Act withpurposefor abetter world
2023
ENVIRONMENTAL, SOCIAL,AND GOVERNANCE REPORTIn this time of rapid technological evolution, we are finding
smarter ways to stay ahead. It’s not just about moving fast—
it’s about moving with purpose.

CONTENTS

As a global supplier of wafer fabrication equipment and services, Lam’s technology is at the core 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
across our business. From the way we power our global operations to our approach to designing next-generation products, we remain dedicated to actingwith purpose for a better world. With this report, we are proud to share impactful stories and data that demonstrate our ESG progress throughout 2023.1

Introduction

Our workplace

A message from our CEO ................................................................................... 2

Creating a workplace that supports success ..........................................46

Positioning our company for success ......................................................... 3

Fostering and leading inclusive teams ........................................................50

Achieving ESG progress ..................................................................................... 5

Maintaining a safe workplace...........................................................................55

Semiverse™ Solutions ......................................................................................... 7

Business and governanceOur comprehensive approach .........................................................................59

Our ESG approach .................................................................................................10

Collaborating to advance climate action ...................................................61

Holding ourselves accountable .......................................................................12

Upholding human rights .....................................................................................62

Engaging key stakeholders ...............................................................................14

Ethically sourcing raw materials .....................................................................62

Reinforcing a culture of ethics and compliance .....................................15

Fostering supply chain diversity .....................................................................63

Protecting data and intellectual property..................................................18
Engaging policymakers and enabling our business .............................19

Product innovation

Our communities
Powering breakthroughs together ................................................................66
Transformative learning ......................................................................................67

Innovating smart, sustainable solutions .....................................................23

Resilient communities ..........................................................................................68

Delivering lifecycle solutions ............................................................................25

Inclusive societies ..................................................................................................69

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

Our all-in engagement approach ...................................................................70

Sparking industry insights .................................................................................27

Sustainable operations

1

Responsible supply chain

Appendix
About this report.....................................................................................................73

Moving toward net zero ......................................................................................31

Methodology .............................................................................................................73

Embracing smart energy solutions ................................................................36

Assurance letter ......................................................................................................74

Practicing water stewardship ..........................................................................38

Cautionary statement ..........................................................................................78

Minimizing and managing waste....................................................................41

Glossary.......................................................................................................................79

Unless stated otherwise, the data in this report reflect our performance as of Dec. 31, 2023.

A MESSAGE FROM OUR CEO

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

2

Purpose-driven progress for a better world
For decades, one statement has held true: ‘There’s never been a more exciting time to be in the semiconductor industry.’ Each new generation has delivered the technological progressthat was only imagined by those that came before. And today, we are at the dawn of the next era of innovation—Artificial Intelligence (AI).
AI is expected to be a powerful demand driver for ourindustry, and it is already changing the world. Here at Lam,
we recognize the role technology plays in shaping the future.
That is why we strive to integrate our Guiding Principle, ‘Act
with purpose for a better world,’ into all that we do.
This new era of AI will elevate technological complexity to
the next level. So, we’re leveraging virtual solutions that
accelerate problem-solving and harnessing AI as a tool forour scientists and engineers. By utilizing simulation in placeof physical experimentation, we can dramatically reduce our
R&D emissions and use fewer chemicals.
We recognize the threat of a changing climate and know
the biggest opportunity to reduce our environmental impact
is through our products and services. This year, our Chief
Technology Officer assumed responsibility for sustainability
at Lam so that we can drive innovations to reduce ourcarbon footprint.
We also leverage our global reach to promote progressbeyond Lam. Our human rights program incorporates
international principles and the Responsible Business
Alliance standards – fostering an environment for Lamand our supply chain to operate within the Core Valuesof our company.
Delivering on our technology roadmaps will only happen
with an educated and motivated workforce. For our own
employees, Lam offers wide-ranging internal leadershipdevelopment programs to provide tailored opportunities for
growth throughout their career.

We also know our efforts to develop talent must extend into thecommunities in which we operate. To build the future workforce,
we are collaborating with leading universities and governments,
including recently with the government of India to deploy ouradvanced software solutions to train up to 60,000 semiconductor
engineers over the next decade.
For many of us at Lam, our love of technology started at an earlyage. In 2023, we kicked off our three-year, $10 million commitment
to FIRST® Global, an organization which brings together students
from around the world to participate in a collaborative robotics
competition. I was honored to watch as they built on their passion for
STEM and created connections across cultures.
Our employees also acted as mentors to FIRST teams – and thiswas just one of thousands of volunteer activities. Overall,our employees increased their volunteer hours in 2023 by
45 percent over the prior year to more than 30,000 hours.
The opportunities ahead are exciting, but what is truly
motivating is imagining the future – and then proving
it’s possible. Lam’s employees thrive on collaborating toovercome the toughest challenges and unleash the power ofinnovation for a better world.
And while it’s been said before, it remains true: there has neverbeen a more exciting time for the industry—and I know for Lam,the best is yet to come.

Tim Archer
President and CEO, Lam Research2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Positioning our company—and
global chipmakers—for success.

LAM RESEARCH AROUND THE WORLD

primary locations
worldwide

12

manufacturing
facilities

Tualatin and
Sherwood, OR

labs dedicated to researchand development (R&D)

Silicon component
manufacturing

21.1%

Southeast Asia & India

10.7%

Taiwan8.5%

South Korea

7.4%

Europe

4.7%

China

2.8%

Japan

Salzburg and
Villach, Austria
Manufacturing
and labs

Osan,
Hwaseong,
and Yongin, Korea

Batu Kawan,
Malaysia

Manufacturing
and labs

Manufacturing
and labs

Manufacturing

Taoyuan Cityand Hsinchu
City, Taiwan

Fremont andLivermore, CA
Headquarters,
manufacturing,and labs

APPENDIX

44.8% United States (U.S.)

7

Springfield andEaton, OH

OUR COMMUNITIESOur operations bring together ~17,200+
employees who are distributed across1:

Lam Research is headquartered in Fremont, California, with:

14

RESPONSIBLE SUPPLY CHAIN

Manufacturing
and labs

Bengaluru,
India
Lab

1

Minimal rounding has been applied to these data.

3

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SUSTAINABLE OPERATIONSPRODUCT INNOVATION(IN THOUSANDS, EXCEPT PERCENTAGESAND PER SHARE DATA)FY 20211

FY 20222

FY 20233

Revenue$14,626,150*$17,227,039$17,428,516

1.2%

Gross margin$6,805,306$7,871,807$7,776,925(1.2)%

46.5%

45.7%

44.6%

(1.1)%

Total operating expenses4$2,323,283$2,489,985$2,602,065

4.5%

R&D expenses$1,493,408$1,604,248$1,727,162

7.7%

64.3%

64.4%

66.4%

2.0%

$3,908,458$4,605,286$4,510,931(2.0)%$26.90$32.75$33.21

1.4%

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

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Culture and approach

Financial performance by fiscal year (FY)

Gross margin as a percent of total revenue

OUR WORKPLACECHANGE FROMFY 2022 TO FY 2023

* Throughout this report, $ refers to U.S. dollars.

Our Mission is to drive semiconductor breakthroughs that define the next
generation. To fulfill this mission, we focus on nine Core Values that shape
our global culture and guide our day-to-day business approach:Achievement

Agility

Honesty andintegrity

Inclusion anddiversity

Innovation andcontinuous
improvement

Mutual trust andrespectOpencommunication

Ownership andaccountability

Teamwork

Europe 7%
Southeast Asia 8%
China 26%
U.S. 9%Japan 10%

FY 2023
revenue by
regionKorea 20%

Taiwan 20%

Ending June 27, 2021.
Ending June 26, 2022.
3
Ending June 25, 2023.
4
Includes R&D expenses.
1

2

4

2023 ESG Report

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BUSINESS AND GOVERNANCE

Achieving
ESG progress

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES5APPENDIX

We set near- and long-term targets to keep us focused on our pursuit of ESG progress and accountable for our performance eachyear. Unless stated otherwise, we aim to complete each of our ESG goals by 2025. In 2023, we continued to build momentum
across our ESG pillars. We also received recognition from our customers and independent raters and rankers, including being
named among the World’s Most Ethical Companies by Ethisphere. Lam was the only wafer fabrication equipment maker and oneof only two companies in the semiconductor category to be included on the list in 2023.
BEHIND SCHEDULESTATUSIN PROGRESSACHIEVEDTIMEFRAME

ESG PILLAR

GOAL

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

Annual

Product innovation. 83% of customers measured by emissions have science-based targets (SBTs).1

AnnualAchieve net zero emissions by 2050, including by meeting the following targets:

Sustainable
operations

Workplace

Responsible
supply chain

Community

1
2
3. Achieve 100% renewable electricity by 2030.

Annual. Reduce absolute Scope 1 and 2 (market-based) greenhouse gas emissions 25% by 2025 and 60.6% by 2030 from a 2019 baseline.
By 2040, achieve net zero operations.

Cumulative from baseline. Achieve 12 million kilowatt-hours in total energy savings from a 2019 baseline.

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

Annual. Achieve 80 million gallons of water savings 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 suppliers.2

Annual. Engage with at least 50% of our top suppliers on environmental sustainability opportunities.

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

Annual. 46.5% of suppliers3 measured by emissions have science-based targets (SBTs).1

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%.

Annual. Contribute 40,000 employee volunteer hours annually.

AnnualPlease refer to about this report for a detailed description of how we calculate this goal.
Top suppliers are defined as the top 100 direct suppliers, who account for approximately 96% of related spend and 95-98% of supply chain emissions, with some variability year over year.
Includes indirect and direct suppliers. Please see the Glossary for a more detailed definition of both.

2023 ESG Report

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SUSTAINABLE OPERATIONSPRODUCT INNOVATION

2023 ESG scores and recognitions

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXCUSTOMER RECOGNITIONSIntel—EPIC Outstanding Supplier Award with supplier
diversity distinction

KEY INDEXBEST POSSIBLE RANKING

2020

2021

2022

2023

Dow Jones Sustainability
Index North America

Listing indicates top 20%
sustainability performance

Unlisted

ListedListedListedCDP Climate Change
questionnaire

A

B

B

B

B

CDP Water Security
questionnaire

A

B

B

B

B

ISS ESG Corporate Rating

Excellence (A+)

C

C

C

C

MSCI USA

AAA

AA

AA

AAA

AAA

FortuneSustainalytics ESG
Risk Rating

Negligible (0)

17

14.7
low risk

13.7
low risk

13.6
low risk• Fortune 500: #240

Micron—Outstanding Performance in Supplier Diversity Award
TSMC—Excellent Performance Award

WORKPLACE AND INDUSTRY RECOGNITIONSForbes• America’s Best-in-State Employers Oregon: #11• America’s Most Cybersecure Companies: #31• America’s Best Employers for Diversity: #82• World’s Best Employers: #541

• World’s Most Admired Companies: #5 in thesemiconductor industry
Newsweek• America’s Most Responsible Companies: #54• America’s Greatest Workplaces for Diversity: 5/5 stars• America’s Greenest Companies: 4/5 stars
Ethisphere—World’s Most Ethical Companies
JUST 100—America’s Most JUST Companies: #95
Time—World’s Best Companies: #65
USA Today—America’s Climate Leaders
Human Rights Campaign—Corporate Equality Index: 100/100

Have a question about a term inthis report? View the Glossary
for clarification.

6

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PRODUCT INNOVATION

Semiverse Solutions andthe virtual path toward a$1T industry™

The semiconductor industry has always been a cornerstone oftechnological evolution, with personal computers, smartphones, anddata centers all defining major periods of expansion and innovation.
With new advancements in smart mobility, automation, and artificial intelligence now
added to the mix, we see our industry at the dawn of another era of rapid innovation.
The future will be more complex and more expansive, with an increasing array ofdevices demanding a higher volume of chips. The culmination: a $1 trillion market
opportunity, with growth taking place on a global scale.

As the semiconductor ecosystem races toscale to address the criticality of chips, thevirtual-physical fabrication world madepossible with Semiverse™ Solutions opens
the door for exciting new opportunities forcollaboration, workforce development, andadvanced technology breakthroughs.”
David Fried
corporate vice president and leaderof Semiverse™ Solutions at Lam

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

7

As companies build new facilities in new locations and governments invest in semiconductor
competitiveness, the industry is becoming more geographically diverse. Such a shift requires
a comprehensive approach to support a larger, more distributed sector while addressing both
environmental and economic sustainability. At Lam, we’re harnessing the power of virtual-worldtechnologies to navigate these real-world challenges. Our ambition is to create a symbiotic,
physical-virtual semiconductor ecosystem that enhances efficiency and reduces environmental
footprints and costs. Moreover, this model is expected to foster unparalleled collaboration,
accelerating innovation across a new industry landscape.
Through this vision, we unveiled our new Semiverse™ Solutions business in 2023, which
includes a portfolio of advanced software platforms to solve process modeling, design
automation, and integration challenges. Also included are solutions that enable advanced plasma,
fluid, electromagnetic, and particle simulations. Together, these tools provide the building blocks
for an interconnected ecosystem of virtual tools and digital twins.
With this launch, we are powering sustainable innovation. Lam employees can use these solutions
to refine new processes and explore promising ideas—not only more rapidly, but with fewer physicalresources and at significantly lower costs. By combining human expertise with the computing powerof machines, we enable faster, cheaper experimentation. And through virtual experimentation andsimulation, engineers can reduce electricity usage, process gas, and chemical waste. This is critical
for reducing our impact on the environment as we discover the next semiconductor breakthroughs.
Semiverse™ Solutions will also play a key role in our strategy to facilitate a pipeline of future
semiconductor talent, an initiative we announced at the White House via a joint statement with the
U.S. and Indian governments in June 2023. Using our SEMulator3D® software, we intend to facilitatea virtual nanofabrication environment to help train India's next generation of semiconductor
engineers. The initiative will include program management and customized course curriculum
development, with the program aiming to educate up to 60,000 students over 10 years.

Learn more about how we’re leveraging Semiverse™ Solutions
to help overcome our industry’s biggest challenges via our
website.

2023 ESG Report

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESBusiness andgovernance
IN THIS SECTION:
Our ESG approach10

Holding ourselves accountable

12

Engaging key stakeholders

14

Reinforcing a culture of ethics
and compliance

15

Protecting data and intellectual property

18

Engaging policymakers and enabling
our business

19

APPENDIX

8

2023 ESG Report

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES9APPENDIX

Business and governance
We’re integrating environmental,social, and governance (ESG)
principles across our businessand leading the company
forward with purpose.

2023 HIGHLIGHTS
Updated Lam’s
Code of Conduct toimprove ease of use
and guide ethicaldecision making.

Created a cross-functional
Government Funding
Working Group to guideLam’s efforts in leveraging
government funding.

Formalized Lam’s Public
Policy Advisory Committee
to oversee the LAMPAC
and support thoughtfulpolicymaking.

BEHIND SCHEDULE

GOALContinue to expand our disclosure and alignment
with industry-recognized frameworks and standards.

STATUSIN PROGRESSACHIEVED2023 PROGRESS
Our efforts to increase disclosure maintained or
improved our ratings and rankings with third parties.

2023 ESG Report

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONOur ESG approach
Lam’s innovations have a major impact and reach. The tools we develop andthe advancements we drive are critical to the production of the world's mostadvanced chips, facilitating technology in the realms of communication,transportation, clean energy infrastructure, and healthcare.
We integrate ESG principles into our business to contribute to a better world.
Doing so strengthens our organization, driving us to proactively manage andmitigate risks; deepen our values-based culture; and become even morecollaborative, innovative, and efficient. Our ESG approach centers on stakeholder
engagement, goal setting, and accountability for our performance over time. Inthat regard, we aim to remain in step with expectations and legal requirements
around transparency and disclosure; as well as industry-recognized frameworks,
best practices, and standards.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Where we focus our ESG efforts
Our ESG initiatives encompass many aspects of Lam’s business—from the way wemanage our workforce and supply chain to how we develop new products. To ensure afocused approach, we’ve organized our ESG program around six pillars that reflect areas
where Lam can make the most meaningful impact.
BUSINESS AND GOVERNANCE
Integrate ESG into our business operations and foster ownership andaccountability as we advance our ESG strategy and goals.
PRODUCTS AND CUSTOMERSInnovate with sustainability in mind and design for environment principles tobe a partner of choice for our customers and support their ESG goals.
SUSTAINABLE OPERATIONSMinimize our environmental impact through investments in energy, water,
waste, and greenhouse gas (GHG) emissions reductions.

Our ESG mission isto elevate humanprosperity and protect
the environment inour operations, supply
chain, and the products
we create.

OUR WORKPLACE
Build an inclusive, diverse, and engaged workplace while achieving top
performance in health and safety.
RESPONSIBLE SUPPLY CHAIN
Ensure an ethical and responsible business ecosystem focused on humanrights and the environment.
OUR COMMUNITIESBe a responsible corporate citizen with programs focusing on transformative
learning, resilient communities, and inclusive societies.

Learn more about our ESG strategy via our website.

102023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

SUPPORTING GLOBALLY RECOGNIZED SUSTAINABILITY
PRINCIPLES AND GOALS
We are not alone in our dedication to improving sustainability
and enhancing the quality of life of communities worldwide.
Since 2022, Lam has been a proud member of the United
Nations Global Compact (UNGC). The organization is theworld’s largest corporate sustainability initiative, bringing
together thousands of participating businesses to takeshared responsibility for achieving a better, more sustainable
world. As a member, Lam supports the UNGC’s Ten Principles
for labor, environment, anti-corruption, and human rights.
We also support the advancement of the UN’s Sustainable
Development Goals (SDGs), which represent an international
effort to tackle the world’s most pressing issues. As global
citizens, we see the framework of the SDGs as anothermethod of measuring Lam’s progress and ensuring our ESG
initiatives serve the greater good. We aim to drive progresson the SDGs throughout Lam’s operations and supply chain,including through our workforce, our products, and oursocial impact platform. View the Key Data and Frameworks
to learn how Lam is working to accelerate progress toward
priority SDGs.
LEVERAGING THE RESPONSIBLE BUSINESS ALLIANCE(RBA) TO ENHANCE OUR ESG EFFORTS
Composed of more than 230 companies, the RBA is theworld’s largest industry coalition dedicated to responsible
business conduct in global supply chains. As a member,
Lam supports the RBA’s mission and vision and strives touphold the RBA’s Code of Conduct. In recent years, we’ve
increasingly leveraged RBA tools to support a varietyof ESG-related practices, including enhancing humanrights due diligence and sustainability in our supply chain,strengthening our culture of ethics and compliance, andsupporting effective environmental management. View
Responsible supply chain, Business and governance, andSustainable operations to learn more about each of theabove topics.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Aligning our reportingwith industry-leading
frameworks
We align our reporting and priority
ESG topics with the Global Reporting
Initiative’s (GRI) Universal Standards
and with the Sustainability AccountingStandards Board (SASB) Standard for
the Technology and Communications
Sector: Semiconductor Industry.
View the Key Data and Frameworks
to reference our GRI and
SASB frameworks.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

11

2023 ESG Report

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

12

Holding ourselves
accountable

How our leaders engage the Board around ESG topics

Lam is a large and complex organization with hundreds of teams
pursuing projects around the world. To promote business and
ESG progress and ensure alignment in our efforts, effective
leadership, oversight, and accountability are key. Our Board of
Directors (Board) and executive leaders believe in the power ofstrong corporate governance to deliver benefits for our company
and stakeholders over the long term. We have processes for ESG
governance in place that establish clear responsibilities for theoversight, management, and implementation of our ESG strategy.
These responsibilities start at our Board and extend throughout
the organization. We have also tied our executive compensation
program to certain aspects of Lam’s ESG goals to ensure that our
executive leaders are accountable for driving ESG progress andare rewarded for their achievements.

