慧榮科技 (SIMO) 2021 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Silicon Motion Technology Corp. Q3 2021 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加 Silicon Motion Technology Corp. 2021 年第三季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）

Kindly note that this conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding trends in the semiconductor industry and our future results of operations, financial condition and business prospects.

請注意，本次電話會議包含經修訂的 1933 年證券法第 27A 條和 1934 年證券交易法第 21E 條含義內的前瞻性陳述。此類前瞻性陳述包括但不限於有關半導體行業趨勢以及我們未來經營業績、財務狀況和業務前景的陳述。

Although such statements are based on our own opinion and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties and actual market trends, and our results may differ materially from those expressed or implied in these forward-looking statements for a variety of reasons.

儘管此類聲明是基於我們自己的觀點和來自我們認為可靠的其他來源的信息，但您不應過分依賴它們。這些陳述涉及風險和不確定性以及實際市場趨勢，由於各種原因，我們的結果可能與這些前瞻性陳述中明示或暗示的結果存在重大差異。

Potential risks and uncertainties include, but are not limited to, continued competitive pressure in the semiconductor industry and the effect of such pressure on prices, unpredictable changes in technology and consumer demand for multimedia consumer electronics, the state of and any change in our relationships with our major customers and changes in political, economic, legal and social conditions in Taiwan.

潛在的風險和不確定性包括但不限於半導體行業的持續競爭壓力以及這種壓力對價格的影響、技術的不可預測變化和消費者對多媒體消費電子產品的需求、我們與我們的主要客戶以及台灣政治、經濟、法律和社會狀況的變化。

For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time-to-time with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements, which apply only as of the date of this conference call.

有關這些風險和不確定性以及其他因素的更多討論，請參閱我們不時向證券交易委員會提交的文件。我們不承擔更新任何前瞻性陳述的義務，這些陳述僅適用於本次電話會議之日。

I would now like to hand the conference over to your first speaker for today, Mr. Chris Chaney, Director of Investor Relations and Strategy. Please go ahead.

我現在想將會議交給今天的第一位發言人，投資者關係和戰略總監 Chris Chaney 先生。請繼續。

Thank you, Rohit. Good morning, everyone, and welcome to Silicon Motion's third quarter 2021 financial results conference call and webcast. As Rohit mentioned, my name is Chris Chaney. I'm the Director of Investor Relations at Silicon Motion. Joining me today on the call are Wallace Kou, our President and CEO; and Riyadh Lai, our Chief Financial Officer.

謝謝你，羅希特。大家早上好，歡迎收聽 Silicon Motion 的 2021 年第三季度財務業績電話會議和網絡直播。正如 Rohit 提到的，我的名字是 Chris Chaney。我是 Silicon Motion 的投資者關係總監。今天和我一起參加電話會議的還有我們的總裁兼首席執行官 Wallace Kou；和我們的首席財務官 Riyadh Lai。

Following my comments, Wallace will provide a review of our key business developments, and then Riyadh will discuss our third quarter results and our outlook. We'll then conclude with a question-and-answer period.

根據我的評論，華萊士將回顧我們的主要業務發展，然後利雅得將討論我們的第三季度業績和展望。然後，我們將以問答時間結束。

Before we get started, I'd like to remind you of our safe harbor policy, which was read at the start of this call. For a comprehensive overview of the risks involved in investing in our securities, please refer to the filings with the U.S. Securities and Exchange Commission. For more details on our financial results, please refer to our press release, which was filed on Form 6-K after the close of the market yesterday.

在我們開始之前，我想提醒您我們的安全港政策，該政策在本次電話會議開始時已閱讀。如需全面了解投資我們的證券所涉及的風險，請參閱提交給美國證券交易委員會的文件。有關我們財務業績的更多詳細信息，請參閱我們的新聞稿，該新聞稿在昨天收市後以 6-K 表格形式提交。

This webcast will be available for replay in the Investor Relations section of our website for a limited time. To enhance our investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call. We will use non-GAAP financial measures internally to evaluate and manage our operations. We have, therefore, chosen to provide this information to enable you to perform comparisons of our operating results in a manner similar to how we analyze our own operating results.

該網絡廣播將在我們網站的投資者關係部分限時重播。為了提高我們的投資者對我們持續經濟表現的理解，我們將在本次電話會議中討論非公認會計原則信息。我們將在內部使用非公認會計原則財務指標來評估和管理我們的運營。因此，我們選擇提供此信息，以使您能夠以類似於我們分析我們自己的經營業績的方式對我們的經營業績進行比較。

The reconciliation of the GAAP to non-GAAP financial data can be found in our earnings release issued yesterday. We ask that you review it in conjunction with this call.

GAAP 與非 GAAP 財務數據的對賬可以在我們昨天發布的收益報告中找到。我們要求您在本次電話會議中對其進行審查。

And with that, I'd like to turn the call over to Wallace.

有了這個，我想把電話轉給華萊士。

Thank you, Chris. Hello, everyone, and thank you for joining us today. In the third quarter, sales and earnings reached another quarterly company record. Revenue grew 15% sequentially and over 100% year-over-year to $254 million. Earnings per ADS more than doubled from $0.76 a year ago to $1.70.

