a lecture for employees to learn
about butterfly conservation, and an employee volunteer eventto plant beneficial flower species for native butterflies.

Earth month EcoChallenge
Employees around the world participated in the Earth Month EcoChallenge, a 30-day online
program designed by Ecochallenge.org to encourage sustainable practices. Employees commit
to a variety of practices at work or at home that can positively impact the environment, ourcommunities, and ourselves. “Through programs such as EcoChallenge we emphasize that every
action contributes to a positive, collective impact and a sustainable future for all,” stated Jami
Haaning, Senior Manager of ESG, Oregon.

Lam employee
EcoChallenge impact
Up to

225

224

Meatless or veganmeals consumed

Pounds of
CO2 saved

Up to

Up to

4,245

49

Minutes
spent outdoors

Lightbulbs
replaced

Up to

Up to

1,294
Gallons ofwater saved

L A M R ES E A RC H

Up to

258

Plastic bottles
not sent to the landfill

65Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

OUR COMMUNITIES

06

We invest
in our communities
We believe that our world needs to work for allof us, so we aim to make a positive impact in ourcommunities through financial support, time, andexpertise. The events of 2020 created additionalhardships for many of our neighbors, and we
responded swiftly with a $7 million commitment
for global relief and recovery.

L A M R ES E A RC H

66

Business and GovernanceWe also continued to support existingeducation and community programs
to make a lasting impact in ourcommunities. To maximize the long-term
effect of our efforts, the Lam Research
Foundation focuses on two areas ofgiving: K-12 Science, Technology,
Engineering, and Math (STEM)
education, and quality of life. Our social
impact programs include community
grantmaking, employee gift matching,volunteer activities, and scholarships.

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Accomplishments
Committed $7 million to support ourcommunities through the COVID-19
pandemic
Contributed $3.6 million in support for
non-profit organizations outside of our
COVID-19 response
Directed $1 million to support social
justice initiatives

Community goals
In 2020, we set goals4 to guide our work and aim to achieve them by 2025:•

Determine key targets for larger scale impact aligned to a new strategic focus•

Implement measurement of outcomes for key program and large-scale grants•

Increase community program unique employee participation rate from 10% to 30%•

Increase volunteer hours by 33%

3. These goals do not include COVID-19 grant making.

L A M R ES E A RC H

67

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Giving at Lam

16%

Employeeparticipation$1.65M
Employeematching
gifts$3.6M*
Total Lam
donations$600K

Cumulative
donations via
Employee Inspire
Together grant
program$106K

Core Values
Scholarships
distributed

1,640

Organizations
servedNearly12,000

Employee hours
volunteered$5.1M

Deployed for
COVID-19 grants,
matching gifts,
and PPE support*Does not include COVID-19 related support

L A M R ES E A RC H

68

Business and Governance

Products and Customers

Responsible Supply Chain

K-12/STEM education

Quality of life

Advancing student achievement in STEM education contributes to economic development inour communities and provides access to the possibilities of technology. We provide grants andvolunteer support to K-12 and university STEM-related initiatives. Our grant program focuseson inspiring interest in STEM education, addressing gender and achievement gap challenges,
supporting secondary education preparedness, and addressing education needs in underserved
communities.

We create positive impact in communities
around the world by contributing to local,
national, and international organizations that
support critical needs such as food and water
security, health improvement, disaster relief,
and aid for disadvantaged children and seniorcitizens. In addition to our COVID-19 grants, we
supported our existing non-profit partners with
$1.4 million5 in grants to further quality of life in
our communities.

We are driven to help students learn and build their future, and in 2020, provided $1.3 million5
specifically for STEM education to non-profits, schools, and other education-related organizations.
••

Since its creation, we have supported the Hispanic Foundation of Silicon Valley’s Latinos inTechnology program, which awards scholarships to Latinx college juniors and seniors who
have declared a major in a STEM-related field. Scholars can also take advantage of summer
internship programs and career coaching opportunities. As of December 2020, the program
has served nearly 400 college students.

••

Sustainable Operations

We continue to contribute funding for 		
Taiwan’s National Science and Technology
Museum’s robotics and coding programsfor elementary and junior high school 		students from remote and disadvantaged
areas.
In January 2020, students of Shri Sharada
Vidya Mandir were invited to experience
life at Lam India. Activities included 		
presentations and career guidance sessions
designed to inspire thought about different
career choices.​

On behalf of our subsidiary, Silfex, we supported the Springfield, OH High School STEM
Learning Academy, which offers STEM education programs to its student body of more than1800 students at all four high school grade levels.

••

As a long-time supporter of the Heart &Soles Run, we collaborated with the Silicon
Valley Leadership Group Foundation
to take the event virtual. Hundreds ofparticipants proudly wore their race jerseys
and went for a walk, run, or jog on their own
to benefit local youth health and wellness
programs.
Lam Singapore supported the Singapore
Children’s Society annual “Walk for Our
Children” to benefit programs and services
for vulnerable youth. Employees also joined
in to help fund dinner for two months for
100 children and families during the Dinners
From our Hearts fundraising program.

Our Communities•

We provided funding for medical expenses
and other needs for underprivilegedchildhood cancer patients through our
support of the Korea Childhood Leukemia
Foundation.

•

In response to the devastating wildfires
in California and Oregon, we respondedwith grants to American Red Cross Bay
Area Chapter for those affected by fires in
California, and Red Cross Cascades Region
for those affected in Oregon.