• The chief technology and sustainability officer provides ESG updates via presentations or written reports
to the full Board or the Nominating and Governance Committee four times per year.

Leaders throughout our organization provide the Board and its committees with regular updates to ensure
their awareness of key ESG topics. Our Board engagement processes include the following:• The corporate vice president of global trade and government affairs provides quarterly updates onpolitical activities and an annual update on political policy and contributions to the Nominating andGovernance Committee.
• The chief legal officer provides updates on critical enterprise risks to the full Board.
• The chief compliance officer provides quarterly ethics and compliance updates to the Audit Committee
and an annual update to the full Board.
• The chief information security officer provides quarterly information security updates to the Audit
Committee and an annual update to the full Board.
• The chief human resources officer provides quarterly human capital management updates to theCompensation and Human Resources Committee and an annual update on employee engagement to
the full Board.

Learn more about our corporate governance practices
and executive compensation program in our 2023
Annual Report. You can also visit our website for a libraryof corporate governance documents and additional
information about ensuring Board effectiveness, Board
diversity, and more.

2023 ESG Report

BUSINESS AND GOVERNANCE

INTRODUCTION

PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

ESG governance at Lam
Lam Research Board of Directors
Nominating andGovernance Committee
ESG strategy and goals,
sustainability initiatives,
climate-related goals, andpolitical activities

Compensation and Human
Resources Committee
Human capital management,
inclusionand diversity,and pay equity

Audit
Committee
Ethics and compliance andinformation
security

ESG Executive Steering Committee
Guides ESG strategy, approves and supports initiatives, drives accountability
ESG Leadership Team
Proposes goals, develops andexecutes strategy, and embeds ESG into
operations management system

IMPLEMENTATIONMANAGEMENTOVERSIGHT

Overall oversight of ESG strategy and performance

Net Zero Leadership Team
Drives progress toward net zero goaland embeds net zero into operations
management system

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

13

Evolving our leadership
In 2023, Lam announced several new executive appointments to position thecompany for future innovation and long-term growth. This included naming:• Tina Correia as group vice president, chief accounting officer andbusiness finance• Pearl Del Rosario as vice president, chief compliance officer• Neil Fernandes as senior vice president, global customer operations• Rick Gottscho as executive vice president, strategic advisor to the CEO
with a focus on the innovation ecosystem• Pat Lord as executive vice president, chief operating officer• Vahid Vahedi as senior vice president, chief technology andsustainability officer• Sesha Varadarajan as the senior vice president of the global products group

Topic-Specific
Working Groups
Execute on key issues

Board diversity
Lam’s Board shares our company’s Core Values of inclusion and diversity. In
identifying potential director candidates outside the company, the Nominatingand Governance Committee actively seeks qualified candidates who reflect
diverse backgrounds, skills, and experiences—including diversity in termsof geography, gender identity, LGBTQ+ identity, age, race and ethnicity, andclassification as a member of an underrepresented minority—to include in thepool from which Board nominees are chosen.

Learn more about our Board demographics in Our workplace.

We also announced two new members of our Board: John M. Dineen, who brings
extensive experience in global management and operations, and Dr. Ho Kyu Kang,
who brings a deep knowledge of our industry, technology, and customers.

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONEngaging key
stakeholders
In our evolving industry, there are always new opportunities,
challenges, and trends. That means the issues that are topof mind for our stakeholders can also shift over time. We
maintain open communication channels with our communities,
customers, employees, industry organizations, policymakers,
stockholders, and other stakeholders to inform our decisionmaking around pertinent ESG, business, and industry topics.
In 2023, we increased our engagement with key stakeholders
through meetings, industry forums, and other touchpoints.
Visit our website to learn more about our targeted stakeholder
engagement approach.
FOCUSING ON OUR MATERIAL ESG ISSUES1
Among our most impactful tools for stakeholder engagement
are our in-depth ESG materiality1 assessments, which we
conduct every three to five years or more frequently if there’s
a notable shift in our industry or business. During this process,we gather insights from a diverse group of internal and external
stakeholders, which guide and affirm Lam’s ESG approach.
We conducted our latest assessment in 2022 using a double
materiality methodology, in line with guidance from theSustainable Accounting Standards Board (SASB) and the
Global Reporting Initiative (GRI).
Through surveys and interactive interviews, participants
assessed ESG topics based on their importance to stakeholders
and potential impacts both to and from Lam. We also integrated
results from an ESG materiality employee survey to further
incorporate our employees’ perspectives. The results werereviewed by both executive management and the Board.
Based on the results, we identified the following topics as
being most impactful and strategically important to Lam’s
ESG program: climate strategy and emissions management,
supplier engagement and assessment, employee fulfillment andretention, product stewardship, inclusion and diversity, supplierenvironmental performance, and leadership accountability.
1

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

ESG materiality matrix
Transparency,
reporting, anddisclosure
Energy sourcing andconsumption

ENVIRONMENTAL
SOCIAL
GOVERNANCE

Importance to stakeholders

2023 ESG Report

Leadership engagement
and accountability

Supplier
environmental
performance

Supplier
engagement andassessment

Product stewardship and design for environment
Employee fulfillment and retention

Diversity, equity, and inclusion

Sustainable procurement and supply chain resilience

Occupational health and safety
Business ethics and anti-corruption

ESG integration in business strategy
Customer engagement and product safety

Waste management and recycling

Privacy, data, and cybersecurity

Water management
Responsible corporate governance

Climate strategy andemissions management

Innovationand industry
leadership

Labor practices and human rights

Community engagement

Biodiversity

Impact to and from Lam

Learn more about the potential business impacts of our most impactful and strategicallyimportant ESG topics and how we addressed them in 2023:
Learn more about our climate strategy and emissions management approach in Sustainable operations.
Learn more about how we engage and assess suppliers in Responsible supply chain.
Learn more about our approach to employee fulfillment and retention in Our workplace.
Learn more about our focus on product stewardship in Product innovation.

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 INNOVATION

Reinforcing a culture of
ethics and compliance
Making a positive impact begins by acting with honesty, integrity, mutual
trust, and respect—the Core Values we strive to exemplify through ouractions each day. These values underpin a culture that promotes ethicalbehavior and compliance with all pertinent regulations and laws. Our
Code of Conduct (Code) outlines the behavior we expect from every
employee and provides our employees with guidance on making ethicaldecisions, preventing harassment and discrimination, and more. In 2023,
we updated the Code to align it with Lam’s Core Values, make it moreuser-friendly, and address key risks. The Code is the cornerstone ofLam’s Ethics and Compliance (E&C) program.

Our E&C program at a glance
Organized around five pillars—governance, operations,third-party management, training and communications,and enforcement—which align with guidance from the U.S.
Department of JusticeManaged by a global E&C team, which is led by our chiefcompliance officer
Strengthened by our global and regional E&C Steering
Committees, which meet regularly to foster engagement in
ethics and compliance topics, promote an ethical culture, andprovide strategic and operational guidance
Amplified through Ethics Ambassadors, employees
outside the E&C team who are trained to help promote an
ethical culture and drive progress on ethics and complianceinitiatives across business units and regions

Visit our website to learn more
about our E&C program.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

For the first time in 2023, Lam was honored tobe named among Ethisphere’s list of the World’s
Most Ethical Companies. Ethisphere is a global
leader in defining and advancing the standards of
ethical business practices. Lam is the only wafer
fabrication equipment makerand one of only two companies
in the semiconductor category
included on the 2023 list.

Raising awarenessduring E&C Week
In September 2023, Lam held our annual Ethics
and Compliance Week to celebrate and reinforce
our dedication to ethics and compliance.
Throughout the week, global employees engaged
in workshops and other ethical culture-building
activities. Three employees from India, Ireland,
and the U.S. earned Lam’s Ethics Award for going
above and beyond in their efforts to strengthen
our ethical culture and promote our Core Values.
This year, we added an extra incentive for
employees to engage in Ethics and Compliance
Week activities. As employees achieved key
participation and engagement metrics in various
activities, the E&C team pledged funds to benefit
our community partner FIRST® Global. As a resultof employee participation during the week, theE&C organization donated $10,000 to benefit
the organization. View Our communities tolearn more about our three-year commitment
to FIRST Global.

OUR COMMUNITIESAPPENDIX

Ethics and compliance are
deeply rooted in our company’s
Core Values and are part of ourshared responsibility to makethe world a better place.”
Tim Archer
president and CEO at Lam

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GOVERNANCE
Our governance efforts ensure that the personnel, resources,
and autonomy are in place to operate an effective E&C
program. The pillar also emphasizes oversight—including
Board engagement and the responsibilities of senior
management—and a dedication among Lam’s leadershipto modeling ethical and compliant conduct. Lam’s chiefcompliance officer leads our E&C team and reports toour chief legal officer with dotted-line reporting to theBoard’s Audit Committee.
OPERATIONS
Our operations pillar focuses on risk management, policies
and procedures, and our approach to ensuring complianceand due diligence around mergers and acquisitions. We
proactively assess internal and external risks on an ongoingbasis, in addition to testing and monitoring the effectivenessof key compliance controls. This work is essential for business
continuity and resilience, especially as the industry’s regulatory,geographic, and technological landscape continues to evolve.
In 2023, we updated our Code which supports Lam’s Core
Values and details the behavior we expect of each member of
our workforce at Lam and its subsidiaries. Our Human Rights
Policy further underscores our focus on respecting humanrights and treating our workers and business partners with

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

dignity and respect. The policy aligns with several internationallyrecognized standards, including the Universal Declaration of
Human Rights, the UN’s Guiding Principles on Human Rights,
and the RBA’s Code of Conduct.
Our current human rights management process is built on the
RBA framework. It leverages our annual completion of selfassessment questionnaires (SAQs), together with participationin RBA's Validated Assessment Program (VAP) to drive
continuous improvement. The SAQs cover labor, ethics, healthand safety, environmental stewardship, and management
systems. Leveraging third-party management systems allows us
to monitor our operations and supply chain for potential humanrights-related risks. In 2023, an internal cross-functional teamcompleted SAQs for all Lam sites with significant manufacturing
operations, each of which received a low-risk score. We also
received a Platinum score on the RBA VAP closure audit at ourLivermore, California, facility.
If a risk is identified through our SAQ process, Lam has
mitigation systems in place to document, track, and address
those risks.
Following the adoption of our Human Rights Policy in 2022,
we reviewed our business and operational practices to
identify opportunities to implement a human rights program.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

16

The assessment used existing human rights frameworks
from the UN and RBA to assess human rights practices
and policies across the majority of our manufacturing sites
and at the corporate level. We identified the following
activities as key areas of opportunity: increasing employee
awareness of human rights issues, continuing to expand
and deepen third-party due diligence, and establishingclear roles and responsibilities for human rights acrossthe business. These will be areas of focus for our program
management in 2024.
THIRD-PARTY MANAGEMENT
Our third-party management pillar focuses on due diligence,
controls, and monitoring to identify and mitigate ethics
and compliance risks created by Lam and outside parties,
such as customers and suppliers. This work begins withscreening, risk identification, and evaluation during theselection and onboarding process. It extends throughout
the lifespan of our third-party engagements and includes
providing support for our business teams and carrying out
ongoing monitoring efforts such as risk-based reviews.

Learn more about our approach to
conducting due diligence in Lam's supply
chain in Responsible supply chain.

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACETRAINING AND COMMUNICATIONSENFORCEMENT

Our training and communication pillar emphasizes educationand tailored messaging to promote a culture of ethics andcompliance. We deliver training to increase awareness of ourpolicies and procedures through a combination of in-person
and virtual sessions, as well as online training modules. All
employees must complete regular training to reinforce theirunderstanding of our Code and related policies. We also
provide training sessions for various business functions thatare tailored to their pertinent risks. In 2023, we rolled out anew online anti-corruption training for targeted employees
and continued mandatory ethical leadership training for ourpeople managers. This builds on our manager resource center,
which provides people managers with practical guidance for
identifying and handling ethical challenges.

Our enforcement pillar focuses on reporting andinvestigations, as well as incentives and discipline related tocompliance. All employees have the right and responsibility toraise concerns to their managers, senior management, humanresources representatives, or members of the E&C team.
Employees and third parties—including contractors, suppliers,
and customers—can make a report via our Ethics Helpline,
either by phone or online. The Ethics Helpline is operated byan independent third party and is available to anyone who hasa question or concern related to a potential violation of Lam’s
policies, or external regulations or laws. Concerns may bereported anonymously, where allowed by law, and reports aretreated confidentially.

We complement our ethics and compliance training with regularcommunications to raise awareness of our Ethics Helpline andother resources. The E&C team solicits employee feedback
and uses multiple channels to address both inquiries andtrending ethics and compliance topics. In 2023, we continued
to distribute global bulletins and regional newsletters to help
employees effectively recognize and respond to potential
ethical issues and compliance risks. We further engaged themin these topics during Ethics and Compliance Week and otherin-person and virtual events. Additionally, we continued
to provide managers with communications on trending
ethics and compliance risk areas through a recurring sectionin our manager newsletter.

In 2023, the E&C team investigated allegations related to arange of claim types, including conflicts of interest, improper
disclosure of confidential information, expense abuses,and policy violations. The team provided quarterly updates
regarding investigations to the Board's Audit Committee,
as well as our CEO. As part of our focus on transparency,
accountability, and ensuring a safe reporting culture, theE&C team also shared data with employees on its 2022
investigations. The data included trends compared to 2021 onreport volume, claim types, claims by geography, anonymous
reporting rate, the rate at which the E&C team concluded aviolation occurred (substantiation rate), and the most severe
corrective action taken for substantiated cases.

Learn more about our reporting process
by visiting our Ethics Helpline page.

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18

Protecting data andintellectual property
Ideas and information form the cornerstone of Lam’s innovation pipeline. Therefore,
one of our primary objectives is to safeguard the intellectual property and data of ourcompany, employees, customers, and suppliers. Lam maintains International Organizationfor Standardization (ISO) 27001 certification for information security at our corporate
headquarters in Fremont, California. We have also enlisted the expertise of an independent,
third-party evaluator to assess our security capabilities against the National Institute ofStandards and Technology Cyber Security Framework.
MAINTAINING DATA PRIVACY
The ability to collect, process, and use employee data and business contact informationis necessary to our day-to-day business, and we strive to protect this information. Doingso requires a collaborative effort across multiple functions within our organization. Lam’svarious data privacy notices explain how, when, and why employee and business contacts’
information may be used and processed. Our Protected Health Information Policy andPrivacy Statement—in addition to other policies—further outline Lam’s approach to data
privacy for employees enrolled in our health plans.
PROMOTING INFORMATION SECURITY AWARENESS
Our ability to maintain information security requires the vigilance of every employee. To
foster awareness, we actively involve our employees in various training sessions anddiscussions throughout the year. In October 2023, we organized a Cybersecurity AwarenessMonth for all employees, which we aligned with the annual Cybersecurity Month campaign
organized by the U.S. Department of Defense. Lam’s events during the month included
webinars, as well as internal and external discussions aimed at educating and empowering
our workforce to prevent, identify, and report security incidents.
Throughout 2023, we continued to mandate annual cybersecurity training for all
employees, which we supplemented with our onboarding training for new employees
across Asia and the U.S. Additionally, we enhanced our annual information security
training to better resonate with employees in the current digital landscape. We also
introduced a new training program tailored to our Product Development and Application
Development teams. These initiatives represent our ongoing efforts to elevate information
security awareness and compliance, which we intend to expand upon in the years ahead.

Our Information Security program isbuilt around three pillars:

Product security andengineering
to enhance security
measures during
the developmentof products andapplications

Governance, risk, compliance,
and identity accessmanagement
to ensure robust managementof internal and external user
access and compliance withregulatory standards

Security
Operations Center
to serve as the nerve
center for detecting,analyzing, andresponding to potential
cybersecurity threats

Learn more about how we govern and manage ourInformation Security program via our website.

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSEngaging policymakers andenabling our business
We use our expertise to help inform sound public policy in support of our industry andbusiness. Our Global Trade and Government Affairs (GTGA) group is led by Rich Ashooh,
corporate vice president, GTGA, and is responsible for Lam’s strategic engagement withboth international and domestic policymakers, including those from Congress, the U.S.
executive branch, and regulatory bodies at the local, state, and federal levels. In 2023,
the GTGA group focused on maintaining compliance with domestic and international
regulatory requirements. The group also established Lam’s Public Policy Advisory
Committee (PPAC) to oversee the Leading American Microelectronics Political Action
Committee (LAMPAC) and support thoughtful policymaking.
Our lobbying, as well as political activities, policies, and spending, are overseen by the
Board's Nominating and Governance Committee and governed by Lam’s Code, as wellas our Political Activity and Government Affairs procedures.
As a matter of company policy, Lam makes no direct political contributions of any kind topolitical parties, candidates, or committees. Additionally, Lam does not:• Make payments to influence the outcome of ballot measures.
• Engage in independent political expenditures in direct support of or opposition to
campaigns.
• Engage in indirect political spending, including through its supply chain, consultants,or third-party political organizations such as 501(c)(4) entities or 527 groups, such as
governors associations and super PACs.

Visit our website to learn more about our governanceapproach and policies, including our Corporate
Public Policy Engagement and Political Activity
Statement and our Trade Association Fees andDues Statements.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX19

ENSURING REGULATORY COMPLIANCE
Amid an evolving regulatory landscape, our
GTGA group works to monitor emerging
regulations and engage in policy discussions
globally. In 2023, we focused on modernizing
our compliance mechanisms to support theseongoing efforts, in line with our broader digitaltransformation initiative. We also continued
our programs directed at compliance with
export controls issued by the U.S. Departmentof Commerce's Bureau of Industry and Security
on advanced semiconductor manufacturing
equipment to the People's Republic of China.

Complying with
global taxation
Our approach to global
taxation is to comply withapplicable legal, regulatory, andinternal control requirements.
Visit our website
to learn more.

