Lam Research Buys East Bay Office, Research Buildings for $250M

Lam Research, a supplier of wafer-fabrication equipment for the semiconductor industry that, like many tech players, has been laying off workers in recent months, has made a major move with its office footprint-and it’s not a reduction in space.

Instead, Fremont-based Lam has spent $250M to purchase five office and research buildings it has been leasing, including three buildings in Fremont and two buildings in Livermore.

The Fremont buildings, located at 4300, 4550 and 4650 Cushing Parkway, were acquired for a combined $195.8M, according to a report in SiliconValley.com based on Alameda County records.

The Livermore facilities, located at 1 Portola Avenue and 101 Portola Avenue, were purchased for a total of $54.2M. Lam has been leasing all five buildings from MUFG Americas Capital Leasing & Finance, the seller in the deal.

The buildings and surface lots that Lam bought had a combined assessed value of about $203M at the end of June 2023, SiliconValley reported, which may suggest the valuations on the building are rising. The Fremont buildings were assessed at $153M and the Livermore buildings were valued at $50.6M in June.

Lam has been using the building at 4650 as its corporate headquarters, according to an SEC filing.

Lam originally owned the five buildings. In 2007, the company sold the portfolio to BNP Paribas Leasing in a sale-leaseback deal. In 2014, BTMU Capital Leasing & Finance bought the portfolio, and then sold it to MUFG.

Lam’s wafer-fabrication equipment is used for front-end processing of semiconductors, creating the active components of semiconductors and their wiring. The company’s estimated revenue is more than $17B.

According to filings with the state government, Lam has reduced its workforce by 561 jobs, beginning last year.

In an ongoing effort to decarbonize its operations, Lam has focused on optimizing energy, reducing water usage and minimizing waste, while investing in renewable energy solutions.

Next week, the company is sponsoring the 2023 FIRST Global Challenge, which will bring together thousands of high school students from around the world to a four-day event in Singapore to compete in robotics and collaborate to find new renewable energy solutions.