Lam Research's Q4 2025: Unraveling Tariff Impacts, China Market Shifts, and NAND Spending Trends

Tariff impact on revenue and gross margin, China market dynamics and revenue expectations, tariff mitigation strategy and operational flexibility, China revenue and WFE trends, NAND spending trends and growth expectations are the key contradictions discussed in Lam Research's latest 2025Q4 earnings call.



Revenue Growth and Market Expansion:
- Lam Research reported revenue of $5.17 billion for the June quarter, up 10% from the prior quarter.
- The growth was driven by strong performance in both gate-all-around and mature node markets, significant investments from domestic Chinese customers, and the demand for advanced packaging and high-bandwidth memory.

Foundry Segment Leadership:
- Foundry represented 52% of Lam's systems revenue in the June quarter, marking a record high for the fiscal year.
- This was due to leading-edge process investments and demand from domestic Chinese customers.

Advanced Packaging and Product Innovation:
- Lam's SABRE 3D system market share in advanced packaging is expected to grow nearly 5 points year-on-year in calendar 2025.
- The company's strong position in copper plating hardware design and process technology, along with advancements in 3D packaging, contributed to this growth.

WFE Spending and Market Positioning:
- Lam expects total WFE spending to be in the $105 billion range for 2025, an increase from the previous view of $100 billion.
- The increase is primarily due to domestic Chinese spending, and the company is well-positioned with its new products in key technology inflections.