FORMALIZING THE LAMPAC
The LAMPAC serves as a non-partisan federal political action committee for Lam employees andis dedicated to supporting federal candidates of all political ideologies who are committed tostrengthening our nation's semiconductor ecosystem and fostering economic growth. To ensure
proper administration of the LAMPAC and maintain compliance with state and federal regulatory
requirements, only authorized GTGA personnel may be involved in the making of politicalcontributions by the LAMPAC.
The LAMPAC is registered with the Federal Election Commission (FEC) and subject to federal
campaign finance laws, including those related to monitoring prohibitions and limitations on donations.
Any donations to or from the LAMPAC will be publicly disclosed via the FEC’s website. Lam also
employs external legal counsel to advise the LAMPAC regarding compliance with laws and regulations.
In 2023, we established a PPAC comprised of senior executives to provide guidance to the LAMPAC.
The PPAC also serves as a venue to consider Lam’s positions on major public policy issues.

GLOBAL TRADE AND GOVERNMENT AFFAIRS (GTGA) FOCUS AREAS
Business operations

Industrial policy

Export controls
and trade policy

Public policy

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Collaborating to advance theinterests of U.S. companies
in global commerce
Lam engages with industry groups andpeers to share knowledge and best practices
and advocate for the semiconductor andtechnology industries. In 2023, we enhanced
our collaboration with the National Foreign
Trade Council (NFTC), the premier association
for leadership, expertise, and influence oninternational tax and trade policy issues.
Representatives from Lam participate in various
working groups through NFTC, with Lam holding
a seat on the organization’s board.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESSUPPORTING INDUSTRY COMPETITIVENESS
In 2022, the U.S. government established the CHIPS and Science Act to help strengthen American
semiconductor manufacturing, supply chains, and national security by investing in science and technology,
the development of the workforce of the future, and R&D. Today, Lam is targeting opportunities under the
U.S. CHIPS and Science Act, as well as local, state, and international incentive programs, to support ourroadmap for future innovation and growth.
In 2023, Lam created a cross-functional Government Funding Working Group to guide these efforts andprovide updates to various functional areas and executive leaders. One of the group’s first initiatives was toestablish a set of Guiding Principles to govern its activities moving forward. They include:• Pursue Lam’s critical path
• Prioritize customer objectives• Protect Lam’s structure• Promote collaboration
Within the larger Government Funding Working Group, we have also created a steering committee
composed of members of Lam's CEO staff. The committee guides the direction and decisions of theGovernment Funding Working Group to ensure alignment between Lam's strategic objectives and funding
opportunities. We plan to continue this work in 2024 to further position Lam for future success.

APPENDIX

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Product
innovation
IN THIS SECTION:
Innovating smart, sustainable solutions

23

Delivering lifecycle solutions

25

Ensuring safe, high-quality products

26

Sparking industry insights

27

APPENDIX21

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES22APPENDIX

Product innovation
We’re developing productswith purpose and accelerating
technological breakthroughs
to help our industry be moresustainable in the years
to come.

2023 HIGHLIGHTS
Expanded theavailability of
ECO Mode to
many of our new
product lines andcustomers’ existing
tools in the field.

Identified a wafer-lessauto-cleaning process
for our etch productswith the potential
to reduce nitrogen
trifluoride (NF3)emissions by up to 85%.

Engaged 945 total
attendees during
five sessions of
Lam's University
Collaboration
Showcase.

Received arecord number of
proposals fromresearchers at
global universities
through Unlock
Ideas.

RELEVANT SDGS
BEHIND SCHEDULE

GOAL
83% of customers measured by emissions
have science-based targets (SBTs).

STATUSIN PROGRESSACHIEVED2023 PROGRESS• 10% of customers measured by emissions have set
SBTs.

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Innovating smart,sustainable solutions
In labs around the world, Lam engineers are putting their collective expertise
to work to push the boundaries of semiconductor development and design.
Every tool, component, and process we create has a specific purpose.
Together, they add up to an expanding portfolio of solutions that are enabling
chipmakers to be more productive, efficient, and sustainable than ever before.
As we work with our customers to seize opportunities and navigate challenges,
we are also collaborating internally to optimize our processes and tools.
We are prioritizing this work, as it plays a vital role in our ability to mitigate
environmental risks that could adversely affect our business and stakeholders.
It is also a business imperative; increasingly, our ability to deliver products withenvironmental features is a key factor for customers working toward their own
climate goals. In 2023, we focused on driving progress across three aspectsof sustainable product innovation to deliver meaningful, measurable results.
We are proud of our efforts to further technologies that are accelerating ourindustry's path to a reduced-carbon future.

REDUCING ENERGY CONSUMPTION
We’re making our tools and processes
more energy efficient to drive reductions
in energy usage, greenhouse gas (GHG)
emissions, and costs.

Product
sustainability
focus areas
LEVERAGING EQUIPMENTINTELLIGENCE® ECO SENSORSREDUCING GHG EMISSIONSAND IMPROVING AIR QUALITY

In our labs, our teams have installed
Equipment Intelligence® ECO sensors
to capture data on the environmental
performance of our tools.

We’re identifying and leveraging
opportunities to shift away from highglobal warming potential (GWP)
chemistries to improve both air
quality and climate health.

23

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BUSINESS AND GOVERNANCE

SUSTAINABLE OPERATIONSOUR WORKPLACEREDUCING GHG EMISSIONS AND IMPROVING AIR QUALITY

By finding ways to make our tools more energy efficient,
we can help our company and customers reduce both
energy consumption and costs. One of our initial solutions
is ECO Mode, which can signal a tool’s abatement
controls or put its peripheral components into idle mode
when not in use. In 2023, we enhanced ECO Mode by
improving communication between our process tools andperipheral components. We also expanded the availabilityof ECO Mode to many of our new product lines andcustomers’ existing tools in the field. While doing so, we
worked to increase customer awareness around ECO
Mode to promote broader adoption. This could have ameaningful impact, as we estimate that the use of ECO
Mode can potentially reduce peripheral energy use by
40% in an idle state. Another way we’re working to reduce
the energy usage of our products is by adopting new cryogases that demonstrate more than a 40% throughput
increase and selectivity improvement, translating to an
equivalent reduction in energy use per wafer.

High GWP gases that occur post-abatement are a major
contributor to the semiconductor industry’s emissions. Our
approach is to work with a variety of gas vendors to identify lowGWP solutions while working with our customers to qualify new
GHG-reduction opportunities. As part of this process, we leverage
Fourier Transform Infrared technology to measure reactions within
the chamber and GHG emissions released after abatement. In
the near term, we’re working toward the reduction or removal ofseveral high-GWP gases, such as NF3, sulfur hexafluoride (SF6),
and nitrous oxide (N2O). We’re also working to protect air quality
by mitigating emissions from nitrogen oxide (NOx) and other air
pollutants of concern. Our 2023 initiatives included:2023 ENERGY SAVING HIGHLIGHTS

REDUCING ENERGY CONSUMPTION~40%

estimated peripheral energy saved
in idle state with ECO Mode

• Introducing new cryo gases that can result in up to a 90%
reduction in emissions pre- and post-abatement while avoiding
high-GWP byproducts and enabling lower system energy usage1• Furthering a project to reduce N2O usage by our customers
in carrying out undercoat and pre-treat steps using our tools,
which has demonstrated a 30% reduction in N2O emissions1• Identifying a wafer-less auto-cleaning process for our etchproducts with the potential to reduce NF3 emissions by up to 85%1
LEVERAGING EQUIPMENT INTELLIGENCE® ECO SENSORSRESPONSIBLE SUPPLY CHAIN

2023 EMISSIONS REDUCTION HIGHLIGHTS

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OUR COMMUNITIESAPPENDIX

50%

Up to
estimated reduction in NOx
emissions through our deposition
abatement project1~90%

estimated reduction in process
gas emissions via new cryo gases
used in etch applications1~30%

estimated reduction in N2Oemissions demonstrated in our
undercoat and pre-treat project1

ENGAGING WITH CUSTOMERS AROUND SBTI
Our percentage of customers with SBTs or aligned
methodologies decreased from 16.9% in 2022 to 10% in
2023. This is partially due to our updated methodology formeasuring this goal, which is described in the about thisreport section. We are engaging with customers, manyof whom have net zero goals, to better understand theirapproaches, opportunities, and challenges along their pathto net zero.

~40%

In our labs, we have completed the installation of Equipment
Intelligence® ECO sensors that enable us to closely monitor
and produce in-depth reports of the energy and resource
consumption of our tools. We currently use both physical andvirtual sensors that provide real-time data on our tools’ usageof electricity, process cooling water, various process gases, andmore. We’re creating an ECO Dashboard to capture insights thatwill enable us to drive environmental improvements.

~3.6%

Helping our customers bring three-dimensional (3D) chipmaking to scaleestimated reduction in energy
consumption via throughput
improvements with new etch gases

estimated tool energy savings
from a newly introduced “green”
heater-chiller for Sabre deposition
products

24

In the 3D era of chipmaking, production can be resource-intensive, costly, and complex. Our latest innovations are designed
to help chipmakers advance their 3D roadmaps with solutions that are more efficient, productive, and precise. In 2023, we
introduced Coronus DX, a bevel deposition solution that enables more predictable manufacturing and significantly higher
yields. We also earned the prestigious Edison Award for best new products in materials science, claiming a bronze medal forour recently launched Argos, Prevos, and Selis selective etch products.
1

View about this report for a more detailed discussion of our emissions accounting methodology.

HOW CSBG SUPPORTED CIRCULARITY IN 2023

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INTRODUCTION

BUSINESS AND GOVERNANCE~$600M

worth of annual materials
savings enabled by re-cleaning
services~$200M

worth of annual materials
savings enabled by repair andrefurbishment services

35K+

tons of carbon dioxide
equivalent (CO2e) avoided
and 2K+ tons of aluminumproduction avoided since2019 by upgrading existing
tools onsite

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESDelivering lifecycle solutions
We strive to serve as a partner to our customers, helping them meet evolving demands andextend the life of Lam products. Our Customer Support Business Group (CSBG) supports
Lam’s customers across the equipment lifecycle, providing comprehensive services andsolutions to increase productivity, circularity, and more. By providing solutions such as highquality spare parts and Reliant™ tools, the group helps customers optimize both quality
and cost. Our CSBG offerings also reduce the emissions, energy, and raw resource usage
required to manufacture new tools.

At the end of 2023, Lam’s
installed base included

90K+

chambers, an increase of
more than 7% from 2022

Lam’s CSBG is dedicated to enhancing product circularity and helping customers makeprogress toward their sustainability goals. In 2023, the group continued to seek ways toincrease the percentage of each tool that can be reused. CSBG focused on refurbishment
and re-clean services to extend the life of existing tools and spare parts and enhanced its
Reliant® systems offerings by providing higher-efficiency, radio frequency generators andturbo pumps. The group also expanded the circularity of its upgrade products by offeringa rework of major subsystems.
Customized service andsoftware solutions
that enhance productivity
throughout the product lifecycle

44%of shipped electrostatic chucks(ESCs) were refurbished,representing an 80% increasesince 2019~550 tCO e
2

APPENDIX

Technical training,
including software andhardware courses, todevelop customers'
knowledge andtechnical expertise

reduction in annual emissions
associated with refurbishmentof ESCs
Reliant™ systems, including
new and refurbished equipment,that extend product lifecycles,
increase production capacity,and decrease waste

CSBG’sstrategy formeeting ourcustomers’
holistic needs

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

Technology and productivity
upgrades that increase
productivity, reliability, andefficiency and extend
product lifecycle25

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Ensuring safe,
high-quality products

Q&A: A collaborative hack forsustainable innovation
To enable a greener future, technological and sustainable
innovation must work hand in hand. In 2023, members ofLam’s Employee Sustainability Community (LESC) hosted an
Eco Hackathon for employees, prompting them to brainstorm
new ways to integrate sustainability into Lam’s operations andproducts. Here’s what LESC Board Member Delphine Troast had
to say about helping to create and facilitate the event:

OUR WORKPLACE

Delphine Troast
LESC Board Member
Process Engineer 2

What prompted you and other LESC members to host the
Eco Hackathon?
Our vision was to connect engineers across disciplines to solve some of Lam’s toughest
problems. We wanted to help educate engineers about current technical opportunities inthe environmental, social, and governance space, while enabling them to gain a new pointof view on their roles.

Lam operates at both a global and an atomic scale. We work with complex
machines that tower overhead and with technologies thousands of times smaller
than what can be seen with the naked eye. Our reputation is based on our ability
to deliver these products with unmatched consistency and precision.
A laser focus on product quality and safety is essential to what we do. We
have organizational structures in place to support this work, with our crossfunctional Quality Leadership team overseeing our design teams to ensure
the safety and quality of every product they create. We take a systematic
approach to continuously improve our products and strive to quickly address
any adjustments that need to be made. Lam is also certified under (ISO) 90011,
an international standard that provides a framework for an effective quality
management system.

1

What were some of the event’s focus areas?
After an introduction by Lam leaders, we hosted a brainstorming session and final
presentations by each team. The teams generated ideas around using tools to predictthe carbon footprint of a process, implementing systems to track and reduce plastics,
adopting methods to reduce GHG emissions and improve heating and cooling systems,
integrating alternative abatement strategies, and more.

The event included an overview of design for environment (DfE)
principles. Why do you think it’s helpful for Lam engineers toembrace a DfE approach?
Our concerns about our throughput or gas consumption often stem from a financial
perspective, but there’s an environmental link. DfE is ultimately about bridging thoseconnections and showing how integrated our problem-solving approach can be.

How will you apply learnings from the event?
We plan to continue to organize events for co-workers to collaborate and share ideasthat help push our business forward. Many of the projects featured in Eco Hackathon
2023 coincide with initiatives in-flight at Lam, and new ideas generated through thisevent are being embedded into plans for Lam’s future sustainability priorities.

Lam holds ISO 9001 certification for its Fremont and Livermore, California; Tualatin, Oregon; Osan, South Korea; Villach, Austria;
and Penang, Malaysia sites.

26

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27

Sparking industry insights

Coming together for our Engineering
Technology Conference

Lam is in the business of moving technology forward, and we know we can go further by
being receptive to new perspectives and ideas. Through our office of the chief technology andsustainability officer, we engage leading universities, researchers, and Lam’s global engineeringcommunity to collaborate on innovative solutions for the industry’s grand challenges. In 2023, we
continued our Seminar Series, in which we invited our engineering community to share their work
and insights with Lam peers. We also participated in a variety of seminars, webinars, and otherevents with university research communities, from a panel at the University of California’s Diversity
in Tech Symposium to several guest lectures at the Indiana Institute of Science to a seminar seriesat Stanford University.

Imagine the possibilities that can happen by bringing hundreds of Lam
engineers and leaders together in one place. That’s exactly what we didin 2023 during Lam’s first in-person Engineering Technology Conference(ETC) since 2019. The three-day event took place in Portland, Oregon,
and included approximately 400 attendees. The conference’s objectives
were to inspire Lam’s global technical community, build connections tofuel cross-functional collaboration, create opportunities for learning andknowledge sharing, and stimulate innovation.

By building strong relationships with universities, we’re expanding our pipeline of future talent. In
the years ahead, this will be critical to meeting chipmakers’ projected demands. In June 2023, we
took a major step forward by unveiling our new Semiverse™ Solutions business and announcing
an initiative to use Lam’s SEMulator3D® software to deliver a virtual nanofabrication environmentand help train the next generation of semiconductor engineers. Simulating real-world labs virtuallydemocratizes engineering skills training while delivering safety and sustainability benefits along
the way. View the Introduction to learn more about how we’re spurring a revolution in engineering
education with Semiverse™ Solutions.

Participants had opportunities to hear keynotes from Lam’s seniorleaders, showcase their own innovations, and learn through various
breakout sessions—including classes from our Leap technical training
and certification program. We also held an in-person ceremony for Lam’s
Technical Awards, during which we honored our new Lam Fellows.
We were thrilled to see such strong participation and an inspiring,collaborative environment that brought together many of our industry’s
brightest minds.

In a post-ETC survey,

90%

of participants indicated they were excitedabout Lam’s future direction, and93%

agreed that the new connections they madewould be valuable in their work.

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONHELPING BOLD IDEAS TAKE SHAPE
Lam’s academic research programs enable us to drive innovation,
provide insights on emerging technologies, and connect with faculty
and students. One of our ongoing initiatives is Unlock Ideas, anannual call for proposals to fund academic research collaborations
on novel or disruptive ideas. In 2023, we received a record 119
proposals through the program from more than 60 universities
throughout the world.
For the sixth year, we also hosted our University Collaboration
Showcase, which brings Lam employees together to share resultsfrom our university research collaborations and Unlock Ideas
projects. The 2023 showcase included five virtual sessions thatengaged more than 945 attendees from 12 countries. The events
included lightning pitches by Unlock Ideas award winners and Lam
technical liaisons, as well as interactive panel discussions and a
Q&A. Lam Korea also held its third Unlock Ideas Showcase, in which
it invited students from more than 16 universities to participate invirtual activities that included career sessions, a technical talk,and a fireside chat.

SUSTAINABLE OPERATIONSOUR WORKPLACE

Because of our collaboration
with Lam, we get to work on
industrially relevant problems
that faculty in academia areunaware of. Our scientificapproach and output are thesame, but the collaboration
makes it more impactful.”Feedback from a 2023 Unlock Ideas
faculty participant

Providing thought leadership and support through the CHIPS and Science Act
As part of the CHIPS and Science Act of 2022, the U.S. Department of Commerce (DOC) has funded four R&D
efforts: the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program, aManufacturing USA Institute focused on advanced digital twin technologies and the CHIPS R&D Metrology Program.
Lam is committed to the long-term R&D efforts necessary to help establish and sustain a viable domestic semiconductor
ecosystem through public-private consortium initiatives enabled by these programs, and we continue to provide thought
leadership on matters relating to microelectronics R&D, manufacturing, and policy.
The U.S. Department of Defense also established the Microelectronics Commons program under CHIPS, a national
network of prototyping innovation hubs that will interface with the DOC R&D programs. The Commons creates adirect pathway to commercialization for U.S. microelectronics researchers and designers—enabling them to taketheir innovations from “lab to fab.” Lam will participate in this initiative as a member of the Northwest AI Hub led by
Stanford University.
Another federal funding initiative is the National Science Foundation’s (NSF) Regional Innovation Engines, which aim
to catalyze and foster innovation ecosystems across the U.S. Lam is a partner in the NSF Development Engine forAdvancing Semiconductor Technologies in the Northwest, which is being led by Oregon State University.

Learn more about how we're leveraging the CHIPS and Science Act
to support our roadmap for the future in Business and Governance.

RESPONSIBLE SUPPLY CHAIN

2023 ACADEMIC PROGRAMS BY THE NUMBERS

2023 ESG Report

OUR COMMUNITIESAPPENDIX

119

Unlock Ideas proposals received
in collaboration with faculty at
67 universities in 14 counties

945

total attendees from 12 countries
engaged in Lam’s University
Collaboration Showcase

16+

universities represented in our virtual
Unlock Ideas Showcase at Lam Korea

28

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Sustainable
operations
IN THIS SECTION:
Moving toward net zero31

Embracing smart energy solutions

36

Practicing water stewardship38

Minimizing and managing waste

41

APPENDIX29

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES30APPENDIX

Sustainable operations
We’re taking a purposefulapproach to reduce ourenvironmental impact
and advance our journey
toward net zero.

