Leadership positions across etch, deposition, and single-wafer clean in wafer fabrication equipment; High industry volatility and technology risks; Competition against larger players that have significant financial resources; Long-term customer relationships; and Significant customer concentration risk. Strong liquidity supported by $3.1 billion cash on hand; and Good free operating cash flow (FOCF) generation of more than $550 million in fiscal year 2014. The stable outlook on Fremont, Ca.-based Lam Research Corp. reflects our expectation that the company will maintain its leadership positions in etch, deposition, and clean products within the semiconductor capital equipment industry, and its moderate financial policy will remain intact, providing buffer for the highly volatile industry cyclicality. We could lower the rating if the company pursues debt-financed acquisitions
