Strong niche market position; High barriers to entry; and No funded debt, and an adequate cash position. Highly cyclical industry demand; Narrow business profile; and Competition from large players. The rating on Freemont, Calif.-based Lam Research Corp. reflects its narrow business focus within the volatile, moderate-visibility semiconductor capital equipment market. This factor is offset, to some degree, by Lam's leadership market position in its served segment (etch tools), combined with adequate financial flexibility deriving from its liquid financial profile and low financial leverage. Lam Research has a leading share of the etch market, a niche segment within the overall semiconductor capital equipment market. The company's tools deposit, etch, and polish microscopically thin layers on the surface of silicon wafers. Competitors