2023 HIGHLIGHTS
Reduced Scope 1
emissions throughreduction of a highGWP coolant in our
manufacturing testingprocess by 70% on a
per tool basis.

Achieved 2.8 million
kilowatt-hours (kWh) inenergy savings throughefficiency projects
across our sites.

Saved 20.1 million
gallons of water
globally in waterstressed regions.

RELEVANT SDGS

BEHIND SCHEDULEGOALSTATUSIN PROGRESSACHIEVED2023 PROGRESS

Achieve net zero emissions by 2050, including bymeeting the following targets:• Achieve 100% renewable electricity by 2030.

• Sourced 50% renewable electricity globally in 2023.

• 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 operations.

• 51% decrease year-over-year and 48% increase froma 2019 baseline for Scope 1 and 2 (market-based)
GHG emissions.

Achieve 12 million kWh in total energy savings froma 2019 baseline.

• Achieved 2.8 million kWh in annual energy savings,
for a cumulative 9.8 million kWh in savings towards
our 2025 goal.

Achieve zero waste to landfill for hazardous waste.

• Diverted 99.97% of hazardous waste from landfills
in 2023.

Achieve 80 million gallons of water savings inwater-stressed regions from a 2019 baseline.

• Achieved 65.9 million gallons of water savings from a2019 baseline, including 20.1 million gallons in 2023.

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Moving toward net zero
What does it mean to operate with purpose? At Lam, it means we take steps to makea positive impact on the world. For example, Lam’s technologies are at the center ofbreakthroughs from education to artificial intelligence, as well as innovations that arecontributing to a low-carbon economy. However, in producing and distributing our products,
we also use natural resources and generate GHG emissions. Rather than avoiding this reality,
we’re working to responsibly manage our environmental impact while challenging ourselves
to reduce it over time.
As we navigate the potential business impacts of climate change, Lam could face
operational, regulatory, or reputational risks, much like many other companies worldwide.
At Lam, we’re focused on opportunities to accelerate climate progress by optimizing ouroperations and engaging our customers, suppliers, and industry peers. Our long-term
vision is to achieve net zero emissions by 2050. To get there, we’ve established a net
zero roadmap outlining our strategy to achieve time-based targets that keep us on track.
Our near-term emissions reduction targets are validated by the Science-Based Targets
initiative (SBTi) and align with efforts to limit global warming. In 2023, we continued topursue these targets through initiatives to optimize our tools and processes and reduce
our usage of energy, water, and generation of waste.
We also made progress by further integrating our emissions tracking and reduction efforts
within our core business functions. This has enabled us to increase internal alignment
around our net zero initiatives so we can push them forward with greater efficiency. In linewith this approach, we developed an internal calculator to quantify emissions associatedwith process gas usage in our tools, which will enhance our understanding and enable
more employees from process and product development teams to quantify the climate
impact of their recipe development. This work included establishing a cross-functionalteam to advise on the calculator and conducting training with engineers focused on areas
such as product and recipe development. We plan to launch the calculator across ourorganization in 2024.

TRACKING OUR NET ZERO ROADMAPRECENT PROGRESS

2021

2022

• Announced SBTi intention
and net zero pathway• Achieved SBTi approval forthree near-term emissionsreduction targets

2025• Reduce absolute Scope 1 and 2(market-based) GHG emissions
by 25% from a 2019 baseline• Achieve 12M kWh in total energy
savings from a 2019 baseline• 46.5% of suppliers and 83%
of customers measured byemissions have science-basedtargets (SBTs)

THE ROAD AHEAD

2030

We periodically evaluate Lam’s climate-related risks andtake action to address them as needed. Learn more about
our climate change risk analysis and alignment with the
Task Force for Climate-related Disclosures (TCFD) via
our Key Data and Frameworks.

NEXT STOPS• Reduce absolute Scope 1 and 2(market-based) GHG emissions
by 60.6% from a 2019 baseline• Achieve 100% renewableelectricity• 95% of top direct suppliers
measured by spend have SBTs

2040

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

2050
• Achieve net zero
emissions312023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIXZEROING IN ON OUR VALUE CHAIN EMISSIONS
Achieving net zero emissions requires an in-depth understanding of where our emissions occur. To drive meaningful progress, we’re working to address each category ofemissions using a value-chain approach. For detailed information on our emissions management process, please reference our annual Climate Change submission to CDP.

UPSTREAM ACTIVITIESLAM FACILITIES AND OPERATIONSDOWNSTREAM ACTIVITIESScope 3

Scope 2

Scope 1

Scope 3indirectmarket-based indirect

directindirect

Total GHG emissions:

Total GHG emissions:

Total GHG emissions:

Total GHG emissions:

metric tons carbon dioxide
equivalent (MTCO2e)

MTCO2e

MTCO2e

MTCO2eKEY CONTRIBUTORS:KEY CONTRIBUTOR:KEY CONTRIBUTORS:KEY CONTRIBUTORS:• Purchased goods and services• Purchased electricity for Lam
facilities and operations• Process chemistries• Downstream transportationand distribution

1,675,406• Upstream transportationand distribution

64,050190,124• Natural gas consumption

5,487,740• Refrigerants• Use of sold products

HOW WE’RE MOVING THE NEEDLE:

HOW WE’RE MOVING THE NEEDLE:

HOW WE’RE MOVING THE NEEDLE:

HOW WE’RE MOVING THE NEEDLE:

Engaging suppliers to support themin setting SBTs and reducing theirclimate impacts

Maximizing energy efficiency andinvesting in renewable electricity andrenewable energy credits (RECs)

Optimizing our processes, products,
and facilities to make them moreenergy- and resource-efficientEngaging customers and identifying
opportunities to reduce energy and emissions
associated with the use of our products

Learn more about key contributors
to each Scope in the Performance Summary.

32

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATION

Emissions from our facilities and operations
While Scope 1 and 2 emissions make up a relatively small portion of our total
GHG footprint, they represent an area where we have the most control for
driving emissions reductions. In recent years, we’ve worked to address theseareas through several targeted initiatives:
SCOPE 1 (DIRECT)SCOPE 2 (MARKET-BASED, INDIRECT)• Optimizing our processes
and products• Maximizing energy efficiency
through capital and strategic energy
management projects• Investing in emissions controls
and energy-efficiency technologies• Updating manufacturing andlab operations• Purchasing RECs
• Investing in large-scale projects totransition to renewable electricity• Evaluating lower-GWP process
gas alternatives
In 2023, our Scope 1 priority was to address a previously unknown source ofemissions that we discovered in 2022. Since identifying the source—a highGWP coolant used in our manufacturing tests—our teams have collaborated
on an “all-in” effort to eliminate it. By the end of 2023, we eliminated 70% of
this coolant per tool shipped, significantly reducing Lam’s Scope 1 emissions.
To address our Scope 2 emissions, we implemented strategic energy
management projects at several sites throughout the U.S. Our processincluded developing energy teams who completed “energy treasure hunts”
to identify potential energy-saving opportunities, at these sites. We also
realized the full capacity of our 2022 solar installation in Malaysia andcontinued to purchase RECs to address a portion of our energy use.

Learn more about our energy efficiency efforts
in Embracing smart energy solutions.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX33

2023 SCOPE 1 AND 2 EMISSIONS HIGHLIGHTS

254,174

combined MTCO2e(market-based) emissions

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES34

APPENDIX

Scope 1 and 2 GHG emissions by year

51%

.302
500,000

decrease year
over year

.300

.236

400,000

.230

.250

453,551.200
300,000

300,087

.141

.147

248,472.150

200,000

190,124.100

100,000.050

89,254 82,296
0

2019

75,88456,521

2020

64,05063,300

2021

2022

0

2023

Calendar year
Scope 1

Scope 2, market-based

Normalized Scope 1 + 2 emissions

Metric tons CO2e / US $1,000 research and development (R&D) spending

BUSINESS AND GOVERNANCE

Metric tons CO2e

INTRODUCTION

Process chemistry emissions by type
3,673

50,000509
40,000633

Metric tons CO2e2023 ESG Report

3,241
426

30,000

651

448

1,345

38,156662

286
20,00022,995
16,513

19,137

19,50010,000

7,852
0

2019

8,416

7,253

2020
Hydrofluorocarbons

5,667

2021

Calendar year
Non-fluorinated

Other fluorinated

3,217

2022

2023
Perfluorocarbons

2023 SCOPE 3 EMISSIONS HIGHLIGHTS

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

23%

of Lam's Scope 3 is from upstream emissions

77%

of Lam's Scope 3 is from downstream emissions

97%of Lam’s GHG footprint is made up of
Scope 3 emissions

Learn more about how we'readdressing upstream Scope 3
emissions in Responsible supply
chain, and about how we'readdressing downstream Scope 3
emissions in Product innovation.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

35

Upstream and downstream emissions
While Scope 3 emissions represent the majority of Lam’scarbon footprint, they are generated by sources outside
our direct control. We address them by engaging suppliersand customers to set their own science-based emissionsreduction targets and identify opportunities to reduce their
GHG emissions. We also offer sustainable upgrades within
our customers’ fabs. In 2023 we engaged suppliers in our
Climate Pledge and worked with them to build capacity andknowledge of renewable energy and energy efficiency. We
also connected with customers to raise their awarenessof ECO Mode, which optimizes energy and reduces GHG
emissions, while expanding ECO Mode capabilities to manyof our new product lines and our existing tools in the field.

In 2023, we saw a 29% decrease in our Scope 3 emissions
from 2022. The primary reductions were in Category 1(Purchased Goods and Services) and Category 11 (Useof Sold Products) and were likely driven by a decrease incustomer demands in 2023. The emissions intensity for
products sold decreased by 7% from 2022.

View about this report for a fulldescription of our emissions
accounting methodology.

Moving our industry forward together
When it comes to reducing GHG emissions, every
company must do its part. Our industry can maximize
progress by working together. Lam is a founding
member of SEMI’s Semiconductor Climate Consortium(SCC), the first global, ecosystem-wide collaborativeof semiconductor companies dedicated to reducing
industry-based emissions. In 2023, we drove this work
forward with Lam representatives holding key leadershipand advocacy roles on working groups dedicated toreporting, climate equity, and Scope 1 and 3 emissions.
Our efforts to build industry awareness and knowledge
are critical as we work to solve climate-related challenges.
For example, we’re collaborating around the topic of
Scope 1 emissions, which—given chipmakers’ relianceon process chemistries and natural gas abatement—is aparticularly challenging area for our industry to address.
Our team is actively leading the discussion via the
SCC Scope 1 working group, in which we are building
a common understanding of the issue while assessing
low-GWP process chemistries and evaluating various
abatement technologies.

Lam Research’s commitment tosustainability and industry collaboration
propels our SEMI Sustainability efforts.
The team includes some of the mostknowledgeable professionals I haveworked with. They bring leadershipto our SCC Governing Council andactively engage with several of oursustainability-related working groups.
This enables our vast and interconnectedecosystem to improve its overallsustainability posture."
Mousumi Bhat, PhD
vice president of global sustainability programs at
SEMI executive director, Semiconductor Climate
ConsortiumINTRODUCTION

BUSINESS AND GOVERNANCE

SUSTAINABLE OPERATIONSPRODUCT INNOVATION

Embracing smart
energy solutions

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

36

Energy usage by type0.00035500

0.000270.7
300

0.000260.00025

400

Million kWh

We require energy to power all aspects of our operations—from ouroffices to our manufacturing lines to our clean rooms and tools—and theenergy we use is a key contributor to our Scope 1 and 2 GHG emissions.
To address this challenge, we’re leveraging investments in renewableenergy, as well as initiatives to increase energy efficiency across our sites.

OUR WORKPLACE

89

0.7

0.7

107

95

10.2

0.00026
0.3

97

0.7

0.6

94

200

0.000250.00020

307

360

341

0.000150.00010

254

100

0

0.00030

0.7

0.6

240

0.000285.1

0.00005
0
2019

2020

2021

2022

2023

Calendar year
Electricity

Natural gas
and liquefied
petroleum gas

Diesel + vehicles

Solar + district
heating

Normalizedenergy use

Our strategy for environmental management
Lam holds ISO 14001 multi-site certification for environmental management, which
covers our sites in Villach, Austria; Tualatin, Oregon; and Fremont and Livermore,
California. We also hold individual certifications for our Eaton, Ohio site. Moreover,as an engaged member of the Responsible Business Alliance (RBA), we complete
voluntary self-assessment questionnaires (SAQs) across our manufacturing sites.
In 2023, all Lam sites achieved low-risk scores on their SAQs, which cover both
environmental and social factors.

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

2023 ESG ReportINTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACECULTIVATING AN ENERGY-SAVING MINDSET
Even a small adjustment in our equipment or processes can add up to big energy savings over time. With this inmind, we focused on identifying and implementing energy-saving initiatives across our sites in 2023. During theyear, our facilities in Tualatin, Oregon, and Fremont and Livermore, California, enrolled in utility-led strategic energy
management programs, in which coaches worked with our onsite teams to guide them in implementing low- or
no-cost measures to reduce energy consumption. Our Tualatin, Oregon, team completed 73 small- to mid-sized
projects through the program, while our Fremont and Livermore, California, teams completed four large projects.
Collectively, these initiatives led to more than 2 million kWh of energy savings, keeping us on track to achieve ourgoal of reaching 12 million kWh of total energy savings by 2025.
During the year, we continued to see energy savings from our previous investments, including a variable-speeddrive air compressor that we installed in Tualatin, Oregon, in 2021. Continuing to focus on the energy intensity ofthis system, the team further evaluated the compressed air dryers and replaced them with a more efficient option.
EMBRACING RENEWABLES
We’ve set a goal to achieve 100% renewable electricity across Lam’s sites by the end of the decade. Our teams aremaking strides toward this target. For example, our Villach, Austria, site, which uses 100% renewable electricity through a
combination of onsite solar and purchased electricity, now generates approximately 2 megawatt-hours (MWh) per day.

Global renewable energy consumption over time
6,000,000

5,535,000
4,693,000

5,000,000

3,717,000

kWh

4,000,000

3,000,000

2,000,000

1,416,000-0726,000

708,000

1,000,000-2019

684,000
--

2020

2021

Calendar year

District heating

2022

Onsite solar

2023

2023 ENERGY HIGHLIGHTS

2023 ESG ReportRESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX~2.8M kWhsaved through energy efficiency
projects globally~13 MWh
renewable electricity generated eachday at our Malaysia facility~2 MWhrenewable electricity generated eachday at our Villach, Austria, facility37

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Practicing water stewardship
At Lam, we rely on water to operate many systems, including our chillers, house scrubbers,
process cooling water systems, and soft water treatment plants. We’re dedicated to using
this resource as responsibly and efficiently as possible, especially in regions that are
deemed water stressed.
Nearly half of our water use occurs in water-stressed regions. This factor—along withriverine flooding and sea level rise—poses potential physical climate risks to our operations.
In response, we built a recent facility with these potential risks in mind. We also continue
to find opportunities to mitigate potential impacts via water-efficiency projects and byvetting new construction for water-related risks. In 2022, these efforts helped us surpass
our original water-saving goal three years ahead of schedule. We have since raised the bar
with a new goal to achieve 80 million gallons of water savings from a 2019 baseline by 2025.
Based on our progress in 2023, we are on track to achieve this target.
One of our focuses during the year was to build synergy around our water-saving efforts,from Fremont, California, to Korea and beyond. While these facilities may be thousandsof miles apart, they are among the six sites that we identified in 2019 as existing withinwater-stressed regions. Our strategy is to enhance water savings in these locations—andthroughout our organization—by adopting and disseminating best practices across Lam’s
global sites.

Water usage in water-stressed regions (2023)1
MILLION GALLONS% OF TOTAL USAGE

Fremont, California

128.5

31.9%

Malaysia

37.1

9.2%

Korea2

23.6

5.9%

Livermore, California

6.8

1.7%

India

1.1

0.3%

TOTAL

197.2

48.9%

Minor rounding has been applied to these data.
1
Water-stressed regions as identified through the World Resources Institute (WRI) Water Risk Atlas.
2
Two of Lam's six water-stressed sites are located in Korea.

In 2023, we set ourselves up for progress toward our new water-savings goal by completinga multi-year wastewater reclamation project in Fremont, California. The reclamation system
is now fully implemented and currently saving approximately 18.3 million gallons per year,
although we expect this to increase as we continue to add load to the system. Our teams
also earned recognition for their ongoing water stewardship efforts, with our Springfield,
Ohio, site receiving the 2023 Evoqua Water Sustainability Award. The site currently achieves
approximately 137,000 gallons of water savings per day after implementing projects related
to water efficiency, reclamation, and reuse. Meanwhile, for the 10th consecutive year, ourTualatin, Oregon, site was presented with Clean Water Services’ Pretreatment ExcellenceAward for its efforts to help protect the Tualatin River Watershed.

Learn more about our approach to responsible water
management via our website and our annual Water
Security Submission to CDP.

38

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Recognizing environmentalism among our employees
Lam’s Environmental Stewardship Awards recognize employees who have gone above and beyond
to model sustainable practices, reduce Lam’s environmental impact, promote environmental andcommunity action, and more. We received a range of nominations in 2023, including for employees who
led water reuse and reclamation projects, picked up trash, and developed new recycling programs at oursites. Our individual and team winners included:
Individual winner: Stephen Witt
Water stewardship is a focus at Lam, and we’re proud to see our employees
taking up the cause. As a facility engineer at our Springfield, Ohio, site,
Stephen led two water reclamation and reuse projects that enable Lam to save
approximately 50 million gallons of water per year. They included a reverse
osmosis project focused on water recovery, as well as a water reclamation
project that resulted in the site receiving Evoqua’s Water Sustainability Award.

Team winner: Lam Manufacturing Malaysia Facilities Team
Making any new site operational requires a considerable amount of effort andtime. Yet, our Facilities team in Malaysia raised the bar on sustainability within
the first year of opening our new manufacturing site’s doors. Rather than solely
focusing on making the site operational, the team launched several energyefficiency projects, including reducing cooling in the office, reducing fan loads inthe clean room, and reducing lighting and cooling during off hours. Their efforts
reflect Lam’s Core Values and have directly supported our sustainability goals.

RESPONSIBLE SUPPLY CHAIN

2023 WATER SAVING HIGHLIGHTS

2023 ESG Report

OUR COMMUNITIESAPPENDIX~137K
gallons of water saved per
day in Springfield, Ohio

20.1M
gallons of water savingsin water-stressed regions,
including ~50K gallons saved
per day in Fremont, California

39

INTRODUCTION

2023 ESG Report

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Million gallons

500

0.000240.000230.00021

300
200

403

150
87

2019

0.000250.0002

292

276

100
0

0.00023

398

378

400

0.000250.00015

177

170

125

75

72

2020

2021

178

152
67

2022

2023

0.00010.00005
0

Calendar year
Water usage

Wastewater treated

Wastewater recycled

Normalized water usage

Creating a buzz around biodiversity
More than 4,000 native bee species currently live throughout the U.S.
Efforts to protect biodiversity among these species support the effective
pollination of many local plants and crops. On our 75+ acre Tualatin,
Oregon, campus, our Facilities team has worked to track and support
native bee populations for several years. To date, they’ve added five
pollinator gardens, including two that were planted by employees in
2023. The gardens feature native plants that attract local bees and help
them thrive. We also collaborate with an external volunteer who visits
the campus to document the variety of bees found in our area. Buildingon these efforts, we established a community garden for our Tualatin
employees by salvaging old shipping crates to serve as the planters.

