Lam Research Corporation or STMicroelectronics N.V.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive landscape of semiconductor manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Lam Research Corporation and STMicroelectronics N.V. have been at the forefront of this challenge since 2014. Over the past decade, Lam Research has demonstrated a more consistent approach, with SG&A expenses fluctuating between 6% and 9% of their annual revenue. In contrast, STMicroelectronics has seen a broader range, with expenses peaking at 16% in 2023.

While Lam Research's expenses have shown a steady increase, STMicroelectronics has experienced more volatility, with a notable spike in 2023. This suggests that Lam Research may have a more controlled approach to managing these costs. However, the absence of data for STMicroelectronics in 2024 leaves room for speculation on their future strategy. As the industry evolves, these companies' ability to manage SG&A costs will be pivotal in maintaining their competitive edge.