Lam Research opens Austria lab to advance chip packaging, cut costs

May 20, 2026 8:01 AM EDT

May 20 (Reuters) - Lam Research ‌has opened ​a ​research lab in Salzburg, Austria, to advance a chip packaging technology that promises to increase chip density ‌and cut costs, as the company looks to capitalize ⁠on surging AI demand for processors.

The U.S. chipmaking tools supplier said on ‌Wednesday that the Salzburg facility ‌will focus on panel-level packaging, which replaces the semiconductor industry's traditional circular silicon wafers with square panels.

Round wafers ​waste material at the curved edges where full chips cannot be cut. Square panels can eliminate the dead space, ⁠allowing chipmakers to produce more chips per surface at a lower cost per unit — ​a crucial advantage as AI drives chip shortages.

The growing need for more complex and powerful chips has ​fueled a surge in demand for ‌wafer fabrication equipment, which are sophisticated and expensive tools provided by companies including Lam, Applied Materials, ⁠Dutch firm ASML and KLA Corp.

Lam's customers include Samsung Electronics and the world's leading contract chip manufacturer, Taiwan Semiconductor Manufacturing Co.

The company ⁠said the new R&D site builds on the expertise of Semsysco GmbH, ​a Salzburg chip equipment firm founded in 2012 and acquired by Lam Research in 2022.

The Salzburg facility is Lam's first panel-focused wet-processing lab, which ‌uses liquid chemicals to clean and prepare semiconductor materials, the company said.

"This new campus, a state-of-the-art ‌laboratory for panel-level processing, seamlessly bridges the gap from research ⁠and development to production," Salzburg ‌Governor Karoline Edtstadler said ​in a statement.

(Reporting by Jaspreet Singh in Bengaluru and Stephen Nellis in San Francisco; Editing by Tasim ‌Zahid)



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