謝謝你，克里斯。大家好，感謝您今天加入我們。第三季度，銷售額和盈利再創季度公司記錄。收入環比增長 15%，同比增長超過 100%，達到 2.54 億美元。每份 ADS 的收益從一年前的 0.76 美元增加到 1.70 美元，翻了一番多。

Our sequential revenue growth last quarter and this quarter were driven by upselling of richer product mix, allocating more product to higher margin accounts and repricing product to cover higher manufacturing costs.

我們上季度和本季度的連續收入增長是由更豐富的產品組合的追加銷售推動的，將更多產品分配給利潤率更高的賬戶，並重新定價產品以彌補更高的製造成本。

As previously communicated, we have not received any incremental foundry wafer supply since early this year. Since demand from our customers for our products continue to outstrip our ability to supply, because of foundry wafer allocation limitations. Our business has now been exposed to end market seasonality patterns and the other changes in the market condition, for example, relating to smartphones or PCs. We expect this situation of demand in excess of supply to continue through next year since foundry capacity will likely only start improving in 2023.

如前所述，自今年年初以來，我們還沒有收到任何增加的晶圓代工供應。由於代工廠晶圓分配限制，客戶對我們產品的需求繼續超過我們的供應能力。我們的業務現在受到終端市場季節性模式和市場狀況的其他變化的影響，例如與智能手機或個人電腦有關的變化。我們預計這種供不應求的情況將持續到明年，因為代工產能可能要到 2023 年才會開始改善。

Our order book remains strong and continues to be well in excess of $1.5 billion for next year. We are seeing, however, some adjustment in our order book with the softening of orders for channel market products and strengthening of product for OEM customers. For example, we are seeing demand for SSD by global PC OEM continue to strengthen. While client SSD for retail markets, especially in China, softening.

我們的訂單保持強勁，明年將繼續超過 15 億美元。然而，隨著渠道市場產品訂單的疲軟和 OEM 客戶產品的增強，我們看到我們的訂單有所調整。例如，我們看到全球 PC OEM 對 SSD 的需求繼續增強。而面向零售市場的客戶端 SSD，尤其是在中國，則表現疲軟。

Since we are supply constrained, we have been looking at our revenue run rate for annualized sales targeting. In the third quarter, we delivered $1 billion in revenue run rate, a quarter ahead of when we had previously communicated and expect our revenue run rate to increase further in the fourth quarter as we focus on managing our product mix, customer allocation and pricing.

由於我們供應有限，我們一直在關注我們的收入運行率以實現年度銷售目標。在第三季度，我們實現了 10 億美元的收入運行率，比我們之前溝通的時間提前了一個季度，並且由於我們專注於管理我們的產品組合、客戶分配和定價，預計第四季度我們的收入運行率將進一步提高。

We have already received foundry wafer allocations for 2022. That is incremental to what we have this year, and we are confident we can grow ourselves next year toward our $1.5 billion order book. We believe demand will continue to exceed supply next year. But even under this scenario, our revenue growth next year will still be very strong.

我們已經收到了 2022 年的代工晶圓分配。這是我們今年的增量，我們有信心明年我們可以向 15 億美元的訂單增長。我們相信明年需求將繼續超過供應。但即使在這種情況下，我們明年的收入增長仍然會非常強勁。

Now let me talk about our major product lines. SSD controller sales were approximately flat sequentially in the third quarter as we had allocated more production towards eMMC and UFS controllers for sales in the third quarter. This well received -- this will reverse in the fourth quarter as production and sales shift back toward SSD controllers.

現在讓我談談我們的主要產品線。由於我們將更多的生產分配給 eMMC 和 UFS 控制器用於第三季度的銷售，SSD 控制器的銷售額在第三季度環比基本持平。這很受歡迎——隨著生產和銷售轉向 SSD 控制器，這種情況將在第四季度逆轉。

Year-to-date, our SSD controller sales grew about 70% to 75% year-over-year, significantly faster than market growth. So we have been gaining share. In the third quarter, our SSD controller sales to OEM more than doubled year-over-year. We are tracking toward gaining 5 to 10 percentage points of the market share this year.

年初至今，我們的 SSD 控制器銷售額同比增長約 70% 至 75%，明顯快於市場增長。所以我們一直在獲得份額。在第三季度，我們對 OEM 的 SSD 控制器銷售額同比增長了一倍以上。我們正在努力爭取在今年獲得 5 到 10 個百分點的市場份額。

We believe it is important to maintain diversified exposure to different customers and end market and have a good balance between our OEM and channel markets and the diversified balance of NAND flash and module maker customers. Currently, we are seeing very strong sales to OEM through both our NAND flash and module maker customers, while the channel market has been soft.

我們認為保持對不同客戶和終端市場的多元化敞口非常重要，並在我們的 OEM 和渠道市場以及 NAND 閃存和模塊製造商客戶的多元化平衡之間取得良好的平衡。目前，我們看到通過我們的 NAND 閃存和模塊製造商客戶對 OEM 的銷售非常強勁，而渠道市場一直疲軟。

We have been shipping our PCIe Gen 4 SSD controllers in the third quarter of 2020 for SSD, sold in the channel market. In this recent third quarter, we started ramping our Gen 4 controllers for PC OEM with 2 customers and are on track to expanding from 2 to 8 customers beginning early next year.