Million gallons / $1,000 R&D spending

Water use, treatment, and recycling by year

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

40

BUSINESS AND GOVERNANCE

Minimizing andmanaging waste
A core component of sustainability is to avoid needlesswaste. In line with our ISO 14001 multi-site certification,
we strive to minimize our impact on the planet by making
the most of the resources we use. Our sites generate both
hazardous and non-hazardous waste in the process ofdeveloping, manufacturing, and transporting products.
We actively monitor and manage this waste in line withindustry best practices and standards.
MAKING NON-HAZARDOUS MATERIALS GO FURTHER
Most of our waste is non-hazardous, such as wooden
pallets, packaging, and other forms of municipal waste.
When managing these materials, we look for opportunities
to increase circularity through projects focused on waste
reduction, recovery, recycling, and reuse. For example, when
opening a new facility, our teams seek out all local recycling
streams. We also stay up to date on emerging technologies
that help us avoid contributing to landfill waste.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR COMMUNITIES

10,0009,261

41

APPENDIX

8,000

6,000

4,000

55%

77%

71%

70%

6,528

100%

8,684

8,596

8,684 MT81%

RESPONSIBLE SUPPLY CHAIN

Non-hazardous waste generation and recycling

2023 Non-hazardous
waste highlights

non-hazardous
waste generated

OUR WORKPLACE

7,108

6,111

81%
7,063

80%

60%

5,971
4,200

3,613

40%

2,000

20%

recycling rate
0

2019

2020

2021

2022

2023

0

Calendar year
Non-hazardous waste generated

Paper 2.2%

Non-hazardous waste recycled

Recycling rate

Other recycling
1.0%

Silicon scrap 3.4%

Promoting circularity with our Employee
Resource Group (ERGs)

Compost 4.5%

In Korea, Lam's Employee Sustainability Community ERG has developed
an e-waste recycling program to educate employees about properly
disposing of everything from batteries to televisions. Many employees
in Korea—and worldwide—also volunteered in sustainability-focusedcommunity events to celebrate Earth Month in 2023.

Production waste
5.7%

Learn more about how Lam employees areworking to support resilient communities in
Our communities.

Reuse 5.7%
Wood 41.2%

Mixed plastic andpackaging 10.7%

Non-hazardous
waste recyclingby material

Metal and electronic
waste 11.2%

Minor rounding has been applied to these data.

Mixed recycling and cardboard 14.4%(Total recycling / total generation) x 100

INTRODUCTION

Metric tons

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APPENDIX

Hazardous waste generation and recycling
53%
48%

Metric tons

2,500

99.97%

hazardous waste diverted
from landfills in 2023

50%

2,416
2,211

2,113

40%

1,922

2,000

1,684

30%

30%
1,500

24%

22%
1,000

642

540

924

889

528

20%

10%

500

0

(Total recycling / total generation) x 100

3,000

0
2019

2020

2021

2022

2023

Calendar year
Hazardous waste generated

Hazardous waste recycled

Recycling rateRESPONSIBLY MANAGING HAZARDOUS WASTE
While it makes up a smaller portion of Lam’s overall waste streams, hazardous
waste is something we carefully manage within our operations. This waste
occurs from chemicals used in semiconductor manufacturing and R&D, and can
include lab debris and other corrosive or flammable byproducts.

Learn more about how we responsibly manage
hazardous waste via our website.
You can also visit Product innovation to learn more
about how we’re working to protect air quality andreduce the use of chemicals of concern.

Landfill 0.02%
Other treatment 0.9%
Waste-to-energy 4.3%
Thermal treatment
6.6%

Offsite wastewater
treatment
16.6%

Deep-well injection
18.7%
Minor rounding has been applied to these data.

Hazardous waste
by disposal
methodRecycled
52.8%

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INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLY MANAGING CHEMICAL WASTE AND AIR POLLUTION
Our site Environmental Health and Safety and Product Safety groups work
together to ensure our workers understand how to use our tools as safely
and productively as possible and in compliance with Lam’s establishedsafety procedures. 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 use-based chemical requests. Once
onsite, our teams prioritize proper transportation, storage, and inventory
management to track where and how chemicals are used and manage
potential risks.
We also use our expertise to assess the effectiveness, availability, andenvironmental impacts of various chemicals that we use. As global
chemical regulations evolve, we are proactively working with our supply
chain partners, chemical suppliers, and chemical management systems toensure Lam’s ongoing compliance and preparedness. One of the benefits ofproactive chemical management is our ability to help prevent air pollution. In
this regard, we are making progress by optimizing our processes and tools.
In 2023, Global EHS developed a Refrigerant Management TechnicalStandard that requires the use of low-GWP (less than or equal to 150)
refrigerants for new units containing 50 pounds or more of charge weight.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Demonstrating our commitment
to waste stewardship in Tualatin
There’s no one way to tackle the problem of waste. Understanding this, our team in Tualatin,
Oregon, is taking a multi-faceted approach. One example is their 2023 initiative to increase
the recycling of hard plastics, which has historically been a challenging waste stream toaddress. Another issue they noticed was the number of safety glasses that were used byvisitors, only to be discarded after a single use. Though the team found that re-using theglasses wouldn’t result in any financial savings, they knew it would reduce the environmental
impacts of waste. The site now uses a cleaning process to sanitize and reuse the glasses, asmall adjustment that will add up over the long term.
The site also collaborates with Tualatin Riverkeepers, a local environmental nonprofit
organization. Using the Oregon Redemption Center’s BottleDrop program, Lam raises
donations for the group by collecting and donating empty cans and bottles. The site
contributed more than $9,000 in donations by the end of 2023.

43

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIES

Our
workplace
IN THIS SECTION:
Creating a workplace that supports success

46

Fostering and leading inclusive teams

50

Maintaining a safe workplace

55

APPENDIX

44

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APPENDIX

Our workplace
We are purposefully
cultivating a safe, inclusive,and growth-oriented
workplace to unlock the fullpotential of our teams.

2023 HIGHLIGHTS
Achieved a 91% response
rate on our 2023 employee
engagement survey,
putting us 16% above theglobal benchmark.

Held workshops to reaffirm
Lam’s values and expectations
while integrating Valuesbased Competencies acrossthe organization.

Launched new
Employee Resource
Groups (ERGs) inKorea and China.

RELEVANT SDGS

BEHIND SCHEDULEGOALSTATUSIN PROGRESSACHIEVED2023 PROGRESS

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

• Ended the year with an engagement score of 76,
two points below the global top 25% benchmark.

Maintain an Occupational Safety and HealthAdministration (OSHA) recordable injury rateat or below 0.4 annually.

• Realized a recordable injury rate of .33.

Increase the proportion of women (globally)
and underrepresented employees (U.S.) acrossthe company.

• Increased the proportion of women in our global
workforce by 2.5%. Decreased the proportion ofunderrepresented employees (U.S) by 5.4%.

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Creating a workplace that supports success
Lam is a place where people solve the unsolvable—a place for those whowelcome challenges and enjoy tackling them as a team. In a highly competitivemarket, our ability to attract, advance, and retain driven, talented employees
is critical to our business. We seek out people who are motivated to pushthemselves and our industry forward. Then, we strive to support them byproviding comprehensive benefits and inclusive opportunities to advance theirskills and careers. Our workplace is grounded in our Core Values and shapedby the insights and diverse contributions of Lam employees. In 2023, we
integrated their feedback to intentionally develop and refine programs that are
tailored to our teams’ unique needs. Our goal is to support our employees today
while creating a workplace that will carry Lam into the future.
CULTIVATING A CULTURE OF GROWTH
One of the things we value at Lam is a spirit of continuous improvement.
We look for employees who regularly challenge themselves to deepen theirknowledge and build new skills. We support these employees by providing
a range of opportunities and tools to help them take their careers to thenext level. One example is Grow, a leadership development program for
all new managers that was reimagined in 2023. The updated programis designed to deliver content that is both more localized and globally
accessible while targeting foundational leadership skills.
We also piloted Elevate, a leadership development program aimed at
helping employees hone their leadership skills and further their professional
goals at Lam. The program spans 18 months and involves online learninggroups and business simulations, as well as in-person networking
opportunities and events. In addition, we rolled out iLearn, an intelligent
learning platform providing content on customer service, leadershipdevelopment, productivity and collaboration, project management,
technology, and other topics. The platform offers certifications, boot camps,
live events, skill benchmarks, and coaching simulations, which are available
to all global Lam employees.
Throughout our organization, we are proud to offer a growing range of
employee development opportunities to support our expanding global
footprint. Other examples from 2023 include:• Director- and supervisor-level development programs in Taiwan• Workshop for new managers in Japan• Coaching program for supply chain managers in Malaysia

Development opportunities
tailored to our peoples’ needs
ELEVATE
A new leadershipdevelopment program
focused on building
and honing leadershipskills and advancing
diverse participants'
professional goals
COACHING AT LAM
A program to help new
managers get off to astrong start. Coachingis also offered as an
ad-hoc opportunity
based on HR request

MENTORING AT LAM
A program that supports
graduates, risingstars, future leaders,
new managers, andemployees assimilating
into the company or a
new role by pairing themwith a trusted advisor
and role model

LEAD
A program tohelp experienced
managers taketheir leadershipskills to the next
level

GROW
A training program
giving new managers
skills needed tosuccessfully movefrom individual
contributor topeople leader
LEAP
A technicaltraining andcertification
program for newhires and Lam
engineers

ILEARNAn intelligent
platform thatprovides tailoredlearning journeys
for employee skillbuilding and careerdevelopment46

2023 LEARNING AND DEVELOPMENT HIGHLIGHTS

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE~2,200employees participated in our Mentoring
program, with a 98% satisfaction ratefrom mentees

1,270

learners in instructor-led programs in the
U.S., Asia, and Europe

1,490

employees enrolled in Leap, with
600+ certificates awarded

300+

employees participated in coaching,with 96% reporting they are more
effective at work200+

learners in our Grow pilot program, withan average satisfaction rate of 93%

6,400

total iLearn users who collectively
completed 9,200 learning hours and10,700 courses

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

47• Manager forum in Singapore• New Site Leader Development program in China• New Manager Learning Labs 2.0 in India• Training on fundamental people practices for all people managers in Korea
REAFFIRMING LAM’S VALUES AND
WORKPLACE EXPECTATIONSOur Core Values are the building blocks of Lam’s culture, which propels us forward as a unified team. It’s important to us thatthey never become stagnant, because they're not just words and ideas; they’re actionable tenets we expect every employee andleader to model. To help ensure this, our Global Employee and Labor Relations team reaffirmed Lam’s culture and Core Values
throughout the year. The team’s initiatives included engaging approximately 1,900 U.S. manufacturing and logistics employees
in about 80 in-person Workplace Conduct Workshops to reinforce our foundational workplace conduct expectations. We also
continued to host global Culture Workshops to enhance recently hired employees’ awareness of the importance and value of ourculture and Core Values, with more than 700 employees engaging in these sessions during the year.

Positioning Lam as a skills- andvalues-based organization
To further ingrain our Core Values into employees’ daily routines, theglobal Learning team launched the first phase of a new Values-based
Competencies project in 2023. The goal of the project is to pair Lam’s Core
Values with observable and measurable behaviors tailored to our employees’
levels and roles. The Values-based Competencies we identified are specificto Lam’s culture and aligned with our pathway forward. By integrating ourCore Values across the employee lifecycle, we are enhancing our ability to
attract, develop, and retain top talent.
Within this scope, the Learning and Talent Acquisition teams launched tools
for hiring managers and interview panels to embed Values-based Competencies into their evaluation process. When
combined with the STAR (situation, task, action, and result) methodology, this will enable interviewers to identify
candidates who embrace Lam’s Core Values and better understand a candidate’s behaviors. We also adjusted thewording of our performance management assessments to facilitate values-centered performance discussions. Lam's
performance and review process applies to all employees and includes self, peer, and manager assessments.
Current employees can assess their proficiency in our Values-based Competencies using a new interactive eLearning
module. Upon completion, the module presents curated learning opportunities to help employees address any
identified gaps. Building on this work, we launched an external web page where employees can access additional
information and potential candidates can review our Values-based Competencies to prepare for the application andinterview process. This is an ongoing project, which we intend to expand upon throughout 2024.

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HELPING EMPLOYEES LIVE WELL
Both on and off the job, we want to ensure ourpeople have the resources to live full, healthy lives.
For example, many employees have flexibility in theirworkplace modalities, with Lam offering partial remote
work options, including onsite flex and virtual flex. Fromenabling people to take time away for rest and leisure
to expanding access to holistic and preventive care,we support our employees’ well-being.
In 2023, we introduced a new virtual physical therapy
program for employees and covered dependents in
the U.S. This program is at no cost to participants andprovides a safe, convenient, and cost-effective solution
for many musculoskeletal conditions commonly seen in
U.S. manufacturing populations. Another U.S. initiative
was to continue to provide financial support throughour market-leading Student Loan Assistance Program.
Globally, all new parents continue to be eligible for paid
parental leave in all regions.
We also continued to build awareness andengagement around our global benefits and wellbeing programs, including by launching education
campaigns in the U.S. and Singapore with a focus onvalue and accessibility. Our ERGs further bolsteredthese efforts by providing additional forums topromote well-being programs and resources.
We also continue to facilitate Mental Health First Aid
training certification for key Human Resources andmanagement staff in the U.S. In 2023, we certified
15 employees through our relationship with Kaiser.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Recognizing our
employees’ dedication todelivering great results
Part of what keeps an employee
highly engaged is the understandingthat they are a valued part of theteam. With that in mind, we lookfor opportunities to celebrate our
employees’ exceptional performancethroughout the year. Our Above andBeyond program enables employees
to recognize colleagues who
demonstrate Lam’s Core Values
and deliver outstanding work.

Lam provides benefits that
promote workplace inclusion,
such as those that support
the LGBTQ+ community andother diverse groups. Learn
more about how we support
LGBTQ+ employees, as wellas their families, via our
U.S. Benefits website.
You can also visit our website
to learn more about our career
opportunities and workplaceapproach.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

GOING ABOVE AND BEYOND IN 2023

~170K

recognition moments, +12% year-over-year

94%

of employees received recognition with 49%
peer-to-peer awards

87%of managers submitted an award48

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USING EMPLOYEE INSIGHTS TO GUIDE OUR APPROACH
Employees have a unique understanding of what’s
working in our organization and how we can enhancetheir satisfaction and success. We value these insights,
and we regularly engage our employees to build a senseof connection and trust. One of our key touchpoints is ourannual employee survey, which we conduct globally andanonymously via an external survey firm. The survey helps
us measure our performance and map our pathway ahead,enabling Lam to remain a place where talented people wantto join, stay, and grow.
The 2023 survey achieved a high response rate of 91%,
putting us well above the global top tier benchmark. We
also saw a year-over-year improvement in our Inclusion
Index score, which represents the combined scores ofthree questions related to inclusion, authenticity, andequal opportunity. The survey revealed strong, supportive
managers as one of Lam’s key strengths.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

49

2023 Employee engagement survey at a glance
BY THE NUMBERS:

FOCUS AREAS:

91%• Leveraging our industry strengths topromote confidence in the company

participation rate, +16% above
industry global benchmark

76

engagement score, -2 from 2022

76

Inclusion Index score, +1 from 2022

• Expanding growth opportunities
and resources to support careerdevelopment• Furthering our digital transformation
journey and empowering employees to
identify issues and propose solutions to
support continuous improvement

KEY STRENGTHS:MANAGER EFFECTIVENESSFOSTERING AN INCLUSIVE CULTURE

Employees feel supported by their
managers, would recommend themto others, and are having meaningful
discussions with managers aboutcareer development.

Employees feel comfortable being
themselves at work, believe theirleaders value different perspectives,and feel that people have equal
opportunities to succeed.

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Fostering and leading inclusive teams
The more equitable opportunities we create at ourcompany, the more talent we attract. That’s critical for
Lam, where we need the brightest minds to come together
in the pursuit of solving the industry’s grand challenges.
We require a high level of expertise on our teams, as wellas people with varied perspectives and complementaryskills. Moreover, we need to ensure an environment where
our employees are comfortable sharing and responding
to novel ideas because they feel a sense of belonging
and mutual trust. This is the recipe for a workplace that
promotes innovation, delivers strong financial performance,and has the power to drive meaningful change. Creating aworkplace that aligns with Lam’s Core Values of inclusionand diversity is also essential for employee recruitment,
retention, advancement, and well-being.

Lam’s inclusion and diversity (I&D) strategy is
led by our global head of I&D, with support fromleaders throughout our organization. Through it, we
continue to build and retain strong, diverse, andinclusive teams.
We strive to attract and retain a diverse workforce toenhance innovation and problem solving among ourteams. Our I&D objectives include, but are not limited
to, raising the proportion of women employees in our
global workforce and of underrepresented groups in
our U.S. workforce. Our efforts to support this goal in2023 included growing our global network of ERGs
and enhancing candidate outreach and experience.

Fostering inclusion

Our I&D
strategy
Sharing ourprogress

Increasing
diversity

Promoting equal opportunities, pay equity, and non-discrimination
We want Lam to be an environment where every employee has equal opportunities to advance their career andthrive. 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 practices and systems topromote fair and equitable compensation in our workforce. In addition, we leverage the expertise of a nationallyrecognized law firm and its data-driven statistical model to objectively analyze our pay practices and identify
trends and patterns. We use this information to maintain and improve Lam's global compensation practices.
Lam is 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. Our Human Rights Policy aims to further ensure the protection, safety, anddignity of all Lam employees. Additionally, our Global Employment Practices Statement declares our support ofworkers’ rights to freedom of association and collective bargaining, to the extent permitted under local laws.

50

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Workforce demographics snapshot
Global and U.S. gender diversity
Board gender and ethnic diversity

All Employees

20.5%

79.3%

0.2%

22.6%

77.0%

0.4%

Global

18.0%

81.9%

0.1%

U.S.

19.7%

80.2%

0.1%

18.6%

81.3%

0.1%

22.3%

77.5%

0.2%

GlobalGlobal and U.S. Gender27%

FemaleETHNIC DIVERSITY

U.S.

73%
Male

FEMALE

Executives

MALE

Asian

1

4

White

2

4

Global and U.S. Gender

Managers
Global and U.S. GenderGlobalU.S.

FemaleFemaleFemaleFemaleFemaleFemale

Male

Male

Male

Male

Male

Male

Other

Other

Other

Other

Other

Other

JuniorManagers

Global

18.7%

81.3%

0.0%

Global and U.S. Gender

U.S.

21.3%

78.7%

0.0%

Technical
Employees

Global

12.2%

87.7%

0.1%

Global and U.S. Gender

U.S.

