Lam Research and KLA-Tencor abandon merger plansStaff Writer | October 7, 2016
Lam Research Corp. and KLA-Tencor Corp. abandoned their plans to merge after the Department of Justice informed the companies that it had serious concerns that the proposed transaction would harm competition.
No merger Serious concerns about competition
The proposed merger of Lam Research and KLA-Tencor would have combined a leading supplier of semiconductor fabrication equipment with a leading supplier of metrology and inspection equipment.
Metrology and inspection technologies are growing increasingly important to the successful development of semiconductor fabrication equipment and process technology.
KLA-Tencor's leading position in several metrology and inspection markets could have created the potential for Lam Research to foreclose its competitors by reducing their timely access to key KLA-Tencor equipment and related services.
During the investigation, the division cooperated with the Korean Fair Trade Commission, the Japanese Fair Trade Commission and China's Ministry of Commerce.
Lam Research, based in Fremont, California, is a leading provider of etch, deposition and clean tools and process technology used in the fabrication of semiconductors with approximately $6 billion in 2015 revenue.
KLA-Tencor, based in Milpitas, California, is the leading provider of semiconductor fabrication metrology and inspection equipment with approximately $3 billion in 2015 revenue. ■