我們一直在 2020 年第三季度為 SSD 發貨我們的 PCIe Gen 4 SSD 控制器，在渠道市場銷售。在最近的第三季度，我們開始為擁有 2 個客戶的 PC OEM 增加第 4 代控制器，並有望從明年初開始從 2 個客戶擴展到 8 個客戶。

Much longer time is required to bring OEM projects to production versus channel market products because of extensive OEM qualification and testing. When our PCIe Gen 4 OEM project are fully ramped towards the end of 2022 or in the first half of 2023, we expect to be in approximately half of all PC OEM, PCIe Gen 4 SSD sockets, unchanged from what we had previously communicated. Next year, we will likely pick up 5 to 10 percent additional points of market share on the top of this gain this year.

由於廣泛的 OEM 資格和測試，將 OEM 項目投入生產與渠道市場產品相比需要更長的時間。當我們的 PCIe Gen 4 OEM 項目在 2022 年底或 2023 年上半年全面推進時，我們預計將在所有 PC OEM、PCIe Gen 4 SSD 插槽中佔大約一半，與我們之前溝通的內容保持不變。明年，我們可能會在今年這一增長的基礎上再增加 5% 到 10% 的市場份額。

Engineering work of our upcoming flagship enterprise-class PCIe Gen 5 SSD controller remain on track. We continue to expect pilot production to begin in the second half of next year and volume production in second half of 2023.

我們即將推出的旗艦企業級 PCIe Gen 5 SSD 控制器的工程工作仍在進行中。我們繼續預計明年下半年開始試生產，並在 2023 年下半年開始量產。

Now, I will discuss our eMMC+UFS controllers. Our third quarter eMMC+UFS controller sales grew 60% to 65% sequentially, as we focus production and sales of both our classic eMMC and next-generation UFS controllers. Sales of eMMC controller approximately doubled sequentially as our module maker customers continue expanding their opportunities with OEM in low-cost smartphones and the large, but fragmented IoT and smart devices markets.

現在，我將討論我們的 eMMC+UFS 控制器。由於我們專注於經典 eMMC 和下一代 UFS 控制器的生產和銷售，我們第三季度的 eMMC+UFS 控制器銷售額環比增長 60% 至 65%。隨著我們的模塊製造商客戶繼續在低成本智能手機和龐大但分散的物聯網和智能設備市場中擴大與 OEM 合作的機會，eMMC 控制器的銷售額環比增長約一倍。

Our eMMC controllers are benefiting from NAND flash maker beginning to exit this low-density segment of storage market. Additionally, our primary UFS NAND flash customer continues to be very aggressive in the mobile storage market, and we are benefiting from their strong procurement momentum.

我們的 eMMC 控制器受益於 NAND 閃存製造商開始退出這一低密度存儲市場。此外，我們的主要 UFS NAND 閃存客戶在移動存儲市場繼續非常積極，我們正受益於他們強勁的採購勢頭。

We believe the mobile storage industry is about to enter another major technological shift, analogues to one we experienced almost a decade ago with a transition from 2 bit per cell MLC to lower cost, higher density, but much more difficult to manage 3 bit per cell TLC NAND flash technology.

我們相信，移動存儲行業即將進入另一項重大技術轉變，類似於我們在近十年前經歷的轉變，即從每單元 2 位 MLC 過渡到更低成本、更高密度，但更難管理每單元 3 位TLC NAND閃存技術。

Today, we are working with both NAND flash makers and smartphone OEM to begin the transition from TLC to 4 bit per cell QLC NAND flash. The push to use QLC NANDs stems from growing focus of smartphone OEM to reduce cost and size and increase features, performance and capacity.

今天，我們正與 NAND 閃存製造商和智能手機 OEM 合作，開始從 TLC 過渡到每單元 4 位 QLC NAND 閃存。使用 QLC NAND 的推動源於智能手機 OEM 越來越關注降低成本和尺寸以及增加功能、性能和容量。

For the same storage footprint inside a smartphone, gigabit capacity from the use of QLC can be much larger than TLC. Also, for that same footprint, the use of QLC is much cheaper than TLC on a dollar per gigabit basis. The trade-offs is QLC technology is much harder to manage than TLC because of worse endurance, worse write and render rewrite speed, and worse data integrity issues. Much more sophisticated controller technology are necessary to overcome these issues and provide consumer with the same level of trust and user experience. We have a clear controller technology leadership and more experience in the managing QLC NAND technology than any other company in our industry.

對於智能手機內部相同的存儲空間，使用 QLC 的千兆位容量可能比 TLC 大得多。此外，對於相同的足跡，QLC 的使用比 TLC 便宜得多，以每千兆美元計算。權衡是QLC技術比TLC更難管理，因為更差的耐用性、更差的寫入和渲染重寫速度以及更糟糕的數據完整性問題。需要更複雜的控制器技術來克服這些問題並為消費者提供相同級別的信任和用戶體驗。在管理 QLC NAND 技術方面，我們擁有明顯的控制器技術領先地位和比我們行業中的任何其他公司更多的經驗。

Several years ago, we developed the controller that enables the first commercialize SSD using QLC NAND and today we continue to supply all the controller using PC OEM SSD built with QLC NAND. Because of our QLC controller leadership, we have also been working extensively with both NAND flash makers and smartphone OEM on UFS embedded storage that enabled the use of lower cost, high-density QLC NAND, and that we expect product introduction in the 2023 to 2024 time frame.

