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This Company Is Evolving Into an Equipment Titan

Onetime niche player Lam Research has built a narrow moat that's growing.

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Lam Research is a leading vendor of semiconductor fabrication tools. Chipmakers have faced significant cost and complexity challenges, and equipment providers like Lam are vital to making the pursuit more economical with advanced manufacturing tools.

We assign Lam a narrow economic moat. In has a market-leading position in etch--a critical step in the chip-making process where material is selectively removed--as well as the deposition segment of the semiconductor equipment industry.

Abhinav Davuluri does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.