LAM RESEARCH CORP (LRCX) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that LAM RESEARCH CORP surfaced in its latest filing.

• Non‑U.S. sales accounted for approximately 93% of total revenue in each of fiscal years 2026, 2025, and 2024.fiscal years 2026, 2025, and 2024
• The conflict that began in February 2026 between the United States, Israel, a number of states in the Persian Gulf, and Iran has led to significant regional instability and disruption in the Middle East, including the closure of or restrictions on the Strait of Hormuz, threatened or actual attacks on vessels in the Red Sea, and threatened or actual attacks on transportation and energy infrastructure.February 2026
• Imposition of tariffs on steel and aluminum imports into the United States increased our manufacturing costs in fiscal year 2026, which adversely impacted our margins.fiscal year 2026
• The U.S. government has imposed new controls, including expanded export license requirements and restrictions on sales to certain Chinese entities that significantly impact trade with China.
• Recent U.S. controls limiting exports to China may cause customers with international operations to reconsider their use of and reliance on our products.
• The Chinese government has imposed export controls and license requirements on certain rare earth elements and on certain products that contain Chinese‑origin rare earth elements that are manufactured outside of China; those Chinese export controls have been suspended in part until November 2026 (unless extended).November 2026
• Revenue in China represented approximately 34%, 34%, and 42% of total revenue for fiscal years 2026, 2025, and 2024, respectively.fiscal years 2026, 2025, and 2024
• U.S. Department of Commerce expanded export license requirements for sales to entities in China designated as military end-users or supporting military end uses; additional Chinese companies added to restricted entity list and unverified list under suspicion of military-civil fusion, support of Russia, or other national security concerns.
• Expansion of the foreign direct product rule could subject foreign-made wafers, chipsets, and related items produced with our products to U.S. licensing requirements if Huawei or its affiliates are transaction parties.
• $3.75 billion aggregate principal amount of senior unsecured notes outstanding; $2.00 billion commercial paper program; $2.00 billion revolving credit facility, which serves as a backstop to our commercial paper program; option to increase the revolving credit facility by up to an additional $750.0 million, for a potential total commitment of $2.75 billion.
• The Board of Directors has declared quarterly dividends since April 2014.April 2014