幾年前，我們開發了第一款使用 QLC NAND 實現商業化 SSD 的控制器，今天我們繼續提供所有使用 QLC NAND 構建的 PC OEM SSD 的控制器。由於我們在 QLC 控制器方面處於領先地位，我們還與 NAND 閃存製造商和智能手機 OEM 就 UFS 嵌入式存儲進行了廣泛合作，從而能夠使用成本更低、高密度的 QLC NAND，我們預計產品將在 2023 年至 2024 年推出大體時間。

Generally, the smartphone industry adoption of new NAND technology, like the PC industry, has several years. The adoption of QLC technology in UFS solution using smartphone and other application will further strengthen and expand our position in mobile storage controller market.

一般來說，智能手機行業採用新的 NAND 技術，就像 PC 行業一樣，需要幾年的時間。在使用智能手機和其他應用程序的 UFS 解決方案中採用 QLC 技術將進一步鞏固和擴大我們在移動存儲控制器市場的地位。

To recap, we have already received our purchase order for 2022 sales and are busy working with TSMC and other suppliers to plan and schedule production for next year's sales. The emphasis of our business development and R&D efforts is now for beyond 2022. We are working to further expand our client SSD market share, introduce and scale our innovative enterprise-class PCIe Gen 5 SSD controller, solidify our merchant market share leadership in class eMMC, bringing QLC technology to UFS mobile storage and expand our growing presence in the automotive storage market, which I had discussed last quarter.

回顧一下，我們已經收到了 2022 年銷售的採購訂單，並正忙於與台積電和其他供應商合作，為明年的銷售計劃和安排生產。我們的業務發展和研發工作的重點現在是 2022 年以後。我們正在努力進一步擴大我們的客戶 SSD 市場份額，引入和擴展我們創新的企業級 PCIe Gen 5 SSD 控制器，鞏固我們在 eMMC 類中的商業市場份額領先地位，將 QLC 技術引入 UFS 移動存儲，並擴大我們在汽車存儲市場不斷增長的影響力，我在上個季度已經討論過這個問題。

Now I would turn the call over to Riyadh to discuss our financial results and our outlook.

現在，我將把電話轉給利雅得，討論我們的財務業績和前景。

Thank you, Wallace, and good morning, everyone. I will discuss additional details of our third quarter results and then provide our guidance. Please note that my comments today will focus primarily on our non-GAAP results unless otherwise specifically noted. A reconciliation of our GAAP to non-GAAP data is included with the earnings release issued yesterday.

謝謝你，華萊士，大家早上好。我將討論我們第三季度業績的更多細節，然後提供我們的指導。請注意，除非另有特別說明，否則我今天的評論將主要集中在我們的非公認會計原則結果上。昨天發布的收益報告中包含了我們的 GAAP 與非 GAAP 數據的對賬。

In the third quarter, we grew sales 15% sequentially to $254 million. SSD controller sales were approximately flat sequentially as we temporarily allocated more wafer supply towards eMMC+UFS controllers for third quarter sales. In the fourth quarter, this will change as more wafer supply will be directed towards SSD controller sales.

第三季度，我們的銷售額環比增長 15%，達到 2.54 億美元。 SSD 控制器銷售環比基本持平，因為我們暫時將更多的晶圓供應分配給 eMMC+UFS 控制器用於第三季度的銷售。在第四季度，這種情況將會改變，因為更多的晶圓供應將用於 SSD 控制器的銷售。

eMMC+UFS controller sales grew 60% to 65% sequentially because of temporary quarter-by-quarter supply planning decisions. SSD solutions sales increased 0% to 5% sequentially. Gross margin in the third quarter declined slightly to 50.2% from 51%. This slight sequential decline is primarily caused by a significant decline in the gross margins of our SSD solutions.

由於臨時的季度供應計劃決策，eMMC+UFS 控制器銷售額環比增長 60% 至 65%。 SSD 解決方案銷售額環比增長 0% 至 5%。第三季度毛利率從 51% 小幅下降至 50.2%。這種輕微的連續下降主要是由於我們的 SSD 解決方案的毛利率顯著下降。

Operating expenses in the third quarter were $53 million, $4.5 million higher than the prior quarter, primarily from higher R&D expenses. Operating margin in the third quarter was 29.4%, a slight increase from 29.2% in the second quarter and up significantly from 23% a year ago. Our effective tax rate in the third quarter was 19.6%, in line with our 20% tax rate guidance. Earnings per ADS were $1.70, 13% higher sequentially and 124% higher year-over-year.

第三季度的運營費用為 5300 萬美元，比上一季度增加 450 萬美元，主要來自研發費用的增加。第三季度的營業利潤率為 29.4%，比第二季度的 29.2% 略有上升，比一年前的 23% 大幅上升。我們第三季度的有效稅率為 19.6%，符合我們 20% 的稅率指導。每份 ADS 收益為 1.70 美元，環比增長 13%，同比增長 124%。

Stock-based compensation in our operating expenses, which we exclude from our non-GAAP results, was $5.1 million in the third quarter, within our guidance of $4.5 to $5.5 million. We had $419.5 million of cash, cash equivalents, restricted cash and short-term investments at the end of the third quarter, compared to $412.3 million at the end of the second quarter.

