Chip equipment maker Lam Research plans to invest $3B+ over five years to expand its global R&D network, aiming to increase its experiment capacity by 50%+ (Anzar Mehraj/Reuters)

Chip equipment manufacturer Lam Research plans to invest over $3 billion in the next five years to bolster its engineering capabilities. The company, which caters to major chipmakers like Micron Technology Inc., Samsung Electronics Co., and SK hynix Inc., will finance a multi-site expansion involving the construction of new labs across three continents.

Lam aims to significantly increase its experimental capacity, projecting a growth of more than 50% from its current annual experiments exceeding 1 million. The company's labs specialize in various areas, including materials science and mechatronics, and are responsible for developing and commercializing new chipmaking technologies.

A recent addition to Lam's product line, the Vector Teos 3D system, assists in creating three-dimensional artificial intelligence accelerators by producing dielectric gapfill films, which provide mechanical support and aid in heat dissipation. The company also offers microbump production machines like SABRE 3D, which form microbumps by submerging chips in a specialized liquid and adding metal particles to create tiny metal structures.

These microbumps facilitate data and electricity transfer between chiplets. The lab expansion initiative follows Lam's strong second-quarter results, with revenue growing 15% year-over-year to $6.72 billion, surpassing analysts' expectations.