Segment Information And Concentrations

12 Months Ended

Sep. 27, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION AND CONCENTRATIONS

14.     SEGMENT INFORMATION AND CONCENTRATIONS

The Company has a single reportable operating segment which designs, develops, manufactures, and markets similar proprietary semiconductor products, including intellectual property. In reaching this conclusion, management considers the definition of the chief operating decision maker (“CODM”), how the business is defined by the CODM, the nature of the information provided to the CODM, and how that information is used to make operating decisions, allocate resources, and assess performance. The Company’s CODM is the president and chief executive officer. The results of operations provided to and analyzed by the CODM are at the consolidated level and accordingly, key resource decisions and assessment of performance are performed at the consolidated level. The Company assesses its determination of operating segments at least annually.

Disaggregation of Revenue and Geographic Information

The Company presents net revenue by geographic area, based upon the location of the OEMs’ headquarters, and by sales channel, as it believes that doing so best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Individually insignificant OEMs are presented based upon the location of the Company’s direct customer, which is typically a distributor.

Net revenue by geographic area is as follows (in millions):

	Fiscal Years Ended
	September 27, 2024		September 29, 2023		September 30, 2022
United States	$	3,202.2	$	3,603.9	$	3,685.7
Taiwan	317.5		344.4		430.4
China	303.4		358.3		599.6
South Korea	203.9		198.3		458.2
Europe, Middle East, and Africa	114.5		204.2		235.8
Other Asia-Pacific	36.5		63.3		75.8
Total net revenue	$	4,178.0	$	4,772.4	$	5,485.5

Net revenue by sales channel is as follows (in millions):

	Fiscal Years Ended
	September 27, 2024		September 29, 2023		September 30, 2022
Distributors	$	3,622.6	$	4,235.7	$	4,488.1
Direct customers	555.4		536.7		997.4
Total net revenue	$	4,178.0	$	4,772.4	$	5,485.5

The Company’s revenue from external customers is generated principally from the sale of semiconductor products. Accordingly, the Company considers its product offerings to be similar in nature and therefore not segregated for reporting purposes.

Property, plant, and equipment, net based on the physical locations within the indicated geographic areas are as follows (in millions):

	As of
	September 27, 2024		September 29, 2023
Japan	$	526.1	$	606.4
Singapore	250.2		307.5
Mexico	244.2		233.1
United States	234.7		219.7
Rest of world	25.1		23.4
Total property, plant, and equipment, net	$	1,280.3	$	1,390.1

Concentrations

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade accounts receivable. Trade accounts receivable are primarily derived from sales to manufacturers of communications and consumer products and electronic component distributors. The Company performs ongoing credit evaluations of customers.

During fiscal 2024, fiscal 2023, and fiscal 2022, Apple, through sales to multiple distributors, contract manufacturers, and direct sales for multiple applications including smartphones, tablets, desktop, and notebook computers, watches and other devices, in the aggregate accounted for 69%, 66%, and 58% of the Company’s net revenue, respectively.

The Company’s three largest accounts receivable balances comprised 80% and 83% of aggregate gross accounts receivable as of September 27, 2024 and September 29, 2023, respectively.