The ratings on Lam Research Corp. reflect the company's good position in certain niche semiconductor processing markets and good liquidity. These factors are offset by aggressive competitive conditions. Fremont, Calif.-based Lam Research manufactures equipment to deposit, 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, as the fifth largest company in its industry, Lam Research is substantially less able to sustain its position than the industry leaders are. Lam Research's revenues doubled for calendar 2000, to $1.6 billion, as the industry rebounded from the 1997-1999 downturn. Product gross margins have improved to the upper 40% area,
