CORRECTED-UPDATE 2-Lam Research to buy Novellus Systems for $3.3 bln

* Novellus shareholders to get 1.125 shrs of Lam common stock

* Offer at 28 pct premium to Novellus Friday close

* Lam Research sees savings of $100 mln/yr from Q4 2013

* Lam to buy back $1.6 bln in common stock

Dec 14 (Reuters) - Lam Research Corp, a supplier of wafer fabrication equipment, agreed to buy smaller rival Novellus Systems Inc for $3.3 billion in stock as it looks to scale up capacity and gain cutting-edge technology.

Under the terms of the deal, Novellus stockholders will receive 1.125 shares of Lam Research common stock for each Novellus share held, or a 28 percent premium to the stock's close on Wednesday on Nasdaq.

The deal is the latest in a long list of acquisitions among chipmakers as semiconductor companies and chip-gear makers try to ramp up capacity and cut down costs in an industry ruled by cut-throat competition and shrinking margins.

In May, Applied Materials bought Varian Semiconductor Equipment Associates for $4.9 billion to shore up capacity and gain additional technology.

Texas Instruments had said it would acquire National Semiconductor for $6.5 billion earlier this year.

Lam's leadership in etch and single-wafer clean equipment aligns with Novellus's leadership in thin-film deposition and surface preparation technologies, the two companies said in a statement.

The combined company will be well-positioned to lead the industry through critical technology transitions including 3D structures in advanced logic and NAND memory as well as the scaling to 450 millimeter wafers, they said.

Lam Research expects the deal to accelerate its revenue and profit growth. It expects the deal to generate cost savings of about $100 million per year from the fourth quarter of 2013.

The acquisition is expected to add to Lam's earnings within one year of the deal's closure, expected in the second quarter of 2012.

Lam and Novellus stockholders will own about 59 percent and 41 percent of the combined company, respectively.

Fremont, California-based Lam said Chief Operating Officer Martin Anstice will assume the position of CEO of Lam Research from Steve Newberry effective Jan. 1, 2012.

Lam also announced a $1.6 billion common stock repurchase program.

Shares of Lam Research, which closed at $39.48 on the Nasdaq, were down 4 percent in extended trade. Novellus shares were up 20 percent.