California shelter in place forces LAM Research to shut up shop for three weeks

LAM Research, a Bay area-based semiconductor tooling maker, has called a temporary halt to California operations, in compliance with ‘shelter-in-place’ orders that came into effect at midnight Monday night.

As a result the company said it is unlikely to meet guided revenue amount for the March 2020 quarter. Also, upstream semiconductor plants will not receive ordered LAM Research product when expected. Customers include Intel, Micron, Samsung, SK hynix. Taiwan Semiconductor Manufacturing Company, and Kioxia.

LAM Research operates plants in Fremont and Livermore to build equipment that chip fabs use to make NAND, processors and DRAM. The company’s woes are compounded by a Malaysian government order to close certain business activities from March 18 through March 31, 2020. The company has supply chain activities in Malaysia, which are currently unable to ship components to LAM’s U.S. plants.

Some seven million residents in seven Bay Area counties are expected to stay at home under shelter in place, which is intended to slow the spread of coronavirus in the region.

The order states: “All businesses with a facility in the County, except Essential Businesses as defined below in Section 10, are required to cease all activities at facilities located within the County except Minimum Basic Operations.” Semiconductor firms are not defined as an ‘essential business’.