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Technology Stocks : Silicon Motion Inc. (SIMO) -- Ignore unavailable to you. Want to Upgrade?

To: OlafB who wrote (2830)	4/12/2025 11:52:05 AM
From: Elroy	Read Replies (1) \| Respond to of 2966

SIMO outsources its commodity NANDs somewhere else Not sure what you mean. What does "SIMO outsources commodity NAND" mean? SIMO sells NAND controllers to their customers. The SIMO customer buys the NAND, that packages with the SIMO controller. SIMO doesn't buy the NAND. The only segment where SIMO may be buying NAND is Ferri and Shannon, both small divisions (totalling together less than 10% of total sales) where SIMO sells a module or SSD. In Shannon I think it may be that the customer buys the NAND, ships it SIMO, and SIMO ships back the enterprise SSD (controller plus the NAND, which was purchased by the SIMO customer) to the customer's preferred destination. For Ferri I'm not sure who buys the NAND, but it's very old legacy low volume NAND, so the NAND is not really a big deal in the sale. -- Before this announcement SIMO's main problem was if it's customers were building PCs and cell phones in China and shipping them to the USA, then those products would get the 145% tariff. That problem got cancelled last night. Now those sales are (I think) hit with only a 20% tariff, which is still a big deal, but some sales will continue at that additional expense. At 145% sales from China to the USA would rapidly go to zero.