Act With Purpose
for a Better World

2022
Environmental, Social,and Governance ReportProgress is a journey
and we’re well on
our way

As a global supplier of wafer fabrication equipment and services, Lam’s technology is at thecore of the semiconductor industry’s most exciting innovations. To ensure a sustainable future
as we help transform the world with technology, we aspire to incorporate environmental,social, and governance (ESG) principles into everything we do.
From the way we power our global operations to our approach to designing next-generation
products, we remain dedicated to our pursuit of a better world. With this report, we are proud
to share impactful stories and data that demonstrate our ESG progress throughout 2022.1

Contents
Introduction

Product innovation

Responsible supply chain

CEO message.................................................................................1
Lam’s global edge........................................................................ 2
Financial overview....................................................................... 3
Living our Core Values..............................................................4
Our vision for a future of accelerated innovation....... 5
Building momentum to achieve our ESG goals............62022 ESG scores and recognitions.................................... 7

Highlights....................................................................................... 18
Creating our most efficient and sustainablegeneration of products....................................................... 19
Bringing our Tech Vision to life.......................................... 20
Developing sustainable solutions.................................... 24
Giving our customers a market edge............................. 25

Highlights...................................................................................... 56
Our strategy for mutual success.......................................57
Advancing climate action together................................. 60
Upholding human rights........................................................ 61
Ensuring responsible sourcing of minerals.................. 61
Cultivating a diverse supply chain.................................... 61

Delivering safe, high-quality products........................... 26

Collaborating toward ESG progress............................... 62

Business and governance

Sustainable operations

Our communities

Highlights.........................................................................................9
Our ESG approach.................................................................... 10
Leading with accountability.................................................. 11
Engaging our global stakeholders.................................... 12
Building an ethical culture.................................................... 13
Protecting data and intellectual property..................... 15
Engaging policymakers and complying
with global taxation.............................................................. 16

Highlights...................................................................................... 28
Advancing our net zero roadmap..................................... 29
Optimizing energy.................................................................... 33
Accelerating water savings................................................. 35
Maximizing value by minimizing waste......................... 36

Highlights...................................................................................... 64
Powering breakthroughs together.................................. 65
Transformative learning........................................................ 66
Resilient communities............................................................ 68
Inclusive societies.................................................................... 69
Turning employees’ passion into action....................... 70

1Unless stated otherwise, the data in this report reflect our performance as of Dec. 31, 2022.

Our workplace
Highlights.......................................................................................41
Engaging and developing our people............................ 42
Shaping an inclusive culture............................................... 46
Keeping our employees safe............................................... 53

Resources
About this report....................................................................... 73
Assurance letter........................................................................ 74
Additional information........................................................... 82
Cautionary statement............................................................ 83

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

1

Building a responsible, sustainable
trillion-dollar industry
A MESSAGEFROM OUR CEO

Over the last 20 years alone, semiconductors have changed
how we work, learn, and connect. And today, change is once
again upon us. Artificial intelligence is becoming pervasiveat rapid speed, and society is already adjusting. The next
decade is expected to bring even more opportunities withthe age of machine learning and the metaverse, in which thephysical world will merge with an immersive virtual world.

Growing to a trillion-dollar industry will also require a strong
pipeline of STEM talent. To support that, Lam pledged to
donate $10 million to the nonprofit FIRST® Global to help
bring science and technology education to youth around theglobe. With this partnership, we are creating opportunities
for continuous discoveries, and ultimately inspiring the next
generation of innovators.

The growth of new technologies means more demand forchips, and the semiconductor industry will play a criticalrole in shaping the future. But greater opportunity alsomeans greater responsibility: If the semiconductor industry
is expected to grow to $1 trillion within the decade, ESG willplay an even more important role in building a responsible
and sustainable industry.

We are also committed to ensuring human rights across
our operations and supply chains. That’s why we recently
published a human rights policy that affirms and expands
upon our ongoing commitment to upholding internationallyrecognized human rights standards.

While it is expected that the industry will almost double insize, it’s imperative our impact on the environment doesn’t
increase at the same rate. At Lam, we have set a goal toachieve 100% renewable electricity by 2030 and net zero by
2050, and we have defined the key milestones to get there.
In 2022, we became the first U.S.-based semiconductor
equipment manufacturer to have its near-term emission
reduction targets approved by the Science Based Targets
initiative.1 Additionally, in 2022, we exceeded our 2025
water savings goal.
1

At Lam, we recognize the value of collaboration, so while weare focused on our own progress, we are also working acrossthe industry—and the broader business community—to builda responsible and sustainable semiconductor ecosystem.
Lam joined the UN Global Compact, the world’s largest
sustainability initiative, with an ambition for businesses totake shared responsibility for achieving a better world. We
also worked with industry leaders to form the Semiconductor
Climate Consortium, a new partnership with SEMI toaccelerate the industry’s response to climate change. We
are working across our supply chain, with a goal to increase

Our 2030 emissions reduction goal was validated in 2022 and was subsequently restated in 2023 in alignment with SBTi.

supplier engagement and assess their performance onhuman rights and climate action. We are also engaging
closely with our customers because we know their useof our tools impacts their sustainability goals. Throughour Semiverse™ Solutions, we are bringing our industry
into the virtual space, improving the sustainability of ourwork, and creating new ways to build the next generationof the workforce quickly and efficiently.
It’s clear that semiconductors have revolutionized
the world, and as we continue to innovate the next
generation of technology breakthroughs, we must do
it in a sustainable way—for our customers, employees,
communities, stockholders, and the planet. None of us can
succeed alone, so let’s build the future we want together.
Tim Archer
president and chief executive officer

2022 ESG Report

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

For decades, Lam Research has
been challenging assumptions
and pushing the boundaries ofsemiconductor technology.

Lam’s global edge1

We create solutions that enable chipmakers to power progress—
always thinking ahead to ask, what’s next?

manufacturing facilitiesRESPONSIBLE SUPPLY CHAIN

14OUR COMMUNITIESRESOURCES

19,200+ global employees,
distributed across:primary locations, including:Fremont, California
headquarters

50.2% United States

116

research & development labs

20.1%

Southeast Asia & India

8.5%

South Korea

6.3%

Taiwan6.2%

Europe

5.9%

China

2.8%

Japan

Note: Minimal rounding has been applied to these data.

Springfield andEaton, OH

Tualatin and
Sherwood, OR

Silicon component
manufacturing

Manufacturing
and labs

Osan,
Hwaseong-si, andYongin, Korea

Villach, Austria
Manufacturing
and labs

Manufacturing
and labs

Taoyuan Cityand Hsinchu City,
TaiwanManufacturing
and labFremont andLivermore, CA
Headquarters,
manufacturing,and labs

1

Unless stated otherwise, the data in this report are as of Dec. 31, 2022.

Bengaluru,
India
Lab

Batu Kawan,
Malaysia
Manufacturingsite

2

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Financial overview1(IN THOUSANDS, EXCEPT PERCENTAGESAND PER SHARE DATA)FY 2020

FY 2021

FY 2022CHANGEFY 21 TO FY 22

Revenue$10,044,736$14,626,150$17,227,039

17.8%

Gross margin$4,608,693$6,805,306$7,871,807

15.7%

45.9%

46.5%

45.7%

(0.8)%

Total operating expenses$1,934,891$2,323,283$2,489,985

7.2%

Research and development (R&D) expenses2$1,252,412$1,493,408$1,604,248

7.4%

64.7%

64.3%

64.4%

0.1%

$2,251,753$3,908,458$4,605,286

17.8%$15.10$26.90$32.75

21.7%

Gross margin as a percent of total revenue

R&D as a percent of operating expenses
Net income
Net income per diluted share

Revenue by region
FY 2022

China 31%
Korea 23%
Taiwan 17%
Japan 9%
United States 8%
Southeast Asia 8%
Europe 4%This fiscal year data indicates our performance through the following periods: 2020 is for fiscal year ending June 28, 2020; 2021 is for fiscal year ending June 27, 2021; 2022 is for the fiscal year ending June 26, 2022.

1

R&D expenses are included in total operating expenses.

2

OUR COMMUNITIESRESOURCES

3

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESLiving our Core Values
Our Core Values are the bedrock on which Lam’s culture isbuilt. They help us cultivate an environment where we cancome together to do our best work. These values are ingrainedin our daily operations and our efforts to propel sustainablegrowth, from the way we design new products to how weengage with our stakeholders and teams.

Achievement

Agility

Honesty and integrity

Inclusion and diversity

Innovation andcontinuous improvement

Mutual trust andrespectOpencommunication

Ownership andaccountability

Teamwork

RESOURCES

4

2022 ESG Report

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

Our vision for a future ofaccelerated innovation

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

To bolster innovation we must first address and identify common barriers. Within thesemiconductor industry, those barriers can include research and communication silosthat keep us working apart. By sharing knowledge and insights more widely, we canunlock solutions for a smarter, faster, more sustainable world.

Here’s how we’re collaborating internally and externally to realize new opportunities for what our industry can achieve:
Collaborating with customers
to reduce our industry’s
environmental impact bydeveloping tools (the products
we make) and processes withsustainability in mind

Teaming up withindustry leaders
to break down researchand development silos,
advocate for our businessand stakeholders, andadvance climate action

Engaging suppliers
to support them in their own
environmental and social efforts,such as driving human rights
programs and environmentally
sustainable material sourcing

Coaching andinvesting in startups
to help them grow and bringtransformative technologies andsustainable solutions to scale

Partnering with universities
and academic consortia
to support and solicit advanced
research on the industry’s mostpressing challenges

Collaborating internallyby participating in crossfunctional teams, sharing
data-based insights,
knowledge, and bestpractices

Empowering employees
through employee resourcegroups, volunteerism, andother programs that leverage
employees’ passions to drive
positive change

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Building momentum toachieve our ESG goals

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Governance• Continue to expand our disclosure and alignment with industry-recognized frameworks and standards

Annual

Product innovation• 83% of customers measured by emissions set science-based targets (SBTs)2

Cumulative from baseline

Responsible
supply chain

Community

STATUS

Achieve net zero emissions by 2050 by meeting the following targets:• Achieve 100% renewable electricity by 20303• Reduce absolute Scope 1 and 2 (market-based) greenhouse gas (GHG) emissions 25% by 2025 and 60.6% by 2030 from a 2019 baseline.
By 2040, achieve net zero operations4

AnnualCumulative from baseline• Achieve 12 million kilowatt-hours (kWh) in total energy savings from a 2019 baseline

Cumulative from baseline• Achieve zero waste to landfill for hazardous waste

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

Cumulative from baseline• Build on our high-performance culture with best-in-class employee engagement at the global benchmark as measured by our annual employee survey

Annual

• Maintain an Occupational Safety and Health Administration (OSHA) recordable injury rate at or below 0.4 annually

Annual• Increase the proportion of women (globally) and underrepresented employees (U.S.) across the company

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

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

Annual• Increase engagement with all suppliers on social and environmental topics through assessment, training, and capacity building

Annual• 46.5% of suppliers measured by emissions will set SBTs5

Cumulative from baseline• Determine key targets for larger-scale impact aligned to a new strategic focus

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

Annual• Increase annual unique participation rate in all employee giving programs from 10% to 30%

Cumulative from baseline• Increase employee volunteer hours by 33% from a 2019 baseline

Cumulative from baseline

Our 2030 goal was validated in 2022 and was subsequently restated in 2023 in alignment with SBTi.
Previously, this goal targeted SBTs for 83% of customers measured by revenue by 2025. Lam updated this goal in 2022 per the SBTi verification and approval process.
3 Previously, this goal targeted 100% renewable energy by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
4
Previously, the 2030 goal targeted a 46% reduction in Scope 1 and 2 (market-based) greenhouse gas (GHG) emissions. Due to a previously unidentified source of Scope 1 emissions, Lam worked with SBTi to update our 2019 emissions inventory and restate our 2030 goal.
5 Previously, this goal targeted SBTs for 80% of top direct suppliers by spend by 2025 and 95% by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
2

TIMEFRAME

GOAL

Workplace6

As we progress in each of Lam’s ESG pillars, our goals keep us focused and accountable. In 2022, wemade important strides, including surpassing our water goal years ahead of schedule. We also received
approval from the Science Based Targets initiative (SBTi) for our near-term emissions-reduction goals.1
Unless stated otherwise, we aim to complete each of our ESG goals by 2025.

ESG PILLAR

Sustainable
operations

1

RESOURCES

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

2022 ESG scores and recognitions
KEY INDEXBEST POSSIBLE RANKING

2020

2021

2022

Dow Jones Sustainability Index North America1

Listing indicates top 20% sustainability performance

Unlisted

ListedListedCDP Climate Change questionnaire

A

B

B

B

CDP Water Security questionnaire

A

B

B

B

ISS ESG Corporate Rating

Excellence (A+)

C

C

C

MSCI USA

AAA

AA

AA

AAA

Sustainalytics ESG Risk Rating

Negligible (0)1714.7 low risk

13.4 low risk

1 Recognizes the top 20% of sustainability performers among the largest 600 U.S. and Canadian companies in the S&P Global Broad Market Index.

CORPORATE RECOGNITIONSWORKPLACE AND INDUSTRY RECOGNITIONS• Institutional Investor—Top ranking for semiconductor
industry by Sell-Side analysts for:• Forbes– ESG: #3– Company Board: #3– Chief executive officer: #2 (awarded to Tim Archer)– Chief financial officer: #2 (awarded to Doug Bettinger)– Investor Relations (IR) Team: #3– IR Professional: #2 (awarded to Ram Ganesh)– IR Program: #3

CUSTOMER RECOGNITIONS• Intel—EPIC Outstanding Supplier Award with supplier
diversity distinction• Micron– Outstanding Performance in Front End Capital– Outstanding Performance in Supplier Diversity• Samsung’s “Collaboration Award”• TSMC—Excellent Performance Award for Excellent
Technology Collaboration– America’s Best-in-State Employers Oregon: #1– World’s Top Female-Friendly Companies: #219
– World’s Best Employers: #555
– America’s Best Employers: #29• Fortune– Fortune 500: #250
– World’s Most Admired Companies: #6 in the semiconductor industry• Human Rights Campaign Foundation—2022 Best Places to Work for
LGBTQ+ Equality• JUST 100—151st overall and 10th in the semiconductor industry• Newsweek—America’s Most Responsible Companies: #20• Silicon Valley Business Journal—2022 Community Impact AwardRESOURCES

7

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Business and governance

IN THIS SECTION:
9Highlights

10

Our ESG approach11

Leading with accountability

12

Engaging our global stakeholders

13

Building an ethical culture

15

Protecting data and intellectual property

16	Engaging policymakers andcomplying with global taxation8

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

We strive to
integrate ESG
principles into
everything we do.

We strive to model sustainable best practices within
our organization while catalyzing global change.
In 2022, we focused on leading with accountability
and strengthening Lam’s ethical culture. We
proudly developed our first Human Rights Policy
and celebrated our inaugural Ethics & Compliance(E&C) Week. As the year came to a close, we joined
thousands of participants working to enhance
corporate sustainability through the United
Nations Global Compact (UNGC).

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Governance1
GOAL

STATUSContinue to expand our disclosure andalignment with industry-recognizedframeworks and standards
1

Lam’s business enables transformative technologies
that shape the ways we live and work. Our impact canbe felt throughout our company and value chain andby society at large. In our quest for semiconductor
breakthroughs, we hold ourselves to the highest
standards of responsible and ethical conduct. Whenthe road ahead seems uncertain, our Core Values androbust corporate governance program guide us to dowhat’s right.

SUSTAINABLE OPERATIONS

2022 PROGRESS• Our efforts to increase disclosure raised ourratings and rankings with third parties

Unless stated otherwise, we aim to complete each of our ESG goals by 2025.

2022 HIGHLIGHTS

Developed a new

Celebrated our first

Joined theConducted an in-depth

global Human
Rights Policy
UN Global
Compact

Ethics & Compliance
Week
ESG materiality
assessment

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Our ESG approach
Our ESG strategy supports the success of Lam’s businessas we act with purpose for a better world. It provides aframework for meaningful investments, proactive risk
management, and globally focused action. Our approachemphasizes engagement, goal setting, and accountability.
We aspire to continuously increase transparency anddisclosure, in line with industry-recognized frameworks,
best practices, and standards.
Our ESG strategy consists of six pillars that reflect areas
where Lam can make a significant positive impact. These
pillars include:

Aligning our strategy with the UNGC and United
Nations Sustainable Development Goals (SDGs)
Lam is dedicated to the development, implementation, anddisclosure of responsible business practices—qualities thatare championed by the UNGC. Based on this alignment, we
joined the UNGC in 2022 to underscore our commitment
to accelerating ESG progress on a global scale. The
organization is the world’s largest corporate sustainability
initiative, with tens of thousands of participants worldwide.
As a member, Lam supports the UNGC’s Ten Principles
for labor, environment, anti-corruption, and human rights,
as well as the advancement of the UN’s SDGs.

ESG pillars
BUSINESS AND GOVERNANCE

OUR WORKPLACE

Integrate ESG into our business operations
and foster ownership and accountability as we
advance our ESG strategy and goals.

Build an inclusive, diverse, and engaged
workplace while achieving top performancein health and safety.

PRODUCTS AND CUSTOMERSRESPONSIBLE SUPPLY CHAIN

Innovate with ESG in mind and design forenvironment principles to be a partner of choicefor our customers and support their ESG goals.

Ensure an ethical and responsible businessecosystem focused on human rights andthe environment.

SUSTAINABLE OPERATIONSOUR COMMUNITIESMinimize our environmental impact throughinvestments in energy, water, waste, and GHG
emissions reductions.

Be a responsible corporate citizen with
programs focusing on transformative learning,resilient communities, and inclusive societies.

The SDGs represent an international effort to tackle theworld’s most pressing issues. As global citizens, we see theframework of the SDGs as another method of measuring
Lam’s progress and ensuring our ESG initiatives serve
the greater good. We aim to drive progress on the SDGs
throughout Lam’s operations and supply chain, including
through our workforce, our products, and our new social
impact platform. Learn how Lam is working to accelerate
progress toward priority SDGs.

Learn more about our ESG strategy

Our ESG mission
We elevate human prosperity andprotect the environment in ouroperations, supply chain, and the
products we create.

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Leading with accountability
Lam’s Board of Directors (Board) and leaders arecommitted to strong corporate governance to deliver
stakeholder benefits over the long term. We haveprocesses in place for ESG governance, which extend
throughout our organization and lead all the way up to
our Board. These processes establish clear
responsibilities for the oversight, management, andimplementation of our ESG strategy.
In 2022, we deepened our Board’s engagement around
ESG issues and increased the cadence of our leaders’ ESG
briefings. Our chief communications officer presents
ESG updates via presentations or written reports to theBoard or its Nominating & Governance Committee
four times per year. Additionally, our vice presidentof global trade and government affairs (GTGA)
now briefs the Board’s Nominating & GovernanceCommittee at each of its meetings. We also tied
our executive compensation program to progresson Lam’s ESG goals to ensure that Lam’s executive
leaders are accountable for driving ESG progress
and are rewarded for their achievements. Human
capital management and ESG goals represented
20% of the corporate scorecard used as partof the determination of the annual incentive
compensation for our named executive officers.1

1R
 efers to our named executive officers for our fiscal year ended June 26, 2022, which was the fiscal year during which annual incentive program payouts for calendar year 2021 were
made, as determined in accordance with the rules of the U.S. Securities and Exchange Commission.

