No funded debt; and Strong niche position in etch and single wafer clean tools. High industry subsector and customer concentration; Narrow product focus; and Overall second-tier position in a cyclical industry with rapidly evolving technology and short product cycles. The rating on Lam Research Corp. reflects the volatile nature of the semiconductor capital equipment industry, the company's narrow business focus, and its high customer and product concentration. Lam's cash position and strong competitive positioning in etch systems only partially offset these factors. Lam is a global developer, manufacturer, and marketer of wafer etch, patterning, and single-wafer cleaning tools used to manufacture memory, logic, and micro-electromechanical systems. Lam has a leading share of the etch market, a niche segment in the
