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โ Due DiligenceRisks
1. Competitive Risk: Lam Research faces intense competition from other semiconductor manufacturing companies, such as Applied Materials and Tokyo Electron.
2. Market Risk: Changing market conditions and customer demand can cause revenues to fluctuate significantly.
3. Technology Risk: Lam Research relies on its advanced technology and intellectual property to keep customers satisfied and competitive. If a rival company superior technology or products, Lam Researchโs share of the market could be at risk.
4. Legal Risk: As a publicly traded company, Lam Research is subject to various regulations and laws that could become costly if violated.
5. Supply Chain Risk: Lam Research needs an efficient and effective supply chain to ensure that components and products are delivered on time and on budget. If something goes wrong, it could pose a major risk to the company.