ESG governance at Lam
OVERSIGHT

Lam Research Board of Directors
Overall ESG oversight
Nominating andGovernance Committee

Compensation and Human
Resources Committee

Audit
Committee

ESG priorities

Workforce-related issues

Ethics and compliance andinformation security

IMPLEMENTATIONMANAGEMENTESG Executive Steering Committee
Guides ESG strategy, approves and supports initiatives, drives accountability
ESG Leadership TeamNet Zero Leadership Team

Proposes goals, develops andexecutes strategy, and embeds ESG into
operations management system

Drives progress towards net zero goaland embeds net zero into operations
management system

Topic-Specific
Working Groups
Execute on key issues

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

11

Celebrating the legacy
of Catherine P. Lego’s
leadership at Lam
In 2022, Lam announced the retirement of
Catherine P. Lego, who served on our Board
for more than 16 years. Throughout her
tenure, she was a chair or member of eachof the Board’s committees. She has also
served on other boards over a span of morethan 30 years, including for several othersemiconductor and technology companies.
Chairman of the Board Abhijit Y. Talwalkar
stated, “Always highly engaged andthoughtful in her guidance, Cathy's
understanding of the semiconductor industry,
commitment to accountability, and drive forcontinuous improvement enabled her to makean incredible and lasting impact at Lam.”

Learn more about:our ESG governanceprogramour Board diversity
metricsINTRODUCTION

BUSINESS AND GOVERNANCE

Engaging ourglobal stakeholders
The semiconductor industry is dynamic, presenting newchallenges and opportunities each day. Through regular
engagement, we stay informed of the issues that mattermost to our communities, customers, employees, industry
organizations, policymakers, stockholders, and otherstakeholders. We tailor our engagement approach to eachgroup, connecting through activities such as industry
forums, meetings, and community events.

Learn more about our approachto stakeholder engagement

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Ensuring a focused approach:
What we learned from ourlatest materiality assessment
An effective ESG strategy can’t remain stagnant—it must
be agile to address issues as our business, industry, andworld evolve. With that in mind, Lam conducts in-depth
ESG materiality1 assessments every three to five years or
whenever there’s a notable shift in our industry and business.
During this process, we engage a diverse group of internaland external stakeholders, whose insights help guide andaffirm Lam’s ESG approach.
We conducted our latest assessment in 2022, using a double
materiality methodology in line with guidance from theSustainability Accounting Standards Board (SASB) and the
Global Reporting Initiative (GRI). We reviewed topics thatare aligned with a variety of standards, frameworks, andrating entities and narrowed them down to identify topics
that have the greatest relevance to our business (such as2022 ESG materiality matrix

Transparency,
reporting, anddisclosure
Energy sourcing andconsumption

ENVIRONMENTAL
SOCIAL
GOVERNANCE

Importance to stakeholders

2022 ESG Report

12

Based on the results, we identified the following topics
as being most impactful and strategically important toLam’s ESG program: climate strategy, product stewardship,
employee fulfillment, inclusion and diversity, supplierengagement and environmental performance, and leadershipaccountability. Other ESG topics indicated on the matrix—
such as corporate governance, ethics, labor practices, humanrights, and community engagement—are also key to our
success and are foundational to our business. Within thisESG report, we discuss the majority of the topics identified
through the assessment.
Leadership engagement
and accountability

Supplier
environmental
performance

Supplier
engagement andassessment

Climate strategy andemissions management

Product stewardship and design for environment
Employee fulfillment and retention
Sustainable procurement and supply chain resilience

Occupational health and safety

ESG integration in business strategy
Customer engagement and product safety

Waste management and recycling

Privacy, data, and cybersecurity

Water management
Responsible corporate governance

RESOURCES

risk mitigation, market presence, innovation, and reputation).
In total, we engaged more than 50 global stakeholders,
including internal subject matter experts, customers,
investors, suppliers, trade associations, and community
organizations. Through surveys and interactive interviews,
participants rated ESG topics based on their importance andpotential internal and external impacts. We also integrated
results from an ESG materiality employee survey to further
incorporate our employees’ perspectives.

Diversity, equity, and inclusion

Business ethics and anti-corruption

OUR COMMUNITIESInnovationand industry
leadership

Labor practices and human rights

Community engagement

Biodiversity

Impact to and from Lam
The identification of a topic or other matter as "material" for purposes of this report does not and should not be interpreted to mean that it is material for any other purpose, including for the purpose of our
financial statements or the documents we file with the U.S. Securities and Exchange Commission.

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Building an ethical culture
Do the right thing. The concept sounds simple but putting
it into practice requires both dedication and awarenessof how to react when challenges arise. This is work we’recommitted to, as we know it’s fundamental to maintaining
strong internal and external relationships based on honesty,
integrity, and trust. Our Global Standards of BusinessConduct (GSBC) supports our Core Values and details
the behavior we expect of every employee. The GSBC is acornerstone of our E&C program, which is designed to meet
evolving global requirements.
Our E&C program is further strengthened by Lam’s
E&C Steering Committee, which provides strategic andoperational guidance. In 2022, the E&C team enhanced

Our global E&C team works to promote an organization-wide
culture of ethics and compliance. The team is led by our chiefcompliance officer (CCO), who manages our E&C function.
The CCO reports to Lam’s chief legal officer and has
dotted-line reporting to the Board’s Audit Committee.

Program focus areas:
COMMUNICATIONPOLICIES AND
PROCEDURES

TRAINING

INVESTIGATIONS

Compliance at Lam is both a strategic enablement andrisk management function that focuses on innovationand setting new boundaries. We continue to makeinvestments in people, technology, and resources tosupport this vision. Our program is based on Lam’s Core
Values, which sit at the heart of everything that we do.”Sangeet Dalliwall
senior director, E&C at Lam

OUR COMMUNITIESRESOURCES

13

Hosting Lam’s E&C Week

our culture of integrity by forming our first regional E&C
Steering Committee in Malaysia, which supports local
compliance objectives as well as the agenda of our global
E&C Steering Committee. We also launched a global
Ethics Ambassador program for which we selected andtrained employees outside of E&C about promoting an
ethical culture and driving progress on our initiatives in ourambassadors’ respective business units and regions.

RISK MANAGEMENTRESPONSIBLE SUPPLY CHAIN

In October, Lam hosted its first-ever E&C Week, which
focused on raising awareness of E&C resources, recognizing
and celebrating ethical behavior, and reinforcing our ethicalvalues and culture. We connected with employees by holding
regional town halls with global leaders and members of
our E&C team. We also shared a video in which CEO staff
members discussed the importance of our Core Values andbuilding an ethical culture. Employees nominated colleagues
for our inaugural Ethics Award, where we celebrated doing
the right thing.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Risk management

Communication

Assessing internal and external risk on an ongoing basis
is essential for Lam's long-term success. As we facechallenges related to our growing global footprint anda shifting regulatory landscape, this work is key to thecontinuity and resilience of our business.

Open communication is a Core Value at Lam and is key tobuilding a successful E&C program. We distribute global
bulletins and regional newsletters that focus on relevant
topics so our employees can recognize and respond
appropriately to potential compliance risks and ethicalissues. On a quarterly basis, people managers receive
tailored communications on trending E&C risk areas in
a company newsletter. We also use multiple channels tosolicit employee feedback, including deploying surveys
and conducting employee focus groups after deliveringin-person and virtual training. Our leadership team plays animportant role in raising awareness about our E&C program.
In 2022, several of our global leaders participated in town
halls and employee meetings to discuss and reinforce theimportance of building on Lam’s ethical culture.

With this in mind, we further operationalized our E&C global
risk assessment program in 2022 by conducting a focusedrisk assessment; enhancing our third-party risk management
program; implementing a gifts, meals, travel, and entertainment
monitoring program; and conducting manager workshops.

Policies and procedures
Lam is committed to fair and humane employment practices
as a core business principle. In 2022, we developed andpublished our first corporate-wide Human Rights Policy,
which underscores our commitment to respecting humanrights and treating our workers and business partners
with dignity and respect. Our policy aligns with several
internationally recognized standards, including the Universal
Declaration of Human Rights, the UN’s Guiding Principles on
Human Rights, and the Responsible Business Alliance Code of
Conduct. Looking ahead, we intend to build on this policy bydeveloping and implementing a formal human rights program.

Training
Our training program equips and empowers our employees
to make ethical and compliant decisions. We deliver training
to increase awareness of our policies and processes througha combination of in-person and virtual sessions and online
training modules, which we refresh each year. Lam requires
employees to complete annual training that reinforces theirunderstanding of selected topics within the GSBC.
We rolled out additional manager resources and mandatory
ethical leadership training for our people managers in 2022.
Our newly created manager resource center provides ourpeople managers with practical guidance for identifying
and handling ethical challenges. We also held in-person
manager workshops to provide tips and tools to ourmanagers to encourage ethical behavior and support
employees who raise concerns.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

142022 GSBC TRAINING HIGHLIGHTS

99%

employee completion rate1

100+

in-person and virtual targeted training
sessions to leadership teams andemployees in higher risk roles covering
E&C policies and procedures

Investigations
Lam’s E&C team can’t be everywhere, so we rely on
employees to speak up if something doesn’t seem right. All
Lam employees have the right and responsibility to raise
ethical concerns to their managers, senior management,
human resources, or the E&C team. Employees and third
parties—including contractors, suppliers, and customers—
can make a report through our Ethics Helpline via telephoneor online.

Learn more about our
Ethics Helpline andapproach to investigations

Employee completion rate was calculated by excluding: 1) employees who were on leave of absence during the reporting period; and 2) employees who left the company during the reporting period before completing the training. The reporting period was from Oct. 2022 to March 2023.

1

RESOURCES

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Protecting data andintellectual property

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

15

Learn more about our
information security program

As we fuel our innovation pipeline, we are committed to keeping the intellectual property
and data of our company, employees, customers, and suppliers safe. Lam holds International
Organization for Standardization (ISO) 27001 certification for information security at our corporate
headquarters and engages an independent, third-party expert to evaluate security capabilities
against the National Institute of Standards and Technology (NIST) Cyber Security Framework(CSF). As we continued to mature our information security processes in 2022, we improved ourscores across the five pillars of the NIST CSF: identify, protect, detect, respond, and recover.
INNOVATION SPOTLIGHT

Mindful care of ourvaluable assets
In an industry facing unprecedented supply chain pressures,balancing the need for business agility and security can be achallenge. One employee who understands this well is Nivedita(Niv) Kamat, a program manager with Lam’s Governance, Risk,
and Compliance Information Security group.
As part of Lam’s Sensitive Information Protection program, Nivruns an initiative to safeguard thousands of critical drawings.
After discovering that one of the program’s safety protocols
stood in the way of business agility, she met with several internaland external stakeholders to develop new processes to meet the
program’s goals.
This led to the creation of a Supplier Tier Management
application that enables Lam to secure its drawings while
granting access to authorized users. Launched in 2022, with full
implementation planned for 2023, the solution makes Lam evenmore nimble while keeping the company’s files safe and secure.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

16

Engaging policymakers and complying with global taxation
Our company and industry exist within a dynamic regulatory environment. Lam's Global
Trade and Government Affairs group is responsible for Lam’s strategic engagement with
Congress, the U.S. executive branch, and other regulatory bodies at the local, state andfederal levels, as well as internationally, to help inform sound public policy in support of ourindustry and business. We pursue a collaborative approach to policy engagement, working
alongside our customers, suppliers, and industry peers with a focus on the following issues:• Business operations• Export controls and trade policy• Research and development• Tax policy

Our lobbying and political activities are governed by our GSBC, as well as our Political
Activity and Government Affairs Policy.

Learn more about our policies and governance approach
In 2022, the GTGA group remained focused on addressing issues such as supply chain
resiliency and trade compliance in the local economies in which we operate. The groupplayed a central role in helping Lam navigate new export controls issued by the U.S.
Department of Commerce’s Bureau of Industry and Security in October. The controls
restrict the export of advanced U.S. chipmaking equipment to the People’s Republic ofChina.1 These controls directly impact our industry and business, so the group worked
closely with Lam’s leadership and Board to ensure a compliant, proactive response.
Externally, the GTGA group played a leading role in industry consortia to amplify
Lam’s voice in the wafer fabrication equipment industry and larger semiconductor
ecosystem. In November, Lam joined the Semiconductor Climate Consortium as afounding member to advocate for semiconductor industry climate action on a global
scale. Lam has also established its political action committee, Leading American
Microelectronics Political Action Committee (LAMPAC), as another means ofengagement and advocacy.

Ensuring compliance with global taxation
Our approach to global taxation is to comply with all legal, regulatory, and internal
control requirements.
Bureau of Industry and Security Office of Congressional and Public Affairs, “Commerce Implements New Export Controls on Advanced
Computing and Semiconductor Manufacturing Items to the People’s Republic of China (PRC).”
1

Learn more about our approach to global taxation

Supporting U.S. semiconductor competitiveness
Recent challenges related to the pandemic, as well as geopolitical conflicts, have highlighted theimportance of semiconductor manufacturing within the U.S. Headquartered in Fremont, California—
with manufacturing sites in California, Ohio, and Oregon—Lam has long represented the strength ofAmerican manufacturing and innovation on a global stage.
In 2022, Lam’s president and CEO, Tim Archer, testified before the U.S. Senate Committee on
Commerce, Science, and Transportation. During the hearing, entitled “Developing Next Generation
Technology for Innovation,” he discussed opportunities to bolster American competitiveness andaddress key challenges that industry leaders continue to face.
He focused on three areas that could benefit from the committee’s consideration: leveraging existing
infrastructure, such as the National Labs; enabling shared innovation, including through the establishmentof the National Semiconductor Technology Center; and taking an “all-of-ecosystem” approach.

Read the fulltranscript

U.S. leadership in semiconductor manufacturing
technology remains strong because of theinnovation, drive, and resourcefulness of American
workers across the semiconductor ecosystem.
I am proud of the role that Lam Research andour employees have played for more than four
decades in setting the pace for innovation and inmaintaining U.S. leadership in the global market.”
Tim Archer
president and CEO at Lam

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Product innovation

IN THIS SECTION:
18

Highlights19 reating our most efficient andCsustainable generation of products

20

Bringing our Tech Vision to life

24

Developing sustainable solutions

25

Giving our customers a market edge

26

Delivering safe, high-quality products

RESOURCES

17

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

By collaboratingwith our industry
and customers, we
continue to define
what’s next.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

RESOURCES

Product innovation1
GOAL

STATUS

83% of customers measured byemissions set science-basedtargets (SBTs)2

Every year, Lam strives to enable semiconductor breakthroughsthat may have seemed impossible the year before. Throughexperimentation, collaboration, and rigorous testing, we
continue to do what’s never been done. Today, advanced
microchips shape everything from how we communicate to
how we work and drive. The potential for future innovation islimitless, but we don’t plan to realize it alone. Instead, we’reprioritizing open communication and strategic investments
in research and development (R&D). By embracing diverse
perspectives, we can unlock a faster, smarter, and moresustainable world.

2022 PROGRESS• 16.9% of customers as measured by emissions
have set SBTs

2022 HIGHLIGHTS

In 2022, we sponsored and participated in numerous industry
and university events to collectively address the semiconductor
industry’s most pressing challenges. One highlight was ourTech Symposium, themed “Engineering a Greener Fab.”Internally, we focused on developing smarter, more efficient
products and processes to measure and reduce thegreenhouse gas (GHG) emissions footprint of our tools.
These efforts support sustainability in our industry.

Began establishing a baseline

Released three new

products: Argos ,®

Prevos , and Selis™

Invested over

$1.6 billion
in R&D3®

to measure Lam’s product-based energy
usage and emissions
Opened new R&D labs
in India and South Korea

RELEVANT SDGS

View SDG alignment

OUR COMMUNITIES

1Unless stated otherwise, we aim to complete each of our ESG goals by 2025.

2

Previously, this goal targeted SBTs for 83% of customers measured by revenue by 2025. Lam updated this goal in 2022 per the SBTi
verification and approval process.

3

Based on Lam’s 2022 fiscal year.

18

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

19

Creating our most efficient and sustainable generation of products
It starts by sparking sustainable
innovations.

• Investing in R&D—including over $1.6 billion
in 20221• Listening to our customers and imagining new
ways to meet their needs• Breaking down research silos and bringing
experts together to explore big ideas

1

Based on Lam’s 2022 fiscal year.

Understanding our product impact
and opportunities is key.

The result: Breakthrough solutions thatenhance performance, precision, andyield, including:• Using Equipment Intelligence® sensors tomeasure the GHG emissions and energy usageof our products• Sense.i®: A smart solution that enables
customers to reduce their energy andmaterial and achieve a smaller fab footprint• Incorporating Design for Environment (DfE)
principles and designing for the entire
product lifecycle• Argos®, Prevos™, and Selis®: Products thatenable ultra-high selectivity and precision tofacilitate the next generation of 3D devices• Embracing smart solutions to accelerate
Industry 4.0• Coronus®: A bevel clean system that
improves yield by up to 2% per wafer

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Bringing our Tech
Vision to life
Technology moves fast—and it’s not enough to just keeppace. At Lam, we’re determined to lead our industry into
a future that works better for us all. Rather than taking asingle-minded approach, we focus on bringing together
our industry’s brightest minds. Together, we’re asking bigquestions, addressing persistent challenges, and realizing
new opportunities for what semiconductors can do.

Technology Vision

ACCELERATEINNOVATIONDISCOVER
TOGETHERPRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Building an innovative workforce
Our work to accelerate large-scale innovation begins byinspiring Lam’s teams. Each year, our Office of the Chief
Technology Officer organizes a variety of collaborative andinnovation-focused internal events. We also make a point tohighlight Lam employees who are driving innovation andproviding opportunities to share their knowledge with others.
In 2022, we continued our Celebrating Innovation campaign
for the second year to highlight stories of innovation by
employees in technical and non-technical roles (look forhighlights in our Innovation Spotlights throughout thisreport). Lam’s leaders also engaged our global technologicalcommunity through several sessions focused on ourCore Values. Through our Seminar Series, we invited ourengineering community to share their work and insights with
their peers. Additionally, our Innovation Speaker and Book
Series brought the outside world in to educate and inspire
Lam employees. Topics featured during our 2022 InnovationRESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

20

Speaker Series include: the intersection of innovation and
ESG, how to innovate inside bureaucracies, developinga culture of innovation, and innovations in additive
manufacturining, among others.

