What Semtech Corp. told the SEC could break it.

Semtech's revenue is heavily concentrated outside the U.S. — 82% of FY2026 net sales were international, with customers in China (incl. Hong Kong) alone at 47% (and ~67% Asia-Pacific) — exposing it to China demand and policy risk.

“Sales to customers outside the U.S. accounted for approximately 82% of net sales for fiscal year 2026. Sales to customers located in China (including Hong Kong) comprised 47% of our sales in fiscal year 2026.”

Semtech relies on a limited number of suppliers and subcontractors — third-party silicon-wafer foundries and assembly/test contractors largely in China, Taiwan, Vietnam, Malaysia, Israel and Japan — for essential components and critical manufacturing services.

“We rely on a limited number of suppliers and subcontractors, many of which are based outside the U.S., for many essential components and materials and certain critical manufacturing services and any interruption or loss of supplies or services from these entities could significantly interrupt our busin”

U.S. tariffs on Chinese imports include parts and materials used in semiconductor manufacturing (raising Semtech's costs/lowering margins), and China-Taiwan geopolitical tension could disrupt the supply of its Taiwan-sourced products.

“The tariffs imposed by the U.S. on products imported from China include parts and materials used in semiconductor manufacturing and could have the effect of increasing the cost of materials we use to manufacture certain products, which could result in lower margins.”