在我們的非公認會計原則結果中排除的運營費用中的股票薪酬在第三季度為 510 萬美元，在我們 4.5 至 550 萬美元的指導範圍內。截至第三季度末，我們擁有 4.195 億美元的現金、現金等價物、受限現金和短期投資，而第二季度末為 4.123 億美元。

We paid $12.2 million in dividends to shareholders, the fourth and final quarterly installment of our $1.40 per ADS annual dividend that was declared last October. Earlier this week, our Board declared a new annual dividend of $2 per ADS, 43% higher than the prior one. The first $0.50 quarterly installment will be paid in November.

我們向股東支付了 1220 萬美元的股息，這是去年 10 月宣布的每 ADS 年度股息 1.40 美元的第四季度也是最後一個季度。本週早些時候，我們的董事會宣布新的年度股息為每 ADS 2 美元，比之前的股息高 43%。第一個 0.50 美元的季度分期付款將於 11 月支付。

Now, let me turn to our fourth quarter guidance and forward-looking business trends. For the fourth quarter, we expect revenues to be flat to up 5% sequentially to approximately $254 million to $267 million. Due to production scheduling, SSD controller sales will increase in the fourth quarter, while eMMC+UFS controller sales will decline.

現在，讓我談談我們第四季度的指導和前瞻性的業務趨勢。對於第四季度，我們預計收入將持平至環比增長 5%，達到約 2.54 億美元至 2.67 億美元。由於生產調度，第四季度SSD控制器銷量將增加，而eMMC+UFS控制器銷量將下降。

Fourth quarter gross margin is expected to be in the range of 48.5% to 50.5%. Fourth quarter operating margin should be in the range of 28.5% to 30.5%. In the fourth quarter, we expect stock-based compensation in the range of $9.2 to $10.2 million.

第四季度毛利率預計在 48.5% 至 50.5% 之間。第四季度營業利潤率應在 28.5% 至 30.5% 之間。在第四季度，我們預計基於股票的薪酬在 9.2 美元至 1020 萬美元之間。

In summary, we are quickly approaching the close of the best year in our corporate history from a revenue growth, profit and cash flow perspective. We expect to gain 5 to 10 percentage points of market share gain in client SSDs this year, which should continue to expand next year as we ramp PCIe Gen 4 shipments to more NAND and module maker customers for OEMs.

總之，從收入增長、利潤和現金流的角度來看，我們正在迅速接近公司歷史上最好的一年。我們預計今年客戶 SSD 的市場份額將增加 5 到 10 個百分點，隨著我們向 OEM 的更多 NAND 和模塊製造商客戶增加 PCIe Gen 4 出貨量，明年應該會繼續擴大。

By improving our product sales and customer mix, we have reached our goal of $1 billion in revenue run rate, earlier than planned, without any incremental wafers from our foundry partners. And next year, with healthy storage market demand and continued market share gains by us and our customers, we expect to continue our growth.

通過改善我們的產品銷售和客戶組合，我們比計劃提前達到了 10 億美元的收入運行率目標，而我們的代工合作夥伴沒有增加晶圓。明年，隨著存儲市場需求的健康以及我們和我們的客戶的市場份額持續增長，我們預計將繼續增長。

We have already secured incremental wafers for 2022, necessary for us to deliver higher volume across our 3 key product lines: SSD controllers, eMMC+UFS controllers and SSD solutions.

我們已經獲得了 2022 年的增量晶圓，這對於我們在我們的 3 個關鍵產品線中提供更高的產量是必要的：SSD 控制器、eMMC+UFS 控制器和 SSD 解決方案。

We will continue to add R&D resources to develop high-value controller technology for the computing, mobile, data center and automotive markets, maintain stable gross margin and deliver operating leverage.

我們將繼續增加研發資源，為計算、移動、數據中心和汽車市場開發高價值控制器技術，保持穩定的毛利率並提供經營槓桿。

While we have -- we already have our foundry wafer supply allocation for next year, which is materially more than this year and have already received customer purchase orders for next year, we are unable to provide 2022 revenue guidance at this time, because we still need to perform product mix, customer allocation and prices, confirm product mix, customer allocation and prices and plan in detail the scheduling of our product fabrication. Based on current estimates, we believe demand for our products will continue to exceed our ability to supply through 2022.

雖然我們已經有了明年的代工晶圓供應分配，這大大超過了今年，並且已經收到了明年的客戶採購訂單，但我們目前無法提供 2022 年的收入指導，因為我們仍然需要執行產品組合、客戶分配和價格，確認產品組合、客戶分配和價格，並詳細計劃我們產品製造的調度。根據目前的估計，我們認為到 2022 年，對我們產品的需求將繼續超過我們的供應能力。

This concludes our prepared remarks. We will now open the call to your questions.

我們準備好的評論到此結束。我們現在將打開您的問題的電話。

(Operator Instructions) We have a question from the line of Rajvindra Gill from Needham.

（操作員說明）我們有一個來自 Needham 的 Rajvindra Gill 的問題。

Wallace, Riyadh, a question on the capacity that you're being allocated for 2022 and the purchase orders. I wanted to talk about those negotiations that you're having with TSMC in terms of getting the capacity and the -- and how secure that is, and the $1.5 billion kind of purchase orders that you have in hand. Could you maybe elaborate a little bit further on kind of the makeup of that -- those purchase orders next year relative to this year? How is it different? How is it the same? What are the customers asking in terms of product lines? Any color there in terms of the makeup of the demand funnel and then also some additional details on the supply funnel.

