ASML Holding N.V. or STMicroelectronics N.V.: Who Manages SG&A Costs Better?

SG&A Cost Management: ASML vs. STMicroelectronics

In the competitive landscape of semiconductor giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. From 2014 to 2023, ASML Holding N.V. and STMicroelectronics N.V. have shown distinct strategies in handling these costs. ASML's SG&A expenses have grown steadily, starting at approximately 32% of STMicroelectronics' costs in 2014 and reaching 67% by 2023. This indicates a more controlled increase compared to STMicroelectronics, whose expenses have surged by 75% over the same period.

A Decade of Financial Strategy

ASML's approach reflects a strategic balance between growth and cost management, with a compound annual growth rate (CAGR) of around 15% in SG&A expenses. In contrast, STMicroelectronics has experienced a CAGR of about 6%, suggesting a more aggressive expansion strategy. This data highlights the importance of efficient cost management in sustaining competitive advantage in the semiconductor industry.