•

Lam Taiwan supported Andrew Food
Bank’s food distributions programs withfinancial and volunteer support.

We continued our relationship with Girls, Inc. and their Eureka! Program, enabling 8th through12th grade girls in underserved communities to explore ​​STEM​​​ fields. Program support included
a virtual dashboard of resources including videos, virtual equipment demos, and lab tours.
•

L A M R ES E A RC H

Our Workplace

Appendix

Scholarships
Our long-standing Core Values Scholarshipprogram is a point of pride for us, as itsupports graduating high school seniors who
maintain impressive academic records, exhibit
leadership and community involvement, andconsistently demonstrate our Core Values. Now
in its 17th year, the scholarship program hasawarded more than $1.2 million to 128 students.

69

Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

Employee giving andvolunteering
Employee giving programs – gift matching for monetary
donations, volunteer opportunities, donations for volunteer
time, and employee-sponsored grants – amplify our employees’
impact as they contribute to the causes they care most about.
Through these programs, we were able to engage employees
and our communities this year despite the pandemic.
•

On National STEM Day, we held our annual Manufacturing
Day event in Oregon, hosting it virtually for more than 100
high school students. Employees provided insights into
the semiconductor equipment manufacturing industry,
shared their career journey, and gave students a peek into
our operations via a live-stream equipment installation.
“Manufacturing is a more enticing field than I had previously
believed,” said one inspired student. “It’s a field that is
exponentially expanding, with opportunities to travel all over
the world to fix tools and get training.”•

Employees in Korea held a virtual Lam Tech Talk at the Korea
Advanced Institute of Science and Technology coupled withthe donation of over 100 textbooks to encourage and inspire
the next generation of engineers​.

•

Lam Taiwan, together with the Tse-Xin Organic Agriculture
Foundation, held a tree planting event in Shazhu Bay,
Jinshan, New North City to support the sustainability of thecoastal ecology. By cultivating sound shoreline forests wecurb the retreat, and support the long-term maintenance of
this ecology.

•

Deliver Joy, our holiday giving campaign, continued in 2020
through the creativity of our employees with donated gifts
and food, recorded storybook readings for hospitalized
children, and playhouse builds for local parks.

•

Through our Inspire. Together grant program, employees
nominate a non-profit organization to receive a grant. Since
its inception in 2017, the program has generated $600,000
for community organizations.

L A M R ES E A RC H

Generosity of our people
In support of our employees through the pandemic, we gave each employee, below the director
level, a one-time payment of $1,000 (or the globally scaled equivalent). Employees could use thefunding for their own needs or distribute it where they could make an impact. Many employeeschose to use the gift to support others. Read more about our support for employees during the
COVID-19 crisis in our Workplace chapter.
•

Larry Smurthwaite, Engineering Technician, Tualatin, OR gave his grant to an owner-operated
small business that had to close its doors due to restrictions.

•

Manish Pillai, Senior Expeditor, India, helped a friend who had been laid off and donated to
the United Way.

•

Shuang Fei He, Field Ser​vice Engineer, China, supported his parents through toughfinancial times.

•

Padma Gopalakrishnan, Senior Technical Program Manager, Fremont, CA helped her children
establish a scholarship fund for refugees.

•

Hou Litao, Staff Supplier Engineer, Singapore, donated to a local food pantry.

70Business and Governance

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

AppendixGlobal COVID-19 relief
and recovery efforts
As part of our $25 million commitment for global COVID-19 relief and recovery efforts, we
designated $7 million for assistance in communities where we live and work. Funds were localized
to each community’s specific needs, such as food security, shelter, education, personal protective
equipment for local hospitals as well as longer-term recovery efforts. This included a 2-for-1
matching gift campaign for employee monetary donations to eligible COVID-19 relief programs.
More than 200 organizations were supported through this campaign in 2020, and our commitment
continues into 2021. Our donations included:“Every community around the world has been impacted by the spread of COVID-19. The magnitude ofthese impacts has challenged every aspect of our lives – health care, school systems, and economies ofevery size. Supporting our employees and our communities is a core part of who Lam is as a company”
Tim Archer, President and CEO

Slowing the spread of COVID-19• Laptops for over 1,400 students in South Korea• Monthly food boxes to support 150 Taiwanese families• 7,500 meals for isolated, homebound seniors in
Portland, OR• PPE/medical supplies for critical needs across Europe• 5,000 PPE kits for healthcare workers acrossKarnataka, India• Laptops, internet access, and support to address the digital
divide in Oakland, CA• Computers, headphones, cameras, and Wi-Fi for hundredsof students in Livermore, CA• PPE for the Sagamihara-Minami Children’s Home in Japan• Nearly 2,000 thank-you packages for female medical 		
workers in Hubei Province, China and support for 13 		
children whose parents were front-line workers and losttheir lives due to the pandemic• 850 food boxes weekly for ten weeks for vulnerable
Tigard-Tualatin, OR School District families  • Funding for local food bank programs in Clark, Champaign,and Madison Counties in Ohio
• Employee fundraising for meals supporting youths from theSingapore Children’s Society

