Lam’s Largest Manufacturing Site Gets Bigger
Members of the new manfacturing facility in LMM smile at the camera
May 9, 2024
  • Lam’s newest warehouse is the most automated within the company, enabling seamless movement of materials
  • It’s co-located with a Lam manufacturing site, reducing transportation time, cost, and carbon emissions

This week, Lam celebrated the grand opening of the company’s largest and most advanced warehouse at Lam Manufacturing Malaysia (LMM).

Why it matters: LMM allows Lam to work closely and efficiently with key customers and suppliers in the region, setting the standard for Lam operations and better positioning us to support the rising demand for semiconductors.

  • Maximum efficiency: Like the LMM production facility, the warehouse features modern automation capabilities that are efficient, operationally friendly, and cost-effective, making the LMM warehouse a smaller capital investment than a traditional warehouse.
  • No wasted space: Though the warehouse is our largest, it maximizes vertical space by stacking crates and palettes to the top of its 25 meter-high (nearly 90 foot) roof. Since storage and retrieval are automated, the storage locations are higher, deeper, and more compact. If the warehouse had been traditionally constructed, its operational footprint would have been up to four-to-five times larger.
  • Expansion capability: Similar to its companion manufacturing facility, the new warehouse was designed and built with growth in mind. The warehouse can be extended and fitted with additional automated storage systems with minimal disruption to operations as LMM’s demands and requirements evolve.

Investment in a skilled workforce: Since the warehouse includes automated solutions, up to nine times faster than conventional methods, it requires only one-third of the headcount.

Due to the increase in operational complexity at the warehouse, Lam will offer skills development training—in collaboration with local partners—for supervisors, and electrical and mechanical maintenance upskilling programs for employees tasked with maintaining the automated systems.

The bottom line: LMM’s new warehouse strengthens Lam's focus on delivering value for customers, shareholders, the communities in which we operate, and the industry at large.

What we’re hearing:

  • “Our new state-of-the-art automated warehouse in Malaysia represents a significant milestone in our mission to harness the power of technology and innovation, further solidifying our position as a leader in the industry, while also providing the scalability and labor flexibility necessary to navigate the challenges of the post-COVID landscape,” says Toby Finnell, senior director of Logistics.

Caution Regarding Forward-Looking Statements
Statements made in this article that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: market and industry expectations, our continued industry position, benefits to Lam’s operations, business continuity, advancements in the Asia region, and projected impacts on Lam’s carbon footprint. Some factors that may affect these forward-looking statements include: trade regulations, export controls, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; business, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; supply chain cost increases and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 25, 2023 and our quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2024. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this article.