Driving research-backed breakthroughs
As chip technology becomes radically small and almost
inconceivably precise, the challenges we face become
greater and more complex. We support academic
research that provides insights into these challenges andopportunities for our industry to advance. By collaboratingwith leading universities around the world, we boost
innovation and fuel our talent pipeline.

Learn more about how we'rebringing our Tech Vision to life

REALIZEOPPORTUNITY

Opening the doors to two new global hubs of R&D
One way we accelerate learning and development cycles is through our investments
in semiconductor R&D. In 2022, we opened two advanced facilities in South Korea
and India.
Located in the heart of South Korea’s K-semiconductor cluster, the Korea
Technology Center enables Lam engineers and customers to work side-by-side.
Together, they can qualify new devices, processes, and yield improvements—
allowing for fewer and faster development cycles. The new location also lends itself
to closer relationships with local suppliers, universities, and research institutions,and has the added environmental benefit of less travel.
Our India Center for Engineering specializes in the R&D, engineering, and testing ofwafer fabrication hardware and software used to create next-generation memory
and logic devices. The new facility doubles Lam’s footprint in India and supports
shorter development cycles by enabling engineers to design, test, and validate new
deposition and etch technologies on site.

I see vast potential in the ability of our engineers
to have hands-on access to Lam’s tools at the
India Center for Engineering. This access will
have a transformative impact on both the speed
and the quality of the engineering solutions thatare being developed there.”
Sesha Varadarajansenior vice president, Global Products Group at Lam

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

provides awards to support thetesting of novel ideas proposed by
Lam's global technical community incollaboration with university faculty. In
2022, the program sought proposals in
categories including sustainability forthe second year.

University Collaboration
Showcasebrings Lam employees together toshare results from our university
research collaborations and Unlock
Ideas projects. We hosted the event
virtually for the third year in 2022.

OUR COMMUNITIESRESOURCES

21

Celebrating the people who
push technology forward

How we’re unlocking research-backed breakthroughs

Unlock Ideas

RESPONSIBLE SUPPLY CHAIN

Elevate Ideas
provides additional funding andsupport to take successful Unlock
Ideas projects to the next level. Afterpiloting the program in 2021 with twoawards, we awarded two new winners
in 2022.

In May 2022, we held ourTechnical Awards Ceremony
to celebrate some of the
exemplary people behind
Lam's technical achievements.
We were proud to announce
our newest Lam Research
Fellow and present our annual
Patented Innovation Award.
Lam Fellows advance the development of products,
processes, and technologies that bring value to customers
and industry year after year. Our newest fellow, John
Drewery, has been with Lam since 2011. He has deep
expertise in both deposition and etch, with his contributionsin product development recognized at Lam and industrywide.
Throughout his 25 years in the industry, he has secured
49 patents. He is known as a passionate mentor who inspires
future technical leaders at Lam.
Technological innovations keep Lam at the forefront of ourindustry with competitive differentiation and commercial
success. Thus, our Patented Innovation Award recognizes
the achievements of inventors who earn a U.S. patent for
their breakthrough innovations. In 2022, we presented theaward to a well-rounded team of 11 Lam inventors. Together,
they secured two innovative patents in dielectric atomic layer
deposition, an area of significant strategic importance for
Lam’s growth objectives.

Learn more about how we’reengaging universities

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Bringing experts
together toengineer agreener fab

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

It’s not easy to change processes that take place on an atomic
scale, but for the sake of our industry and planet, there’s got to
be a greener way. That was the focus of Lam’s 2022 TechnicalSymposium, themed “Engineering a Greener Fab.”The symposium is Lam’s premiere forum for joint academic
and industry cooperation. The 2022 event took place at the
University of California, Berkeley, with participants joining inperson for the first time since 2019.
Experts used the forum to share and discover leading-edge
technologies aimed at advancing environmental sustainability
for semiconductor fabrication. Highlights included facultypresentations, panels, student posters, and keynotes fromour customers Intel and Micron.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESThe key to innovating isbringing together diverse
groups of people andgoing outside our own
little world.”
Rick Gottscho
executive vice president, strategic
advisor to the CEO, and former chief
technology officer at Lam

RESOURCES

22

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Supporting the next generationof semiconductor innovatorswith Lam Capital
Sometimes, you’ve got to disrupt the system to move it in a new direction. In that regard, Lam
Capital invests in innovative companies that are addressing today’s most high-impact problems.
In conjunction with the Tech Symposium, we hosted our second-annual Lam Capital Venture
Competition in 2022. During the event, select startups pitched sustainable innovations to a panelof venture capital judges. Proposed solutions ranged from wastewater treatment to microfabs toenergy-saving strategies. The winning startup, XLight, pitched an energy-efficient technology forphotolithography. The prize: a $250,000 investment funded by Lam Capital.

2022 TECH SYMPOSIUM BY THE NUMBERS

11

11

6

6

universities
represented

finalist startups
presented

customer keynotes andfaculty presentations$250K

venture capital judges, plus
a judge from Lam Capital

investment to the winning team by Lam Capital23

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSDeveloping sustainable solutions
We are driven to accelerate a net zero transition and a future where our company and customers can achieve
more while using less. In that pursuit, one of the most impactful steps we can take is to track and reduce our
product-based emissions. This will give Lam an edge in providing the solutions customers need to reduce
their environmental impact while meeting increasing demands.
As of 2022, emissions generated from the energy use of our products represent 55% of our total GHG
emissions. To reduce the emissions output of our products, we’re optimizing solutions that are smarter andmore efficient. In doing so, we’re proving that it’s possible to increase productivity while reducing the use of
raw materials, energy, and space.

Accelerating Industry 4.0

A new phase of the industrial revolution is beginning—known widely as Industry 4.0. It’s an era defined byautomation, machine learning, interconnectivity, and real-time data. Our Equipment Intelligence® solutions
combine these elements with Lam’s equipment and process expertise. By enabling faster learning cycles,
these solutions help customers enhance productivity, efficiency, and performance while minimizing waste.
For example, Lam’s Net Zero Product Working Group uses Equipment Intelligence® sensors to monitor andreport the energy and resource consumption of our lab tools. In 2022, the group worked toward establishingbaseline data for our tools’ energy consumption and GHG footprint. This will help Lam address our productbased emissions, while supporting our customers’ sustainability goals. The working group's vision is toconnect this data to specific fab processes, enabling customers to optimize resource planning and reduce
their energy usage, GHG emissions, and costs. We also made progress on product sustainability by:• Implementing throughput and uptime improvements, which improve the efficiency of tool operations by
4% and yield with station matching by 60%.
• Releasing new ECO Mode features for 2300 and Sense.i® etch tools, which save up to 30% peripheralenergy in idle mode and result in faster tool time recovery.
• Increasing RF generation efficiency on our Vantex tool, which reduces the energy consumed per RF
subcomponent by 10%.

Incorporating DfE principles
DfE principles guide us to develop products with their full lifecycle in mind. In doing so, we’re finding ways
to reduce the environmental impact of our products while maintaining or improving quality and value. In
2022, our working group continued to incorporate these principles into the product design process.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Three new products that are
accelerating three-dimensional(3D) scaling
Typically, companies talk about scaling in terms of expansion. In
semiconductor manufacturing, it often means the opposite. One of
our industry’s pressing challenges is to continuously scale the tiny
devices in chips to make chips that are smaller, denser, and more
powerful. This is driving many semiconductor manufacturers tomove away from planar structures in favor of complex, 3D versions.
Lam’s etch and deposition tools are at the forefront of this innovation,and in 2022, we announced three new precision selective etchinnovations: Our new Argos®, Prevos™, and Selis® products aredesigned to complement and extend Lam’s industry-leading etchsolutions portfolio. These breakthrough products are enabling
chipmakers to etch and modify films with ultra-high selectivity andprecision to achieve the most advanced integrated circuit
performance capabilities and accelerate 3D scaling.

242022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

Giving our customers
a market edge

SUSTAINABLE OPERATIONSRESOURCES

25

84,000INNOVATION SPOTLIGHT

CSBG’s strategy for providing best-in-class customer support:

Reliant systems, including
new and refurbishedequipment, that extend
product lifecycles, increase
production capacity, anddecrease waste

OUR COMMUNITIES

approximatelychambers at the endof 2022.

Our Customer Support Business Group (CSBG) supports Lam’s
customers across the equipment lifecycle. From solutions that
increase system uptime to offerings that extend the productlifecycle, the group’s goal is to help customers optimize quality andcost, with the added benefit of reducing their environmental impact.

High-quality, low-defectconsumable and nonconsumable spare parts
designed to increase circularity
while balancing performance,
availability, and cost

RESPONSIBLE SUPPLY CHAIN

Lam's installed base included

When they ask, we deliver. That’s how we build our customers’
trust. And what many of them want are faster, more efficient,and sustainable chipmaking solutions. Our customers are global
technology leaders, and we take pride in supporting their success.
Through close collaboration, we strive to exceed their expectations
and continuously anticipate their long-term needs.

Customized service andsoftware solutions thatenhance productivity
throughout the productlifecycle

OUR WORKPLACE

Technology andproductivity upgradesthat increase productivity,
reliability, and efficiency andextend product lifecycle

Technical training,

including software andhardware courses, todevelop customers'
knowledge andtechnical expertise

Simulating complex processes
to get real results
Lam engineers have a knack for getting to the bottom of vexing customer
challenges. Yet wafer-based experiments require an investment in resources andtime. Realizing this, several have turned to our powerful SEMulator3D software
to create renderings, simulate fabrication processes, and calculate the physicalproperties of nanostructures without ever stepping into a lab.
Among them is Peng Fei Lyu (left), a process engineer who facilitated a special
interest group to receive training on the software at Lam China. After learning thesoftware, the team used it to identify the root cause of an issue in a customer’s etch
process—cutting a task that would have taken approximately 10 wafers and two
weeks in a lab down to about an hour.
Another member of the group, process engineer Tian Hao Zhang (right), used thesoftware to help a customer determine their ideal etching approach. In doing so, heand his colleagues cut the experimentation time down from 10 weeks to four while
using a third of the wafers required for traditional testing. By helping engineers
deliver rapid results while reducing material waste and costs, the software is helping
Lam build value for our company and customers.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Products that support a circular economy
When great products go further, we all win. In addition to new systems, CSBG provides
refurbished tools, previous generation tools, and equipment upgrades. These optionsdeliver great customer value while avoiding the environmental impacts of manufacturing
new tools and sending existing equipment to landfills. Our spares offerings include thereuse of high-value spare parts such as electrostatic chucks, RF hardware, andshowerheads through a variety of re-cleaning, repair, refurbishment, and re-coating
services. Learn more about our spares offerings.

HOW OUR CSBG OFFERINGS MAKE A DIFFERENCE:~$400M worth of annualmaterials savings enabled byre-cleaning services

20% of Etch installations
used upgrades ortools with refurbishedcomponents in 2022

~8kg aluminum reusedin each refurbished ESC
baseplate, representing
30 metric tons (MT)reused in 2022

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESOur cross-functional Quality Leadership team oversees our design teams to ensure
the safety and quality of every product they create. We take a systematic approachto continuously improve our products and strive to quickly address any adjustmentsthat need to be made. Lam is also certified under ISO 9001, an international
standard that provides a framework for an effective quality management system.

~$150M worth of annual

33% of electrostatic chucks

Earning recognition as an
outstanding supplier(ESCs) shipped in 2022 wererefurbished, representing a
70%+ increase since 2019~5kg hazardous residue

avoided by each refurbished
ESC baseplate, representing
18 MT avoided in 2022

26

Delivering safe,
high-quality products

Learn more about our commitment
to product safetymaterials savings enabled byrepair & refurbishment services

RESOURCES

Lam has proudly achieved the top honor within the Intel global supply chain: The
Intel EPIC Outstanding Supplier Award. Of the thousands of suppliers Intel works
with every day, Lam was one of only six companies to win this award for 2022.

In a truly unique and volatile supply chain
environment, Lam has earned Intel’s top
supplier award through its steadfast
commitment to safety, quality, diversity
and inclusion, continuous innovation, andits close partnership with Intel toward
operational excellence results.”
Keyvan Esfarjani
executive vice president and global chief operations officer at Intel2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Sustainable operations

IN THIS SECTION:

Name

Title

28

Highlights

29

Advancing our net zero roadmap

33

Optimizing energy

35

Accelerating water savings36	
Maximizing value by
minimizing waste

RESOURCES

27

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Around the world
we are stepping up
to bring our net zerovision into sight.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

28

Sustainable operations1
GOAL

STATUS

2022 PROGRESS

Achieve net zero emissions by 2050 by meeting the following targets:

The way we operate speaks to who we are and what wevalue. At Lam, our Core Values drive us to take ownership,
hold ourselves accountable, and continuously improve. These
values shape our approach to reducing Lam’s environmental
impact, and executing on our commitment to operating
responsibly and improving our sustainability performanceover time.
Positive change requires action, so we are pursuing global
initiatives to reduce our energy and water consumption
and minimize waste. By 2050, we aim to achieve net zero
emissions. It’s a bold ambition, and Lam was among the firstin the semiconductor industry to establish such a goal. Our
net zero roadmap outlines our path to achieving climate
progress. It informs the way we create products, upgrade
our facilities, and allocate our resources and time.
In 2022, our employees mobilized to move our climate andenvironmental initiatives forward. They completed solar andenergy-efficiency projects and exceeded our water-savings
goal. Lam closed the year by joining the Semiconductor
Climate Consortium as a founding member, demonstrating
our company’s climate leadership on a global scale. As thework continues, we’re energized by how far we’ve comeand our vision for a greener future ahead.

• Achieve 100% renewable electricity by 20302• Sourced 44% renewable electricity globallyin 2022• Reduce absolute Scope 1 and 2 (marketbased) GHG emissions 25% by 2025 and60.6% by 2030 from a 2019 baseline.3
By 2040, achieve net zero operations• 207% increase in Scope 1 and 2(market-based) GHG emissions4• Achieve 12 million kWh in total energy
savings from a 2019 baseline• Achieved 6.9 million kWh in energy savings

Achieve zero waste to landfill for
hazardous waste• Diverted 99.99% of hazardous wastefrom landfills in 2022
• Achieved 46.9 million gallons of watersavings in water-stressed regions,surpassing our 2025 goal by 175%

Achieve 17 million gallons of water savings(15%) in water-stressed regions from a2019 baseline• Our updated goal will be to achieve 80 million
gallons of water savings from a 2019 baseline

2022 HIGHLIGHTS

Achieved Science-Based

Target initiative (SBTi)
validation for our near-term

RELEVANT SDGS

Exceeded our2025 watertargetCompleted renewableelectricity projects
at two sites

environmental goals5

Unless stated otherwise, we aim to complete each of our ESG goals by 2025.
2 Previously, this goal targeted 100% renewable energy by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
3 Previously, the 2030 goal targeted a 46% reduction in Scope 1 and 2 (market-based) GHG emissions. Due to a previously unidentified source of Scope 1 emissions, Lam worked with SBTi to update our 2019 emissions
inventory and restate our 2030 goal.
4
Primarily due to the increase in usage of a specific chemical in our testing process between 2019 and 2022.
5
The 2030 goal was validated in 2022 and was subsequently restated in 2023 in alignment with SBTi.
Note: Sustainable Operations data is comprehensive of all Lam-owned and leased facilities, including our subsidiary Silfex. Energy, waste, and water data is not currently included for Avonisys, Coventor, Metryx, SemSysco,
Solmates, or Talus. Greenhouse gas emissions for these entities is included in our reported Scope 1 and 2 emissions (Talus, Metryx, and Coventor), or within our Scope 3 investment data (Avonisys, Solmates, SemSysco).
1

View SDG alignment

PRODUCT INNOVATIONINTRODUCTION

2022 ESG Report

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Advancing our net zero roadmap
While net zero emissions is our long-term vision, our success starts with the action we taketoday. Our net zero roadmap outlines our strategy to achieve time-based targets that keep us
accountable and on track. Lam’s Net Zero Leadership team drives these efforts with ultimate
oversight from our Board.
Externally, we engage our customers and suppliers to support them in setting andachieving science-based targets (SBTs). We strive to lead by example, and in 2022 weachieved SBTi validation for our near-term GHG-reduction goals. These goals are in linewith limiting global warming to 1.5°C, representing the most ambitious SBTi designation
available. We recently discovered a source of Scope 1 emissions which caused a significant
increase of our previously reported Scope 1 emissions, dating back to our 2019 baseline
year. This led us to work with SBTi to restate our 2030 goal by targeting a 60.6% reductionin Scope 1 and 2 (market-based) emissions, instead of the prior target of a 46% reduction.
We are acting with expediency with a goal to eliminate this emissions source completely.

By identifying risks related
to climate change, we can takemeaningful steps to make ourcompany more resilient. Learn more
about our 2021 climate change risk
analysis assessment and how ourpractices align with frameworks,
such as the Task Force on
Climate-related Financial
Disclosures

Net zero roadmap• Reduce Scope 1 and 2 (market-based)
GHG emissions by 25% from a2019 baseline• Achieve 12M kWh in total energy savings• 46.5% of suppliers and 83% of customers
measured by emissions will set SBTs

Announced SBTi intention andnet zero pathway

2021
Achieved SBTiapproval for threenear-term emissionsreduction targets

1

2022

2025

2030

• Achieve net zero operations(Scope 1 and 2)• Achieve absolute reduction in supply
chain emissions (goal to be set)

2040
• Reduce absolute Scope 1 and 2 GHG
emissions by 60.6% from a 2019 baseline1• Achieve 100% renewable electricity• 95% of top direct suppliers measured
by spend will set SBTs

Previously, the 2030 goal targeted a 46% reduction in Scope 1 and 2 (market-based) GHG emissions. Lam updated this goal in 2023 following a restatement of our baseline in alignment with SBTi.

2050
Achieve
net zeroemissions292022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Driving reductions in each scope
Each part of Lam’s value chain presents unique emissions-reduction challenges and opportunities. For instance, while we have the most control over reducing our Scope 1 and 2
emissions, they account for only about 8% of our combined 2022 Scope 1, 2, and 3 GHG emissions. To achieve net zero emissions, we must take a value-chain-wide approach, witha focus on operational efficiency and supplier, employee, and customer engagement. More details on our emissions management can be found in our annual CDP Climate Change
questionnaire submission.

