- Semiconductor industry may double in size; environmental impact can’t increase at same rate
- "Let’s build the future we want together”
The following letter is the introduction to Lam’s latest ESG report, Act With Purpose for a Better World, which was published on July 18, 2023. You can access the entire report online.
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 will 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 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. 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 reaffirms 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 is president and CEO of Lam Research
Caution Regarding Forward-Looking Statements This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that are not statements of historical fact, including statements regarding: market, industry and industry segment expectations; the role of our technology and innovations in the semiconductor industry and the world; our environmental impact; our ESG goals, including our goals related to achieving net zero emissions; our commitment to ensuring human rights across our operations and supply chains and plans for our human rights program; our work to build a responsible and sustainable semiconductor ecosystem; our engagement with our supply chain and customers; our work to respond to climate change; and the sustainability of our work. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the expectations expressed, including the risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K and quarterly reports on Form 10-Q. You should not place undue reliance on forward-looking statements. We undertake no obligation to update any forward-looking statements.