15.2%

84.5%

0.3%

Graduates

U.S.

25.9%

73.6%

0.5%

Global

26.2%

73.5%

0.3%

U.S. Gender

New Hires
Global Gender

FemaleFemaleFemaleFemaleFemaleFemale

Male

Male

Male

Male

Male

Male

Other

Other

Other

Other

Other

Other

51

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52

Workforce demographics snapshot
Native Hawaiian or Other PacificIslander 0.6%
Black or African American 2.4%
Two or more races 3.0%

American Indian or
Alaskan Native 0.4%

1927-1947 0.02%
1946-1964
6.9%

Chose not to disclose
6.5%
Hispanic or Latinx
7.1%

Born 1996
or after 11.7%

U.S.
employees

White
47.6%

1965-1979
27.2%

Globalemployees
by generation

1980-1996
54.1%

U.S. gender and ethnicity
Native Hawaiian or Other Pacific Islander

Blank/chose not to disclose

Two or more races

American Indian/Alaskan Native

Asian 32.4%
5.0%
Male

0.4%
Male
0.1%
Female
0.3%
Other

38.1%
Male

White

Disclosed
disability status
37.4%

Globalemployees
who disclosed
their disability
statusNote: Minimal rounding has been applied to these data. Data do not include Talus.

0.1% 1.2%
Female Female
0.3%
Male

U.S. veteran
7.9%

9.0%
Female0.5%
Female0.1%
1.9% Other
Male

23.3%
Male

Asian

1.5%
0.1% Female
Other

9.4%
FemaleChose notto disclose
62.6%

2.2%
Male
0.8%
FemaleU.S. veteranstatusU.S. nonveteran
92.1%

5.6%
Male

Black or African American

Hispanic or Latinx

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BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACECULTIVATING A DIVERSE PIPELINE OF FUTURE TALENT
Attracting exceptional people is the first step to delivering
exceptional results. To promote equitable opportunities in
our industry, we work to engage talent from groups who
have historically faced social barriers to entry into science,technology, engineering, and mathematics (STEM) careers.

Lam hosted a panel discussion on building
women leaders with HerKey, India’s largest career
engagement platform for women. The panel included
women leaders with a decade or more of experience,
who shared candid insights on navigating the pathto leadership excellence. Key topics included theimportance of resilience, balancing motherhood withprofessional careers, taking a break with intent, andcontinuously working toward future growth.

We took a key step by implementing a tool created to
optimize the talent acquisition and management process.
The tool enables us to consider candidates for all roles inwhich they qualify, supplying us with more opportunities
to match candidates to our company’s hiring needs andincreasing candidate satisfaction.
In addition, we implemented new technology to createa faster application process and thereby improve thecandidate experience.
Promoting equity and representation throughindustry events
To promote a more equitable STEM landscape, we
participate in events throughout the year that align with ourdiversity and inclusion values.

Supporting diverse students and scholars
Great employees begin as driven students and scholars looking for opportunities
to gain new experiences, connections, and skills. We support them by providing
funding for academic scholarships and fellowships, with a focus on delivering
opportunities to those who have historically been underrepresented in STEM
careers. For example, Lam has long been a key partner for the National
Consortium of Graduate Degrees for Minorities in Engineering (GEM), which
provides graduate-level fellowships to underrepresented candidates inengineering and science. GEM also provides its fellows with exposure to industry
internship programs, including our own, and we were proud to welcome 13
GEM fellows as part of our intern cohort during the year. We also embarked
on the third year of our collaboration with the United Negro College Fund andcontinued our support for FIRST Global.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

53

Examples of our activities in 2023 include:• Sponsoring the Diversity in Tech Symposium, a virtual event
organized through the University of California’s EDGE in Tech
Initiative. The theme of this year’s symposium was “Smarter
Tech for a Resilient Future,” and it included a panel on
advanced manufacturing, featuring Lam Chemical Engineer
Xueying Zhao.
• Sponsoring and participating in HBCU Engage, an in-person
forum aimed at enhancing partnerships and forging newcollaborations with Historically Black Colleges and Universities(HBCUs). The 2023 event included more than 173 organizations,such as industry, government, and nonprofit institutions.
• Participating in WE23, the world’s largest conference forwomen in engineering and technology. The 2023 conference
convened more than 21,600 women engineers, aspiring
engineers, and allies through in-person events and virtual
sessions viewed around the world.
• Sponsoring the executive welcome reception at
AFROTECH™, the largest Black tech conference in the U.S.,
to help drive increased representation of Black individuals in
STEM. The conference brought together a global communityof innovators for a week of big ideas, tech innovation,
networking, recruitment, and more.

Learn more about how we’resupporting inclusive societies
in Our communities, and visit
our website to read about ourother university partnerships
and programs.

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GROWING OUR GLOBAL ERGS
Lam’s growing network of ERGs is integral to our I&D
strategy. It also helps us engage employees in sustainability,community outreach, and mentorship initiatives throughout
the year. These groups provide a sense of community for our
employees while empowering them to learn and lead. Our
ERGs are supported by members of our CEO Staff—who
serve as executive sponsors for each group—and each ERG
has its own charter, initiatives, and goals.

In 2023, we saw an uptick in ERG membership with higher
global engagement, including a notable increase among oursites throughout Asia. To fuel this growth, we piloted ERG
pop-up fairs at key locations in March. We then scaled theinitiative to include ERG pop-ups in every region during Global
Diversity Awareness Month in October. This enabled us togrow our ERG network by 19% and provided employeeswith greater awareness of the issues our ERGs are working
to promote.

Learn more in
Our communities.

Our Employee Resource Group Network

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

Lam Employee
Sustainability
Community

Lam India Women’s
NetworkThroughout Asia, our
ERGs are bringing women
together to leadIn recent years, Lam has expanded its footprint throughout
Asia. During this evolution, we’ve seen a growing community ofwomen employees and leaders in the region emerge. Several
years ago, we launched our first WGOPs group in Korea. In
2023, we built on that milestone by creating our new Women in
Korea ERG. The group held its first workshop in June with morethan 100 people in attendance. We also launched a new ERG
in China, the Women in Leadership Network, which hosted acareer development workshop with directors.

Lam’s VeteranCommunity

New Professionals
Network

PRIDE LGBTQ+ Allies

Women@Fremont

Women in Customer
Support BusinessGroup

Women in Engineering

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

Women in Korea

Women in Leadershipat Lam

Women in Leadership
Network, China

Women in Taiwan

Our ERGs are an
important part of Lam’s
community engagement
efforts. In 2023, they contributed
1,126 volunteer hours through
14 employee-led events.

Women ofSoutheast Asia

International Women’s Day is a time of global celebration atLam, and our Malaysia WGOPs ERG celebrated with a variety
of programs, including a talk about equity with site leaders
and representatives from the Women’s Center for Change.
Finally, our India Women’s Network ERG held a large eventat the Bangalore International Center in December, featuring
a panel with officials from the Indian government andMicrosoft to discuss women’s leadership and support
for women in technology.

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Maintaining a safe
workplace

OUR COMMUNITIESAPPENDIX

Whether employees are at home or work, we encourage them to keepa safety-first mindset. That was the idea behind Lam’s Safe and Sound
Week in August 2023. The week included virtual and onsite activities held
in Tualatin, Oregon, and Fremont and Livermore, California. We engaged
employees through a safety fair, safety satisfaction survey, and daily quizzes.
With an eye toward positive reinforcement, employees had the opportunity
to nominate their colleagues for our Safety Hero award. This enabled us toshine a light on those who are modeling safety best practices each day.

20%

300+

180+

170+

11%

217K+

increase in Safe and Sound Week
participation year-over-year

CONTINUOUSLY IMPROVING OUR SAFETY PERFORMANCE

safety fair participants2023 SAFETY PERFORMANCE

We’re also seeing benefits from our ergonomic assessments
and physical training program, with our Livermore andFremont, California, locations now providing physicaltherapists on site. This enables us to identify potential injuries
early and effectively intervene through real-time coaching,stretching, icing, and other techniques. In 2023, our Tualatin,
Oregon, site completed the first full year of its collaboration
with OSHA, which enables us to collaborate around safety
topics with industry peers. We also conducted more than
249,000 Risk Management by Walking Around inspections
globally, a process used to identify and track safety issues
and implement corrective actions as needed.

RESPONSIBLE SUPPLY CHAIN

Helping employees stay safe and soundVisit Lam’s offices, manufacturing plants, or clean rooms
and you’ll notice that safety is always front of mind, fromthe way we unload our shipments to the protection wewear in our labs. We leverage strict safety protocols andcontrols to proactively mitigate risks while using training andengagement to reinforce a strong safety culture. Our global
Environment, Health and Safety (EHS) policy applies to every
employee and reiterates our commitment to providing a safe,
injury-free workplace and minimizing our environmental
impact. 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.

We pursue an annual goal to achieve an OSHA recordable
injury rate at or below 0.4. In 2023, we achieved that target
with a rate of 0.33, a 6% reduction from the previous year. We
also saw a 40% reduction in lost-time injuries from 2022. We
attribute this progress to our ongoing focus on preventionbased education and emergency preparedness. Examples
include our general health and safety training and our Safety
Awareness for Everyone (SAFE) program, which we use
to update employees when safety issues emerge. We also
employ SAFE to prevent future issues by discussing previous
incidents and sharing lessons learned.

OUR WORKPLACE

Year-over-year improvement in ourrecordable injury rate

249K+

Risk Management by Walking Aroundinspections

safety quiz participants

safety satisfaction survey respondents

hours of employee safety training completed

60.1%

injuries attributed to strains, sprains, slips,
trips, and falls

0

fatalities55

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SUSTAINABLE OPERATIONSPRODUCT INNOVATION

Incidents per 100 employees per year

Recordable injury rate
(Lam vs. industry)OUR WORKPLACE

Industry average
Lam rate
Lam target

0.7

0.7

0.5
0.40

0.34

2019

At or Below
0.4

0.5
0.35

0.33

0.26

2020

2021

2022

2023

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Lam’s Safety Employee of the Monthaward recognizes those making
transformative change by embodying
our EHS safety culture. In 2023, weupdated the award with a focus on
engaging our manufacturing sites.
Learn more about our EHS policies
and how we are working to empower
our people to stay safe via our website.

56

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESResponsible
supply chain
IN THIS SECTION:
Our comprehensive approach

59

Collaborating to advance climate action

61

Upholding human rights

62

Ethically sourcing raw materials

62

Fostering supply chain diversity

63

APPENDIX57

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APPENDIX

Responsible supply chain
We are purposefully maturing
our due diligence andengagement approach topromote an ethical, just, andlower-carbon supply chain.

2023 HIGHLIGHTS
Identified 40+ energyefficiency opportunities
while piloting energy
assessments with
suppliers in Korea
and Japan.

Received
Climate Pledge
acknowledgementsfrom 96 of our top
100 direct suppliers.

Enhanced due diligence byleveraging Responsible
Business Alliance (RBA)
self-assessments forhuman rights.

RELEVANT SDGS

BEHIND SCHEDULE

GOAL

1

STATUSIN PROGRESS

2023 PROGRESS

Achieve more than 90% compliance with oursocial and environmental expectations acrossour top suppliers.1• Exceeded our goal with 94% of top suppliers
responding to our conflict minerals survey.

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

• Engaged with 100% of top suppliers.

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

• Deepened supplier engagement throughour second-annual Supplier ESG Forum,
monthly webinar series and newsletters,
and energy assessments.

46.5% of suppliers measured by emissions havescience-based targets (SBTs).

• 26% of suppliers as measured by emissions
have SBTs.

Top suppliers are defined as the top 100 direct suppliers, who account for approximately 96% of spend and 95-98% of supply chain emissions, with some variability year over year.
Direct suppliers are defined as those who provide parts, assemblies and services to produce parts used to manufacture and support Lam’s products. Indirect suppliers are all othergoods and services used by Lam’s daily operations that are not parts, assemblies or services directly tied to producing parts used to manufacture or support Lam’s products.

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59

Our comprehensive approach
Global supply chain operations have become increasingly
complex, requiring companies to thoughtfully manage their
suppliers. As Lam continues to expand its footprint, we areassessing our supply chain for risks that could impact ourbusiness. Our strategy centers on supplier engagement tobuild trust, further key business and ESG initiatives, andmitigate potential human rights risks. Lam’s capacity forthese efforts is growing. In recent years, we’ve assembled
a global team to mature and refine our supply chain ESG
approach. The team is embracing new tools and technologies
to enhance supplier engagement, data collection, and due
diligence—helping us support suppliers’ efforts to enhancetheir corporate responsibility practices while reducing
Lam’s supply chain risks and advancing our ESG goals.
Our membership in the RBA is at the heart of these
efforts. In 2023, we further leveraged RBA resources
to assess human rights risks in our supply chain andsupport other focus areas. We also continued to support
suppliers in setting science-based emissions-reduction
targets while engaging and educating suppliers throughwebinars, newsletters, and other outreach initiatives.

Embedding ESG in supply chain management

SETTING EXPECTATIONS AND PROMOTING PROGRESSWe establish clear expectations at the beginning of the
supplier lifecycle to set up both our company and our
suppliers for success. Upon selection, we encourage
suppliers to become RBA members and contractually requirethat suppliers adhere to the principles set forth in our Global
Supplier Code of Conduct (GSCC). In 2023, we updated
the GSCC to ensure close alignment with the RBA's Codeof Conduct with reference to globally recognized bodies'
guiding documents, such as the United Nations and theInternational Labor Organization. Throughout the supplier
lifecycle, we continue to conduct due diligence using a riskbased approach, while working to facilitate ESG progress.
Our expectations for our top direct suppliers include:• Setting science-based emissions targets in line with
Science-Based Targets initiative (SBTi) methodology• Providing emissions and environmental data on anannual basis

ESG supply chain governanceis overseen by our global supply
chain management executive
leadership and implemented by
our Supply Chain ESG team withsupport from a global, crossfunctional team.

Our strategic framework

enables us to manage supply chain
ESG performance across five pillars:• Transparency• Responsibility• Training• Risk assessments• Governance

Learn more about our supply chain governance andmanagement approach via our website.

Our focus areas help us

hold ourselves and our suppliers
accountable for conducting business
responsibly and ethically in respect to:• Collaborating to advanceclimate action• Upholding human rights• Ethically sourcing raw materials• Fostering supply chain diversity• Completing RBA Corporate self-assessment questionnaires(SAQs) and Responsible Labor SAQs, addressing applicablenon-conformances, and participating in RBA’s Validated
Assessment Program upon request• Responding to our annual Conflict Minerals Reporting
Template (CMRT) survey request
ENGAGING SUPPLIERS AT EVERY STEP
We emphasize engagement at each step of the supplier
lifecycle to conduct due diligence and drive mutual progresson key ESG topics. In 2023, we engaged over 128 suppliers
through monthly webinars featuring industry experts. They
discussed a range of topics from methods for managing GHG
emissions and setting SBTs to human rights and the powerof RBA tools. We've planned webinars on additional topics for2024. We also continued our newsletter, which reinforces the
topics featured in our webinar series.

2023 ESG Report

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Connecting with our
suppliers and celebrating
their success
In October 2023, Lam gathered with a selectaudience of suppliers during our second-annual
Supplier ESG Forum. This in-person event
included an overview of our ESG strategy andnet zero roadmap, as well as a presentationfrom the chief strategy officer of the RBA. We
invited a variety of speakers to represent theperspectives of our company, our investors, andthe semiconductor industry. The forum provided
an opportunity to celebrate our suppliers andalign on priorities.

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Setting up our suppliers and company for success
GETTING OFF TO A STRONG START
As part of onboarding, direct and select indirect suppliers are required to:• Pass our Uyghur Forced Labor Prevention Act list-based screening• Acknowledge and agree to adhere to the principles in Lam’s Global Supplier Code of Conduct• Complete a screening process to confirm human rights and business ethics compliance
MONITORING PROGRESSOn an ongoing basis, we use various tools to assess progress, including:• Quality Management System audits that assess suppliers based on performance, quality, and human rights risks• RBA Online’s toolkit, including training modules, Corporate SAQs, Facility Risk SAQs, Responsible Labor
SAQs, and country risk profiles to support human rights risk monitoring• The Responsible Mineral Initiative's (RMI) CMRT, Extended Minerals Reporting Template, training, andReasonable Country of Origin Inquiry data for conflict mineral monitoring• Our supplier scorecards, which monitor supplier performance across many metrics, including ESG
DRIVING MUTUAL SUCCESS
We offer a variety of opportunities to build supplier capability including:• Webinars, events, and training opportunities• Newsletters, external net zero resources, and access to subject matter experts• Energy audits for select suppliers

Our supplier engagement strategy:Lay the foundation for a
productive supplier relationship:

Build capacity for progress:

Act on opportunities to drive
measurable improvements:• Communicate our
expectations• Collect data to inform
our strategy• Foster collaboration andbuild momentum toward
our respective goals• Mature our methodology andenhance data accuracy• Identify potential emissionsreduction opportunities andhuman rights risks• Provide resources, training,and coaching opportunities• Reduce value
chain emissions• Hold suppliers
accountable• Measure our impact
and adjust our strategy
as needed

60

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Collaborating to advance climate action
Activities in our supply chain contribute to our Scope 3
emissions, which represent the majority of our GHG footprint.
To achieve net zero, we must work closely with our top
suppliers to help them drive emissions reductions. We’ve
set annual and near-term targets to keep us on track toachieve this goal by 2050, including supporting 46.5% of
our suppliers (by emissions) to set SBTs by 2025. In 2023,
26% of suppliers have set SBTs. We continued to pursue
these goals by engaging and educating suppliers on
environmental topics throughout the year. We also asked
top suppliers to commit to climate action and used our ESG
survey to collect information about our top suppliers’ climate
performance. We deploy our ESG survey to top suppliers
on an annual basis to gather Scope 1, 2, and 3 emissions

information in support of our climate goals. Since 2022,
we have received ESG survey responses from 92 ofour top suppliers, with 96 of them acknowledging our
Climate Pledge.
One of the actions our suppliers can take to reduce theiremissions is to minimize their energy usage. To help them,
we piloted energy assessments with Lam’s top suppliers in
Korea and Japan. Through the completion of five energy
assessments, we identified more than 40 energy-efficiency
opportunities. Many of them, such as implementing energysaving lighting or compressor pumps, could offer a rapid
return on investment for participating suppliers.

