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

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

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

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

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

At Lam, we recognize the value of collaboration, so while we are focused on our own progress, we are also working across the industry—and the broader business community—to build a responsible and sustainable semiconductor ecosystem.

Lam joined the UN Global Compact, the world's largest sustainability initiative, with an ambition for businesses to take shared responsibility for achieving a better world. We also worked with industry leaders to form the Semiconductor Climate Consortium, a new partnership with SEMI to accelerate the industry's response to climate change. We are working across our supply chain, with a goal to increase supplier engagement and assess their performance on human rights and climate action. We are also engaging closely with our customers because we know their use of our tools impacts their sustainability goals. Through our Semiverse™ Solutions, we are bringing our industry into the virtual space, improving the sustainability of our work, and creating new ways to build the next generation of the workforce quickly and efficiently.

It's clear that semiconductors have revolutionized the world, and as we continue to innovate the next generation of technology breakthroughs, we must do it in a sustainable way—for our customers, employees, communities, stockholders, and the planet. None of us can succeed alone, so let's build the future we want together.

Tim Archer
president and chief executive officer

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