Lam Research Corp. CEO Martin Anstice resigned on Wednesday for allegations of misconduct, the fourth head of a major chip…
Lam Research Corp. CEO Martin Anstice resigned on Wednesday for allegations of misconduct, the fourth head of a major chip company to leave in connection with such an investigation this year.
one of the world’s largest chip equipment providers, said an investigation by the board and an external law firm in allegations of job mismatches will continue. Anstice resigned and will not receive any severance pay, said Lam in his statement.
“Lam Research takes all claims on irregularities seriously,” said senior independent director Abhi Talwalkar in the press release.
Anstice is the fourth chief executive of a major semiconductor company to leave its company this year largely unexplained allegations of indecentness. Intel Corp.
Executive director Brian Krzanich left the company in June after Intel’s board learned about an inappropriate relationship he had with a colleague. A week later, Rambus Inc.
CEO Ron Black was dismissed for a violation of the company’s code of conduct and Texas Instruments Inc.
CEO Brian Crutcher resigned in July for a similar infringement.
Opinion: The Chipp industry’s Old Boys Club can experience its # MeToo moment
The departures have occurred at the same time as the “Me Too” movement, which has exposed some male executives “abuse of female employees . The chip sector is one of the oldest in technology and is considered to be extremely mandatory.
Intel had, for example, 73.5% male employees from 2017, which was an improvement from 76% the year before, when Krzanich made it a pronounced point of trying to change a labor force that was largely man and white. Companies do not have to publish the demographic makeup of their employees despite reporting the information to the federal government each year, but chip companies that have reported show a large majority of male workers – Nvidia Corp.
reported having 81% male employees in 2018, for example.
A spokeswoman for Lam Research said Wednesday afternoon that she had nothing to add to the press release, which was awaiting statements, but seemed to propose a wider problem than just the CEO to describe them as “allegations of job mismatches and occurring inconsistent with the company’s core values, including statements made by Mr. Anstice. “The company said that none of the claims included financial misconduct and repeated its guidance for the quarter.
Anstice will be replaced by CEO and Chief Operating Officer Tim Archer, who has been COO since 2012 and was groomed to eventually take over the best job since he received the title of the president in January. Evercore ISI analyst CJ Muse said that Lams’s plans to eventually replace Anstice with Archer would lead to a simple transition and little change in Lamb’s direction.
“We’ve known Tim for more than a decade (coming over Novellus Acquisitions 2012, which he joined in 1994) and we expect him to be an excellent fit that immediately transfers to the CEO role and the company which probably does not miss a blow under its leadership, “wrote Muse, who has an outstanding rating and $ 185 prize goals on the stock.
Lam has a market capitalization of over $ 23 billion, but has struggled this year with concerns about a slowdown in the semiconductor sector that started with chip equipment providers. Lamb produced strong earnings results in October and caused some fears, but much rides during the current quarter and coming months.
“We believe Lam is entering a new bike in the December period,” wrote instinct analyst Romit Shah in an October note after Lam’s latest performance report. “Whether recovery is U-shaped or V-shaped is unclear, but implied deliveries in C3Q indicate that Lam will not cut numbers anytime soon.”
Opinion: Chips decline is correct but how bad will it be?
Lamb shares have fallen 18.7% so far this year, as the S & P 500 index
has won 1%. Analysts are largely bullish, with 14 out of 22 analysts traced by FactSet who notice the stock that corresponds to the purchase and the rest calls it a grip. The average price of the stock exchange is $ 195.65, more than 30% higher than current prices.
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