Technology Stocks : Silicon Motion Inc. (SIMO)
SIMO 53.540.0%Sep 19 4:00 PM EDTNews

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To: Mesaverde who wrote (1776)10/25/2017 1:12:14 AM
From: Elroy  Read Replies (2) of 1952
He wants to be a low cost/high quantity international producer.

Well, you're spouting a bunch of marketing jargon that doesn't really fit with SIMO's business model. International producer? Who cares? There are 6 NAND makers, they are the main customers. You're confusing the device maker's retail distribution geographies with SIMO's points of sale.

SIMO sells a controller to a NAND maker, usually in Korea, that NAND maker then markets it's memory + controller to a device maker, then the device is manufactured in Asia, and the device maker goes around the world selling the device. SIMO is way way up in the supply chain, there's nothing especially "global" about them.

Too my knowledge there are only 3 merchant NAND controller makers - SIMO, MRVL and Phison.

SIMO is the low cost, high volume, hardware + firmware company (client devices).

MRVL is the high end enterprise company which makes the hardware, and used to let the device maker or NAND maker add it's own firmware.

Phison I'm not sure about - they seem to have a relationship with Toshiba NAND, but they don't seem to be a big player anywhere in NAND controllers. But they do have a product.

As far as I know the rest of the competitors are the inhouse controller makers at the NAND manufacturers. Samsung makes almost all it's own NAND controllers.

I think Monika Garg was prescient on Western Digital Corporation! She had a $120 price target on Western Digital in early 2016 after analyzing it better than others. She may prove to be correct. See the Western presentation. And now there is a case to be made for Western going to 240 or even higher before 2022. Sounds fanciful!

WDC stock price and SIMO stock price should tend to go in opposite directions. What's good for WDC is bad for SIMO, and vice versa. And WDC has a huge disk drive business, SIMO does not. NAND SSDs over time will replace disk drives. Good for SIMO, bad for WDC's disk drive business.
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