Lam Research Forecasts Over 50% Growth in Advanced Packaging Revenue by 2026, Emerging as a Key AI “Picks and Shovels” Provider

June 20, 2026

XTB.com USA

Overview

Lam Research, a leading semiconductor equipment manufacturer, predicts over 50% growth in its advanced packaging related revenue by 2026, driven by soaring demand for AI accelerators, HBM, and chiplet-based architectures. The company’s management identifies advanced packaging as one of its fastest-growing business segments, solidifying its role as a “picks and shovels” provider in the AI era. Lam Research recorded Q3’26 revenue of $5.84 billion, a 24% year-over-year increase, reflecting strong AI-driven demand for its etching and deposition tools.

In Depth

Key Findings

Lam Research, a global leader in semiconductor manufacturing equipment, has issued an assertive forecast, projecting over 50% growth in its advanced packaging-related revenue by 2026. This surge is attributed to the explosive demand for AI accelerators, high-bandwidth memory (HBM), and chiplet-based architectures. Company management emphasizes advanced packaging as one of the fastest-growing segments within Lam Research’s operations.

Business and Technical Details

While Lam Research is a leader in front-end semiconductor manufacturing processes (e.g., etching and deposition), it is also actively expanding its technology portfolio in advanced packaging. Advanced packaging is becoming increasingly crucial for enhancing performance and bandwidth in next-generation computing systems.
Specifically, advanced packaging technologies such as CoWoS (Chip-on-Wafer-on-Substrate) and hybrid bonding are indispensable for boosting the performance, bandwidth, and power efficiency of AI chips. Lam Research provides precise etching and deposition tools that enable these critical technologies.
In Q3 2026, Lam Research reported revenue of $5.84 billion, a 24% year-over-year increase. This robust performance indicates that AI chip demand is a strong driver for the company’s etching and deposition equipment.
The company is positioned as a “picks and shovels” provider for the AI era—analogous to selling shovels during a gold rush. Instead of directly manufacturing AI chips, Lam Research captures growth opportunities by supplying the foundational technologies that underpin AI hardware.

Background & Context

The rapid advancement of AI is redefining the semiconductor industry’s technology roadmap. With limits approaching for transistor scaling, heterogeneous integration and advanced packaging have emerged as primary means to enhance the performance of next-generation AI chips. Equipment manufacturers like Lam Research directly benefit from this paradigm shift, with the growth of the advanced packaging market becoming a new engine for the company’s expansion.

Strategic Significance & Outlook

Lam Research’s optimistic forecast for its advanced packaging segment underscores the profound impact of AI chip demand on the broader semiconductor equipment market. The company will likely continue to invest in R&D, developing tools that cater to evolving packaging technologies such as CoWoS, CoPoS, hybrid bonding, and chiplet integration to maintain its market leadership. This growth could serve as a “hidden catalyst” for Lam Research’s stock, making it imperative for investors to closely monitor the company’s advanced packaging strategy.

Source: https://www.xtb.com/en/market-analysis/stock-of-the-week-lam-research-the-quiet-seller-of-ai-picks-and-shovels

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