RESPONSIBLE SUPPLY CHAIN

2023 CLIMATE ENGAGEMENT HIGHLIGHTS

2023 ESG Report

OUR COMMUNITIESAPPENDIX

96

of our top direct suppliers haveacknowledged Lam’s Climate Pledge
since 2022

92

of our top direct suppliers have responded
to our ESG survey

40+

energy-efficiency opportunities identified
while completing energy assessments of five
suppliers’ operations in Korea and Japan47%

of supplier survey respondents indicatedthey are using some renewable energy

38%of survey respondents published annual
sustainability reports

61

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PRODUCT INNOVATION

Upholding human rights
We are firm in our belief that every individual deserves safe working
conditions in which they can expect to be treated with dignity andrespect. Our dedication to supporting and protecting human rights
encompasses our global operations, as well as our supply chain. This
work aligns with our Core Values and helps us ensure compliance with
Lam's GSCC and RBA’s Code of Conduct. Lam’s global Human Rights
Policy applies to all employees, and we expect our suppliers, as well as
our business and community partners, to adopt similar practices. We
also expect our suppliers and sites to comply with laws that include, but
are not limited to, the U.K. Modern Slavery Act of 2015 and the California
Transparency in Supply Chains Act of 2010.
We ask our top suppliers to complete the RBA’s Responsible Labor
SAQs, which further inform our risk mapping and prioritization efforts.
Through the process, we have identified three countries where our
top suppliers operate that are inherently high-risk for child labor andmigrant labor. We use country-level risk data to inform our overall
supplier engagement and assessment strategy. We also apply RBA
guidelines to address specific supplier risks on a case-by-case basis.
The process may include requesting corrective action plans to improvepolicies and practices and ensuring that follow-up closure audits
are completed. This has allowed us to streamline and scale our due
diligence processes. In addition, we regularly audit critical suppliers
through our quality management system. These onsite audits assess
suppliers’ performance, quality, and human rights practices, and wecompleted 72 audits in 2023. Overall, our increased use of RBA tools
and regular audits have improved our ability to analyze, interpret, andmigrate global human rights risks.
Training is essential to ensure our teams and suppliers understandthe importance of proactively managing and monitoring human rights
risks within our supply chain. In 2023, we saw a 300% increase in thecompletion rate of our human rights training by expanding accessfor employees across our Global Supply Chain Management, E&C,
Legal, and Global Trade teams. We also ask our top suppliers tocomplete RBA’s online human rights module, which helps them flag
and appropriately respond to potential risks.

SUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAIN

Ethically sourcing
raw materials
The semiconductor industry uses various minerals, including
conflict minerals such as tin, tantalum, tungsten, and gold.
While Lam does not directly source these minerals, they arepresent in some items that we purchase from our suppliers.
We conduct due diligence in accordance with recognizedinternational standards to determine whether these conflictminerals were sourced from countries associated withconflict in the Democratic Republic of the Congo. Lam is amember of the RMI, a multi-stakeholder organization thathelps address human rights issues in the mining of conflictminerals and other minerals of concern. We leverage RMI’s
Conflict Minerals Reporting Template (CMRT) for ourconflict mineral filings disclosed to the U.S. Securities andExchange Commission.

Visit our website to learn more
about our approach to sourcing
parts and materials containing raw
materials via our Conflict Minerals
Policy Statement and our 2023
Conflict Minerals Report.

OUR COMMUNITIES94%

APPENDIX

response rate from our
top direct suppliers to
our conflict minerals
survey in 2023

62

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONS

Fostering supply chain diversity
Consistent with Lam's Core Values, we recognize the value that diverse suppliers bring to help
us deliver on our core priorities and enrich our experience in the process. During our supplieronboarding process, we implement measures to identify diverse suppliers, including minority-,
women-, LGBTQ+-, and veteran-owned businesses, as well as businesses owned by people
with disabilities. We also include diverse qualifications in our Supplier Scorecard and trackspending with diverse direct and indirect material suppliers on a periodic basis. We continue toencourage diverse suppliers to collaborate with Lam and hope to broaden our diverse supplier
network in the coming years.

OUR WORKPLACE

2023 SUPPLY CHAIN SNAPSHOT

2023 ESG ReportRESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX~1,500supplier families in 34 countries

26%

Suppliers with SBTs

25

suppliers initiated RBA Corporate SAQs

In 2023, Micron president and CEO Sanjay Mehrotra presented theOutstanding Performance in Supplier Diversity Award to Lam CEO
Tim Archer. The award recognizes top-performing suppliers across
Micron’s business, based on its fiscal year scorecard evaluation, andLam received the highest score among its peers. Learn more about ourapproach to cultivating a diverse supplier network via our website.

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Our
communities
IN THIS SECTION:
Powering breakthroughs together

66

Transformative learning

67

Resilient communities

68

Inclusive societies

69

Our all-in engagement approach70

APPENDIX64

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APPENDIX

Our communities
Guided by our principle toact with purpose for a betterworld, we are working withour charitable partners
and employees to support
communities that are
empowered, inclusive,and resilient.

2023 HIGHLIGHTS
Completed the first yearof our three-year, $10
million commitment to
FIRST Global.

Volunteered 30,677
hours, a 45%
increase over 2022.

Achieved nearly a 4X increaseover the previous year involunteer participation in
Asia, with regional employees
logging 7,394 hours.

BEHIND SCHEDULERELEVANT SDGSGOAL

STATUSIN PROGRESSACHIEVED2023 PROGRESS

Determine key targets for larger-scale impactaligned to a new strategic focus.

• Achieved by launching our Powering Breakthroughs
Together social impact framework with strategic
focus areas to guide our giving and signature
program initiatives.

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

• Continued to develop, refine, and test our reporting
process for key programs and large-scale grants.

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

• Increased annual unique employee participation
rate from 18% in 2022 to 20% in 2023.

Contribute 40,000 employee volunteer
hours annually.

• Contributed 30,677 employee volunteer hours in2023.

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Powering breakthroughs together
When people are empowered to collectively reimagine
tomorrow, they can help create a better world for generations
to come. Our social impact strategy aligns with our internal
work to fuel innovation, enhance sustainability, and help
make science, technology, engineering, and mathematics(STEM) industries more inclusive. We know we can create
the greatest impact by supporting charitable organizations
and communities at the local level while coordinating ourefforts throughout the world. Lam’s social impact platform,
Powering Breakthroughs Together, provides a framework forthis endeavor across three key areas:• Transformative learning: We invest in programs that push
the boundaries of education to carve out new pathways forlearners, innovators, and creative thinkers.
• Resilient communities: We support efforts that help
communities build resilience in the face of adversity throughstrong relationships, enhanced technological capacity,
preparedness, and recovery planning.
• Inclusive societies: We provide investments toorganizations working to change inequitable systems andincrease access to resources and opportunities that help
communities reach their full potential and flourish.

Lam’s 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.

Visit our website to learn more about ourcommunity engagement approach.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITY IMPACT IN 2023

2023 ESG Report

OUR COMMUNITIESAPPENDIX

66

2,128

charitable organizations supported

1,935

employees volunteered a total of
30,677 hours

20%

employee participation rate in all giving
programs through our community
engagement platform$6.8M

donated by the Lam Foundation, including$1.3M in corporate matches for employee
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INTRODUCTION

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Transformative
learning
Innovation does not happen in a vacuum. It is most often the
result of tireless effort, unyielding curiosity, and purposefulcollaboration. We aim to accelerate this process by investingin opportunities and tools to help build foundational
elements, cultivate adaptations, and spark discoveries.
Through our philanthropic contributions, we strive to support
organizations that:• Push the boundaries of traditional approaches to education,
to introduce new ways of learning, foster new discoveries,
shift mindsets, and empower growth• Inspire the next generation of innovators to solve the world’s
most pressing problems through engineering or technology• Equip people with the knowledge and skillsets needed tosucceed in the innovation workforce of the future
In 2023, we provided more than $4.5 million in support oftransformative learning programming globally. This funding
touched the lives of thousands of students—from Malaysia
to Taiwan to the U.S.

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67

POWERING TRANSFORMATIVE LEARNING IN 2023

National Central Library

FIRST Global

Lam provided funding for the National Central Library's
literacy programs in Taiwan, including provisions forapproximately 600 English books to remote schools. Throughthese financial resources, we helped to support local students
as Taiwan makes the shift to becoming a bilingual country by2030.

During the 2023 FIRST Global Challenge, more than athousand high school students came together to compete
in a collaborative robotics tournament themed around an issue
of global importance: harnessing the power of hydrogen.
The four-day event brought teams of students from nearly
200 countries to Singapore for the annual STEM competition.
Lam served as the challenge’s title sponsor and had astrong presence of employee volunteers from throughout
the world. The event was part of our three-year, $10 million
commitment to FIRST Global, the first year of which wecompleted in 2023. Outside of the competitions, we were
excited to welcome FIRST Global students to one of ourmanufacturing plants in Malaysia to hear from local Lam
leaders and engineers.
Based on self-evaluations by FIRST Global students…

94%

gained key technical skills

91%

want a career using science or tech90%

became more confident in their ability to brainstorm
and innovate creative solutions

94%

gained an appreciation for the talents ofothers worldwide

84%

gained an understanding of energy and climate
challenges and want to help address themPenang International Science Fair
For the third year, Lam sponsored the Penang International
Science Fair in Malaysia. The two-day event brings students
together with industry leaders to showcase opportunities for
STEM careers. In addition to the competition, this year’s event
also featured interactive exhibits and workshops.

Engaging employees to support
future innovators
At our Fremont, California, headquarters, our Womenin Leadership at Lam ERG has collaborated with
Family Giving Tree to host community backpackpacking events for the past seven years. In 2023,
they continued the tradition, and their work wasfeatured once again on the local news. Their efforts
inspired Lam employees in Tualatin, Oregon, to workwith the Tigard-Tualatin Schools Foundation for theirown backpack drive in 2022, which they continued in
2023 for the second year. Building on these initiatives,
Lam employees in Villach, Austria, launched anotherlocal backpack drive during the year, with a charitableorganization called Diakonie de La Tour.

2,180

backpacks packed by 240 employee
volunteers in 2023

2023 ESG Report

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PRODUCT INNOVATION

Resilient communities
We look to bolster programs that help communities recover from natural disasters,
adapt to changing conditions, and mitigate future risks. Our work in this area
consists of supporting organizations that are focused on:

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68

Activating our employees to build community
resiliency for Earth Month
During April 2023, Lam employees celebrated Earth Month in full force, helping build resilient
communities through environmentally focused volunteer activities around the world:• Implementing disaster preparedness and recovery plans that 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
In 2023, we engaged employees worldwide to take part in community-resilience
initiatives, from planting trees and picking up litter to helping communities expand
equitable access to affordable homes.

In the U.S., we hosted 12 litter clean-up eventsin locations that included Fremont andLivermore, California; Tualatin, Oregon; Boise,
Idaho; Austin, Texas; Waltham, Massachusetts;
and Springfield and Eaton, Ohio.

In Europe, we volunteered at a riverclean-up event in Austria and hosted
a lake clean-up event in Switzerland.

In Korea, we supported local reforestation
efforts by planting more than 1,800 trees
in Seoul Grand Park.

In Taiwan, we worked with the Tse-Xin
Organic Agriculture Foundation to plant
1,000 trees, with the specific intention of
improving coastline resiliency.

POWERING RESILIENT COMMUNITIES IN 2023
National Nature Trust
Through Lam Foundation funding, we bolstered Korea's National Nature Trust's
efforts to protect the environment through reforestation, habitat restoration, andother projects to preserve natural assets.
Direct Relief
Lam is proud to support organizations such as Direct Relief that provide criticalresources when disasters occur in communities around the world. In 2023, we
provided financial support for the organization’s medical aid campaign in response
to deadly earthquakes in Turkey and Syria.
Home is the Foundation
On behalf of our Eaton and Springfield, Ohio, sites, Lam provided financial support
to Home Is The Foundation (H.I.T.), a nonprofit organization addressing the criticalshortage of affordable housing options in rural Preble County, Ohio. We funded
H.I.T.’s Senior Home Repair program, which provides essential home repairs to thearea’s elderly adults.

In China, we celebrated Earth Monthby plogging—an activity that involves
jogging while picking up trash—with
employees participating in events inShanghai, Wuhan, and Hefei.

In Japan, we made a positive local
impact through environmental
clean-ups at Miura Beach andKumamoto Garden.

2023 ESG Report

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Inclusive societies
We invest in programs that endeavor to facilitate equitable
access and opportunity, level the playing field, and help
communities reach their full potential. Our efforts to support
community well-being focus on:

In 2023, we supported inclusion initiatives throughtargeted investments to enhance equitable access to foodsecurity and expand opportunities for students from grade
school to college and beyond.

• Eliminating barriers that prevent vulnerable, marginalized,
and/or disadvantaged groups from fully participating
in social institutions (after-school programs, education
systems, workplaces, etc.)

GIRLS INC. OF THE PACIFIC NORTHWEST• Leveling the playing field for underserved andunderrepresented communities’ long-term economic
and physical well-being• Driving systemic change to break the cycle of inequities
and/or designing new systems, processes, and procedureswith inclusion in mind

With an aim to increase equitable representation in the
future innovation workforce pipeline, we invested in Girls,
Inc.’s Eureka! initiative. The program provides hands-on
STEM activities and leadership development opportunities
to more than 150 girls in grades eight through 12 in the
Portland, Oregon, and Vancouver, Washington, areas.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX69

LIFTING DISADVANTAGED STUDENTS IN
BANGALORE, INDIA
Through our Lam India corporate social responsibility
program, we provided financial support for the Gubbachi
Learning Community organization’s education intervention
efforts for the Government Higher Primary School, Mullur.
More than 120 first through third grade students from local,
underserved migrant families benefited from programs
designed to improve grade-level proficiency and increase
literacy and numeracy skills.
UNITED NEGRO COLLEGE FUND (UNCF)
We continued our support of UNCF, an organization working
to increase the number of underrepresented students
who earn college degrees. The Lam Foundation provided$200,000 to fund scholarships for more than 30 students
attending historically black colleges and universities.

Bringing employees together to enable equitable access to foodTo help our communities thrive, we need to ensure that people can meet their basic needs..
Throughout the year, our employees around the globe donated their time to help create a more
inclusive society through food security service activities for the disadvantaged. For example, incollaboration with Rise Against Hunger, we hosted events to pack a total of nearly 60,000 meals
for remote communities in Fremont and Livermore, California, and Tualatin, Oregon. Our employees
also attended local events to sort, pack, and distribute nourishing food to communities near
Lam locations in Taiwan, Korea, Japan, and throughout the U.S.

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Our all-in engagement approach
The more people we involve in our community outreach efforts, the more good we
can do. That’s why we’ve focused on increasing opportunities for employees to get
involved. We’ve made progress through our Lam Cares ambassador program, whichenables employees to champion community involvement for their teams, departments,
and regions. Our Lam Cares ambassadors work closely with other employee groups,
such as our Green Teams and ERGs. Throughout 2023, they collaborated to uplift
communities during Earth Month and through our annual Deliver Joy campaign.
To further encourage employee involvement, Lam provides monetary matching
gifts, matching dollars for employee volunteer time, and resources for our teams
to mobilize and volunteer.

OUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

Delivering Joy worldwide
Each November and December, as the year winds down, Lam employees ramp up
their efforts to uplift their communities. In 2023, we continued our annual Deliver Joy
campaign with more than 100 volunteer events tailored to meet our communities’
needs. It was a massive endeavor, with employees setting a record number of Deliver
Joy volunteer hours for the second consecutive year. Highlights included:• Cooking meals for more than 50 people at the Westbahnhoffnung Villach
nonprofit in Austria• Tying blankets for foster kids through Project Lemonade and hosting an onsite
blood drive in collaboration with the American Red Cross in Tualatin, Oregon• Building a custom, Barbie-themed playhouse for Habitat for Humanity in
Fremont, California• Collecting ~1,200 uniforms for disadvantaged students in India designed toencourage physical activity and play
• Wrapping gifts for foster children at the Shin-Yokohama office in Japan• Organizing a book drive to provide ~600 books to three Adream schools thatwe’ve supported for several years in China, with nine employees also visiting the
Adream schools to provide lessons on STEM topics• Throwing a party for children in foster homes in Korea• Hosting a terrarium-making workshop for children with FaithActs in Singapore
and donating school supplies to the Singapore Children’s Society$1.2M
in employee donations and Lam Foundation matching
gifts during our 2023 Deliver Joy campaign

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PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACERESPONSIBLE SUPPLY CHAINOUR COMMUNITIESGo behind the scenes to hear how we’re fueling community engagement
Our Community Relations team saw impressive growth in its employee engagement program in 2023. Lam’sManager of Global Employee Volunteerism and Giving, Jenny Cook, helped spearhead many of these efforts.
Here’s her perspective on Lam’s community outreach efforts and the way they’ve evolved.

How does Lam's global footprint shape yourteam's approach to engaging employees incommunity initiatives?
It’s important to engage with local community partners, aseach region faces specific social challenges. Lam has offices
across multiple continents, so it’s not a one-size-fits-all
approach. We feel a responsibility to make a positive impact
where our employees live and work. In addition to targetedfinancial donations, we encourage employees to volunteer
their time.

Lam completed the first year of its sponsorshipof FIRST Global. How has that initiative
supported your engagement efforts?
When we launch a signature initiative, it’s all hands on deck.
An important piece of that is employee engagement. In
2023, over 60 employees volunteered through the initiative.
That included 32 employees who served in a skills-based
capacity, spending several months mentoring teams of highschool students from places including Cambodia, Eritrea,
and Nicaragua as they built robots for the competition. The
2023 FIRST Global Challenge was held near our Singapore
office, so many local employees gave their time to support
students coming to the competition from all over the world.

The growth of Lam’s community
engagement efforts is impressive. How
have you worked to get more teams in moreregions involved?
Our Lam Cares ambassador program has been key to our
growth. We have an internal network of champions acrosslocations and business units who plan events and engage
local team members. We have also up-leveled our annual
volunteer campaigns. They’re such a fun opportunity toengage, and we’re seeing organic growth from folks who
don’t want to miss out!

What is next as you continue to build
toward your 2025 goals?
We look forward to strengthening our partnerships with
Lam’s ERGs to amplify their community engagement
initiatives, identifying and building relationships with
community partners, and driving even more internal
engagement. This is part of our ongoing efforts to raiseawareness of our community engagement initiatives,
which are an important part of how we live our Core
Values and strengthen Lam’s culture.

Jenny Cookmanager of Global Employee
Volunteerism and Giving

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IN THIS SECTION:
About this report73

Methodology

73

Assurance letter

74

Cautionary statement

78

Glossary of terms

79

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About this report
Lam Research Corporation published this report to provide an overview of ourcompany’s products, services, and operations related to ESG performance. This reportcovers calendar year 2023, with some exceptions noted, including financial data thatis from Lam’s fiscal year (June 27, 2022–June 25, 2023). The report encompasses
our wholly-owned subsidiaries across the globe, with some data limited to particulargeographies, 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
to continue to report annually. We also report in alignment with the Sustainability
Accounting Standards Board (SASB) Standard for the Technology and Communications
Sector: Semiconductor Industry. This alignment is detailed in the SASB index.
We have noted any significant changes in scope and boundary throughout the reportthat may vary from our 2022 report, published in 2023. External assurance is limited
to financial data from the consolidated financial statements in our 2023 Annual
Report on SEC Form 10-K and environmental and safety data, as outlined in the thirdparty assurance letter included in this report. This ESG report has been reviewed by
the Nominating and Governance Committee of our Board and has been reviewed
and approved by our president and CEO. For more information about our corporate
governance, please reference our Proxy Statement.

