Concentration of Risk

6 Months Ended

Jul. 26, 2020

The following significant customers accounted for at least 10% of net sales in one or more of the periods indicated:


	Three Months Ended						Six Months Ended
(percentage of net sales)	July 26, 2020		July 28, 2019		July 26, 2020		July 28, 2019
Trend-tek Technology Ltd. (and affiliates)	21	%	14	%	18	%	13	%
Frontek Technology Corporation (and affiliates)	15	%	10	%	13	%	10	%
CEAC International Limited	12	%	8	%	12	%	6	%
Arrow Electronics (and affiliates)	10	%	9	%	9	%	9	%
Premier Technical Sales Korea, Inc. (and affiliates) ⁽¹⁾	2	%	8	%	5	%	7	%
Samsung Electronics (and affiliates) ⁽¹⁾	2	%	3	%	2	%	6	%
Huawei Technologies Co. Ltd. (and affiliates)	4	%	5	%	5	%	10	%

⁽¹⁾ Premier is a distributor with a concentration of sales to Samsung. The above percentages represent the Company's estimate of the sales activity related to Samsung that is passing through this distributor.

The following table shows the customers that had an outstanding receivable balance that represented at least 10% of total net receivables as of one or more of the dates indicated:


	Balance as of
(percentage of net receivables)	July 26, 2020		January 26, 2020
CEAC International Limited	14	%	11	%
Trend-tek Technology Ltd. (and affiliates)	13	%	13	%
Frontek Technology Corporation (and affiliates)	13	%	11	%

Outside Subcontractors and Suppliers

The Company relies on a limited number of third-party subcontractors and suppliers for the production of silicon wafers, packaging and certain other tasks. Disruption or termination of supply sources or subcontractors, including due to the COVID-19 pandemic or natural disasters such as an earthquake or other causes, could delay shipments and could have a material adverse effect on the Company. Although there are generally alternate sources for these materials and services, qualification of the alternate sources could cause delays sufficient to have a material adverse effect on the Company. Several of the Company’s third-party subcontractors and suppliers, including third-party foundries that supply silicon wafers, are located in foreign countries, including China, Israel and South Korea. A significant amount of the Company’s assembly and test operations are conducted by third-party contractors in China, Malaysia, Taiwan, Thailand, South Korea and the Philippines. During the three months ended July 26, 2020 and July 28, 2019, approximately 18% and 23%, respectively, of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China, and approximately 10% and 14%, respectively, of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in Israel. During the six months ended July 26, 2020 and July 28, 2019, approximately 20% and 20%, respectively, of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in China, and approximately 9% and 13%, respectively, of the Company’s silicon in terms of cost of wafers was supplied by a third-party foundry in Israel. These percentages could be higher in future periods.