Breaking down our 2022 value chain emissions
Upstream activities
Scope
GHG emissions
EmissionsdetailsHow
we’re driving
reductions

Lam facilities & operations

Downstream activities

Scope 3, indirect

Scope 2, market-based indirect

Scope 1, direct

Scope 3, indirect

2,034,127 metric tons carbon
dioxide equivalent (MTCO2e)63,300 MTCO2e~433K MTCO2e4,733,017 MTCO2e• Purchased goods & services:
1,764,704 MTCO2e• Capital goods: 5,759 MTCO2e• Fuel- and energy-related
activities: 52,793 MTCO2e• Upstream transportation &distribution: 173,093 MTCO2e• Waste generated in operations:
8,556 MTCO2e• Business travel: 10,731 MTCO2e• Employee commuting:
18,491 MTCO2e• Upstream leased assets: N/A• U.S.:• Fremont, CA: 23,227 MTCO2e• Livermore, CA: 2,382 MTCO2e• Tualatin, OR: 8,876 MTCO2e• Ohio: N/A• Austria: 1,195 MTCO2e• South Korea: 16,078 MTCO2e• Malaysia: N/A• Taiwan: 4,439 MTCO2e• India: N/A• Leased (All): 7,103 MTCO2e• Hydrofluorocarbons: 3,673 MTCO2e• Perfluorocarbons: 5,321 MTCO2e• Other fluorinated: 13,591 MTCO2e• Non-fluorinated: 506 MTCO2e• Other refrigerants: 385,764 MTCO2e• Diesel: 63 MTCO2e• Natural gas: 19,468 MTCO2e• Liquid petroleum gas: 4,587 MTCO2e• Owned vehicles: 25 MTCO2e• Downstream transportation &distribution: 607,555 MTCO2e• Processing of sold products: N/A• Use of sold products:
3,704,749 MTCO2e• End-of-life treatment of soldproducts: 2,546 MTCO2e• Downstream leased assets: N/A• Franchises: N/A• Investments: 418,167 MTCO2eEngaging suppliers to set SBTs andproviding support and resources tohelp them build carbon measurement
and reduction capabilities andpurchasing offsets for portions ofour business travel

Maximizing energy efficiency,
purchasing RECs, and investing inlarge-scale projects to transition
to renewable electricity

Optimizing our processes and products,
investing in emissions controls andenergy-efficiency technologies, updating
manufacturing and lab processes, andevaluating lower global warming
potential process gas alternatives

Developing efficient products andprocesses, establishing a baseline
for product-based energy
consumption and emissions, andengaging customers to set SBTs

30

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

Scope 1 and 2 GHG emissions by year

SUSTAINABLE OPERATIONS.290

500,000.300

63,300Metric tons CO2e

400,000

.224

.250

.222

.200

56,521300,000

75,884200,000

100,000.150

432,998.132

82,296.100

288,007

232,662.050

79,313
0

0
2019

2020

2021

2022

Scope 2, market-based

Normalized Scope 1 + 2 emissions

Process chemistry emissions by type
506

25000

651

3,673

Metric tons CO2e

20000

450
662

15000

7,763

3,241

633

5,321

426

Perfluorocarbons

10000

Other fluorinated

13,591
5000

0

Non-fluorinatedHydrofluorocarbons

8,299

7,097

6,698

7,276

7,347

2019

2020

2021

Calendar year

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

31

2022

496,298

92%

23%

1%

combined MTCO2e Scope
1 & 2 (market-based)
GHG emissions

reduction in Scope 2 (marketbased) GHG emissions from2019 baselineof Lam’s GHG footprint
made up of Scope 3
emissionsincrease in Scope 3 GHG
emissions from 2021

From 2019 to 2022, our overall Scope 1 and 2 emissions increased
by 207% from our updated 2019 baseline. The baseline values andsubsequent year emissions growth is primarily due to a previously
unknown source of Scope 1 emissions. In addition, we found that
we had not accounted for the partial abatement of certain process
gas emissions at our Fremont, California, lab facility. We revised thehistorical data on this page to reflect these changes. In addition, we
limited our Scope 3 emissions increase to a modest 1% despite
seeing nearly 18% in revenue growth.

Calendar year
Scope 1OUR WORKPLACE

2022 GHG EMISSIONS HIGHLIGHTS
Metric tons CO2e / US $1,000 R&D spending

INTRODUCTION

2022 ESG Report

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Decarbonizing our industry together
Lam has long been active in SEMI, the global industry association
representing the electronics manufacturing and design supply chain. In
2022, we joined SEMI’s Semiconductor Climate Consortium as a founding
member. The consortium is the first global, ecosystem-wide collaborative ofsemiconductor companies dedicated to reducing industry-based emissions.
Through collaboration, transparency, and ambitious goal setting, we aim
to advance our industry's response to climate change—one of the mostpressing challenges of our time.
As a participant, Lam has the opportunity to:

Shape industry
standards onsustainability

Share knowledge andbest practices, andcollectively solve theindustry’s big challenges

Leverage industrylevel collaborations
to accelerate our own
climate progress

Lam is committed to proactive climate
action. We share the Semiconductor Climate
Consortium’s vision to drive progress on
climate challenges within our industry. Bycollaborating with fellow members, we hopeto accelerate solutions with greater speed
and scale than can be achieved alone.”
Shawn Covell
managing director, global ESG strategy at Lam

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

32

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Optimizing energy
We can’t power semiconductor breakthroughs without consuming energy—and our energy
needs increase as our operations expand. Our goal is to adopt solutions that decouple
Lam’s growth from increased energy use and emissions. To do so, we’re transitioning toward
renewable electricity and optimizing our facilities and processes to be more energy efficient.
Currently, our renewables are sourced from a mix of onsite solar and renewable energy
credits.

Pursuing 100% renewable electricity
Our Villach, Austria, plant uses 100% renewable electricity through a combination of onsite
solar and purchased electricity. In 2022, we completed a solar expansion project to achieve
additional energy generation at the site, which now generates approximately 3.6 megawatthours (MWh) per day. We project that the site will eventually generate 8 MWh per day
following further expansion work planned for 2024.
Meanwhile, at our facility in Malaysia, which we opened in August 2020, we completed a
two-part solar project. Lam’s Global Workplace Solutions (GWS) team expedited phase twoof the solar project, completing the installation of 1,076 solar panels in December 2022.

Our Malaysia facility’s new
solar panels cover the

majority of the roof’s
800,000-square-foot rooftop andgenerate 13 MWh per day.

They supply 20% of the site's

electricity requirement.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES33

INTRODUCTION

2022 ESG Report

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

Using an innovativemindset to increase
global energy savings

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

In our everyday lives, many of us adopt energy-conscious
behaviors—from turning the thermostat down during coldweather months to turning the lights off when we leave a room.
At Lam, we take a similar approach to drive energy-efficiency
improvements. When implemented at our facilities, these
upgrades can lead to large-scale savings in energy, emissions,and costs.
Recently, we turned our attention to Lam’s new manufacturingsite in Malaysia, a state-of-the-art facility designed withefficiency in mind. Lam’s outlook: Why stop there when we canmake it even better? We challenged the site’s employees topush efficiency further. In response they embarked on a seriesof building improvements, including:• Reducing lighting during off hours• Reducing cooling in the office

OUR COMMUNITIESOur teams also drove improvements at sites in the U.S.,
completing lighting upgrades in Livermore, California;
commissioning a scrubber to reduce fan speed in Fremont,
California; and installing a variable frequency drive (VFD) air
compressor and chiller in Tualatin, Oregon. Installing a VFD
chiller resulted in immediate energy savings. Additionally, bymonitoring the chiller's operation and adjusting its controls,
the Tualatin facilities team nearly doubled the energy savings
achieved from installing the equipment itself. For 2023, wehave enrolled in energy-efficiency programs sponsored by
the local utilities in Oregon and California to identify andimplement low- or no-cost improvements.

Energy usage by type0.000270.000250.7

300

0.00026

89

0.7

95

94

0.7

107

0.00030

0.3

0.6

200

0.00020360

306

0.000150.00010

256

100

0

0.00025

0.7

0.6

240

0.000290.000350.00005
0
2019

2020

2021

2022

Calendar year
Electricity

Natural gas
and liquefied
petroleum gas

Diesel + vehicles

Solar + district
heating

Normalizedenergy use

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

Million kWh

400

5.1

34

Some solutions turned out to be simple but required criticalthinking. For example, by reducing pressure in the facility’s
clean room, they enabled the fans to slow down—achieving
energy savings while keeping the space contaminant free.

• Exploring the potential to reduce cleanroom
humidity in the future

500

RESOURCES

Improving seed lift
At our facility in Springfield, Ohio, we grow silicon ingots—
large crystals that are sliced into wafers. Getting the seedof the ingot to lift into a defect-free crystal is a highly
technical and energy-intensive process. In 2021, we
implemented process improvements that reduced
the number of attempts to achieve each high-quality
crystal. We conducted a follow-up seed lift projectin 2022, which enabled improved mixing and energy
efficiency, and therefore increased energy savings andyield. Outcomes included:• Nearly 50% increase in the speed at which crystals
are pulled• 13.7% increase in energy savings per wafer millimeter

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Accelerating water savings

In water-stressed regions, we know it is imperative to manage water as responsibly andsustainably as we can. In 2022, we exceeded our goal to achieve 17 million gallons of watersavings in water-stressed regions from a 2019 baseline by 2025. As part of setting this goal,
we used the World Resource Institute Aqueduct Water Risk Atlas to identify which of ourfacilities were in water-stressed regions. To date, we have identified six sites throughout
California, South Korea, India, and Malaysia. However, regions identified as water-stressed
shift over time, so we will continue to periodically review and update this list.
In these and other areas, our GWS team explores and invests in water-saving technologies
and efficiency upgrades. We monitor industrial wastewater and stormwater discharges inaccordance with local regulatory requirements, and often find ways to repurpose processbased wastewater to support other areas of our operations. To build on our success inachieving our initial water-savings goal, we are updating our 2025 goal to 80 million gallons
of water savings from a 2019 baseline.

33.4M

2020

Operationalized reuse and recovery systems andadditional water recovery units at our sites in
Malaysia; South Korea; and Fremont, California.
These projects led us to drive widespread watersavings and exceed our 2025 water-savings goal.

2021
Added another seven water
recovery units in California.

2022
Updated our 2025 goal toachieve 80 million gallons
of water savings.

Learn more about our approach to responsible
water management on our website and in ourannual Water Security submission to CDPRESOURCES

35

40K-45K

gallons of watersavings in waterstressed regions

gallons of water saved per day at our Springfield, Ohio,site through water reclamation and reuse, with ongoing
efforts to find additional water-saving opportunities

Water use, treatment, and recycling by year
0.000240.00023500.000250.00021200

0.0002

292

276

300

0.00025

398

378

400

150
87

100

0.00015

176

170

126

75

72

152

0.00010.00005
0

0
2019

2020

2022

2021

Calendar year

PURSUING—AND EXCEEDING—OUR WATER-SAVINGS GOAL
Added eight water
recovery units to ourabatement systems
in California.

OUR COMMUNITIES

2022 WATER-SAVINGS HIGHLIGHTS

Million gallons

Water is a key component in semiconductor manufacturing, making it critical to our company,
suppliers, and customers. At Lam, we rely on freshwater to operate our chillers, house
scrubbers, process cooling water systems, and soft water treatment plants. It’s a precious
resource that we share with our communities.

RESPONSIBLE SUPPLY CHAIN

Water usage

Wastewater treated

Wastewater recycled

Normalized water usage2022 Water usage in water-stressed regions1
MILLION GALLONS% OF TOTAL USAGE

Fremont

118.6

29.79%

Malaysia

25.9

6.49%

South Korea

16.9

4.24%

Livermore

10.8

2.72%

India

0.3

0.08%

Total

172.5

43.33%

Water-stressed regions as identified through the World Resources Institute (WRI) Water Risk Atlas.

1

Million gallons / $1,000 R&D spending

2022 ESG ReportBUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Maximizing value by
minimizing waste
To ensure a sustainable future, we need to reduce waste. Whether it’s operating more
efficiently or embracing circularity, we’re committed to doing our part.
Lam generates both non-hazardous and hazardous waste as we research, develop, andmanufacture our products. We actively monitor this waste and manage it in accordancewith industry best practices, and our ISO 14001 multi-site certification drives us to reduce
our environmental impact by using materials as efficiently as we can.

Embracing circularity to reduce non-hazardous waste
Most of the waste we generate consists of non-hazardous materials, such as wood
pallets, cardboard and packaging, and municipal waste. To reduce these streams, weemploy circular practices, such as waste reduction, recovery, recycling, and reuse.
In 2022, our teams identified strategies to better manage and reduce non-hazardous
waste. They partnered with a third party to conduct reporting and internal audits, which
resulted in key recommendations for efficient waste management practices. We are now
engaging employees to implement these practices globally, while exploring an additional
third-party partnership to examine our practices related to receptacles, signage,
composting, compacting, and more. Lam has also joined SEMI’s Circularity working
group to share best practices and collaborate to advance further industry innovations.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Non-hazardous waste generation and recycling
10,000

9,261

100%

8,505
8,000

70%

6,528
6,000

55%

77%
7,108

71%

80%

6,020

5,891

60%

4,120
4,000

3,613

40%

2,000

20%

0

0
2019

2020

2021

2022

Calendar year
Non-hazardous waste generated

Non-hazardous waste recycled

Recycling rate

Non-hazardous waste recycling by material
Wood pallets 46.21%
Mixed recycling
and cardboard 18.40%
Other recycling 9.34%

2022 NON-HAZARDOUS WASTE MANAGEMENT HIGHLIGHTS

Metal and
electronic waste 6.98%

9,261 MT

Mixed plastic
and packaging 6.18%

of non-hazardous
waste generated

77%

recycling rate

36

RESOURCES

Production waste 4.59%
Compost 3.54%
Silicon scrap 1.92%
Reuse 1.45%
Paper 1.39%(Total recycling / total generation) x 100

INTRODUCTION

Metric tons

2022 ESG Report

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCESINNOVATION SPOTLIGHT

Reduce. Reuse. Rethink.
Sometimes it pays to challenge the status quo and test new ways to optimize
existing processes. That was true for a manufacturing process where we shipped
unused parts back to the warehouse to be returned to stock.

Our commitment to strong environmental management
Lam holds ISO 14001 multi-site certification for environmental management,
which covers our Fremont and Livermore, California; Tualatin, Oregon; andVillach, Austria; sites, and individual site certification for Osan, Korea andEaton, Ohio. As an engaged member of the RBA, we also complete voluntary
assessments across our manufacturing sites.
In 2022, our sites’ self-assessment questionnaires (SAQ), which coverenvironmental and social topics, low-risk scores. We also earned Silver
recognition for our first RBA-validated audit at our Livermore, California, site.

In the past, our material handlers shipped each part in individual boxes, which werediscarded once the parts were re-stocked and stored in bulk. Then, Willis Wah, whojoined Lam from a global shipping company, put his expertise to work to streamline
the process and reduce packaging waste.
As the manager of logistics for Lam’s Fremont, California, campus, Willis worked
with the Warehouse team to consolidate and ship the parts in reusable totes.
Within the first month of implementation, the new process helped Lam avoid using
approximately 275 boxes. It also led to reduced labor hours and transportation
costs, and made stress injuries less frequent among material handlers.

37

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

38

Hazardous waste generation and recycling

Responsible hazardous waste management
Our manufacturing processes and research & development (R&D) operations use chemicals that
produce hazardous waste, such as lab debris and waste that is corrosive or flammable. We follow
strict controls to responsibly handle each of these streams and aim to divert hazardous waste fromlandfills by finding alternative methods of disposal. As part of our commitment to environmental
stewardship and due diligence, we conduct a periodic risk assessment of our hazardous waste
treatment, storage, and disposal facilities (TSDF). Lam partners with CHWMEG—a nonprofit tradeassociation whose members strive to efficiently steward waste—to perform comprehensive TSDF
audits, the results of which we integrate into our risk assessment process.

48%

3,000

30%
2,500

50%

2,416
2,208

2,113

24%

22%

2,000

40%

1,922

30%
1,500

1,000

Proactive chemicals management

924
642

540

524

10%

500

Chemicals enable us to manufacture leading-edge products, and they’re essential to R&D.
Our site Environmental Health and Safety (EHS) and Product groups work together to ensure our
employees handle these materials with caution and care. This begins even before chemicals arrive at
Lam’s sites, as we use a chemical information management system to track and monitor our chemical
inventories and approve site-based chemical requests. Once onsite, our teams focus on propertransportation, storage, and inventory management to track where and how chemicals are used andmanage potential risks.
In 2022, we continued to drive consistency among all Lam sites and integrate a chemical information
management system as part of the overall chemical management process at the new sites in South
Korea, Malaysia, and India. In 2023, we plan to improve our purchasing systems to allow easier andmore automated environmental reporting.

Learn more about our hazardous
waste disposal methods

20%

0(Total recycling / total generation) *100

INTRODUCTION

Metric tons

2022 ESG Report

0
2019

2020

2021

2022

Calendar year
Hazardous waste generated

Hazardous waste recycled

Recycling rate

Hazardous waste by disposal method

Recycled 48.07%

99.99%

hazardous waste diverted
from landfills in 2022

Deep-wellinjection 24.27%
Offsite wastewater
treatment 20.56%
Thermal treatment 5.47%
Waste-to-energy 1.53%
Compressed gas
and other treatment 0.08%
Landfill 0.01%

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

Embracing green chemistry practices
We use our expertise to weigh the benefits and drawbacks of various chemicals interms of their effectiveness, availability, and impact on the environment. As global
chemical regulations become more complex, we are proactively working with our
supply chain partners, chemical suppliers, and chemicals management systems toensure Lam’s ongoing compliance and to adopt emerging green chemistry practices.
We work with our engineers and designers to make decisions with the planet inmind. In 2022, we created a tool that engineers can use to assess the GHG emissions
intensity of various recipes that are used to process the wafers. We plan to expand on
this project in 2023 and share the insights we’ve gained across our organization.

Managing air pollution
Clean air is essential for human and environmental health, and we are committed
to doing our part to reduce air pollution. As we work to reduce emissions, our teams
have pilot programs in place to further integrate Lam’s tools with our customers’chemical systems. This allows us to minimize chemical waste and maximize
abatement system efficiency. Sometimes we do this by using external abatement
systems. In other cases, we focus on selecting processes that minimize the use ofhigh global warming potential chemicals and thereby reduce emissions.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

39

Engaging employees in environmental action
For many of Lam’s passionate employees, internal sustainability is just the start. We’re
proud to see our employees get involved with their local communities to plant trees,
protect biodiversity, and advocate for environmental health. A key pathway for employeeled sustainability action is Lam’s Employee Sustainability Community (LESC). This
employee resource group (ERG) includes more than 450 global members working tosupport sustainable change.
In 2022, LESC facilitated many volunteer and learning opportunities, including inviting
Stacey MacNeil, Lam’s chief communications officer, to discuss our company’s net zeroroadmap. LESC members in Malaysia planted trees to mark 50 years of industrializationin the country, and, in India, LESC hosted a Best out of Waste competition to showcase
employees’ commitment to recycling and reuse.
Because of these efforts, LESC received Lam’s 2022 Environmental Stewardship Award,
which highlights employees’ environmental efforts, both at Lam and in our communities.
Sponsored by EHS, the Environmental Stewardship Awards are part of a larger campaign
for Earth Month, which, this year, included events around the globe. Many moreenvironmental activities took place throughout the year, as employees acted with purpose
for a better, greener world.

