China Sales Outlook
Q: What is the outlook for China sales next year?
A: Management expects China to have a solid year in terms of spending in 2025, despite this year's spending being somewhat first-half weighted. They emphasized that China is not going away, although spending can be lumpy due to customer size. " " "

Gross Margin Outlook
Q: How will customer mix impact gross margins this year?
A: Gross margins are expected to face headwinds in the second half due to customer mix. Management guided to a 47% gross margin in September and indicated there might be incremental headwinds into December because of customer mix changes. " "

NAND Spending Outlook
Q: Will NAND spending increase next year?
A: Management anticipates that NAND spending will be greater next year following two years of low spending. They expect significant upgrades in NAND, which should benefit Lam Research due to higher etch and deposition intensity in transitions to higher layer counts. " "

DRAM Equipment Demand
Q: Is DRAM equipment demand at the bottom, and will it improve?
A: DRAM equipment demand had declined due to concentrated mature node spending last year, but management sees demand continuing to grow through 2025 and beyond, driven by HBM adoption and the need for more wafers due to smaller bit sizes. " "

Advanced Packaging and HBM Revenue
Q: Has the advanced packaging and HBM revenue outlook increased?
A: The outlook has moved higher with very strong demand in advanced packaging and HBM. Management is expanding their global manufacturing footprint to respond effectively to this increase, and they like the environment where all parts of the business are supply constrained. "

Technology Inflections and New Tools
Q: How significant are upcoming technology inflections for Lam?
A: Management sees tremendous opportunities with technology inflections like the transition to 4x DRAM nodes, backside power delivery, and gate-all-around. They are introducing new tools with capabilities targeting ultra-small structures, which are critical for future DRAM scaling. " "

CSBG Business Strength
Q: Is the strength in CSBG sustainable?
A: Management expects the CSBG business to modestly grow this year compared to last year. The quarter was particularly strong due to Reliant and spares. They anticipate that upgrades will become more prominent as customers look to upgrade memory fabs that haven't been updated in some time. " "

Export Controls Impact
Q: Are export controls affecting Chinese customer behavior?
A: Management is not seeing any noticeable change in behavior from Chinese customers due to potential export controls. They continue to service customers as long as they are permitted to ship to them and are part of ongoing discussions with regulatory agencies. "

Leading Edge Node Tools
Q: How is the new cryo tool different from competitors'?
A: The cryo tool delivers exceptional wafer results, achieving 10-micron deep holes with less than a 10-nanometer taper from top to bottom, at etch rates 2.5 times faster than conventional tools. This is enabled by new surface chemistries and higher ion energy capabilities unique to their system. " "

Inventory Levels
Q: How should we think about inventory next year?
A: Management plans to consume existing NAND inventory as NAND demand strengthens next year, especially since much of the inventory supports NAND. They aim to get inventory turns back to historical levels, although additional inventory will be needed to support growth in other areas. "

Mature Node Spending
Q: What is the outlook for mature node spending?
A: Mature node spending outside of China remains soft due to inventory buildup in analog, industrial, and automotive sectors. Investment in these areas won't meaningfully occur until inventories are adjusted. In contrast, China is currently decent in mature node spending. " "