華萊士，利雅得，關於為 2022 年分配的產能和採購訂單的問題。我想談談你與台積電就獲得產能和安全性進行的談判，以及你手頭的 15 億美元採購訂單。您能否進一步詳細說明其中的構成 - 明年相對於今年的採購訂單？它有什麼不同？怎麼一樣？客戶對產品線有什麼要求？就需求漏斗的構成以及供應漏斗的一些其他細節而言，那裡有任何顏色。

I think based on the third quarter revenue and fourth quarter guidance, we are ready at a $1 billion sale revenue rate with our current wafer supply. We have already received foundry wafer allocation for 2022, as we state. That's incremental to what we have this year, and we are confident we can grow our sales next year to around $1.5 billion. We believe the demand will continue to exceed supply next year, but I think we definitely will continue to negotiating with TSMC to gain more wafer supply.

我認為根據第三季度的收入和第四季度的指導，我們已經準備好以目前的晶圓供應實現 10 億美元的銷售收入。正如我們所說，我們已經收到了 2022 年的晶圓代工分配。這是我們今年所擁有的增量，我們有信心明年我們可以將銷售額增長到 15 億美元左右。我們相信明年需求將繼續超過供應，但我認為我們肯定會繼續與台積電談判以獲得更多的晶圓供應。

Regarding the $1.5 billion backlog, I think we -- our backlog remains very solid with the purchase order of 2022 continuing to be well in excess of $1.5 billion. Most of the backlog consists of SSD and eMMC+UFS controller order for OEMs. And OEM order is strong because our customers have been gaining share, and we have been gaining share of wallet as these customers. We believe we have secured about 20% of all PC OEM and PCIe Gen 4 socket for next year.

關於 15 億美元的積壓訂單，我認為我們的積壓訂單仍然非常穩固，2022 年的採購訂單繼續遠遠超過 15 億美元。大部分積壓訂單包括 OEM 的 SSD 和 eMMC+UFS 控制器訂單。 OEM 訂單很強勁，因為我們的客戶一直在獲得份額，而我們作為這些客戶一直在獲得錢包的份額。我們相信明年我們已經獲得了大約 20% 的 PC OEM 和 PCIe Gen 4 插槽。

But we have seen, however, some adjustment in our order book with the softening of order for channel market products and strengthening of product for OEM customer. For example, we are seeing demand for SSD by global PC OEM continuing to strengthen, while current client SSD for retail market, especially in China, softening.

但我們看到，隨著渠道市場產品訂單的軟化和OEM客戶產品的增強，我們的訂單有所調整。例如，我們看到全球 PC OEM 對 SSD 的需求持續增強，而目前面向零售市場，尤其是中國的客戶 SSD 需求疲軟。

So given those dynamics that are happening in the PC market, the retail versus the OEM, could you remind us kind of your split as it stands this quarter between OEM and retail/module maker and how are you adjusting your order book and your capacity to reflect this dynamic next year? I think that's one of the main concerns that folks have, just broadly, is that more capacity comes online next year, but growth rates start to decelerate, order patterns start to decelerate, and we get into kind of a potential overbuild situation. I'm not saying that's going to happen, but that's the concern. So I'm wondering how you're adjusting to these changes in your order book with some aspects of the business start to soften a bit.

因此，鑑於 PC 市場正在發生的動態，零售與 OEM，您能否提醒我們您本季度在 OEM 和零售/模塊製造商之間的分歧，以及您如何調整您的訂單和產能明年反映這種動態？我認為這是人們普遍關心的主要擔憂之一，即明年會有更多的產能上線，但增長率開始減速，訂單模式開始減速，我們進入了一種潛在的過度建設情況。我不是說這會發生，但這就是問題所在。因此，我想知道您如何適應訂單簿中的這些變化，業務的某些方面開始有所軟化。

Let me start with the numbers, and then I'll hand over to Wallace for the more qualitative stuff. In terms of our split between our sales of SSD controllers to the channel market versus the OEM market, last year was roughly 1/3 for OEMs and the rest for the channel market. By next year, we're going to be well in excess of 50% -- more than half of our products are going to be going into OEM. And so we're right now in the process of crossing over to -- more to OEMs. With that, let me hand over to Wallace for more color.

讓我從數字開始，然後我將交給華萊士以獲得更定性的東西。就我們向渠道市場和 OEM 市場銷售 SSD 控制器的比例而言，去年大約 1/3 來自 OEM，其餘來自渠道市場。到明年，我們將遠遠超過 50%——我們一半以上的產品將進入 OEM。因此，我們現在正處於過渡到 - 更多的是 OEM 的過程中。有了這個，讓我把更多的顏色交給華萊士。

Yes, I think, we also discussed with TSMC and our customers constantly. So I think TSMC also recognize there's also overbooking from the end customer, but they just don't know where it's overbooking in the semiconductor supply chain. But to prevent overbooking, we not only check with our customer, also check with the customer's end customers. We want to make sure the product used in the application-specific end customer, end market sector. That's why we handle allocation carefully. We want to make sure all the product will sell-through.

是的，我想，我們也經常與台積電和我們的客戶討論。所以我認為台積電也認識到終端客戶也存在超額預訂，但他們只是不知道半導體供應鏈中的超額預訂在哪裡。但為防止超額預訂，我們不僅與客戶核對，還與客戶的最終客戶核對。我們要確保產品用於特定應用的終端客戶、終端市場領域。這就是我們謹慎處理分配的原因。我們希望確保所有產品都能銷售。

Because of our really demand [MPL] is much larger than wafer allocation to us. So really, I think there will be a room for us to make the better judgment, and we really feel very comfortable for our next year backlog and the sale revenue target.

