Lam Research (NASDAQ: LRCX) and JSR Corp. (OTC: JSCPY) formed a collaboration to accelerate next-generation semiconductor manufacturing. The partnership combines Lam’s strengths in deposition, etch, and EUV patterning with JSR and Inpria’s expertise in advanced materials. The companies aim to reduce chip patterning costs and complexity for AI and HPC applications.

They plan to focus on advancing dry resist technology for EUV lithography, high NA EUV patterning, and new precursor materials for atomic layer deposition and etch. Additionally, Lam and JSR resolved all legal disputes and agreed to dismiss litigation. Lam shares have risen over 65% year-to-date, driven by demand for its AI-focused semiconductor tools.

Despite reporting better-than-expected fiscal fourth-quarter earnings, Lam’s shares fell more than 5% as investors questioned the sustainability of its growth, particularly in China. Management provided strong guidance for first-quarter fiscal 2026, with adjusted EPS between $1.10 and $1.30 on revenue of $4.9 billion to $5.5 billion. Analysts estimate that China now represents over 35% of Lam’s revenue.

Needham analyst Charles Shi described the quarter as a “strong beat-and-raise” due to Chinese demand and multinational investment. However, he warned that Lam might be “overearning” in China, citing a $700 million increase in deferred revenue. Goldman Sachs analyst James Schneider highlighted Lam’s strength beyond China, noting momentum in logic and memory segments.

Read more at Yahoo Finance: Lam Research And JSR Resolve Legal Disputes As They Team Up On AI Era Chips