A voluntary team of 13 engineers from Lam Research India collaborated with 5 local doctors to findsolutions to challenges associated with COVID-19 testing. The team designed the Suraksha Kiosk,
an innovative sample collection kiosk that provides a protective physical barrier between the healthprofessional and the patient. The kiosk, named after the Hindi word for safety or protection, wasthen built by a local manufacturer, all in less than one month.
The Minister of Medical Education, Government of Karnataka inaugurated the first kiosk. Realizing
the benefits of the kiosk, the Department of Medical Education requested more Suraksha kiosks
for city hospitals and entry points, which we helped fund. To further the impact of their work, thedesign is an open-source publication on surakshakiosk.com.
“This kiosk will revolutionize the way we collect samples, and the increase in the number of samples
collected will lead to more tests in a day hence increasing the detection of disease,” said Dr.
Arjun Bhugra MBBS (Microbiology), one of the doctors on the team. “The uniquely designed kiosks
protect frontline healthcare workers,” said Dr. K Sudhakar, Minister of Medical Education for theGovernment of Karnataka. “I would like to thank Lam’s volunteers and its ESG team for stepping
forward to help the community in this time of dire need.”• 4,800 medical-grade N95 masks for public hospitals in 		
Singapore via the Ministry of Health

L A M R ES E A RC H

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Responsible Supply Chain

Sustainable Operations

Our Communities

AppendixStanding for social justice
Acts of racial discrimination and violence go against everything we stand for at Lam. Our vision forour company and society is that every person feels valued, respected, and empowered to achieve
their full potential — regardless of race, ethnicity, gender, age, national origin, religion, or sexual
orientation. Our sadness, anger, and frustration over the incidents of racial injustice in 2020 incited
us to take action. We pledged $500,000 to support initiatives fighting social injustice and allocated$500,000 from our COVID-19 Relief and Recovery Fund to the Black communities that havebeen disproportionately affected by the pandemic. We partnered with our Community of Latinos
and African Americans for Student Success (C.L.A.S.S.) employee resource group to identify theorganizations to receive our support.

We directed funding to four outstanding non-profits:••

The Center for Policing Equity (CPE) - A non-profit think tank made up of research scientists
as well as race and equity experts. The organization works with police departments acrossthe U.S. using data to address discriminatory practices. CPE is now creating “COMPSTAT
for Justice,” a process to aggregate and analyze data with a goal of empowering police
departments and communities to collaborate on strategies for accountability, reduction in racialdisparities, and development of shared values of fairness.
The Equal Justice Initiative (EJI) - A legal-aid organization whose mission is to end mass
incarceration, excessive punishment, and racial inequality. EJI’s areas of focus include criminal
justice reform, protection for children from abusive treatment in the adult criminal justicesystem, and public education addressing racial justice. Their work includes the Community
Remembrance Project that chronicles the history of racial injustice.

•​ NCF - A leading advocate for minority education, established an emergency fund to provideUtheir partner historically black colleges and universities (HBCUs) with critical resources forstudents who are facing increased financial hardship as a result of COVID-19. Support includes
laptop computers, broadband for access to online learning, shelter, meals, basic essentials, andother necessities for students unable to return home.

•

iUrbanTeen - A community organization that aims to inspire underrepresented youth tobecome tomorrow’s business and technology leaders. They provide career-related education
for underrepresented teens in cities across the U.S., including tech immersion events, STEM
and arts training programs and camps, and mentoring and internship opportunities. In responseto the COVID-19 pandemic, they created MindStream, a free online learning platform forhomebound teens.

Although we’re proud to make these monetary contributions, our work doesn’t stop here. We
continue to influence positive changes within communities and our workplace. Read more about
our commitment to inclusion, diversity, and equity in our Workplace chapter.

“The ripple effect of COVID-19 has the potential to prevent
students from continuing their education. UNCF is gratefulfor this support that will provide a pathway for students tocontinue on their journey to attain a college degree. Gifts
like these affirm our motto that a mind is a terrible thing
to waste, but a wonderful thing to invest in.”				

L A M R ES E A RC H

Dr. Michael L. Lomax,
President and CEO, UNCF.

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L A M R ES E A RC H

Products and Customers

Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

APPENDIX

73

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Our Workplace

Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

2020 Performance summary
Performance Area

2020

YOY Change

2019

Performance Area

2018

2020

YOY Change

2019

2018

Responsible Supply Chain

Business and Governance
Number of full-time employees (Approximate)

12,22814%

10,75010,950Total number of supplier families

1,459

-

-

-

Revenue1$10.0B

3.1%

$9.7B

$11.1B

Percent of spending on local suppliers (N. America)

49%

-

-

-

$1.2B (61%)

Total number of diverse suppliers

25

525%

4

-

Products and Customers

Total spending on diverse suppliers$75.5M123%$34.0M-

Total number of installed base chambers (Approximate)

Sustainable Operations

R&D spend (as percentage of operating expenses)$1.3B (63%)
66,0000.0%
8%$1.2B (63%)
61,00056,000Workplace

Energy and Climate

Gender Representation

Energy consumption (Million kWh)

351

6%

330

254

Percent of employee population identifying as female (Global)

18.6%

5%

17.7%

17.0%

Percent renewables (U.S.)

