Who Optimizes SG&A Costs Better? Lam Research Corporation or Jabil Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of the semiconductor and electronics industries, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Lam Research Corporation and Jabil Inc. have demonstrated distinct strategies in optimizing these costs.

From 2014 to 2024, Jabil Inc. consistently reported higher SG&A expenses, peaking at approximately 1.2 billion in 2021. In contrast, Lam Research Corporation maintained a more conservative approach, with expenses reaching around 886 million in 2022. This difference highlights Jabil's expansive operational strategy compared to Lam's more streamlined approach.

Interestingly, while Jabil's SG&A expenses grew by about 78% over the decade, Lam's increased by roughly 42%. This data suggests that Jabil's growth strategy might involve higher operational costs, whereas Lam focuses on efficiency. Understanding these trends provides valuable insights into how these industry leaders manage their resources.