Cost of Revenue: A Tale of Two Semiconductor Giants

In the ever-evolving semiconductor industry, understanding cost dynamics is crucial. Over the past decade, Lam Research Corporation and ON Semiconductor Corporation have showcased distinct trajectories in their cost of revenue. From 2014 to 2023, Lam Research's cost of revenue surged by approximately 271%, peaking in 2023. This reflects their aggressive expansion and innovation strategies. In contrast, ON Semiconductor's cost of revenue grew by about 110% over the same period, indicating a more measured approach.

A Decade of Growth and Challenges

Lam Research's cost of revenue consistently outpaced ON Semiconductor's, highlighting their larger scale and broader market reach. However, the data for 2024 is incomplete, with ON Semiconductor's figures missing, suggesting potential reporting delays or strategic shifts. This comparison underscores the diverse strategies within the semiconductor sector, where companies balance growth with cost management to maintain competitive edges.