30%

-6%

32%

33%

Percent of employee population identifying as female (U.S)

21.3%

4%

20.4%

19.5%

GHG emissions scopes 1 and 2 market-based (MT CO2e)

113,482-4%

118,458

91,441-

Scope 1 emissions (MT CO2e)37,5994%

36,162

27,415

Scope 2 emissions location-based (MT CO2e)87,170

4%

83,513

65,137-

Scope 2 emissions market-based (MT CO2e)75,884-8%

82,29664,026

2.9M

n/a

23,05528,968

107

n/a

-

-

Percent of new hires identifying as female (Global)

23.9%

n/a

-

U.S. Ethnicity
White

50.5%

-

51.4%

Asian

30.9%

-

30.8%

-

GHG emissions scope 3 (MT CO2e)4

Hispanic or Latino

6.6%

-

6.1%

-

Volatile organic compounds (Metric tons)

Two or more races

2.2%

-

1.9%

-

Waste

Black or African American

2.1%

-

1.9%

-

Hazardous waste diversion rate

20%

-33%

30%

28%

-

Non-hazardous waste diversion rate

70%

27%

55%

59%

Native Hawaiian or other Pacific Islander

0.5%

-

0.5%

American Indian or Native Alaskan

0.3%

-

0.3%

-

Water

Not stated

6.9%

-

7.1%

-

Water usage (Million gallons)

292

6%

275

228

Water usage in water-stressed regions (Million gallons)

114

n/a

-

-

-

Ultra-pure water usage (Million gallons)

120

n/a

n/a

-

2

200%

0

1

Total giving by the Lam Research Foundation

3.6M

6%

3.4M

3.7M

5.1M

n/a

-

-

Employee Engagement, Recruitment, and Retention
Employee engagement score (Tech sector benchmark 74)

80

8%

74

Total new hires (Global)

2,067

190%

712

1,551

Number of environmental fines

Number of internal promotions

1,626

19%

1,370

-

Community

Total number of training courses

4,700

55%

3,042

1,854

Education reimbursement for U.S. employees$1.65M-2%$1.68M$1.36M

COVID-19 Relief and Recovery Fund giving

Employee retention rate

95%3

4%

91%

93%

Employee volunteer hours~12,000-10%

13,40011,321

7.3

Employee matching gifts (Thousands)$1.65M

41%

$971K

811K

Number of charity organizations supported

1,640

-28%

1,936

1,154

Average service years

7.7

-4%

8

2

SafetyOSHA recordable incident rate

0.25

-24%

0.33

0.29

Risk Management by Walking Around (RMBWA) reviews

170,000-15%

200,438

191,822

1. All figures are for calendar year, with the exception of revenue and R&D spend which are presented on a fiscal year basis. 2018 is for fiscal year ending
June 24, 2018; 2019 is for fiscal year ending June 30, 2019. K is defined as thousand, M is defined as million, and B is defined as billion.
2. These data points do not include Silfex, Ohio operations.
3. Retention rate is calculated as the inverse of attrition.
4. We undertook a full inventory of our scope 3 emissions for calendar year 2019. Previous years included emissions from business travel only.

L A M R ES E A RC H

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Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

About this report
Lam Research Corporation published this report to provide an overview of our company’s products,
services, and operations related to ESG performance. This report covers calendar year 2020, withsome exceptions noted, including financial data that is Lam’s fiscal year (July 1, 2019 to June 28,2020). The report encompasses our wholly owned subsidiaries across the globe, with some data
limited to particular geographies, which we note throughout the report.
We self-declare that this report is in accordance with the Global Reporting Initiative (GRI) Standard
framework at the Core level. As required, a GRI index at the end of this report shows our alignment
with GRI reporting elements and our material topics. We intend to continue to report annually.
We are also reporting in alignment with the Sustainability Accounting Standards Board (SASB)
Standard for the Technology and Communications Sector: Semiconductor Industry. This alignmentis detailed in the SASB index.
We have noted any significant changes in scope and boundary throughout the report that may varyfrom our 2019 report, published in 2020. External assurance is limited to financial data from theconsolidated financial statements in our 2020 Annual Report on SEC Form 10-K. This ESG reporthas been reviewed by the Compensation and Human Resources Committee and the Nominatingand Governance Committee of our Board and has been reviewed and approved by our president
and CEO.
For more information about our corporate governance, please reference our Proxy Statement.

L A M R ES E A RC H

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Responsible Supply Chain

Sustainable Operations

Our Communities

Appendix

GRI index
102 - General Disclosures

L A M R ES E A RC H

102-18 Governance structure

Proxy Statement 2020 - p 9-15

102-1 Name of the Organization

Lam Research Corporation

102-19 Delegating authority

Proxy Statement 2020 - p 14-15

102-2 Activities, brands, products, andservices

ESG Report: Business and Governance - p 2
ESG Report: Products and Customers – p 17
For additional information: https://www.lamresearch.com/products/
products-overview/102-20 Executive-level responsibility
for economic, environmental, and social
topicsCorporate Vice President of Corporate Communications
and Chief Communications Officer

102-3 Location of headquarters

ESG Report: Business and Governance - p 12
For additional information: https://www.lamresearch.com/company/
locations/102-21 Consulting stakeholders on
economic, environmental, and social
topicsESG Report: Business and Governance - p 6

102-4 Location of operations

Locations: United States, China, Korea, Austria, India, Japan, Malaysia,
Singapore, Taiwan, Belgium, France, Germany, Ireland, Israel, Italy,
Switzerland, The Netherlands, United Kingdom.

102-22 Composition of the highest
governance body and its committees

Proxy Statement 2020 - p 9-15

102-23 Chair of the highest governancebody

Chairman of the Board

102-24 Nominating and selecting thehighest governance body

Proxy Statement 2020 - p 9-15

102-25 Conflicts of interest

Proxy Statement 2020 - p 63

102-26 Role of highest governance bodyin setting purpose, values, and strategy

ESG Report: Business and Governance - p 7

102-27 Collective knowledge of highest
governance body

Proxy Statement 2020 - p 9-15

102-5 Ownership and legal form

The company’s stock is publicly traded on the Nasdaq Global SelectMarketSM under the symbol LRCX.