LESC Malaysia formed after learning about thecompany's net zero ambition and roadmap. We’re apassionate group of individuals working to spreadawareness and directly support Lam's ESG goals. We
strive to leverage our Core Values, cross-functional
collaboration, and continuous improvement to makea positive impact on the planet.”
EC PonLESC Malaysia co-leader at Lam

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESOur workplace

IN THIS SECTION:
41

Highlights

42

Engaging and developing our people

46

Shaping an inclusive culture

53

Keeping our employees safe

RESOURCES

40

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

We're engaging
employees to shapea culture rooted in
our Core Values.
How do we solve the unsolvable? By bringing together
the brightest minds and empowering them to reach
new heights. Our workplace programs are designed tofacilitate collaboration, enhance safety, spur innovation,
and accelerate employee growth. We strive to offer
inclusive development opportunities and benefits thatmeet our employees’ holistic needs. This supports our goal
to build on our high-performance culture with best-inclass employee engagement. It also bolsters our work tocreate a more diverse and inclusive workplace—work thatbegins by expanding our talent pipeline and collaboratingwith industry and community partners to create more
opportunities for women and underrepresented students
and professionals in science, technology, engineering, andmath (STEM).
In 2022, we opened the doors of our new India Center
for Engineering and our Korea Technology Center. As we
expanded Lam’s operations, our Core Values and Purpose
kept our global workforce united and aligned. With a focus
on engagement, we increased employee outreach andgrew our employee resource groups (ERGs). We also rolled
out new manager resources and cutting-edge benefits
that further empower our employees to lead and thrive.

RELEVANT SDGS

View SDG alignment

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Workplace1
GOAL

1

STATUS

2022 PROGRESS

Build on our high-performance culture
with global employee engagement at the
global benchmark, as measured by ourannual employee surveys• Ended the year with an engagement scoreof 78, one point below the global top tierbenchmark of 79

Maintain an OSHA recordable injury rateat or below 0.4 annually• Realized recordable injury rate of 0.35

Increase the proportion of women(globally) and underrepresented
employees (U.S.) across the company• Increased the proportion of women in our global
workforce by 3.0% and underrepresented
employees in the U.S. by 5.0% over 2021

Unless stated otherwise, we aim to complete each of our ESG goals by 2025.

2022 HIGHLIGHTS

Matured our engagement processwith new data inputs andJumped 68 places to #219

a pulse survey

on Forbes’ list of the World’s Top
Female-Friendly Companies

Implemented a new Student

Expanded our enhanced paid

Loan Assistance program in the U.S.

parental leave and paid bonding
leave policies to our employees
across the globe

41

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

42

Engaging and developing our people
Lam has a legacy of strong employee engagement and development, and those priorities came tothe forefront in 2022. Throughout the year, we up-skilled our people managers to help them support
their global teams. We also made it a priority to maintain workplace flexibility while keeping our
employees connected, inspired, and engaged. These efforts helped us land at #555 on Forbes’ list of
the World’s Best Employers and #29 among the best employers recognized in the U.S.

Turning our employees’ insights into action
There’s power in really listening, and we trust our employees to know what they need to succeed.
We regularly engage employees to find out what’s working and how we can better meet their
evolving needs. The key is to turn those insights into action—in the form of innovative development
opportunities, benefits programs, and more. That’s how we deliver a positive employee experiencethat supports recruitment, retention, and professional growth.

Our engagement strategy:

Listen through annual,
pulse, and lifecycle surveys;
one-on-one meetings withmanagers; discussions with
Lam’s leaders, and teammeetings

Learn through sophisticateddata collection that capturesand cross-references key
employee insights

Improve our workplace
programs and practices by
sharing key insights withteams who have the power
to actIn 2022, we matured our engagement processes to improve data collection and analysis and make survey
insights more accessible and actionable across Lam’s teams. We conducted our annual survey in June, withseven new data inputs to measure key engagement correlations. We also added two new data outputs toenable cross-program analysis and shared the results with six internal teams.
After the survey, we leveraged online learning and a new Experience Progress Roadmap to drive employee
feedback and conversations. Another feature was a short pulse survey administered in October to continue
engaging with employees on key topics.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

MAKING THE MOST OF OUR EMPLOYEE ENGAGEMENT SURVEYS
Survey design
Our annual engagement
survey in June included
17 questions across
5 categories

We added 5 new questions to reflect coreengagement drivers:
ENGAGEMENTLEADERSHIPACTIONSINCLUSION& DIVERSITYMANAGEREFFECTIVENESS• Cared for at work

• Continuous improvement• Ethical behavior• Manager support• Company values
And followed up with a 3-question pulse survey
in October.

CULTURE

Scores78

employeeengagement score
Falling one point below the
global top-tier benchmark

84%

75

One percentage point below
the global top-tier benchmark

Represents the combined
scores of three questions driving
inclusion, authenticity, andequal opportunity

response rate2022 Inclusion Index

Insights & actions
Based on our top 3 survey insights,
employees say they:• Feel supported by their managers
and cared for at work
• Believe Lam has a strong cultureof ethics and recognition• Desire varied and timely
communication

Employees’ feedback indicatesa high rate of satisfaction withareas including:• Recognition• Manager support• Feeling cared for at work
• Career path opportunities

We responded to survey insights
with 3 key actions:• Enhanced inclusion and diversity
training with new INCLUDE
manager training• Launched culture workshops for
new employees• Guided managers to prioritize
teamwide communicationRESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

43

Supporting a senseof connection
Since 2020, many new employees have worked with theirteams remotely. To help them build a strong sense ofconnection, Lam’s global Human Resources team launched
new culture workshops for these employees in 2022. During
90-minute sessions, Lam’s senior leaders demonstrated how
we put our Core Values into action. In total, they engaged
more than 2,700 employees during 37 global sessionsdelivered in each region’s local language.
Additionally, we facilitated virtual executive employee
engagement sessions for those hired within the past six tonine months, in which employees shared their experienceswith Lam’s chief human resource officer and CEO. These
leaders also hosted roundtables with managers of highly
engaged teams, which our sites modeled in various regions.
Members of Lam’s Board got involved by engaging withrecently hired college graduates to create an opportunity
for two-way feedback and insights.

Being able to speak
directly with Board
members helped meconnect to our company's
culture and understandthat we are all one teamworking together.”
Xiaomin Yun
product engineer 4 at CSBG

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Embracing workplace flexibility
Several years after the emergence of the pandemic,
workplace flexibility is here to stay. In 2022, we updated our
workplace modalities to include onsite, onsite flex, virtual flex,
and remote. workplace flexibility supports an inclusive culture
by enabling employees to work in ways that meet theirunique needs. In fact, our virtual-flex employees scored thehighest on engagement—exceeding the technology industry
benchmark. Employees attributed their positive experiences
to Lam’s culture, well-being programs, and strong employee
support. We’re proud to see our people thrive in thisenvironment and rolled out additional resources to support
them in 2022.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Our return-to-work pilot program provided employees withthe following tools:• Home office stipend to help offset remote work expenses• New manager training on “Leading in a Hybrid
Environment,” along with guidance on how to host virtual
meetings and keep remote participants engaged• Internal sites providing information on Lam’s virtual-flex
and in-person policies

Up-skilling our teams
From the first day employees join us, we put them on a
trajectory for long-term growth. We use layered development
programs to support Lam’s employees and leaders throughexperience and education.
To expand this programming, we launched Supervisor
Essentials, a learning program designed specifically for
manufacturing supervisors, in 2022. We also continued
several ongoing development opportunities, such as
BetterUp coaching for new managers, our Targeted Manager
Support program, our enterprise-wide mentoring program,and our Leap technical training and certification program for
new hires and Lam engineers.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

2022 TRAINING AND DEVELOPMENTHIGHLIGHTS

56%

increase in employees who participated in
Lam coaching program over 2021

73%

increase in mentorship pairs over 2021,
with a 95%+ mentee satisfaction score

1,492

employees participated in ourLeap technical training program

759

Leap certifications awarded

Lam earned Training
Magazine’s 2022 Training
APEX Award, which
recognizes organizations
that excel in training andhuman capital development.

RESOURCES

44

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Celebrating and caring for our employees
Our employees are high achievers. We strive to equip themwith resources for overall health and well-being, while
making them feel appreciated and inspired to keep reaching
new heights. Our benefits and recognition programs support
these aspirations and reinforce Lam’s Core Values.
Recognizing exceptional performance
As we mature our engagement processes, we’re delving
into the link between engagement and recognition. Recent
research indicates that organizations with meaningfulrecognition programs have a 14% employee engagement,
productivity, and performance edge. The data also places
leadership support and recognition among the top mosteffective non-financial factors for retention.1
In 2022, we continued our Above and Beyond recognition
program, in which employees can acknowledge theircolleagues’ great work and embodiment of Lam’s Core
Values. We also recognized employees’ commitment
to enhancing sustainability through our environmental
stewardship awards.
For the second year, we held a Gratitude Summit, in which
employees could attend a series of workshops sponsored byWorkhuman. We also worked with Workhuman to conduct across-program analysis of our employee engagement survey
results so we could better understand the intersection of
employee recognition and engagement.

In 2022, Lam earned GOLD Recognition
from the American Heart Association for
implementing best practices that build aculture of health for our employees.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Delivering inclusive benefits
Employees can be more present at work when they havea foundation of overall well-being, whether that means
taking time off to be with family, getting regular check-ups,
or improving financial health. We strive to continuously
enhance our benefits to support the needs of Lam’s diverse
employee base. Our goal is to deliver resources that support
all aspects of our employees’ well-being and health.
One of our focus areas is increasing family and parental
support. In 2021, we enhanced our U.S. parental leave policy
to give birth mothers up to six months of paid parental leave.
We also began providing 16 weeks of paid bonding leave
to all other new parents—regardless of gender. In 2022, we
expanded both policies to our employees across the globe.
In March, we teamed up with Fidelity to launch our
new Student Loan Assistance program for eligible U.S.
employees. The program offers $400 per month to eligible
employees who have a qualified student loan for theirown education in an accredited program. Employees cantake advantage of the benefits tax-free, with the moneytransferring directly to their loan provider.
Additional benefits for 2022 include:• Elective fertility preservation through Anthem*• Standalone ID theft protection through LifeLock*• Accident and hospital indemnity coveragethrough MetLife*• Healthcare concierge and advocacy service throughHealth Advocate*• Personal Observance Day*
• Malaysia Fitness Center*For U.S. employees only

Deloitte, “Recognition programmes. Are they important?” https://www2.deloitte.com/ie/en/pages/deloitte-private/articles/recognition-programmes.html

1

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45

2022 BENEFITS HIGHLIGHTS

500+

employees benefited from our new Student
Loan Assistance program.

100+

health and well-being events, including a
global virtual health fair, webinars, challenges,
and more.

Explore our employee
benefits programs

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Shaping an inclusive culture
In the dynamic semiconductor industry, our culture keeps
us strong and steady. It’s what brings us together—andwhat sets our business apart. At Lam, we’re building aculture based on our company’s Core Values. We welcome
diverse perspectives and strive to create an environment
where every employee feels they belong. These values are
key to attracting, retaining, and developing highly skilled
talent. They fuel innovation, build mutual respect, andenable us to better serve our customers, colleagues, andother stakeholders.

Setting the intention
Our Inclusion and Diversity (I&D) strategy is led by
Lam’s global head of inclusion and diversity. It
includes three pillars:• Fostering inclusion• Increasing diversity• Sharing our progress
Lam’s leaders take an intentional and progress-oriented
approach to build inclusive behaviors across ourorganization. We aspire to increase the proportion ofunderrepresented employees and women in Lam’s
workforce. In this regard, skill-building and accountability
are key. As Lam’s leaders created their performance anddevelopment plans in 2022, we asked them to set a target
focused on I&D for the first time.

Additionally, more than 1,700 global people managers
participated in our new INCLUDE training which aims to
expand inclusive leadership capabilities, and further embed
I&D as a Core Value shaping our culture. We also administered
our Hire Like a Champion training for the second year, which
supports inclusive hiring practices. The 2022 training included
cohorts in the U.S. and Asia, which focused on recruiting
high-potential minority and female candidates.
Our commitment to non-discrimination
We aim to maintain and cultivate a workplace where
every person has equal opportunities to thrive. Our Global
Employment Practices Statement declares our support ofworkers’ rights to freedom of association and collective
bargaining, to the extent permitted under local laws.
In line with the highest ethical and legal standards oflabor and employment laws in every country where Lam
maintains our workforce, we are committed to equal
opportunity and non-discrimination in all our employment
practices. We prohibit unlawful discrimination, harassment,
and retaliation in any aspect of employment, including
recruiting, hiring, promotion, and compensation. In 2022, wepublished a new Human Rights policy to further ensure theprotection, safety, and dignity of all Lam employees.

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46

Making ourworkplace inclusive
for people of all abilities
Lam's Employee Relations team works
closely with employees who have disabilities
to provide workplace accommodations asneeded. Together we develop creative andeffective solutions, such as job
modifications for physical restrictions,sign language interpretation, andschedule accommodations tominimize obstacles
or barriers.

2022 ESG Reporterer

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONRESOURCES

47

20.0%

79.7%

0.3%

U.S.

22.3%
33.3%
Female

77.3%
66.7%
Male

0.4%
0.0%
Other

Global

17.5%

82.4%

0.1%

U.S.

19.2%

80.7%

0.1%

Global

18.1%

81.8%

0.1%

U.S.

21.3%

78.5%

0.1%

Technical
Employees

Global

12.1%

87.7%

0.1%

Global and U.S. Gender

U.S.

15.3%

84.4%

0.3%

Graduates

U.S.

26.6%

73.0%

0.4%

Global

23.1%

76.2%

0.7%

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESOur 2022 workforce at a glance
Board gender diversity

rser

INTRODUCTION

33.3%

Gender diversity breakdown
66.7%

FemaleMale

0.0%

All Employees

Other

GlobalFemale

Male

Other

Global and U.S. GenderGlobal17.5%

Board ethnic diversity

Board of Directors
82.4%

FemaleFEMALE

Other

MALE

U.S.Asian19.2%

1
80.7%

0.1%

3

ETHNIC DIVERSITY
FemaleMale

Gender

0.1%

Male

White

Other

2

3

Global

18.1%

81.8%

0.1%

U.S.

21.3%

78.5%

0.1%

FemaleFemaleMale

Male

Executives
Global and U.S. Gender

Other

Global and U.S. Gender

Female

87.7%

0.1%

84.4%

0.3%

Male

Male

73.0%
Male

Male

Other

0.4%
Other

Male

Other

Other

FemaleFemale

Male

Male

Other

Other

U.S. Gender

FemaleFemaleFemale

Male

Male

Male

Other

Other

Other

Other

We also leverage the expertise of a nationally recognized law firm and its data-driven statisticalmodel to objectively analyze our pay practices and identify trends and patterns. We use thisinformation to maintain and improve Lam's global compensation philosophy and practices.
Note: Minimal rounding has been applied to these data.

Female

Male

Other

Other

To ensure accountability, we regularly measure our progress in recruiting, hiring, and retaining
a diverse workforce. We also conduct an annual pay equity assessment of our compensation
practicesand systems to promote fair and equitable compensation
23.1%
76.2%
0.7% in our workforce.
GlobalFemaleFemale

Male

Other

Managers
Advancing equity at Lam
GlobalAt Lam, 12.1%
we are committed to promoting equity inFemaleour workforce. To demonstrate this commitment,
weexpanded our Employee Relations function
U.S. have15.3%
Femaleglobally, providing managers and employees with adedicated team to surface and resolve a wide range of
workplaceissues.
26.6%
U.S.

FemaleNew Hires
Global Gender

Female

Male

Other

INTRODUCTION

2022 ESG Report

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

48

2022 Employee demographics
U.S. employees
3.1%

2.6%

0.7%

U.S. gender and ethnicity
Native Hawaiian or Other Pacific Islander
Blank/chose not to disclose

0.5%
White

5.8%

Two or More Races

American Indian/Alaskan Native

Asian
7.3%

4.5%
Male

Hispanic or Latinx
49.3%

Chose not to disclose
White

Black or African American
30.7%

0.5%
Male
0.2%
Female
0.3%
Other

39.5%
Male

Two or more races

8.4%
Female0.1% 0.1%
Female Female

2.1%
Male

0.4%
Male

Native Hawaiian or Other Pacific Islander

0.1%
Other

American Indian or Alaskan Native

2.4%
Male
0.8%
Female

22.3%
Male

Asian

0.5%
Female1.6%
Female9.7%
Female

5.6%
MaleBlack or African American
Hispanic or Latinx

U.S. veteran status1

Global employees by generation

Employees who disclosed theirdisability status (global)1

11.0%
U.S.
veteran 8.3%

Disclosed disability
status 37.7%

8.1%
Born
1996 or after
Non-U.S.
veteran 91.7%

53.8%
27.1%

1980-1995
1965-1979
1946-1964

1

Does not include Silfex.

Note: Minimal rounding has been applied to these data. Data do not include Talus.

Chose notto disclose 62.3%

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Increasing opportunities for diverse talent
in STEM
Everyone deserves the chance to succeed. Yet diverse
talent remains largely underrepresented in STEM. Too often,
students and candidates face institutional, social, andeconomic barriers that make it difficult to break into thesefields and advance. At Lam, we believe it’s time for that tochange, so we use our resources, reach, and leadership
position to move the needle. We collaborate with universities
and academic organizations to provide internships, fundfellowships, and support our recruitment goals, in addition tosponsoring and attending key industry events to amplify andrecruit diverse STEM professionals.
Our 2022 activities included attending AfroTech’s annual
conference, which brings together Black entrepreneurs andinnovators. Internally, our Talent Acquisition team piloted
a new centralized talent-sourcing model in the U.S., whichemphasizes outreach to diverse candidates and includes adiverse-slate-of-candidates goal. Other ongoing pipelinebuilding activities include:
U.S. university collaborations
In 2022, we continued our collaboration with the United
Negro College Fund (UNCF) for the second year. Lamprovided $100,000 to fund 20 scholarships at UNCF
schools, including historically Black colleges anduniversities (HBCUs). We also launched new alumni
and student recruiting relationships including:

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Learn more about the transformative
learning initiatives launched throughour new social impact program.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

2022 WORKFORCE
DIVERSITY HIGHLIGHTS

3.0%

increase in proportion of female employees
in Lam's global workforce from 2021
U.S. academic internships and fellowships
Lam serves as a key partner for the National Consortium of
Graduate Degrees for Minorities in Engineering (GEM), which
provides graduate-level fellowships to underrepresented
candidates in engineering and science. In 2022, we
provided $460,000 to enable 20 GEM fellowships—up from13 fellowships in 2021. GEM also provides its fellows with
exposure to industry internship programs, including our own.
We were proud to welcome GEM fellows as part of a highly
diverse and talented intern cohort in 2022.
Global academic scholarship awards
When we see passion and talent, we go all in to help STEM
students succeed. In 2022, several of our locations in Asia
provided scholarships aimed at increasing I&D in STEM. Lamprovided Thesis Award scholarships to three universities in
China, as well as scholarships for women in STEM in Taiwan.

