Sanmina (SANM) BofA Securities 2024 Global Technology Conference summary

Business cycle and outsourcing trends

• Outsourcing in communications exceeds 60%, medical and semiconductor sectors are around 50-60%, and industrial is about 50% with significant growth potential.

• Defense and aerospace outsourcing remains low at 20-30%, while automotive components are highly outsourced.

• Diversified customer base with no single customer over 10% of revenue, aiming to grow by increasing customer outsourcing.

Component supply and inventory

• Material shortages have largely resolved in the past year, with most components now available within a quarter.

• Military board lead times remain long, but customers provide multi-year forecasts.

• Industry-wide inventory correction is ongoing, with improvement expected by year-end and into 2025.

Communications and cloud business

• Communications and cloud enterprise accounted for 40% of revenue over five years, with 33% in the last quarter split evenly between the two.

• Focus on advanced optical networks, IP routers, and high-speed products (400G, 800G, and developing 1.6T for launch in 6-12 months).

• Well aligned with leading customers in networking and optical markets.