102-6 Markets served

Lam is a trusted, collaborative partner to the world’s leading semiconductor
companies.

102-7 Scale of the organization

ESG Report: Business and Governance - p 12
ESG Report: Workplace - p 27
Total number of employees: 12,200

102-8 Information on employees andother workers

ESG Report: Business and Governance - p 2
ESG Report: Workplace - p 32

102-9 Supply chain

ESG Report: Supply Chain - p 45

102-10 Significant changes to theorganization and its supply chain

In 2020, Lam began building a technology center in South Korea. In 2020,
Lam opened a new manufacturing facility in Malaysia.

102-11 Precautionary Principle orapproach

As a signatory of the United Nations Sustainable Development Goals, Lam
affirms Principle 15 of the 1992 Rio Declaration that states, “...where there
are threats of serious or irreversible damage, lack of full scientific certainty
shall not be used as a reason for postponing cost-effective measures toprevent environmental degradation.”102-12 External initiatives

ESG Report: Business and Governance - p 3
ESG Report: United Nations Sustainable Development Goals - p 3
ESG Report: Taskforce for Climate-related Financial Disclosure - p 9102-13 Membership of associations

ESG Report: Business and Governance - p 6
Center for Corporate Innovation, East Bay Foundation, National Associationof Manufacturers, Responsible Business Alliance, SEMI, Semiconductor
Industry Association, Silicon Valley Community Foundation, Silicon Valley
Leadership Group, Tualatin Chamber of Commerce, and Watermark.

102-28 Evaluating the highest governance Proxy Statement 2020 - p 9-10
body’s performance102-29 Identifying and managing
economic, environmental, and social
impacts

ESG Report: Business and Governance - p 5

102-30 Effectiveness of risk management
processes

10-K 2020 - p 14-27

102-31 Review of economic,
environmental, and social topics

ESG Report: Business and Governance - p 7

102-32 Highest governance body’s role insustainability reporting

ESG Report: Business and Governance - p 7

102-33 Communicating critical concerns

Critical concerns are elevated to the Board of the Directors by the executive
management team.

102-35 Remuneration policies

Proxy Statement 2020 - p 21-51

102-36 Process for determining
remuneration

Proxy Statement 2020 - p 21-51

102-14 Statement from senior decisionmaker

ESG Report: CEO Letter - p 1

102-37 Stakeholders’ involvement inremuneration

Proxy Statement 2020 - p 21-51

102-15 Key impacts, risks, andopportunities

ESG Report: Business and Governance - p 5

102-38 Annual total compensation ratio

Proxy Statement 2020 - p 21-51
Proxy Statement 2020 - p 21-51

102-16 Values, principles, standards,
and norms of behavior

ESG Report: Business and Governance - p 3
ESG Report: Workplace - p 29

102-39 Percentage increase in annual
total compensation ratio
102-40 List of stakeholder groups

ESG Report: Business and Governance - p 6

102-17 Mechanisms for advice andconcerns about ethics

ESG Report: Business and Governance - p 14

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Appendix

GRI index (Continued)
102-41 Collective bargaining agreements

No collective bargaining agreements

102-54 Claims of reporting in accordancewith the GRI Standards

This report has been prepared in accordance with the GRI Standards: Core
option.

102-42 Identifying and selecting
stakeholders

ESG Report: Business and Governance - p 6

102-55 GRI content index

Yes. The GRI content index meets reporting requirements.

102-43 Approach to stakeholder
engagement

ESG Report: Business and Governance - p 6

102-56 External assurance

Creating an inclusive world involves valuing all perspectives and seeking
insight from a variety of stakeholders. We regularly engage our key
stakeholders in a spirit of collaboration and trust, seeking their feedback
on ESG issues, and considering their perspectives when developing andmanaging our ESG objectives. Our engagement with stockholders on
ESG topics continues to grow. It is a standard agenda item for our top
stockholder meetings and in 2020, we met with 15 stockholders holding
approximately 30% of our shares outstanding.

No. External assurance is limited to our financial data certified in our 2020
Annual Report on Form 10-K.

Economy102-44 Key topics and concerns raised

ESG Report: Business and Governance - p 5

102-45 Entities included in the
consolidated financial statements

10-K 2020 - p 60

102-46 Defining report content and topic
boundaries

ESG Report: About this Report - p 75

102-47 List of material topics

ESG Report: Business and Governance - p 5

103 - Management Approach to Economy
Topics103-1 Explanation of the material topic
and its boundary

ESG Report: Business and Governance - p 5
ESG Report: About this Report - p 75

103-2 The management approach and its
components

ESG Report: Business and Governance - p 2-16

To ensure the salience of our ESG strategy, we conduct a materiality
assessment every three to five years, or when notable shifts happen in ourbusiness. In 2018, we conducted a full materiality assessment in accordancewith both SASB and GRI standards. As part of the assessment process,we reviewed important topics and risks published in our public financial
filings, consulted with senior management and key internal and external
stakeholders, and benchmarked our ESG program according to data
provided by third-party ratings organizations. This assessment identified 13
priority topics which we consolidated into 6 categories, which inform our
key strategies and overall ESG framework. We use this framework to drive
our ESG programs, set our goals, and guide our disclosures.

