PENG · CIK 0001616533
What Penguin Solutions, Inc. told the SEC could break it.
Penguin Solutions flagged concentration at both ends of its business, tied together by a single geographic spine. Its customer base is top-heavy — one Integrated Memory customer was 14.1% of 2025 net sales and the ten largest customers made up 66% — while its supply side leans on a small number of sole- or limited-source suppliers for critical components, with its two largest accounting for $0.6 billion of purchases in 2025. Both sit on an Asia-centered footprint, with much of its design and manufacturing in Malaysia, China, Taiwan and India, where new and increased U.S. tariffs on Chinese goods have already raised its material costs and in some cases stretched delivery timelines.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- Integrated Memory customer 14.1%; two customers >10%; top-10 = 66%medium
Sales are concentrated: an Integrated Memory customer was 14.1% of net sales in 2025, two customers individually exceeded 10%, and the ten largest customers were 66% of net sales (all unnamed in filing).
“Net sales to an Integrated Memory customer was 14.1 % of total net sales in 2025. No other customers accounted for more than 10% of our total net sales in 2025, 2024 and 2023.”
SEC filing →As of 2025
Geographic concentration
- Manufacturing in Malaysia and China; design in Taiwan and Indiamedium
A significant portion of product design and manufacturing is performed in Malaysia and China, with significant design activities in Taiwan and India; sales outside the U.S. were 43% of net sales in 2025.
“a significant portion of our product design and manufacturing is performed at our facilities in Malaysia and China, and a significant amount of our product design activities are performed in Taiwan and India.”
SEC filing →As of 2025
Regulatory & policy
- U.S. tariffs on China goods raising material costs and delivery timesmedium
New and increased U.S. tariffs on goods from China, combined with supply constraints, have increased material costs and in some cases affected delivery timelines for Penguin's products.
“Global macroeconomic headwinds and evolving industry dynamics have contributed to supply constraints across our business segments. These supply challenges, combined with geopolitical factors including tariffs, have increased material costs and, in some cases, affected delivery timelines.”
Supplier concentration
- Sole/limited-source suppliers for critical components; two largest suppliers $0.6Bmedium
Depends on a small number of sole or limited-source suppliers for certain critical components and subsystems; purchases from its two largest suppliers were $0.6 billion in 2025.
“We are dependent upon a small number of sole or limited source suppliers for certain materials, including certain critical components or subsystems, we use in manufacturing our products. Purchases from our two largest suppliers were $0.6”
SEC filing →As of 2025
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
San'an Optoelectronics Co., Ltd
“We have a 51 % ownership interest in Cree Venture LED Company Limited (“Cree Joint Venture”), with the remaining 49 % ownership interest held by San'an Optoelectronics Co., Ltd (“San'an””
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