5.0%

increase in proportion of underrepresented
employees in Lam's U.S. workforce from 2021

20

fellowships funded through our collaboration
with GEM

59%

diversity for global intern class11

hires through partnership with National
Society of Black Engineers• Georgia Institute of Technology• National Society of Black Engineers• Society of Hispanic Professional Engineers• Spelman College

49

Learn more about ouruniversity partnerships
and programs

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Supporting women in our industry
and workforce
Despite some improvement, women remain largely
underrepresented in global STEM careers.1 We arecommitted to shifting this gender imbalance—especiallyin the semiconductor industry—and we know progress
must start from within. One of our workplace goals is toincrease the proportion of women throughout our company
by 2025. To drive progress, we strive to amplify the voice of
our industry’s women leaders while creating a workplaceenvironment where women can excel and advance.
In 2022, we updated our internal hiring practices to strive
to include a female employee on every interview panel.
Compared to 2021, we increased the proportion of womenat our company by 3.0%. We supported female STEM
leaders through company webinars, industry conferences,and global ERGs. One highlight was attending our firstin-person Grace Hopper Celebration—the premier U.S.
conference for women in tech. During the conference,
three of Lam’s female leaders hosted an inclusion-focusedcareer development workshop. Themed “Breaking Barriers
Through Innovation,” the breakout session engaged morethan 200 participants.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Lam also sponsored the 2022 Diversity in Tech
Symposium, themed “Advancing Climate Resilience.”
The symposium was hosted by the Universityof California’s EDGE in Tech Initiative, which iscommitted to addressing challenges faced by
women and other under-included identities inengineering and computer science. Also in California,
Lam attended the Women in Semiconductor
Hardware conference. We were a finalist for the
Designing the Difference award, which recognizes
companies that are making a significant andmeasurable impact on advancing the industry
through I&D.

At Lam’s new site in
Malaysia, our manufacturingleadership team boasts

50%

female representation.

Catalyst, “Women in science, technology, engineering, and mathematics (STEM).” https://www.catalyst.org/research/women-in-science-technology-engineering-and-mathematics-stem/#:~:text=Women%20
with%20bachelor's%20degrees%20and,women's%20overall%20underrepresentation%20in%20STEM.
1RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES50

The Lam India Women’s Network (LIWN)
was our first ERG launched in India. LIWN
brings female employees together to focus
on personal and professional development,
networking and collaboration, and business
impact. During 2022, LIWN hosted a financial
awareness session, career-mapping and
Gallup Strengths profiling workshops, andmany other events.

2022 ESG Report

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

51

Connecting employees through ERGs
Lam’s ERGs create a welcoming space where employees empower each other to learn, develop, advocate, and lead. Under
our model, each ERG develops its own charter, initiatives, and goals, which support ESG progress, mentorship, inclusion,community outreach, and employee engagement.
Members of our CEO staff engage closely with ERGs and serve as executive sponsors for each group. The support goes
two ways, with sponsors often seeking feedback on emerging and ongoing company initiatives. In 2022, our leaders heldroundtables with global ERGs, including a U.S. roundtable where over 80 participants joined Lam’s CEO. Globally, we continued
to grow our ERG network, achieving above-average Fortune 500 participation. Our global ERGs include:

Black Employee
NetworkCommunity of Latinos
and African Americans
for Student Successand Outreach

Lam Employee
Sustainability
Community*

Lam India Women’s
Network

Lam’s VeteranCommunity

New Professionals
Network

PRIDE LGBTQ+ Allies

Women in Customer
Suppport BusinessGroup (CSBG)

Women in Engineering

Women@Fremont

Women in Global
Operations (WGOP)U.S. Korea, and Malaysia

Women in Korea

Women in Leadershipat Lam

Women ofSoutheast Asia

Women in Taiwan

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

We now have 15 ERGs in 6 countries with
3,500+ members.1

We began promoting ERGs through ouronboarding materials to help employees get
involved right away.

OUR COMMUNITIESRESOURCES

52

Cultivating inclusion
year-round

ERG FAST FACTS

ERGs hosted 60+ events in 2022.

RESPONSIBLE SUPPLY CHAIN

Learn more about one of
our newest ERGs, LESC

Creating an inclusive culture is a year-roundcommitment. It’s part of how we show up at work eachday. We also take time to highlight important moments
throughout the year that honor, celebrate, or affectdiverse employee groups. Examples from 2022 included:• Black History Month: honored with a letter to
employees from Vince Brigman, Lam’s corporate vicepresident of global finance and corporate functions
operations, who also sponsors two ERGs
• International Women’s Day: celebrated with a “Breakthe Bias” webinar and campaign promoted by our
LIWN ERG• Earth Month: included activities hosted by our global
chapters of LESC and the local green teams• PRIDE: celebrated by Lam’s Pride ERG, which hit a newmilestone by growing to 200 members

Women should not have to settle based on limitations
and boundaries. At Lam, we’re asking what can be done
to remove those barriers, instead. Our Women in Global
Operations ERG helps members address potential barriers
by growing their network, finding mentorship andguidance, and building long-term careers at Lam.”
Soon Kuek
managing director and general manager,
Lam Malaysia manufacturing

1

Employees may belong to multiple ERGs as we encourage allyship and cross-cultural engagement.

• Global Diversity Awareness Month: featured several
activities, including a keynote on “Reimagining Global
Inclusion,” an interactive theatrical activity, andinteractive conversations on “Leading from the Top”

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

Keeping our
employees safe
Ensuring employees’ safety is fundamental to creating
a positive work experience—whether it be in an office,manufacturing plant, or lab. We follow strict safety protocols
and prioritize training and risk controls to help employees
safely perform their tasks.1
Our global EHS policy applies to every employee andoutlines our commitment to protecting all Lam personnel
and minimizing risk.
1

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

We also maintain a single site certification at our Fremont,
California, headquarters for ISO 45001, the globally
recognized standard for occupational health and safety
management systems.
In 2022, our Tualatin, Oregon, site achieved VoluntaryProtection Program Star Status, the highest health and safety
award bestowed by OSHA’s U.S. and Oregon divisions. The
award recognizes Lam’s low illness and injury rates and ourcommitment to a culture of safety—setting us on a boldtrajectory for continuous improvement and accountability forour safety performance. Overall, we conducted more than
264,000 Risk Management by Walking Around inspections,a process used to identify and track safety issues andimplement corrective actions.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Learn more about our safety
program and governance

Data are inclusive of Lam Research and Silfex.

At Lam Korea, we apply a ‘planning, execution,
validation, and problem-solving’ cycle, based on
the safety and health management practices put
forth by ISO 45001. We strive to monitor andaddress risks that can lead to safety and healthissues while building a safety culture forall employees.”
Andy Yeo
EHS specialist at Lam Korea

53

INTRODUCTION

2022 ESG Report

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

54

2022 SAFETY PERFORMANCE

Working toward our safety goal
One of our ESG goals is to achieve an OSHA recordable injury rate at or
below 0.4. In 2022, we achieved a rate of 0.35. Lam’s growth in 2022 posed
additional safety challenges, as we increased the number of temporary
employees working in our operations. To offset this challenge, we invested
in prevention-based education, training, awareness, and emergency
preparedness programs.

63,000hours employee safety
training completed

Examples of these investments include our general health and safety training,
physical training program, and ergonomic assessments. We also continued
our Safety Awareness for Everyone (SAFE) program, which we use to update
employees on emerging safety issues. We employ SAFE to prevent futureissues by including lessons and stories based on incidents from the past.

0

63%

injuries attributed tostrains, sprains, slips,
trips, and falls

fatalities

INNOVATION SPOTLIGHT

Incidents per 100 employees per year

Recordable injury rate (Lam vs. industry)
Industry average
Lam rate
Lam target

0.7

0.7

At or Below
0.4

0.5
0.34

2019

0.40

0.35

0.26

2020

2021

2022

Innovation spotlight: Enabling a safe, smooth
shift to next-generation product design
Typically, engineers design products using 3D models, then deliver manufacturing informationin 2D drawings. At Lam, we’re moving to a new model-based definition (MBD) format, in which
engineers embed all product data—including assembly-level bills of materials (BOMs)—directlyin their 3D models.
Using MDB reduces design time and creates a single resource for Lam’s engineers,
manufacturers, suppliers, and customers. However, there are challenges in making thetransition. For example, to create a 3D spare-parts identifier, which field technicians andcustomers use to service tools and replace parts, engineers must manually copy part numbers
from a BOM and paste them into a computer-aided design model for verification.
Ramanathan Kannappan, a Bangalore-based senior designer at Lam, identified several
issues with this process. Copying the wrong part number or overwriting data can lead fieldtechnicians and customers to order the wrong part, and engineers risk repetitive strain injuries
by completing the same task hundreds of times.
As a solution, Ramanathan created a macro for the BOM that identifies duplicate parts, prevents
data overrides, and improves project communication. Since implementing the macro, engineers
have nearly eliminated data errors and cut project-ownership times by up to 50%.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Responsible supply chain

IN THIS SECTION:
56

Highlights

57

Our strategy for mutual success

60

Advancing climate action together

61

Upholding human rights

61

Ensuring responsible sourcing of minerals

61

Cultivating a diverse supply chain

62

Collaborating toward ESG progress55

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INTRODUCTION

BUSINESS AND GOVERNANCE

We collaborate
with suppliers togrow and scale forthe future.
Lam’s advanced technologies rely on specialized materials
and components. To source them, we collaborate withthousands of suppliers around the world. We invest in supplier
relationships built on shared values of open communicationand trust. Our Core Values drive us to take ownership for
upholding responsible, ethical practices and continuously
improving our supply chain performance over time.
Our supply chain focus areas include climate action, humanrights, supplier diversity, and responsible mineral sourcing.
To increase supplier engagement across these areas in
2022, we matured our supply chain management processes
and grew our Supply Chain ESG team. We also surveyed
our suppliers on their climate performance and helped themaccelerate progress toward their sustainability goals. By
the year’s end, more than half of our top 100 suppliers (byspend) acknowledged our Climate Pledge. Together, we cancollaborate toward mutual ESG progress and long-term,
sustainable business growth.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

View SDG alignment

OUR COMMUNITIESRESOURCES

56

Responsible supply chain1
GOAL

STATUS

2022 PROGRESS

Achieve more than 90% compliance with
our social and environmental expectations
across our top-tier suppliers• Exceeded our goal with 94% of suppliers
responding to our conflict minerals survey

Engage with at least 50% of our top-tiersuppliers on environmental sustainability
opportunities• Exceeded our goal by engaging with 100%of top-tier suppliers in 2022

Increase engagement with all suppliers onsocial and environmental topics throughassessment, training, and capacity building• Deepened supplier engagement through ourinaugural Supplier ESG Forum, new supplierengagement platform, new monthly webinar
series and newsletter, and additional trainings
via the Responsible Business Alliance (RBA)

46.5% of suppliers measured by emissions
will set SBTs2• 14.5% of suppliers as measured byemissions have set SBTs

2022 HIGHLIGHTS

Launched our supplier

Engaged suppliers at Lam’s

engagement platform

inaugural Supplier ESG Forum

Received Lam Climate

Leveraged RBA tools to assess
supplier performance

Pledge acknowledgments
RELEVANT SDGSRESPONSIBLE SUPPLY CHAIN

from 53% of top 100 suppliers

1 Unless stated otherwise, we aim to complete each of our ESG goals by 2025.
2 Previously, this goal targeted SBTs for 80% of top direct suppliers (by spend) by 2025 and 95% by 2030. Lam updated this goal in 2022 per the SBTi verification and approval process.
Note: Unless otherwise noted, data in this chapter are inclusive of direct material spend globally.

2022 ESG Report

INTRODUCTION

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Our strategy formutual success
Lam’s supply chain is extensive, so we employ
strong oversight and governance to facilitate
comprehensive supply chain management
across the globe. Our Supply Chain ESG teamleads our direct supplier risk assessment
efforts, with a focus on driving continuous
improvements. Lam also has cross-functional
supply chain teams that collaborate to share
best practices around supplier engagement.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

57

Embedding ESG across our supply chain
We manage and monitor ESG performance throughout our
supply chain through a strategic framework built on five pillars:
Transparency

Training

Responsibility

Risk Assessment
and Audit

GovernanceWe believe it is vital that we prioritize innovation,competitiveness, collaboration, and supply chain security
to maintain U.S. leadership in this critical global industry.”
Tim Archer
president and CEO of Lam
speaking about U.S. semiconductor competitiveness during his testimony before
the U.S. Senate Committee on Commerce, Science, and Transportation.

Learn more about his testimony

2022 ESG Report

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES58

OUR SUPPLY CHAIN BY THE NUMBERS

Managing the supplier lifecycle
Lam engages suppliers early in the supplier lifecycle andcontinues to manage and facilitate their progress over time.
We evaluate suppliers based on multiple factors, including
known human rights risk indicators, geography, and spend.
Upon selection, we encourage suppliers to become RBA
members and contractually require that every supplieradheres to our Global Supplier Code of Conduct (GSCC), the
RBA Code of Conduct, and applicable laws and regulations.
Throughout the supplier lifecycle, we continue to conduct
due diligence using a risk-based approach. This process
may include RBA audit reports, inspections, and corrective
actions as needed.
In 2022, we leveraged additional RBA tools to better quantify
risks in the regions where our suppliers operate. This included
requesting and collecting RBA self-assessment questionnaires(SAQ) and audit assessments via RBA's Validated Assessment
Program. Through the process, we identified three high-riskcountries for child labor and migrant labor. We use countrylevel risk data to inform our overall supplier engagement andassessment strategy. And, for any specific supplier risks, weapply the RBA guidelines to address those on a case-by-casebasis by requesting corrective action plans and that followup closure audits are completed.
Europe, Middle East & Africa 6.1%

1,483 supplier families
in over 25 countries support
our global operations
We source minerals
sourced from smelters in

51 countries

11of our top 100 suppliers
have established SBTs

17

of our top 100 suppliers
are RBA members

Our diverse supplier spending totaled$123.3M
in 20221269

Lam employees completed humanrights training in 2022

INNOVATION SPOTLIGHT

Leveraging plug-and-play technology to
expedite direct material shipments
Supply chain challenges in 2022 led to significant delivery delays for certain tools. As the team worked to addressthese challenges, one opportunity that was identified led to reduced delivery time for some shipments by morethan 50%. How did we do it? A cellphone-sized device that costs about $40.

Asia 45.2%

Direct material
spend by regionof origin in 2022

The idea came from Joe Picciocchi, who joined Lam’s Livermore, California, site in 2021 as senior manager oflogistics. At the time, it took about 12 days for a shipment from our supplier in Guadalajara, Mexico, to arrive at our
Tualatin, Oregon, site. Realizing Logistics had no way of tracking a package’s location, Joe launched an initiative toequip critical shipments with inexpensive trackers that provide real-time location data. This empowered Logistics
to optimize manufacturing schedules and hold transportation vendors accountable.
Americas 48.7%

1 Represents spend of direct and indirect suppliers.

As a result, the shipping time from Guadalajara, Mexico, to Tualatin, Oregon, now takes just four to five days. Currently,
Logistics is tying its shipment-tracking data to Lam’s Transportation Management System. In the future, the system
could leverage predictive analytics and artificial intelligence to automatically plan and dispatch shipments.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Conducting due diligence at key steps
Screening and evaluation

Onboarding

Getting started

Managing progress• Lam's top direct material suppliers
are assessed on human rights,
environmental impact, andother known risk indicators
including business volume
and geographic location.

• New direct suppliers are required
to acknowledge Lam's GSCC.

• Critical suppliers are assessedthough our Quality Management
System (QMS) with a focus on
new regional suppliers supporting
Lam's Asia manfacturing locations.

• Our top suppliers are eligible tobe awarded bonus points on theirmonthly Supplier Scorecard fordiversity, ISO-14001 certificationor RBA membership.

• Existing qualified suppliers arecontractually obligated to comply
with the GSCC as well as the RBA
Code of Conduct.

• We ask our top suppliers to
acknowledge Lam's Climate
Pledge and provide carbon
emissions data via our supplierengagement platform.
• We offer supplier support tobuild environmental knowledge
and capabilities that includes
webinars and resources fromacademic institutions and subject
matter experts.

592022 ESG Report

INTRODUCTION

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PRODUCT INNOVATION

Advancing climate
action together
In 2022, we engaged with 100% of our top-tier suppliers (by spend)on environmental sustainability opportunities, exceeding our goal ofengaging at least 50% of our top-tier suppliers on these topics by2025. We also made progress toward our 2025 goal by supporting
46.5% of top suppliers (measured by emissions) in setting SBTs.
During the year, we surveyed our top suppliers to better understandtheir climate progress and encouraged them to commit to climate
action by acknowledging our Climate Pledge. We also began asking
suppliers to take a carbon footprinting class through the RBA. By
engaging suppliers on these issues, we are encouraging them tomeasure and manage important areas of their environmental impact.
This supports mutual progress toward our respective ESG priorities
and goals.
Europe, Middle East & Africa 11%1

ESG survey
respondents
by regionof origin1

Based on ESG survey responses from 62 suppliers. Data have been rounded.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

60

2022 ESG SUPPLIER SURVEY & PLEDGE RESULTS

Beyond supporting our business and customers, our supplier
relationships are intrinsic to our net zero targets. Upstream activities
contribute to our Scope 3 emissions, so if we want to reduce them,
we need top suppliers on board.

Asia 23%SUSTAINABLE OPERATIONS

North
America 66%

59%

9

21

50%

survey completion and 53% acknowledgementof the Lam Climate Pledge by top 100 suppliers.

of our top 100 suppliers published annual
sustainability reports.

suppliers completed energy audits.

of supplier survey respondents indicatedthey are using renewable energy.

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Upholdinghuman rights
When it comes to safe, dignified, and lawful working
conditions, no one should be left behind. We are committed
to protecting and supporting human rights—both in our
supply chain and in our global operations. Not only is this acompliance issue; it aligns with our Core Values of honesty,
integrity, mutual respect, and mutual trust. We expect our
suppliers and sites to comply with laws including—but notlimited to—the U.K. Modern Slavery Act of 2015 and theCalifornia Transparency in Supply Chains Act of 2010.
Lam published its first Human Rights Policy in 2022, which
outlines our expectations to uphold internationally recognizedhuman rights. This policy applies to all employees and we
expect our suppliers, as well as our business and community
partners, to adopt similar practices. The policy aligns with
the RBA’s Code of Conduct and builds on expectations
outlined in our GSCC. Additionally, our Global Employment
Practices Statement declares our support of workers’ rights
to freedom of association and collective bargaining, to theextent permitted under local laws. These documents are
distributed via email, published on our intranet, and madepublicly available on our website.
Regular training is an important part of our human rights
program. And in 2022, we had 269 global supply chain
management employees complete human rights training.
We also requested our top suppliers to complete RBA’s
online human rights module.