102-48 Restatements of information

We maintain a Code of Ethics that applies to all employees, officers,
and members of the Board of Directors. The Code of Ethics establishes
standards to promote honest and ethical conduct, including the proper
handling of actual or apparent conflicts of interest between personal
and professional relationships. The code also establishes expectationsof full, fair, accurate, timely, and clear disclosure in the periodic reports
we file with the Securities and Exchange Commission and in other public
communications. We promptly disclose to the public any amendments to, or
waivers from, any provision of the Code of Ethics to the extent required byapplicable laws.
The Ethics Helpline is operated by an independent service and is available
24 hours a day and seven days a week in most regions where Lam
operates. It is accessible through both our external and internal websites
and interpreters are available via phone. The Helpline provides a channel
for employees, suppliers, customers, and other business partners to seek
guidance or report suspected ethical or compliance violations. Concerns
may be reported anonymously, and all reports are treated confidentially.

Per guidance in the GHG Protocol, we re-calculated our GHG emissions
for the baseline year 2019 to include the leased offices world-wide. This
resulted in a 6.3% increase in our overall scope 1 and 2 (market-based)emissions in 2019 from 111,479 MTCO2e to 118,480 MTCO2e.
Starting in 2020, we aligned with the Sustainability Accounting Standards
Board (SASB) framework and re-classified any waste sent for waste-toenergy (WTE) as non-recycling.

L A M R ES E A RC H

Lam consistently assesses internal and external risks that must be
managed to support responsible governance and ethics. Based on
the risk assessment, we refine our programs and adjust our annual
plan. Our global expansion includes regions where there are differing
governmental structures, wide-ranging regulatory environments, andbribery and corruption challenges. It has been a priority to enhance our risk
management program in light of our expansion.

Every time a report of a potential violation is made through the Helpline, we
document it, investigate it, determine appropriate remediation, and makesure that necessary remedial measures are taken. Reported topics range
from employee relations to conflicts of interest.

102-49 Changes in reporting

No changes in reporting.

102-50 Reporting period

January 1, 2020 - December 31, 2020

102-51 Date of most recent report

July 2020

103-3 Evaluation of the management
approach102-52 Reporting cycle

Annual201 - Economic Performance

102-53 Contact point for questions
regarding the report

esg@lamresearch.com

201-1 Direct economic value generated
and distributed

ESG Report: Business and Governance - p 2-16

ESG Report: Business and Governance - p 11

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Appendix

GRI index (Continued)
201-2 Financial implications and otherrisks and opportunities due to climatechangeESG Report: Business and Governance - p 11
10-K 2020 - p 14-27

201-3 Defined benefit plan obligations
and other retirement plans

10-K 2020: p 87

103-2 The management approach and its
components

We hold ourselves accountable for our commitment to mitigating ourenvironmental impact by setting measurable long-term goals. We use
policies and systems, certifications, assessments and audits, and employee
training and engagement to help us reach these goals. The Corporate Vice
President of Global Quality and EH&S is responsible for our environmental
performance.

We offer a competitive 401(k) benefit, matching 50% of regular pre-tax
contributions and/or regular Roth contributions on the first 6% of eligible
pay that employees contribute to the plan. In 2020, 94% of our employees
participated. Bonus incentives are also part of our benefits package, basedon both individual and company performance. In 2020, 92% of our eligible
employees received bonuses, which included a one-time appreciation
bonus for on-site employees.

Since 2013, all Lam manufacturing and R&D sites have been externallycertified to be compliant with ISO International Organization forStandardization (ISO) 14001 certified, the recognized global standard forenvironmental management systems. We have two levels of environmental
review:

Stock awards are offered to senior and other selected employees. In 2020,
77% of our employees chose to invest in Lam through our employee stock
purchase plan (ESPP). Employees who work 20 hours or more per week
may contribute up to 15% of their earnings to the ESPP (subject to statutory
limits) and are eligible to purchase shares at a discount of at least 15%.

* The corporate EHS team conducts regular assessments and auditsof business risks, standards conformance, regulatory compliance, andmanagement system effectiveness across Lam’s locations world-wide

203 - Indirect Economic Impact
203-2 Significant indirect economic
impacts* Our executive management reviews the findings of these assessments
and audits and ensures non-conformances are adequately addressed

ESG Report: Communities - p 66-72

205 - Anti-Corruption
205-2 Communication and training aboutanti-corruption policies and procedures

A significant environmental aspect of our operations is chemical
management, and we take all appropriate measures to keep our chemical
operations safe and legally compliant. Our integrated inventory system
connects real-time inventory to procurement, usage conditions, andregulatory reporting for our chemical users, handlers, and planners. We
use this system to continuously identify and implement safety controls andreport the use and treatment of chemicals in accordance with government
regulations across our footprint.

ESG Report: Business and Governance - p 14-15

206 - Anti-Competitive Behavior
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices

No legal actions and $0 fines as a result of anti-competitive behavior,anti-trust, and monopoly practices.

