Supply Chain

A responsible supply chain is core to our values

Beyond meeting the highest requirements our customers need, we have stringent social and environmental requirements, including screening and auditing for human trafficking, child and forced labor, human rights, and workplace safety.

Our global supply chain network requires compliance standards are adhered to worldwide, and it starts with supplier pre-selection and onboarding. We work with our suppliers through contractual agreements, which include adherence to our Global Supplier Code of Conduct, the Responsible Business Alliance (RBA) Code of Conduct, and compliance with all applicable laws and regulations.

Lam is committed to upholding human rights within our operations and our supply chain. Wherever we do business, we respect human rights and adhere to humane business practices. We hold ourselves and our suppliers accountable to promote responsible and ethical operations and management regarding human rights, supplier diversity, environmental impact, and mineral sourcing. We participate in the Silicon Valley Conflict Mineral & Human Trafficking forum, contributing to the collective effort to address these urgent issues.

Supplier code of conduct

Lam Research

Our proven delivery performance is achieved with ethical supplier management and business operations. Every Lam direct material supplier is contractually obligated to comply to our Supplier Code of Conduct, which is communicated through the MyLam® portal and subject to regular internal reviews by our Supply Chain Management team. In addition, the Supplier Code of Conduct is translated into several languages and posted on our website.

Ethics helpline

Open and honest communication is one of our Core Values and is our standard practice. We encourage our employees, suppliers, and other non-Lam employees to help us proactively recognize Ethics and Compliance related issues through asking questions, expressing concerns, making disclosures or filing reports through channels including the EthicsPoint Helpline.

Responsible Business Alliance

We’re an active member of the Responsible Business Alliance (RBA), and support the following RBA vision and mission:

  • Vision:  A coalition of companies driving sustainable value for workers, the environment and business throughout the global supply chain.
  • Mission:  Members, suppliers and stakeholders collaborate to improve working and environmental conditions and business performance through leading standards and practices.

In addition, we are focused on the RBA’s Responsible Mineral Initiative (RMI) and Responsible Labor Initiative (RLI).

To further facilitate progress towards achieving common goals within the industry, Lam actively encourages our suppliers to become RBA (or equivalent) members.

Upholding diversity

A diverse and inclusive supply chain allows us to provide best-in-class products and services to our customers. We select suppliers who offer goods and services that meet our company’s standards, supplier selection criteria, and customer requirements. We encourage opportunities to do business with diverse companies who meet these needs.

Lam Research Global California Transparency in Supply Chains Act of 2010 Compliance Statement

Lam Research Corporation is committed to compliance with applicable laws and regulations, including the prevention of slavery and human trafficking under the Lam Research Global California Transparency in Supply Chains Act of 2010 (SB 657) Compliance Statement, in its business operations. Lam Research contractually requires direct product suppliers to conduct their operations in a manner that complies with all applicable laws and regulations. Lam Research also requires direct product suppliers to comply with Lam Research’s Supplier Code of Conduct; and the Responsible Business Alliance’s Code of Conduct, Responsible Business Alliance (“RBA Code”), effective January 1, 2021. To verify compliance with its global supply chain standards, Lam Research:

Verification: In order to verify prospective direct product suppliers, we require all new direct materials suppliers, as part of the supplier screening process, to provide a completed written certification that addresses risks of human trafficking and slavery (described in paragraph three below). The verification is conducted by Lam Research’s Global Supply Chain Management Contracts and Compliance Manager.

Auditing: We periodically audit major direct product supplier operations to address the risks of human trafficking and slavery in our supply chain. The audit is conducted by our Internal Audit Team, directly or in conjunction with third parties. During the last fiscal year, audits were announced, but we reserve the right to conduct unannounced audits.

Certification: We request a written certification from major direct product suppliers that the materials incorporated into their products comply with all applicable laws and regulations, including laws regarding slavery and human trafficking of the country or countries in which they are doing business.

Internal Accountability: Lam direct product suppliers, employees, and contractors who fail to comply with Lam’s policies are subject to corrective action including termination.

Training: During the last fiscal year, we implemented required annual training for front-line employees and managers with direct responsibility for supply chain management. Participants learn how to conduct onsite audits, and identify and mitigate risks of human trafficking and slavery.

Conflict minerals policy statement

In order to address growing international concern over the violence and human rights abuses that are being fueled by mining operations controlled by armed militias in the Democratic Republic of Congo and neighboring countries (collectively, the “Covered Countries”), the United States has adopted legislation under Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) pertaining to certain “conflict minerals”, including tin, tantalum, tungsten, and gold (and their derivatives). The Act, as implemented by the U.S. Securities and Exchange Commission’s final rules (the “Final Rules”), requires certain public companies whose products contain these “conflict minerals” to make annual disclosures and conduct reasonable due diligence on their supply chains to determine the sources of such conflict minerals.

Lam Research fully supports the intent of Section 1502 of the Act. Lam has a complex supply chain and relies heavily on its partnerships with suppliers to purchase certain products or components from around the world that may include conflict minerals. Like many other companies in the electronics industry, Lam does not directly purchase the conflict minerals contained in its products or have any direct relationship with the mines or smelters that process them. As a result, we have been working closely with our suppliers since late 2012 to determine the sources of any conflict minerals that are contained in our products. Lam takes corporate responsibility seriously, and it is our goal to use in our products only conflict minerals that are sourced responsibly, including any conflict minerals that may be sourced from the Covered Countries.

In support of this policy, Lam Research:

  • Complies with its reporting obligations under Section 1502 of the Act, as implemented by the Final Rules
  • Exercises due diligence with suppliers consistent with the framework provided by the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas
  • Communicates Lam’s expectations for conflict free materials sourcing to suppliers;
    Partners with suppliers to provide due diligence information that will assist in responsible sourcing decisions and supply chain transparency
  • Continues to monitor and work with customers, suppliers, and industry groups to collaborate on industry-wide solutions that enable companies to make easier transitions towards sourcing conflict minerals that are “DRC conflict free” (as defined in the Final Rules) in the future

Lam’s Form SD filing and relevant Conflict Minerals Reports (if any) can be found here.