Responsible Supply Chain

At Lam, propelling technology forward goes hand in hand with cultivating a responsible supply chain that reflects our Core Values. We hold ourselves and our suppliers accountable for conducting business responsibly and ethically with regard to human rights, environmental impact, supplier diversity, and mineral sourcing. This work is integral to our overall business strategy—making Lam’s entire value chain more competitive and resilient.

It’s a complex network that requires strong oversight and governance to manage. Our approach is to engage closely with suppliers throughout each step of the supplier lifecycle, from pre-selection to onboarding and beyond. We aspire to cultivate strong supplier relationships built on shared values, transparency, and mutual trust.

Our long-term goal is to achieve net zero emissions by 2050. Driven by this goal, we are collaborating closely with our suppliers to reduce Lam’s Scope 3 (and, therefore, our suppliers’ Scope 1) emissions. By 2025, we aim to support 46.5% of our top suppliers (measured by emissions) in establishing science-based targets (SBTs).

Through our supplier engagement platform, we survey our top 100 suppliers (by spend) on categories including their GHG emissions, CDP scores, environmental goals, ISO 14001 certification, and RBA membership status. This data has enabled us to create a baseline for our suppliers’ performance in these areas, with many suppliers acknowledging Lam’s Climate Pledge.

We are committed to protecting and supporting human rights—both in our supply chain and in our operations around the world. Not only is this a compliance issue; it also aligns with our Core Values such as honesty, integrity, mutual respect, and mutual trust. We expect our suppliers and sites to comply with laws including—but not limited to—the U.K. Modern Slavery Act of 2015 and the California Transparency in Supply Chains Act of 2010.

Lam’s Human Rights Policy applies to all employees and outlines our expectations to uphold internationally recognized human rights. We expect our suppliers, as well as our business and community partners, to adopt similar practices. The policy aligns with the RBA’s Code of Conduct and builds on standards outlined in our GSCC.

Our Global Employment Practices Statement declares our support of workers’ rights to freedom of association and collective bargaining, to the extent permitted under local laws. We also align with the RBA’s Responsible Labor Initiative, which is focused on ensuring that the rights of workers vulnerable to forced labor in global supply chains are consistently respected and promoted. We ask all suppliers to complete human rights training through the RBA platform and have launched internal training for all Lam employees in global supply chain management.

In 2022, we continued to make progress in human rights due diligence. We created our first human rights policy and began working to enhance our risk assessment process for direct suppliers to address risks relating to labor (e.g., forced labor, human trafficking, child labor, discrimination, etc.). As we continue to lay the foundation for our human rights program in 2023, we started a human rights gap assessment to identify potential human rights risks and gaps that focused on our own employees, women, children, migrant workers, and indirect workers. This assessment included both site risk and corporate risk assessments which were conducted by a third party.

Our commitment to upholding global human rights extends to our strategy for responsibly and ethically sourcing raw materials. This strategy includes our membership in the RBA’s Responsible Mineral Initiative (RMI), a multi-stakeholder organization working to help address human rights issues in the mining of tin, tantalum, tungsten, gold, and other minerals of concern.

Since 2012, we have used the Conflict Minerals Reporting Template developed by RMI to assess our suppliers. In 2022, we expanded our due diligence efforts to include cobalt and mica, as recommended by RMI.

We encourage opportunities to work with diverse suppliers that offer goods and services that meet our company’s standards, supplier selection criteria, and customer requirements. These diverse businesses drive economic growth and stability in local communities and help Lam enhance performance by building a more competitive and flexible supply base.

During our supplier onboarding process, we implement measures to identify diverse suppliers, including minority-, women-, LGBTQIA+-, and veteran-owned businesses, as well as businesses owned by people with disabilities. We also include diverse qualifications in our Supplier Scorecard and track and report spending with diverse direct material suppliers on a periodic basis. This data supports our cross-functional approach to continuously enhancing Lam’s supplier diversity.