207 – Tax
207-4 Country-by-country reporting

United Kingdom: https://investor.lamresearch.com/static-files/0cf7213bce40-493a-b0f1-9e6ed46ada7f

Environment
103 - Management Approach toEnvironmental Topics
103-1 Explanation of the material topic
and its boundary

ESG Report: Business and Governance - p 2-16
ESG Report: About this Report - p 75

ESG Report: Business and Governance - p 2-16
ESG Report: Sustainable Operations - p 53-65

103-3 Evaluation of the management
approach

ESG Report: Sustainable Operations - p 55
ESG Report: Business and Governance - p 7-9

302 - Energy
302-1 Energy consumption within theorganization

ESG Report: Sustainable Operations - p 55-57

302-3 Energy intensity

ESG Report: Sustainable Operations - p 55-57

302-4 Reduction of energy consumption

ESG Report: Sustainable Operations - p 55-57

302 -5 Reduction in energy requirements
of products and services

ESG Report: Products and Customers - p 24

303 - Water and Effluents
303-1 Interactions with water as a sharedresource

ESG Report: Sustainable Operations - p 63

303-2 Management of water dischargerelated impacts

ESG Report: Sustainable Operations - p 64

303-3 Water withdrawal

ESG Report: Sustainable Operations - p 63

303-4 Water discharge

ESG Report: Sustainable Operations - p 63

303-5 Water consumption

ESG Report: Sustainable Operations - p 63

305 - Emissions
305-1 Direct (Scope 1) GHG emissions

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ESG Report: Sustainable Operations - p 57-59

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Appendix

GRI index (Continued)
305-2 Energy indirect (Scope 2) GHG
emissions

ESG Report: Sustainable Operations - p 57-59

401 - Employment305-3 Other indirect (Scope 3) GHG
emissions

ESG Report: Sustainable Operations - p 57-59

401-1 New employee hires and employee
turnover305-4 GHG emissions intensity

ESG Report: Sustainable Operations - p 57-59

305-5 Reduction of GHG emissions

ESG Report: Sustainable Operations - p 57-59

306 - Waste
306-1 Waste generation and significant
waste-related impacts

ESG Report: Sustainable Operations - p 61-62

306-2 Management of significant wasterelated impacts

ESG Report: Sustainable Operations - p 61-62

306-3 Waste generated

ESG Report: Sustainable Operations - p 61-62

306-4 Waste diverted from disposal

ESG Report: Sustainable Operations - p 60-61

306-5 Waste directed to disposal

ESG Report: Sustainable Operations - p 61-62

307 - Environmental Compliance307-1 Non-compliance withenvironmental laws and regulations

In 2020, the global Lam sites had 34 regulatory agency inspections,
including 24 health and safety inspections, and 10 environmental-related
inspections. We received two environmental Notice of Violations (NOVs)
and paid $1,500 fines in total.

308 - Supplier Environmental Assessment
308-1 New suppliers that were screenedusing environmental criteria

New hires: 2,067
Turnover: 4.7%

403 - Occupational Health and Safety403-1 Occupational health and safety
management system

ESG Report: Workplace - p 36-37

403-3 Occupational health services

ESG Report: Workplace - p 38-41

403-4 Worker participation, consultation,and communication on occupational
health and safety

ESG Report: Workplace - p 36

403-5 Worker training on occupational
health and safety

ESG Report: Workplace - p 36

403-6 Promotion of worker health

ESG Report: Workplace - p 38

403-9 Work-related injuries

ESG Report: Workplace - p 36

404 - Training and Education
404-1 Average hours of training per year
per employee

Average hours of training per employee: 51 hours

404-2 Programs for upgrading employee
skills and transition assistance programs

ESG Report: Workplace - p 43-44

405 - Diversity and Equal Opportunity
ESG Report: Supply Chain - p 51
We expect our suppliers to make every effort to reduce impact on theenvironment by meeting standards established by applicable environmental
legislation.

Social103 - Management Approach to Social
Topics103-1 Explanation of the material topic
and its boundary

ESG Report: Workplace - p 28
ESG Report: Supply Chain - p 46
ESG Report: About this Report - p 75

103-2 The management approach and its
components

ESG Report: Workplace - p 28-29
ESG Report: Supply Chain - p 47-48

103-3 Evaluation of the management
approach

ESG Report: Workplace - p 30-35
ESG Report: Supply Chain - p 47-48
ESG Report: Business and Governance - p 7-9405-1 Diversity of governance bodies andemployees

ESG Report: Business and Governance - p 7
ESG Report: Workplace - p 32-33

407 - Freedom of Association andCollective Bargaining
407-1 Operations and suppliers in which
the right to freedom of association andcollective bargaining may be at risk

Lam is not aware of any operations or major direct suppliers in which rightto freedom of association and collective bargaining (to the extent permitted
under local laws) was at risk in 2020.

408 - Child Labor
408-1 Operations and suppliers at
significant risk for incidents of child labor

ESG Report: Supply Chain - p 50
Lam is not aware of any operations or major direct suppliers that were atsignificant risk for incidents of child labor in 2020.

409 - Forced or Compulsory Labor
409-1 Operations and suppliers at
significant risk for incidents of forced orcompulsory labor

ESG Report: Supply Chain - p 50
Lam is not aware of any operations or major direct suppliers that were atsignificant risk for incidents of forced or compulsory labor in 2020.
Lam respects human rights and is committed to adhering to humane
business practices wherever the company does business, including
complying with laws such as the UK Modern Slavery Act of 2015 and theCalifornia Transparency in Supply Chains Act of 2010.

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Appendix

GRI index (Continued)
411 - Rights of Indigenous Peoples
411-1 Incidents of violations involving
rights of indigenous peoples

Lam is not aware of any incidents of violations involving rights of indigenous
peoples.

414-1 New suppliers that were screenedusing social criteria

412 - Human Rights Assessment
412-1 Operations that have been subject
to human rights reviews or impact
assessments

ESG Report: Supply Chain - p 50
Our anti-slavery, child labor, and human trafficking due diligence includes
compliance with the Countering America’s Adversaries Through Sanctions
Act (CAATSA), which focuses on the prevention of North Korean forcedlabor. We monitor reported political, legal, and financial risks for our top
100 suppliers (representing over 90% of our direct spend) and our top 100
suppliers with operations in high-risk regions for human trafficking.
Since 2012, we conduct annual due diligence of our suppliers to determine
the sources of any conflict minerals that may be contained in our products.
We updated our conflict minerals due diligence program to include
responsible sourcing of cobalt in 2019.