因為我們的真正需求 [MPL] 比分配給我們的晶圓分配要大得多。所以說真的，我認為我們會有更好的判斷空間，我們對明年的積壓和銷售收入目標感到非常滿意。

And let me also add that right now, we have a very lean -- extremely lean inventory on our hands. And on our customer side, our customers are also offering at very lean inventory levels. And so from a perspective of what we see, at least on our side of the business, our customer side of the business, there doesn't seem to be overbuilding as far as we can see.

讓我還補充一點，現在，我們手頭的庫存非常精簡 - 非常精簡。在我們的客戶方面，我們的客戶也提供非常精益的庫存水平。因此，從我們所看到的角度來看，至少在我們業務方面，我們業務的客戶方面，就我們所見，似乎沒有過度建設。

And last question for me. In terms of the gross margins, so you mentioned kind of holding steady there around 50.5% -- 50% in Q4. How you came about the gross margins next year, I know you're still determining the allocation and the mix of business. But how are you thinking about the gross margins at a high level, given your -- the purchase orders that you have in hand in your backlog, should we be expecting a similar kind of range? Is there potential upside to that number if we get a more of a mix shift to a higher-margin PCIe Gen 4 products, just any color on the gross margins would be helpful.

最後一個問題。就毛利率而言，您提到在第四季度保持穩定在 50.5% 左右 - 50%。你明年的毛利率是如何得出的，我知道你仍在確定業務的分配和組合。但是，考慮到您手頭的積壓訂單，您如何看待高水平的毛利率，我們是否應該期待類似的範圍？如果我們更多地轉向利潤率更高的 PCIe Gen 4 產品，那麼這個數字是否有潛在的上升空間，毛利率上的任何顏色都會有所幫助。

Right now, we -- based on what we see with our business going into next year, we're very confident we should be able to maintain our gross margin around 50%.

現在，我們 - 根據我們對明年業務的看法，我們非常有信心我們應該能夠將毛利率保持在 50% 左右。

Yes, I think it's a very complicated question because, as you all know, TSMC have increased wafer price 20% in all technology node. UMC and SMIC also increased wafer price twice so far for this year and we definitely have to manage how to pass-through the manufacture cost to the end customers. It's a pretty complicated challenging work, but we definitely are confident to mainly achieve average of about 50% gross margin next year.

是的，我認為這是一個非常複雜的問題，因為眾所周知，台積電在所有技術節點上都將晶圓價格提高了 20%。今年到目前為止，聯電和中芯國際也兩次提高了晶圓價格，我們必須管理如何將製造成本轉嫁給最終客戶。這是一項相當複雜的具有挑戰性的工作，但我們絕對有信心在明年主要實現平均約 50% 的毛利率。

We have the next question, this is coming from the line of Craig A. Ellis from B. Riley Securities.

我們有下一個問題，這是來自 B. Riley Securities 的 Craig A. Ellis 的話。

Wallace, I wanted to start off with a question that goes back to your prepared remarks on QLC versus TLC. Now these transitions, whether from 2 bit per cell to TLC or now TLC to QLC have been significant for industry. And so the question is, as you look at what's playing out in the smartphone market as it gets ready to go to QLC for all its increased density advantages and the advantages you can bring with a much more sophisticated controller, is the proper analogy for us as observers and investors, something like the transition from PCIe Gen 3 to Gen 4, where -- or the QLC transition should lead to higher ASPs for CMO. And if not so, can you give us some color on how that might play out as we look for this QLC transition in your UFS and eMMC business?

華萊士，我想從一個問題開始，這個問題可以追溯到你準備好的關於 QLC 與 TLC 的評論。現在，這些轉變，無論是從每單元 2 位到 TLC，還是現在 TLC 到 QLC，對工業來說都意義重大。所以問題是，當你看到智能手機市場正在發生什麼，因為它準備好進入 QLC 以獲取其所有增加的密度優勢以及你可以通過更複雜的控制器帶來的優勢，這對我們來說是正確的類比作為觀察者和投資者，就像從 PCIe Gen 3 到 Gen 4 的過渡，或者 QLC 的過渡應該會導致 CMO 的 ASP 更高。如果不是這樣，當我們在您的 UFS 和 eMMC 業務中尋找這種 QLC 過渡時，您能給我們一些顏色嗎？

Okay. I cannot share much detail, but I can give you a pretty clear example to understand where is the trigger point. I think when iPhone 13 Pro announced the one terabyte integrated NAND density model, I think that really drives quite a lot of the player to looking for how to provide similar density model as well as how to reduce the cost.

好的。我不能分享太多細節，但我可以給你一個非常清楚的例子來了解觸發點在哪裡。我想當 iPhone 13 Pro 發布 1 TB 的集成 NAND 密度模型時，我認為確實推動了相當多的玩家尋找如何提供類似的密度模型以及如何降低成本。

As you know -- as everybody knows, for one terabyte density into the one BGA package, you need around 16 512 mono die gigabit mono stacked together. And that is very expensive and with a lower yield. And so that's much better if you can stack 8, one terabit QLC mono die which gives you better yield and also much lower cost. So this is what started for almost for a couple of months in the past, because we believe some leading smartphone player start to survey and driving the momentum and for explore all different solutions.