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73

Methodology
SCOPE 1, 2, AND 3
We calculate our Scope 1 and 2 methodology using the Greenhouse Gas (GHG) Protocol
standard. Of the 15 Scope 3 categories, the following do not apply to Lam: upstream leased
assets, downstream leased assets, and franchises. The primary contributors to our total
Scope 3 GHG emissions include the use of sold products, purchased goods and services,and transportation and distribution. For the use of sold products, we use data from industrystandard S23 reports and include the energy use of the tool; customer-specific, location-based
emissions factors; and a lifetime of 25 years for our tools. For purchased goods and services,
we use spend-based data and emissions sourced from the Environmentally Extended InputOutput database, while increasing the availability of reliable primary data in the future.
In 2023, we made several changes to our Scope 3 methodology: we removed Enerdata forecasts
and customer-specific climate goals from our customized emissions factor calculations for
Category 11, use of sold products; we added well-to-tank emissions across all relevant categories;
we reclassified and recalculated emissions from travel reports to align with U.S. Environmental
Protection Agency (EPA) travel distances and Department for Energy Security and Net Zeroemission factors; we improved our data collection around warehouse-related emissions; andwe added previously excluded subsidiary data to our Category 1 purchased goods and services.
These changes resulted in both increases and decreases in individual categories compared toprevious years' calculations.
PRODUCT EMISSIONS ESTIMATES
To calculate estimates of product-related emissions reductions, we use data derived fromSEMI S23 reports, tool sensors, and data logs to compare changes in energy use and chemical
flows. For all process-related chemicals, we utilize the 5th assessment report global warming
potentials and apply the Intergovernmental Panel on Climate Change Tier 2C methodology. Forenergy, we apply the most appropriate emissions factors such as those from the International
Energy Association or EPA databases.
SUPPLIER AND CUSTOMER ENGAGEMENT GOALS
To calculate the percentage of suppliers (measured by emissions) who have set SBTs, we
divide the estimated annual emissions associated with our suppliers who have set SBTs by theestimated annual emissions of all direct and indirect suppliers; estimated annual emissions
are determined using a GHG protocol spend-based methodology and emissions factors
derived from the Environmentally-Extended Input-Output (EEIO) database. The percentage ofcustomers measured by emissions who have set SBTs is calculated by summing the emissions
associated with category 11 Use of Sold Products for each customer with an SBTi or SBTialigned methodology and then dividing by the total emissions for category 11 use of soldproducts to get a proportion of emissions represented by customers with SBTi or SBTi-aligned
methodology. Estimated annual emissions are determined using a GHG Protocol spend-based
methodology and emissions factors derived from the EEIO database.

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Independent Assurance Report
DNV Business Assurance USA, Inc. (DNV) has been commissioned by the management of Lam Research Corporation (Lam Research) to carry out an
independent limited level assurance engagement of Selected Information for calendar year 2023, as presented in Lam’s 2023 Sustainability
Disclosures (the “Report”). The assurance was carried out April through May 2024.
Our Conclusion:. 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
I the Selected Information 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 Selected Information and is to be read in the context of this Assurance Report, in particular, the inherent limitations
explained below.
Selected Information
The scope and boundary of our work is restricted to the performance indicators included within the Report (theSelected Information) listed below:

Our competence, independence,and quality control

Organizational boundary• All global facilities under Lam’s operational control

DNV's established policies andprocedures are designed to ensure that
DNV, its personnel and, whereapplicable, others are subject toindependence requirements (including
personnel of other entities of DNV andmaintain independence where requiredby relevant ethical requirements. This
engagement work was carried out by anindependent team of sustainability
assurance professionals. DNV was not
involved in the preparation of any partof Lam's data or report. This is our
second year of providing assurance for
Lam Research. We adopt a balanced
approach towards all stakeholders
when performing our evaluation.

Data verified for the period January 1, 2023‐December 31, 2023:• 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)
We do not express any conclusions on any other information that may be published on Lam’s website or Sustainability
Report for the current reporting period or for previous periods.
Scope and Approach
We performed a limited level 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’ (revised), 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, which are based on theprinciples enclosed with the ISO IEC 17029:2019 ‐ Conformity Assessment – General principles and requirements forvalidation and verification bodies, and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards andapplicable legal and regulatory requirements.

1
Statement No. DNV‐2024‐ASR‐694621

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Responsibilities of Lam Research and DNV

Scope and Approach Continued
The GHG emissions inventories have been evaluated against the following reporting criteria:• World Business Council for Sustainable Development (WBCSD) / World Resources institute (WRI) Greenhouse Gas
Protocol, Corporate Accounting Standard REVISED EDITION• WBCSD/WRI Corporate Value Chain (Scope 3) Accounting and Reporting Standard (Scope 3)
DNV used a risk-based approach throughout the assurance engagement, concentrating on the areas that we believe aremost material for both Lam and its stakeholders. DNV applied a materiality threshold of ﬁve percent for the GHG
emissions (Scope 1 and 2) and Energy.
We understand that ﬁnancial data, including ﬁnancial data that feeds into the calculation of Selected Performance
Indicators are subject to a separate independent audit process. DNV has relied on this information as accurate for the
purposes of our scope of work. This includes but is not limited to any statements relating to sales, revenue, salaries,
charitable contribution.
Data Veriﬁed
Greenhouse Gas Emissions – CY 2023•

Scope 1 Emissions

190,124 MT CO2e•

Scope 2 Emissions (location-based)

132,144 MT CO2e•

Scope 2 Emissions (market-based)

64,050 MT CO2e

Lam Research has sole responsibility for:•* Preparing and presenting the Selected
Information in accordance with the criteria•* Designing, implementing, and maintaining
effective internal controls over the informationand data, resulting in the preparation of theSelected Information that is free from material
misstatements• Measuring and reporting the Selected
Information• Contents and statements contained within thewebsites
In performing our assurance work, our responsibility
is to the management of Lam Research; however,
our assurance report represents our independent
opinion and is intended to inform all stakeholders.
DNV was not involved in the preparation of any
statements or data included in the Report or
website except for this Assurance Statement.

Water Used – CY 2023•

Total Water Usage

403,068,596 Gallons

Water Savings- CY 2023•

Total Water Savings

20,126,418 Gallons

Energy Consumption – CY 2023•

Total Energy Consumed

449,137,932 kWh

Energy Savings – CY 2023•

Energy Savings Achieved

2,833,434 kWh/yr

Waste – CY2023•

Total Hazardous Waste

1,684 Metric tonnes•

Hazardous Waste Recycled

53%•

Total Non-Hazardous Waste

8,684 Metric tonnes•

Non-hazardous Waste Recycled

81%

Employee Health & Safety – CY 2023•

Total Recordable Incident Rate (TRIR)

0.33

Level of Assurance
We are providing a 'limited level of assurance. We
planned and performed our work to obtain theevidence we considered necessary to provide a basis
for our assurance conclusion, so that the risk of thisconclusion being in error is reduced but not reduced
to very low. A 'reasonable level' of assurance would
have required additional work at headquarters andsite levels to gain further evidence to support thebasis of our assurance conclusion. DNV's assurance
engagements are based on the assumption that thedata and information provided by the client to us aspart of our review have been provided in good faith.
DNV expressly disclaims any liability or coresponsibility for any decision a person or an entity
may make based on this Independent AssuranceStatement.
2Statement No. DNV-2024-ASR-694621

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Basis of Our Conclusion

Independence

We are required to plan and perform our work in order to consider the risk of material
misstatement of the Selected Information; our work included, but was not restricted to:• Conducting interviews with Lam Research’s management to obtain an understanding of the key processes,
systems and controls in place to generate, aggregate and report the Selected Information;• Performing limited substantive testing on a selective basis of the Selected Information to check that data had
been appropriately measured, recorded, collated and reported;• Reviewing that the evidence, measurements and the scope provided to us by Lam Research is prepared in linewith the agreed upon procedures and criteria;• Reading the Report and narrative accompanying the Selected Information within it with regard to the criteria;• Reviewing global employee rosters at year‐end at individual contributor, supervisor/manager, director, andexecutive leadership levels to determine percent breakdown by gender, ethnic composition, and special
populations;• Reviewing recordable incidents, lost time incident, number of employees, hours worked, employee categories(TRIR and LTIR);• Replicating the TRIR and LTIR following the reporting criteria below:• OSHA Recording and Reporting Occupational Injuries and Illness• Reviewing sample of recordable incidents and lost time incidents;• Reviewing training stats from the LinkedIn learning platform; charitable contributions budget allocation and total
volunteer hours.

DNV's established policies and procedures aredesigned to ensure that DNV, its personnel and,
where applicable, others are subject toindependence requirements (including personnelof other entities of DNV) and maintainindependence where required by relevant ethicalrequirements. This engagement work was carriedout by an independent team of sustainability
assurance professionals.

The following methods were applied during the verification of Lam Research’s environmental footprint inventories
and management processes:• Review of documentation, data records and sources relating to the corporate environmental data claims and
GHG emission assertions;• Review of the processes and tools used to collect, aggregate and report on all environmental data and metrics;• Assessment of environmental information systems and controls, including:• Selection and management of all relevant environmental data and information;• Processes for collecting, processing, consolidating, and reporting the relevant environmental data andinformation;• Design and maintenance of the environmental information system;• Systems and processes that support the environmental information system.
• Performed sample‐based audits of the processes for generating, gathering and managing the quantitative andqualitative environmental data;• Examination of all relevant environmental data and information to develop evidence for the assessment of theenvironmental claims and assertions made;• Confirmation of whether the organization conforms to the verification criteria

Inherent Limitations
All assurance engagements are subject to inherent
limitations as selective testing (sampling) may notdetect errors, fraud or other irregularities. Nonfinancial data may be subject to greater inherent
uncertainty than financial data, given the natureand methods used for calculating, estimating anddetermining such data. The selection of different,
but acceptable, measurement techniques may
result in different quantifications between
different entities.

DNV's assurance engagements are based on theassumption that the data and information
provided by the client to us as part of our review
have been provided in good faith. DNV expressly
disclaims any liability or co-responsibility for any
decision a person or an entity may make based on
this Independent Assurance Statement.

3
Statement No. DNV‐2024‐ASR‐694621

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Basis of our conclusion Continued

DNV Business Assurance

In addition to the above, specific to the environmental indicators, the following steps wereconducted for the Water and Waste:• Water:o Review of the water consumption methodology;o Conduct data checks for the water data collected, transferred and calculated;o Perform sample‐based assessment of data reported against the source data water
consumed;o Evaluate whether assumptions and methodology used in cases of data estimation
for whole year data are valid.
• Wasteo Review of the waste segregation methodology and description of waste
categorization;o Conduct data checks for the waste data collected, transferred and calculated;

DNV Business Assurance is a global provider ofcertification, verification, assessment and training
services, helping customers to build sustainablebusiness performance.
https://www.dnv.com/assurance/

This Statement is for the sole use and benefit of the party contracting with DNV Business Assurance USA, Inc. to produce thisStatement (the “Client”). Any use of or reliance on this document by any party other than the Client shall be at the sole risk of suchparty. In no event will DNV or any of its parent or affiliate companies, or their respective directors, officers, shareholders, employees
or subcontractors, be liable to any other party regarding any statements, findings, conclusions or other content in this Statement, orfor any use of, reliance on, accuracy, or adequacy of this Statement.

For and on behalf of DNV Business Assurance USA, Inc.
Katy, TX
June 13th, 2024
Digitally signed
by Kyle Silon
Date:
2024.06.12
10:32:20 -07'00'

Kyle Silon
Lead Verifier

Digitally signed
by Xu. Yishuang
Date: 2024.06.12
00:32:56 -07'00'

Yishuang Xu
Verifier

Digitally signed by
Chaudhari, Tushar
Date: 2024.06.13
06:39:58+05'30'

Tushar ChaudhariTechnical Reviewer

4
Statement No. DNV‐2024‐ASR‐694621

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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 forwardlooking 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, the future and the world; our incorporation of ESG principles
across our business; our environmental impact; our engagement with our customers and suppliers in their environmental and social efforts; our contributions to climate action; our ESG strategy
and goals, including our goals related to achieving net zero emissions; our aim to drive progress on the sustainable development goals throughout our operations and supply chain; our efforts
in exemplifying our Core Values; our ability to safeguard intellectual property, data, and business contact information and on-going training efforts; our targeting of government funding
opportunities; our ambition to create a symbiotic, physical-virtual semiconductor ecosystem and the benefits to be realized thereby; our aspirations for transparency and disclosure; the role of
ESG considerations in our operations and product development; our efforts to build a strong, inclusive and diverse workplace; our efforts to develop a responsible, diverse and ethical supply
chain; our ethics and compliance initiatives; our efforts in ensuring the protection, safety, and dignity of our employees through our Human Rights Policy; our compliance with legal, regulatory,
and internal control requirements with respect to taxation; our product innovation and continuous improvement; our investments in R&D; the performance, productivity, quality, safety, efficiency,
or sustainability of our products; the technology areas that are strategically important to us; reductions in the emissions output of our products; the ability of our products and solutions to enabletraining of future engineers, accelerate problem solving, collaboration and innovation, and reduce environmental impact; our use of environmental principles in the product design process; ourpartnerships with customers to reduce energy consumption and costs; energy, water, or chemical usage savings, or emissions reductions, that might be achieved by us or 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 toacting 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 ofwater 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; employee training opportunities; our commitment to equal opportunity and non-discrimination; our benefit programs; our goals with respect to increasing the proportionof underrepresented employees and women in our workforce; our ability to ensure the safety of our employees; expectations for safety performance; our vision to connect engineers acrossdisciplines; our expanded future talent pipeline to meet projected demands; our support of employees; our continuous thought leadership; our ability to manage and mitigate risks in ouroperations, supply chain and engagements with third parties, including ethics and compliance risks and those with respect to human rights; our supplier due diligence; our aspiration to increase
equitable representation in the future innovation workforce pipeline; our support of and engagement with charitable organizations and communities; 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 affectthese forward-looking statements include: trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors
may be inconsistent with our expectations; supply chain cost increases and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions
or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or
governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties discussed under theheadings “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” within Item 1A and at the beginning of Part I, respectively, of our fiscal year 2023 Annual Reporton 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. Suchrisks, uncertainties and changes in condition, significance, value and effect could cause our actual 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 andreasonably known to us. We do not undertake any obligation to update any forward-looking 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.

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Glossary of terms
TERM

DEFINITION

Abatement controls

Measures taken to reduce or eliminate the presence of hazardous materials or pollutants.

Artificial intelligence (AI)Technology that enables computers and digital devices to learn, read, write, create, and analyze.

Biodiversity

The biological diversity of flora and fauna species on Earth, a complex web of life that underpins the natural life processes on the planet. Humancaused environmental damage reduces biodiversity, and creating a healthy, sustainable society requires increasing biodiversity.

Carbon footprint

The amount of greenhouse gases and specifically carbon dioxide emitted by something (such as a person's activities or a product's manufacture
and transport) during a given period.

Customer Support Business Group (CSBG)

Includes the Reliant product group (older technology sales and refurbished systems), upgrades, spares, and services.

Deposition

A process that selectively adds material to the surface of a wafer.

Direct suppliers

Direct suppliers are defined as those who provide parts, assemblies, and services to produce parts used to manufacture and support
Lam’s products.

Environmental, social, and governance (ESG)

ESG refers to a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its
ability to effectively manage its environmental and social impacts.

Etch

A semiconductor equipment process that selectively removes materail from the wafer surface.

Fab

A site where semiconductor wafers are fabricated for the manufacture of chips.

Greenhouse gas (GHG)

Gases such as carbon dioxide and methane, which trap and hold heat in the atmosphere and contribute to climate change. Much of human activity
emits GHG gases, such as burning fossil fuels for energy and transport, farming land for food production, and deforestation.

High global warming potential (GWP) gas

Gases with a higher GWP absorb more energy, per ton emitted, than gases with a lower GWP, and thus contribute more to global warming.

Indirect suppliers

Indirect suppliers are all other goods and services used by Lam’s daily operations that are not parts, assemblies, or services directly tied to
producing parts used to manufacture or support Lam’s products.

Materiality

A process through which topics that represent the organization’s most significant impacts on the economy, environment,
and people are identified.

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Glossary of terms (continued)
TERM

DEFINITIONNet zero

The overall balance between emitting and absorbing carbon in the atmosphere. Limiting catastrophic climate change requires companies andcountries to become net zero, and many policies are based on achieving that within certain time frames.

Process chemistry

Process chemistry involves the development and optimization of production processes for chemical compounds, and the scaling up oflaboratory reactions.

Renewable energy credits/certificates (REC)An REC is a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes ofrenewable electricity generation. RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity gridfrom a renewable energy resource.

Science-based targets (SBT)

SBTs provide a clearly-defined pathway for companies and financial institutions to reduce GHG emissions in line with what the latest climate
science deems necessary to meet the goals of the Paris Agreement.

Scope 1 emissions

Scope 1 emissions refer to direct GHG emissions that occur from sources that are controlled or owned by an organization.

Scope 2 emissions

Scope 2 emissions refer to indirect GHG emissions associated with any purchases of electricity, steam, heat, or cooling.

Scope 3 emissions

Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organization, but that the organization indirectly
impacts in its value chain.

Self-assessment questionnaires (SAQ)The Responsible Business Alliance (RBA) produces assessment tools to help members meet RBA standards and drive improvements. One suchtool is the self-assessment questionnaire (SAQ), which is designed to help RBA members identify their greatest social, environmental, and ethicalrisks in their supply chains. The SAQ is primarily a tool for RBA members to own due diligence by providing a mechanism to assess their own risk
management systems and identify gaps.

Semiconductor

A semiconductor is a material that can conduct electricity under certain conditions, such as temperature or chemical treatment.

SiliconA nonmetal element with semiconducting properties, used in making electronic circuits.

Smart mobility

Using diverse transportation methods combined with tech to make traveling in and around cities more straightforward and greener.

Wafer

A thin slice of semiconductor (such as silicon) used as a base for an electronic component or circuit.

2023 ESG Report

INTRODUCTION

BUSINESS AND GOVERNANCE

PRODUCT INNOVATIONSUSTAINABLE OPERATIONSOUR WORKPLACE

Continuing to make progress with purpose
We are proud of the stories we’ve captured throughout this report and lookforward to building on our progress in the coming years.
GET IN TOUCH
If you have questions regarding this report or Lam’s ESG activities, please contact us via
ESG@lamresearch.com.
VIEW ADDITIONAL DATA AND DISCLOSURES
Visit Key Data and Frameworks for our Performance Summary, as well as our GRI, SASB, TCFD,
and UNSDG indexes.
VIEW ADDITIONAL RESOURCES
Visit Lamresearch.com to learn more about our company and many of the areas discussed inthis report. There, you can access our ESG Hub and investor resources, as well as informationon our products, customer support offerings, career opportunities, and more.

RESPONSIBLE SUPPLY CHAINOUR COMMUNITIESAPPENDIX

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