SG&A Efficiency Analysis: Comparing Lam Research Corporation and ASE Technology Holding Co., Ltd.

SG&A Efficiency: A Tale of Two Giants

In the ever-evolving landscape of semiconductor manufacturing, understanding operational efficiency is crucial. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of two industry titans: Lam Research Corporation and ASE Technology Holding Co., Ltd., from 2014 to 2023.

Lam Research, a leader in wafer fabrication equipment, has consistently maintained a lean SG&A structure, with expenses hovering around 700 million USD annually. This reflects a strategic focus on cost efficiency, crucial for sustaining competitive advantage. In contrast, ASE Technology, a global leader in semiconductor assembly and testing, has seen its SG&A expenses grow by approximately 90% over the same period, peaking in 2022. This increase may indicate strategic investments in expansion and innovation.

While Lam Research's expenses show a steady trend, ASE Technology's fluctuations suggest a dynamic approach to market challenges. The absence of 2024 data for ASE Technology leaves room for speculation on future strategies.