Learn more about how we upholdhuman rights in our supply chain

Ensuring responsible
sourcing of minerals

Cultivating a diverse
supply chain

Raw minerals are the building blocks of semiconductor
technology, and we are committed to ensuring that they are
ethically and responsibly sourced. Lam is a member of the
Responsible Mineral Initiative (RMI), a multi-stakeholder
organization that helps address egregious human rights
issues in the mining of tin, tantalum, tungsten, gold, andother minerals of concern. Since 2012, we have used theConflict Minerals Reporting Template developed by RMI
to assess our suppliers. In 2022, we expanded our due
diligence efforts related to minerals of concern to include
cobalt and mica, as recommended by RMI.

Inclusion and diversity are part of our Core Values at Lam,and we recognize the value that our relationships withdiverse suppliers bring. During our supplier onboarding
process, we implement measures to identify diverse
suppliers, including minority-, women-, LGBTQ+-, andveteran-owned businesses, as well as businesses owned
by people with disabilities. We also include diverse
qualifications in our Supplier Scorecard and track andreport spending with diverse direct material suppliers
on a periodic basis. Our diverse supplier spend totaled$123.3 million in 2022.

Access our Conflict Minerals
Policy Statement

Learn more about our approach
to cultivating a diverse supplier
network61

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PRODUCT INNOVATION

Collaborating toward
ESG progress
Our Supply Chain ESG team engages suppliers to understand their challenges,
priorities, and needs. They also reach out with best practices and resources to help
suppliers build capability to make progress on social and environmental goals. In
addition to rolling out our supplier engagement platform in 2022, we launched:• An ESG-focused webinar series and a monthly newsletter, which we shared withnearly 200 direct and indirect suppliers• A dedicated email address for supplier queries

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Celebrating and connecting with top suppliers
Semiconductors are strategically important to the world. Throughout 2022, oursuppliers played a key role in ensuring that the semiconductor ecosystem could
continue to meet heightened demand. We presented our highest-performing
suppliers with Excellence Awards during our annual Supplier Day at the end of
October, recognizing their accomplishments across several categories.
In conjunction with Supplier Day, we held our inaugural Supplier ESG Forum where
we presented XP Power with our Supplier ESG award. The event included an expert
panel with Lam's supply chain leaders, a keynote speaker from our customer Intel,
and a presentation from a key supplier, Celestica. The forum was a catalyst for
relationship-building and prioritizing environmental initiatives.

• An ESG portal to provide suppliers with additional support and resources
We also offered additional training sessions and tools to help suppliers calculate
their GHG emissions.

There’s a reason why open communicationis one of Lam’s Core Values—we believe it
translates to mutual success. This holds true
for our approach to engaging suppliers todrive joint progress on climate action, humanrights, and other issues related to ESG. By
investing in close, collaborative partnerships,
we can build a stronger semiconductor
ecosystem and future for all.”
Pat Lord
chief operating officer at Lam

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INTRODUCTION

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESOur communities

IN THIS SECTION:

Name

Title

64

Highlights

65Powering breakthroughs together

66

Transformative learning

68

Resilient communities

69

Inclusive societies

70

Turning employees’ passion into action

RESOURCES

63

2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

We use ourresources to foster
communities that are
empowered, inclusive,and resilient.

RELEVANT SDGS

View SDG alignment

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES

Community1
GOAL

Lam’s business is about powering semiconductor
breakthroughs, and our communities know we don’t stop
there. We fund community programs that uplift the places
where we operate and live—in line with our Guiding
Principle to act with purpose for a better world. Beyond ourphilanthropic work, we encourage employees to participate
in community initiatives on the ground. Lam attracts people
who are changemakers and problem solvers at heart—when they see a community in need, they pitch in.
In 2022, our employees worked alongside colleagues andneighbors to pack backpacks, donate textbooks, and plant
trees. They held fundraisers and drives to support local causes
and took part in Lam’s longtime tradition of delivering joy. As
an organization, we launched our new social impact platform,
which focuses our community work around three areas thatalign with our values and strengths. Lam also kicked off our
first signature initiative, a three-year collaboration with FIRST
Global. We look forward to working with the organization to
inspire science and technology leadership and innovation inyouth. It’s just one way we’re working with our community
partners to power breakthroughs together.

SUSTAINABLE OPERATIONSSTATUS

2022 PROGRESS

Determine key targets for largerscale impact aligned to a new
strategic focus• Achieved our goal by launching a new social
impact framework with three strategic focus
areas to guide our giving and signature
program initiatives

Implement measurement ofoutcomes for key program andlarge-scale grants• Began developing a reporting process andmeasurement outcomes

Increase annual unique participation
rate in all employee giving programsfrom 10% to 30%• Increased annual unique employee participation
rate from 10% in 2021 to 18% in 2022

Increase employee volunteer hours
by 33% from a 2019 baseline• Achieved and surpassed our goal with
employees completing 21,133 volunteer hours
in 2022 for a total increase of 58% from a2019 baseline2 and set a new goal to achieve
40,000 by end of 2025

2022 HIGHLIGHTS

Rolled out Lam’s new Powering

Committed $10M

social impact platformover three years to
FIRST Global

Increased volunteer hours by
65% from 2021, logging 21,133
hours in 2022

Organized 80+
employee-driven events for
our Deliver Joy campaign

Breakthroughs Together

1 Unless stated otherwise, we aim to complete each of our ESG goals by 2025. Data in this chapter are inclusive of Lam Research and Silfex.
2

Based on data tracked through our community engagement platform.

642022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSPowering breakthroughs together
One of Lam’s Guiding Principles is to act with purpose for a better world. In 2022, we introduced
our new social impact platform to bring that vision to life. Our new platform, Powering
Breakthroughs Together, provides a framework for Lam to make a positive community impact
where it matters most. Our strategy is to cultivate meaningful relationships with charitableorganizations that share our purpose and vision. In August 2022, we closed our first cycle ofgrants with applicants supporting each of our focus areas:
Transformative learning
We’re pushing the boundaries of education to carve out new pathways for learners,
innovators, and creative thinkers.

Resilient communities
We’re helping communities build resilience in the face of adversity through strong
relationships, enhanced technological capacity, preparedness, and recovery planning.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES65

Our social impact manifesto
For more than forty years, we’ve defied conventions.
Challenged assumptions.
Pushed the boundaries of technical limitations.
But we know, technology alone doesn’t enable breakthroughs.
People do.
They think big to build better communities.
To create safer, more sustainable systems.
To relentlessly pursue innovation that delivers real impact.
When people are empowered to collectively reimagine tomorrow,
we power a better world for generations to come.

Inclusive societies
We're working to change inequitable systems and increase access to resources andopportunities that help communities reach their full potential and flourish.

Our new Powering Breakthroughs
Together platform speaks to what
Lam stands for and the type of social
impact we want to make. Throughit, we’re building meaningful
partnerships with organizations thatalign with Lam’s Guiding Principle toact with purpose for a better world.”
Christie Valdez
director of community relations at Lam

2022 ESG Report

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Launching our signature program with FIRST Global
Ready. Set. Carbon capture. That was the objective of the 2022 FIRST Global challenge, heldin Geneva, Switzerland. The Olympics-style international robotics competition brought together
1,550 students from 180 countries and 179 teams. Using kits of identical parts, the teams built
and programmed robots, working together to complete tasks in a challenge themed aroundcarbon capture.1
Lam provided a $1.33 million donation to support FIRST Global in 2022 and served as the premiersponsor for the challenge. We also engaged 17 employees who volunteered as mentors for the
students. During the event, Lam’s chief technology officer announced Lam’s long-term FIRST
Global commitment: A donation of $10 million over the next three years, beginning in 2023.
The 2022 FIRST Global challenge included:

1,550
students

directly impacted

179 teams

representing 180
countries, including ateam of refugees

39% female participation
including an all-girls team65+ solutions
developed

to capture and store carbon
as part of the challenge’s
technology experience$1.33M donationfrom Lam followed by acommitment of $10M over three years,
starting in 2023

FIRST Global enables transformative learning on
a world stage…The competition is an important
opportunity to showcase and foster the criticalthinking required to address the challenges facing
our industry and, more broadly, society.”
Rick Gottscho
executive vice president, strategic advisor to the CEO,and former chief technology officer at Lam
1

First Global, “2022 Theme: Capture and storage of carbon dioxide.” https://first.global/archive/fgc-2022/

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Transformative learning
Curiosity and inspired learning are key to powering breakthroughs, so we invest
in the ongoing foundational elements that lead to continuous discoveries andinnovations. This includes making investments in programs that are:• Pushing the boundaries of traditional approaches to education, with an aim
to introduce new ways of learning, foster new discoveries, shift mindsets, andempower growth• Inspiring the next generation of innovators to solve the world’s most pressing
problems through engineering and/or technology• Equipping people with the knowledge and skillsets needed to succeed in theinnovation workforce of the future2022 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACEOUR COMMUNITIESRESPONSIBLE SUPPLY CHAIN

RESOURCES

TRANSFORMATIVE LEARNING INITIATIVES IN 2022
FIRST Global“What if every child had the tools they needed tosolve problems in their own communities?” That’s thequestion posed by FIRST Global, a nonprofit working
to inspire science and technology leadership andinnovation in young people from all nations throughrobotics. In 2022, Lam donated $1.33 million to theorganization and announced an additional $10 million
donation, to be distributed over the next three years.
East Oakland Youth Development Center (EOYDC)

Lam received the Silicon
Valley Business Journal’s
2022 Community Impact
Award, which recognizes
businesses and nonprofits
making a positive impact
in Silicon Valley.

California’s EOYDC is on a mission to develop thesocial and leadership capacities of youth and young
adults. The center works to prepare local youth for
future employment, higher education, and leadership
opportunities.1 Lam bolstered EOYDC’s programs witha $300,000 donation to foster education equity for
1,000 Black and Latinx low-income youth.
Kids and Future Foundation Hello Coding Camp
The vision of the Kids and Future Foundation is tosee a world where every youth can realize their
dreams of a better, brighter future.2 Lam’s South
Korea site partnered with the foundation to support
117 students’ participation in the Hello Coding Campafterschool program.
Family Giving Tree and Hawks View Elementary
For six years, the Women in Leadership at Lam ERG has
collaborated with the Family Giving Tree in California
for its annual backpack drive. In 2022, more than 70
employees supported the effort, bringing in
the help of family members and friends to fill and deliver
1,500 backpacks for Bay Area students. Inspired by
the drive at our headquarters, a product manager
at Lam rallied 22 employees in Oregon to deliver
250 backpacks filled with school supplies to Hawks
View Elementary school students.
1

EOYDC, “Building character to build community.” https://eoydc.org/
Give2Asia “Kids and future foundation.” https://give2asia.org/kidsandfuture/

2

Other activities included:
U.S.
• Supporting Springfield High School’s STEM Learning Academy program in Ohio
(via Silfex), which provides students with STEM experiences and supplies• Serving as the title sponsor for the Silicon Valley Leadership Group Foundation’sHeart & Soles run, whose objective is to promote Silicon Valley student successthrough increased physical activity and access to healthy foods
ASIA• Supporting the National Science and Technology Museum’s coding and robotics
programs for elementary and junior high school students from remote anddisadvantaged areas in Taiwan• Donating textbooks to university students majoring in engineering in South
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Resilientcommunities
We support programs to strengthen relationships,
technology, preparedness, and recovery plans that enablecommunities to succeed in the face of adversity. This includes
making investments in programs that are:
• Implementing disaster preparedness and recovery plansthat strengthen communities• Engaging and connecting with community members
to support the adoption, maintenance, and evolution of
preparedness, recovery, and relief efforts• Helping rebuild communities impacted by natural
disasters or adverse conditions• Curbing climate change and mitigating its impact

Members of our LESC ERG engaged
in year-round sustainability efforts
in the U.S., Asia, and Europe. Learn
how they’re supporting community
resilience across the globe

1

One Tree Planted, “About us.” https://onetreeplanted.org/pages/about-us

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

2022 INITIATIVES FOR RESILIENT COMMUNITIES:One Tree Planted
One dollar. One tree. One planet. That’s the idea behind
One Tree Planted, a nonprofit organization focused onreforestation. Through a $100,000 donation, Lam supported
the organization’s efforts in Europe to restore forests,
create habitat for biodiversity, and make a positive social
impact around the world.1

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESRESOURCES68

GlobalGiving’s Carinthia Storm Response Campaign
In August, a series of storms near our site in Villach, Austria,
caused widespread damage and destruction. In response,
47 Lam employees raised over $8,000, including thecompany match, to help communities in the area rebuild, withadditional relief funding provided by the Lam Foundation.
Both donations went to GlobalGiving’s Caritas Carinthia
project, providing food, medical, and financial support.
Other activities included:

United Way Bengaluru
The Lam Foundation supports United Way Bengaluru's
efforts in India to restore a local school. Based on theschool’s design and location, it has been subject to annual
flooding and fallen into disrepair. Lam pledged $600,000
over the next three years to support the resiliency project,with additional funds provided by Lam’s India site.
Tse-Xin Organic Agriculture Foundation (TOAF)
Based in Taiwan, TOAF works to restore the environment
while improving people’s livelihoods and well-being. The
Lam Foundation provided a grant to help TOAF establish
coastal forests to prevent coastal erosion. In addition,
39 Lam employees volunteered alongside family members
to plant 1,000 trees along the island.

U.S.
• Donating over $4,000 raised by 66 employees,
including Lam's company match to support
communities impacted by hurricanes Ian
and Fiona
ASIA• Celebrating Lam Japan’s 30th anniversary
through donations to three nonprofits selectedbased on a vote by regional employees• Collaborating with the National Nature Trustin support of habitat preservation, restoration
projects, and endangered species protection
projects in South Korea

Lam Research is a company that acts on both a global and local scale.
Eighty-five percent of our Lam Villach employees live in Carinthia,
so I see it as our duty to support the local area and its charitableorganizations. It makes me proud whenever we can share ourcompany’s successes with those less fortunate.”

Walter Lerch
managing director, business operations at Lam Villach

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69

v

Inclusive societies
Successful societies are inclusive societies. We invest ininitiatives to facilitate equitable access and opportunities
to help communities reach their full potential. This includes
making investments in programs that are:
• Eliminating barriers that prevent vulnerable,
marginalized, and/or disadvantaged groups fromfully participating in social institutions (after-school
programs, education systems, workplaces, etc.)

Learn more about how we’recollaborating with universities
to support I&D in STEM
Sankalp Student Needs Program• Driving systemic change to break the cycle ofinequities and/or designing new systems, processes,
and procedures with inclusion in mind

Through the efforts of Sankalp, the corporate social
responsibility (CSR) team at Lam India, more than
400 economically disadvantaged students from three
local schools were provided with essentials, such asclasswork supplies, textbooks, school clothing items,
and nutritional snack kits to help mitigate barriers to
obtaining an equitable education. This project was oneof many that Sankalp supported through local Lam
India CSR-dedicated funding, which totaled more than$80,000 in 2022.

INCLUSIVE SOCIETIES INITIATIVES IN 2022

Stand Against Hate Fundraising Campaign• Leveling the playing field for underserved andunderrepresented communities’ long-term economic
and physical well-being

International Rescue Committee
In response to the humanitarian crisis in Ukraine, theLam Foundation provided a $100,000 donation to theInternational Rescue Committee to uplift those whohave been impacted and displaced during the war. Lam’s
employees also rallied behind the people of Ukraine, with
327 employees donating a total of $60,000, including thecompany match, to support the country’s refugees.
United Negro College Fund (UNCF)
UNCF envisions a nation where all Americans have equal
access to a college education that prepares them forrich intellectual lives, competitive and fulfilling careers,
engaged citizenship, and service to our nation.1 Lam isproud to have partnered with this organization over thelast several years in support of multiple activities. For thesecond year in 2022, Lam provided $100,000 to UNCF tofund 20 scholarships to historically Black colleges anduniversities (HBCUs).

Bias- and hate-motivated crimes are a threat toour communities. After a deadly shooting targeting
LGBTQ+ individuals in Colorado Springs, Colorado,
24 Lam employees donated $6,500, including thecompany match, to a community response campaign,with the funds split among several organizations
supporting services for LGBTQ+ youth and masscasualty crime victims.
Singapore Children’s Society
Established in 1952, the Singapore Children’s Society
protects and nurtures children and youth of allraces and religions. We provided grant support foryouth services, anti-bullying campaigns, and theorganization’s annual “Walk for Children.” Lam’s teamin the region also supported the organization by
donating school supplies to local students.
1

UNCF, “Our mission.” https://uncf.org/our-mission

Celebrating our legacy
of delivering joy
One of Lam’s enduring traditions is our annual campaign to Deliver
Joy, which engages employees to support communities where
they live and work around the world. In 2022, employees across
18 countries organized 82 volunteer events, contributing over
10,000 volunteer hours and raising $1.3 million in community
donations alongside the Lam Foundation.
On GivingTuesday, many employees took advantage of our two-forone corporate match. Others chose to volunteer at local food banks orparticipate in activities through their ERGs. For example, Lam Malaysia
teamed up with the Women’s Center for Change to support initiatives
that empower women and children. Employees donated pre-loved
items and volunteered for a sale to raise funds for the organization.
Other Asia-based employees assembled care packages to support
approximately 450 teenagers experiencing homelessness, and, inJapan, employees gathered and delivered clothes to local foster
children. Meanwhile, Lam China employees participated in adonation drive to provide remote, underprivileged students in the
Sichuan and Yunnan provinces with recess equipment and books.
Finally, in North America and Europe, our teams mobilized for arange of donation drives and community support activities. This
included facilitating a toy drive benefiting Toys for Tots in the U.S.

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U.S.

Creating a service-oriented culture
at Silfex, a Lam subsidiary• Working with Girls Inc. of the Pacific Northwest to support their STEM-focused
Eureka! program, a five-year skills and knowledge development program for girls
in underserved communities

In 2022, Silfex employees at our Eaton and Springfield, Ohio, sites
found creative ways to uplift and serve their local communities.
Examples include:• Continuing our relationship with the Hispanic Foundation of Silicon Valley tosupport the Latinos in Technology scholarship initiative• Celebrating National Pet Month by organizing pet adoptions andrunning a pet supply drive to support local shelters

Other activities included:

Turning employees’ passion
into action
At Lam, we believe wholeheartedly in our employees’ potential to reimagine tomorrow. We
encourage them to engage with their local communities to activate positive change. By
providing opportunities for community involvement, we also give our company a competitiveedge. Our teams work best when they feel inspired, and our community programs attract
new employees who are passionate about this work.
Employees can track their volunteer hours and make charitable contributions through ourcommunity engagement platform. Lam provides monetary matching gifts, matching dollars
for employee volunteer time, and resources for our teams to mobilize and volunteer. We arealso growing our Lam Cares ambassador program, which enables employees to champion
community involvement for their teams, departments, and regions.
In 2022, employees showed depth of impact through recurring donations, weekly
volunteerism, and activities facilitated by our ERGs. Our partnership with Rise Against
Hunger is just one example, in which we held meal-packing events with groups of100-150 employees.

