Lam Research Corporation or ON Semiconductor Corporation: Who Manages SG&A Costs Better?

Who Manages SG&A Costs Better: Lam Research or ON Semiconductor?

In the competitive landscape of semiconductor manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Lam Research Corporation and ON Semiconductor Corporation have shown distinct approaches to handling these costs. From 2014 to 2023, Lam Research consistently reported higher SG&A expenses, peaking at approximately 885 million in 2022. In contrast, ON Semiconductor's expenses remained lower, with a peak of around 642 million in 2023.

Despite Lam Research's higher absolute costs, their expenses grew by about 41% over the period, compared to ON Semiconductor's 68% increase. This suggests Lam Research may have a more controlled approach to managing these costs. However, the absence of data for ON Semiconductor in 2024 leaves room for speculation on future trends. As the industry evolves, these companies' strategies in managing SG&A expenses will be pivotal in determining their competitive edge.