Good position in semiconductor etch and polishing markets Good liquidity Challenging industry conditions Second-tier supplier Limited diversity The ratings on Lam Research Corp. reflect the company's second-tier position in the highly stressed semiconductor capital goods industry and the company's good liquidity. Fremont, Calif.-based Lam Research manufactures equipment to chemically etch and polish microscopically thin layers on the surface of silicon wafers, as part of the semiconductor manufacturing process. The company has materially refreshed its product line in the past few years. Still, market conditions are very challenging, as worldwide semiconductor equipment sales fell to $30 billion in 2002 from $39 million in 2001 and are expected to remain depressed over the coming quarters. Consistent with the industry, Lam's sales can