• Supporting Pink Ribbon Girls to promote breast cancer awareness• Packing boxes of goods for the Second Harvest Food Bank duringThanksgiving (and achieving an all-time box-packing record)• Volunteering with Preble County Christmas for Kids to sponsor
nearly 200 wish lists for local kids70

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2022 COMMUNITY GIVING BY THE NUMBERS

2,153

organizations supported in 2022

1,331

employees volunteered a total of21,133 hours
10

employee-led ERG events
supported, generating

475 volunteer hours$6.6M

donated by the
Lam Foundation$1.2M

provided by the Lam Foundation
to match employee donations$1.4M

raised through employee
donations

18%

300%+

$135K

$1.3M

employee participation rate
through our community
engagement platformraised by employees
for disaster andcrisis relief

increase in new-hireengagement throughout 2022

donated by the Lam Foundation andemployees for Deliver Joy

10K+

volunteer hours completed by
employees in 18 countries for Deliver Joy

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IN THIS SECTION:
73

About this report74

Assurance letter

82

Additional information

83

Cautionary statement

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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 2022, with some exceptions noted, including financial data thatis Lam’s fiscal year (June 28, 2021 – June 26, 2022). 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 completed In Reference to the Global Reporting Initiative (GRI) Universal Standards. A GRI
index at the end of this report shows our alignment with GRI reporting elements and our priority ESG topics. We intend tocontinue to report annually.
We also report in alignment with the Sustainability Accounting Standards Board (SASB) Standard for the Technology andCommunications Sector: Semiconductor Industry. This alignment is detailed in the SASB index.
We have noted any significant changes in scope and boundary throughout the report that may vary from our 2021 report,
published in 2022. External assurance is limited to financial data from the consolidated financial statements in our 2022
Annual Report on SEC Form 10-K and environmental and safety data as outlined in the third-party assurance letter includedin this report. This ESG report has been reviewed by the Nominating and Governance Committee of our Board and has beenreviewed and approved by our president and CEO.
For more information about our corporate governance, please reference our Proxy Statement.

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Independent Assurance Statement
Introduction
DNV Business Assurance USA, Inc. (DNV) has been commissioned by the management of Lam Research Corporation (Lam) to carry out an independent limited
level assurance engagement of Selected Information for calendar year 2022 and, where marked, for Calendar Years 2019, 2020, and 2021, as presented in
Lam’s 2022 Sustainability Disclosures (the “Report”). The assurance was carried out March through May 2022.
Lam has sole responsibility for preparation of the data and external report. DNV, in performing our assurance work, is responsible to the management of Lam.
Our assurance statement, however, represents our independent opinion and is intended to inform all stakeholders including Lam.

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Scope of Assurance

The scope of work agreed with Lam includes the following:
Organizational boundary All global facilities under Lam’s operational control
Data Verified for the period of January 1, 2022, toDecember 31, 2022
 GHG Emissions Scope 1 and 2
 Energy Consumption
 Energy Savings
 Water Usage Water Saving
 Waste & Waste Data Diversion Rate (including
Hazardous Waste) Total Recordable Incident Rate (TRIR)
Data Verified for the period of January 1, 2021, toDecember 31, 2021
 GHG Emissions Scope 1
 Water Saving
Data Verified for the period of January 1, 2020, toDecember 31, 2020
 GHG Emissions Scope 1
 Water Saving
Data Verified for the period of January 1, 2019, toDecember 31, 2019
 GHG Emissions Scope 1
We do not express conclusions on other information that
may be published on Lam’s website or sustainability
disclosures for the current reporting period or previous
periods.

Topic
Greenhouse Gas
Emissions

Accounting MetricUnits(1) 2022 Gross global Scope 1 and 2 emissions(2) 2021 Gross global Scope 1 and 2 emissions(3) 2020 Gross global Scope 1 and 2 emissions(4) 2019 Gross global Scope 1 and 2 emissions
2022 Total energy consumed

Metric tonnes
CO2e (MTCO2e)

Energy Savings

2022 Energy savings achieved

Kilowatt hours(kWh)

Water Usage

2022 Total water usage

Gallons

Water Savings

2020 – 2022 Total water savings

Gallons

Waste
Management(1) 2022 Total amount of hazardous waste(2) 2022 Total amount non-hazardous waste generated(3) 2022 Total percentage hazardous waste recycled(4) 2022 Total non-hazardous waste recycled
Total Recordable Incident Rate (TRIR)

Metric tonnes(MT)
Percentage (%)(1) 2022 GHG Scope 1 and 2 emissions (market-based)change against 2019 baseline(2) 2022 Hazardous waste to landfill(3) 2022 Water savings exceed 2025 ESG goal

Percentage (%)

EnergyConsumption

Employee Health& Safety
Progress towards
2025 Goals

Kilowatt hours(kWh)

Rate per200,000 hours

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Level of Assurance
We performed a limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (revised) – ‘Assurance
Engagements other than Audits and Reviews of Historical Financial Information’, issued by the International Auditing and Assurance Standards Board. This
standard requires that we comply with ethical requirements and plan and perform the assurance engagement to obtain limited assurance.
DNV applies its own management standards and compliance policies for quality control, in accordance with ISO/IEC 17029:2019 - Conformity Assessment
Requirements for bodies providing audit and certification of management systems, and accordingly maintains a comprehensive system of quality control
including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
The procedures performed in a limited assurance engagement vary in nature and timing and are less detailed than those undertaken during a reasonableassurance engagement, so the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed. We planned and performed our work to obtain the evidence we considered sufficient to provide a basis for our opinion, so thatthe risk of this conclusion being in error is reduced, but not reduced completely.
DNV’s assurance engagements are based on the assumption that the data and information provided by the client to us as part of our review have been provided
in good faith. This includes but is not limited to sales and acquisitions, building occupancy rates, operating hours, and operational control. DNV expressly
disclaims any liability or co-responsibility for any decision a person or an entity may make based on this Independent Assurance Statement.

Assurance Methodology
DNV is a leading provider of sustainability services, including verification of GHG emissions data and other environmental metrics. Our environmental andsocial assurance specialists work in over 100 countries.
In that respect, the environmental footprint inventories have been evaluated against the following reporting criteria:World Business Council for Sustainable Development (WBCSD) / World Resources institute (WRI) Greenhouse Gas Protocol, A Corporate Accounting
and Reporting Standard REVISED EDITIONDNV used a risk-based approach throughout the assurance engagement, concentrating on the areas that we believe are most material for both Lam and its
stakeholders. DNV applied a materiality threshold of five percent for all data in scope.
The assurance process involved a series of 60-minute interviews with the accountable party(ies) and/or senior manager(s) responsible for collating theinformation at a corporate level to:






Perform a walkthrough to understand how data is managed and reported and the systems, legal registers, processes, and procedures used
Interview of managers and data users representing relevant functions for supporting the environmental inventory and safety data management process
Review the controls in place to confirm data and information accuracy
Confirm the scope and boundaries of the data included
Requests for further evidence and documentation in support of testimony and system observation

The assurance process includes desk review of the submitted documentation, site visit, data records and sources relating to the selected performance metrics
and corporate environmental footprint data claims.


Review of the processes and tools used to collect, aggregate, and report on all data and metrics
Assessment of environmental and other information systems and controls, including:

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





o Selection and management of all relevant environmental and safety data and informationo Processes for collecting, processing, consolidating, and reporting the environmental and safety data and informationo Systems and processes that ensure the accuracy of the performance data and informationo Design and maintenance of the environmental and employee workforce and safety information systemo Systems and processes that support the environmental and employee workforce and safety information systemo Performed sample-based audits of the processes for generating, gathering, and managing the data
Performed key data recalculations to confirm accuracy
Examination of the social, governance, and environmental data and information to develop evidence for the assessment of the claims and assertions
made
Evaluation of whether the organization conforms to the reporting criteria
Evaluation of whether the evidence and data are sufficient and support Lam’s environmental, social and performance claims
Conducted remote site assessment at Fremont, California to review GHG emissions, energy, waste, and health and safety management

In addition to the above, specific to the environmental indicators, the following steps were conducted for energy savings, waste, and water:
Energy Savings



Waste




Review of energy conservation measures implemented in the reporting year
Conducted sample-based review of the process for quantifying energy savings performance including:o Evaluation of reasonableness and conservativeness of assumptions related to energy baseline and savings calculated from energy conservation
measureso Desk-based review of energy calculations provided by Lam and energy consultants
Review of the waste segregation methodology and description of waste categorization
Conduct data checks for the waste data collected, transferred, and calculated
Perform sample-based assessment of data reported against the source data (waste collected to landfill and waste diverted) provided by waste
management companies.

Water




Review water usage measures within the reporting year
Conducted desk review and sample selection to cross check data points provided by Lam Research
Review the water savings allocation methodology and the assumptions made in the water savings section

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Data Verified
Greenhouse Gas Emissions – CY 2022

Scope 1 Emissions
Scope 2 Emissions (location-based)
Scope 2 Emissions (market-based)

432,998 MT CO2e1
131,084 MT CO2e63,300 MT CO2e

2019 Scope 1 Emissions Restatement
2020 Scope 1 Emissions Restatement
2021 Scope 1 Emissions Restatement

79,313 MT CO2e232,662 MT CO2e
288,007 MT CO2e

Total Energy Consumed

493,955,846 kWh

Energy Savings Achieved

2,243,860 kWh

Greenhouse Gas Emissions Scope 1 Restatement – CY 2019, CY 2020, CY 20212


Energy Consumption – CY 2022
Energy Savings – CY 2022Water Used – CY 2022


Total Water Usage

398,130,121 Gallons

Water Savings in CY2020
Water Savings in CY2021
Water Savings in CY2022

6,767,100 Gallons
6,767,100 Gallons
33,380,713 Gallons

Total Hazardous Waste
Hazardous Waste Recycled
Total Non-Hazardous Waste
Non-hazardous Waste Recycled

1,922 Metric tonnes
48%
9,261 Metric tonnes
77%

Water Savings – CY 2020, CY 2021, CY 2022

Waste – CY2022

Employee Health & Safety – CY 2022


Total Recordable Incident Rate (TRIR)

Progress towards 2025 ESG Goals




1
2

CY 2022 Scope 1 and 2 (market-based) emissions against 2019 baseline
CY 2022 Hazardous Waste to Landfill
CY 2022 Water Savings exceed 2025 ESG goal

MT CO2e stands for metric tonnes of carbon dioxide equivalent
Scope 1 Restatement from 2019 – 2021 is based on a newly identified refrigerant (FC-3283).

0.35
207%
0.01%
176%

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Inherent Limitations

Due to the selective nature (sampling) and other inherent limitations of both procedures and systems of internal control, there remains the unavoidable risk thaterrors or irregularities may not have been detected. Calculations of energy savings are subject to inherent limitations, given the nature and the methods used for
determining such data. DNV did not conduct independent measurement of the energy savings variables. This is a limitation which can influence the accuracy of
our opinion. Finally, the selection of different but acceptable measurement techniques, in particular related to the waste and energy savings performance, may
result in materially different measurements.

Assurance Opinion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the informationand data within the Report is not fairly stated and has not been prepared, in all material respects, in accordance with the criteria stated. This conclusion relates
only to the information in the Report and is to be read in the context of this Assurance Statement.

Independence

DNV was not involved in the preparation of any part of Lam’s data or report. This is our first year of providing assurance for Lam. We adopt a balanced approach
towards all stakeholders when performing our evaluation.

DNV Business Assurance USA, Inc.
Katy, Texas
June 27, 2023

Stephen Carlson
Lead Verifier

Owen Chen
Lead Verifier

Shruthi Poonacha Bachamanda
Technical Reviewer

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Appendletterix. Selected In(continued)
formation’s Criteria
Topic

Description

Methodology

Units

Energy Savings

2022 Energy savings achieved
Energy savings achieved as a result of energy conservation measures (ECM)
implemented at all global facilities under Lam’s operational control in thereporting year. Savings quantified in comparison to energy baseline (energy
consumption occurring without implemented ECM.)

Total sum of energy savings achieved across all
ECMS implemented in the reporting year.

Kilowatt hours(kWh)

Water Usage

Water usage at all global facilities under Lam’s operational control in thereporting year.

Total sum of water usage entered based on
invoices.

Gallons

Water Saving

Water savings are achieved by installing water reduction units at the
manufacturing plants in water-stress areas. Water savings are quantified
based on the reduced flow rate measured by the flow meters.

Total sum of water savings based on real-timeflow meters and proper assumptions.

Gallons

7

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Topic

Description

Methodology

Units

Waste
Management(1) 2022 Total amount of hazardous waste
Hazardous waste generated at all global facilities under Lam’s operational
control in the reporting year.

Methodology:(1) Total sum of hazardous waste generated
across global facilities in the reporting year.

Metric tonnes(MT)(2) 2022 Total amount non-hazardous waste generated
Non-hazardous waste generated at all global facilities under Lam’s
operational control in the reporting year.

(2) Total sum of non-hazardous waste
generated across global facilities under Lam’s
operational control in the reporting year.

(3) 2022 Total percentage hazardous waste recycled (%)
Hazardous waste disposed by means of recycling across global facilities
under Lam’s operational control in the reporting year.

(3) Total metric tons of hazardous waste
recycled / total metric tons of hazardous waste
generated X 100 (%)(4) 2022 Total non-hazardous waste recycled (%)
Non-hazardous waste disposed by means of recycling across global facilities
under Lam’s operational control in the reporting year.

(4) Total metric tons of non-hazardous waste
recycled / total metric tons of non-hazardous
waste generated X 100 (%)

Total Recordable Incident Rate (TRIR)
Number of incidents reported per 100 full-time employees against the
number of hours worked. In 2022 reporting year, employee hours worked
was assumed to be 2000, per Lam full-time employees.

(Total number of incidents X 200,000) / Fulltime equivalent headcount X 2000

Employee Health& Safety

Percentage (%)

Rate per200,000 hrs

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Additional information
Relevant links
Annual Reports

Lam Research

Code of Ethics

Lam Research Global EHS Sustainability
Commitment Policy

Community Relations
EEO-1 Report
Environmental, Social and Governance
Ethics Helpline
Global Standards of Business Conduct

Products
Supplier Code of Conduct
Supply Chain Policies
Human Rights Policy

Appendices
Visit our Report Appendix for our Performance Summary,and our GRI, SASB, TCFD and UNSDG indexes.

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

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Cautionary statement
With the exception of historical facts, the statements contained in this ESG Report (“Report”) are forward-looking statements. Forward-looking statements are subject to the safe harborprovisions created by the Private Securities Litigation Reform Act of 1995. Certain, but not all, of the forward-looking statements in this Report are specifically identified as forward-looking by
the use of words and phrases such as “aim,” “anticipate,” “aspire,” “believe,” “build,” “commitment,” “continue,” “could,” “expand,” “expect,” “future,” “goal,” “increase,” “intend,” “maintain,” “may,”“objectives,” “opportunities,” “path,” “plan,” “remain,” “should,” “strategy,” “strive,” “target,” “vision,” “will,” and “would.” However, our identification of certain statements as forward-looking
does not mean that other statements not specifically identified are not forward-looking. Forward-looking statements include, but are not limited to, statements that relate to: economic, market,
industry and industry segment expectations; the role of our technology and innovations in the semiconductor industry and the world; our incorporation of ESG principles into our activities; ourenvironmental impact; our engagement with our suppliers in their environmental and social efforts; our contributions to climate action; our ESG goals, including our goals related to achieving
net zero emissions; our standards for responsible and ethical conduct; our aspirations for transparency and disclosure; the role of ESG considerations in our product development; our efforts
to build an inclusive and diverse workplace; our efforts to develop a responsible and ethical supply chain; our ethics and compliance initiatives; our commitment to ensuring human rights
across our operations and supply chains and plans for our human rights program; our compliance with legal, regulatory, and internal control requirements with respect to taxation; our productinnovation; our investments in R&D; the performance, productivity, quality, safety, efficiency, or sustainability of our products; the impact of our investment in opening new R&D centers; thetechnology areas that are strategically important to us; reductions in the emissions output of our products; the ability of our products to enable faster learning cycle; our use of environmental
principles in the product design process; energy or water savings, or emissions reductions, that might be achieved by customers using our products; materials savings that might be achieved
through our re-cleaning, repair, refurbishment or re-coating services; our commitment to diversity and inclusion; our commitment to acting responsibly and improving our sustainability
performance over time; our initiatives to reduce our energy and water consumption and to reduce waste; our investments in transitioning to renewable energy, emissions controls and energy
efficiency technologies; our engagement with customers and suppliers to set SBTs; our commitment to climate action; our management of water use and treatment; our management of
hazardous and non-hazardous waste and our emissions; our ability to safely manage chemicals and our adoption of green chemistry practices; workplace flexibility; the enhancement of ourbenefit programs; our goals with respect to increasing the proportion of underrepresented employees and women in our workforce; our ability to ensure the safety of our employees; our ability
to manage risks in our supply chain, including with respect to human rights; and the impacts of our social impact platform. Such statements are based on current expectations and are subject
to risks, uncertainties, and changes in condition, significance, value and effect. Some factors that may affect these forward-looking statements include: trade regulations, export controls, tradedisputes and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor
industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain cost increases and otherinflationary pressures have impacted and are expected to continue to impact our profitability; supply chain disruptions have limited and are expected to continue to limit our ability to meetdemand for our products; the severity, magnitude and duration of the COVID–19 pandemic (and the related governmental, public health, business and community responses to it), and theirimpacts on our business, results of operations and financial condition, are evolving and are highly uncertain and unpredictable; and widespread outbreaks of illness may impact our operations
and revenue in affected areas; as well as the other risks and uncertainties discussed under the headings “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements”
within Item 1A and at the beginning of Part I, respectively, of our fiscal year 2022 Annual Report on Form 10-K; and other documents we file from time to time with the Securities and Exchange
Commission, such as our quarterly reports on Form 10-Q and current reports on Form 8-K. Such risks, uncertainties and changes in condition, significance, value and effect could cause ouractual results to differ materially from those expressed in this Report and in ways that are not readily foreseeable. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this Report and are based on information currently and reasonably known to us. We do not undertake any obligation to update any forwardlooking statements, or to release the results of any revisions to these forward-looking statements, to reflect the impact of anticipated or unanticipated events or circumstances that occur after
the date of this Report.