Research Update: Lam Research Corp. Upgraded To 'A-/A-1' On Strong Operating Performance And Reduced Volatility, Outlook Stable

U.S.-based wafer fab equipment (WFE) manufacturer Lam Research Corp. gained significant market share over the past decade and performed relatively well through the 2019 semiconductor industry downturn, which supports our view that the WFE industry is gradually becoming less volatile. We believe the company's revenue will expand in line with, or at a faster pace than, the overall industry over the next several years due to increasing etch and deposition intensity in the memory, foundry, and logic end markets. We are raising our long-term issuer credit rating on Lam to 'A-' from 'BBB+' and our short-term rating on the company and its commercial paper (CP) program to 'A-1' from 'A-2'. At the same time, we are raising our issue-level rating

...- U.S.-based wafer fab equipment (WFE) manufacturer Lam Research Corp. gained significant market share over the past decade and performed relatively well through the 2019 semiconductor industry downturn, which supports our view that the WFE industry is gradually becoming less volatile. - We believe the company's revenue will expand in line with, or at a faster pace than, the overall industry over the next several years due to increasing etch and deposition intensity in the memory, foundry, and logic end markets. - We are raising our long-term issuer credit rating on Lam to 'A-' from '###+' and our short-term rating on the company and its commercial paper (CP) program to 'A-1' from 'A-2'. - At the same time, we are raising our issue-level rating on the company's debt to 'A-' from '###+'. - The stable outlook reflects our expectation that Lam will maintain its competitive positioning across the etch, deposition, and clean products in the semiconductor equipment industry. We also expect management...

Research Update