412-2 Employee training on human rights
policies or procedures

ESG Report: Supply Chain - p 50

412-3 Significant investment agreements
and contracts that include human rights
clauses or that underwent human rights
screening

ESG Report: Supply Chain - p 50
Human rights clauses are included in terms and conditions for all new
suppliers contracts.

413 - Local Communities
413-1 Operations with local community
engagement, impact assessments, anddevelopment programs

ESG Report: Supply Chain - p 48-51
Lam values a diverse supply chain and is committed to selecting diverse
suppliers that offer goods and services that meet our company’s standards,
supplier selection criteria, and customer requirements. Promoting a diverse
supplier base is a priority for Lam, and we support a number of industry
and customer initiatives around supplier diversity. Diversity is also included
in our supplier scorecard, and we track and report spending with diverse
direct material suppliers on a quarterly basis. We are using this data tofacilitate a cross-functional approach to supplier diversity.
We are a member of the SEMI (formerly Semiconductor Equipment andMaterials International) Manufacturing Ownership Diversity Task Force that
promotes and shares best practices for manufacturing ownership diversity(more commonly known as “supplier diversity.”)

415 - Public Policy
415-1 Political contributions

ESG Report: Business and Governance - p 15
No financial and in-kind political contributions made directly or indirectly.

418 - Customer Privacy
418-1 Substantiated complaints regarding
concerning breaches of customer privacy
and losses of customer data

ESG Report: Business and Governance - p 17
In 2020, there were no substantiated complaints regarding or concerningmaterial breaches of customer privacy and losses of customer data.

ESG Report: Community - p 66-72

414 - Suppler Social Assessment

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Appendix

SASB - Technology and communications - Semiconductors
Topic

Code

Accounting Metric

Disclosure

Activity Metrics

TC-SC-000.A

Total production

Approximately 5,000 chambers

TC-SC-000.B

Percentage of production from owned
facilities

All process modules are assembled,
tested, and inspected for quality at
Lam facilities.

TC-SC-110a.1(1) Gross global Scope 1 emissions(1) 37,599 MTCO2e(2) Amount of total emissions fromperfluorinated compounds(2) 11,424 MTCO2e

TC-SC-110a.2

Discussion of long-term and short-term
strategy or plan to manage Scope 1
emissions, emissions reduction targets,and an analysis of performance against
those targets.

ESG Report: Sustainable Operations- p 57-59

Energy Management

TC-SC-130a.1(1) Total energy consumed(2) Percentage grid electricity(3) Percentage renewable(1) 351 million kWh(2) 99%(3) 32%

Water Management

TC-SC-140a.1(1) Total water withdrawn(2) Total consumed percentage of eachin regions with High or Extremely HighBaseline Water Stress(1) 292 million gallons(2) 39%Waste Management

TC-SC-150a.1(1) Amount of hazardous waste frommanufacturing(2) Percentage recycled(1) 2,415 metric tons
(2) 22%

Employee Healthand Safety

TC-SC-320a.1

Description of efforts to assess,monitor, and reduce exposure of
employees to human health hazards.

ESG Report: Workplace - p 36-39

TC-SC-320a.2

Total amount of monetary losses as aresult of legal proceedings associatedwith employee health and safety
violations$0 fineGHG Emissions

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Recruiting andManaging a
Global and Skilled
Workforce

TC-SC-330a.1

Percentage of employees that are:(1) foreign nationals(2) located offshore(1) Not disclosed.
(2) Not disclosed.
Lam Research does not believe this isa material metric to our business due
to our global footprint. A breakdownof employees by region and othermaterial human capital metrics areavailable in ESG Report: Business andGovernance - p 12 and ESG Report:
Workforce - p 32-33.

Product Lifecycle
Management

TC-SC-410a.1

Percentage of products by revenue
that contain IEC 62474 declarable
substances

Not disclosed.
Lam Research discloses informationon our strategy and product value
chains. We do not believe thatpercentage of revenue is a material
metric to disclose.

TC-SC-410a.2

Processor energy efficiency at asystem-level for: (1) servers, (2)desktops, and (3) laptops

Not Applicable.
Lam Research does not manufacture
servers, desktops, or laptops.

Materials Sourcing

TC-SC-440a.1

Description of the management ofrisks associated with the use of criticalmaterials

ESG Report: Sustainable Operations- p 54-64
ESG Report: Supply Chain - p 46-49.

Intellectual Property
Protection andCompetitive
Behavior

TC-SC-520a.1:

Total amount of monetary losses as aresult of legal proceedings associatedwith anticompetitive behavior
regulations.

$010-K 2020: p 89

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Appendix

References
Annual Reports
Code of Ethics
Global Standards of Business Conduct
Community Relations
Environmental Social Governance
Lam Research
Lam Research Global EHS Sustainability Commitment Policy
Products
Supply Chain Policies

Credits
Many employees supported the development of Lam’s ESG program and this reporting effort. We
would like to thank them for their ongoing contributions as we continue to integrate ESG into our
corporate culture.

Contact information
If you have questions regarding this report or Lam’s ESG activities, please contact:
ESG@lamresearch.com.

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