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

To: OlafB who wrote (2835)	4/16/2025 9:09:44 PM
From: Elroy	Read Replies (1) \| Respond to of 2967

While gross margins are being reduced for their main buyers What do you mean? Gross margins of what (SIMO's controllers? Customers products?) are being reduced? To my knowledge SIMO's corporate gross margins are going up. Check what portion of client's revenue comes from U.S. I think you mean what percentage of SIMO's customer's sales revenue comes from the US? My estimate says about 15% of SIMO's sales are to customers who buy a SIMO controller, package it in a client device and then sell that device in the USA. Wanna see the math? eMMC/UFS (mobile) is about 25%-30% of SIMO's sales. It's all Android. The US represents 7% of global Android sales (which means 93% of Android sales occur outside the USA). Of the 7% of Android devices sold in the USA Samsung (which uses an internal controller) is probably a pretty large chunk of that 7%. SIMO's Android cell phone flash controllers are big in Chinese models. So I'm going to say perhaps 4% of SIMO's mobile controller sales go to devices sold in the USA. 4% of 25%-30% of SIMO's sales = 1% of SIMO's sales. PC/Notebook SSDs are about 65% of SIMO's sales. The USA represents about 28% of global PC sales. Again, I'm going to estimate that SIMO's PC SSD sales are more focused on international than USA, so lets say 15% of SIMO's PC SSD sales are for PCs sold in the USA. 15% of 65% is 10% of SIMO's sales. Then you've got Ferri, Shannon and this big "other" bucket. I don't know to which countries those devices go, but I think Shannon is largely Chinese, Ferri I'm not sure, but whatever, the big Kahuna is PC SSD sales, and after that the other segments are relatively small I doubt you can figure a way to get more than 15% of SIMO's sales be to product which wind up sold in the USA unless you (for some reason) think SIMO has an above average US focus, whereas I think the opposite is true. SIMO has a big "Made in Taiwan" focus, which means (I think) more likely than not the end product is being sold outside the USA.