如您所知——眾所周知，對於一個 BGA 封裝中的 1 TB 密度，您需要將大約 16 512 個單芯片千兆單芯片堆疊在一起。這是非常昂貴的，而且產量較低。因此，如果您可以堆疊 8 個，一個 TB 的 QLC 單芯片，這會更好，這可以為您提供更好的產量和更低的成本。所以這幾乎是在過去幾個月開始的，因為我們相信一些領先的智能手機廠商開始調查和推動這一勢頭，並探索所有不同的解決方案。

Since we are the leading in the market for QLC development -- sorry, in the industry so we work with a couple of NAND vendors and smartphone maker to explore all kind of different solution. It's not just by controller maker, also need a smartphone maker, certain software enhancement. But this will become very exciting approach in technology because this is going to reduce storage solution cost dramatically and also increase the capacity for consumer to use -- to embrace all different new applications for the 5G.

由於我們在 QLC 開發市場上處於領先地位——抱歉，在行業中，所以我們與幾家 NAND 供應商和智能手機製造商合作，探索各種不同的解決方案。這不僅僅是控制器製造商，還需要智能手機製造商，一定的軟件增強。但這將成為非常令人興奮的技術方法，因為這將顯著降低存儲解決方案的成本，並增加消費者使用的容量——擁抱所有不同的 5G 新應用。

So this is very important for us, also expand our opportunity, not just one terabyte. It could be even go lower to 512 gigabytes. So this is a very, very important project for us, and we put a pretty decent R&D team to work together and looking forward to the future transition from 2023 to 2024 time frame, we're going to see the solution in the market.

所以這對我們來說非常重要，也擴大了我們的機會，而不僅僅是一個 TB。它甚至可以降低到 512 GB。所以這對我們來說是一個非常非常重要的項目，我們讓一個相當不錯的研發團隊一起工作，期待未來從 2023 年過渡到 2024 年的時間框架，我們將在市場上看到解決方案。

The second question I had is related to the eMMC market and it seems that there's some very encouraging supply side dynamics taking place as Silicon Motion really takes advantage of a situation where Samsung and Hynix are exiting the market. So the question is this, if the company is able to provide us with market share data on the SSD controller side and 5 to 10 percentage points of gains this year and expected next year, is there some similar color that you can provide on the eMMC market so we can get a better grasp of the magnitude of share that you're picking up there as the supply side consolidates to your favor?

我遇到的第二個問題與 eMMC 市場有關，似乎有一些非常令人鼓舞的供應方動態正在發生，因為 Silicon Motion 確實利用了三星和海力士退出市場的情況。那麼問題來了，如果公司能提供給我們SSD控制器端的市場份額數據，以及今年5到10個百分點的漲幅，預計明年，在eMMC上你能提供一些類似的顏色嗎？市場，以便我們可以更好地了解隨著供應方鞏固對您有利的份額，您在那裡獲得的份額大小？

Okay. Let me just put some color, so you understand where we are and our position is in eMMC controller. For 2021, this year, unfortunately, we have wafer allocation. Our eMMC backlog is a much bigger allocated wafer we can supply. Because in the past, EMC controller are designed with the legacy technology node, primarily with the 55-nanometer and 40-nanometer. These mature technology node, we have much less wafer allocation from TSMC and other foundry supplier.

好的。讓我放一些顏色，以便您了解我們在哪里以及我們在 eMMC 控制器中的位置。不幸的是，對於 2021 年，今年我們有晶圓分配。我們的 eMMC 待辦事項是我們可以提供的更大的分配晶圓。因為在過去，EMC 控制器都是採用傳統技術節點設計的，主要採用 55 納米和 40 納米。這些成熟的技術節點，我們從台積電和其他代工供應商那裡獲得的晶圓分配要少得多。

So this year, we're busy to porting a new product into 28-nanometer. So to expand our EMC criteria, because our backlog, frankly speaking, for EMC is even higher than 500 million units today. But through the wafer allocating to us, we can probably only support 60% of the backlog. And we do see an increasing demand from the multiple customer, not just China, Taiwan or Korea, but also from U.S. and Europe. And really, very, very strong demand in multi-market application, not just the low-end smartphone, but also in all the smart families like smart TV, smart speakers, smartwatch, all the IoT devices, automotive and Chromebook.

所以今年，我們正忙於將新產品移植到 28 納米。所以擴大我們的 EMC 標準，因為坦率地說，我們的 EMC 積壓訂單今天甚至超過了 5 億台。但是通過晶圓分配給我們，我們大概只能支持60%的積壓。我們確實看到來自多個客戶的需求不斷增加，不僅是中國大陸、台灣或韓國，還有來自美國和歐洲的客戶。真的，非常非常強烈的多市場應用需求，不僅僅是低端智能手機，還包括智能電視、智能音箱、智能手錶、所有物聯網設備、汽車和 Chromebook 等所有智能家庭。

So this is a very, very strong demand, even some NAND maker because they ask it from EMC, but they still want to provide solution. All this [yield] come to SMI. So we really have obligation to expand our wafer supply to support to these customers to avoid any potential market segment breakdown. So this is our obligation and try to really increase all the available technology wafer to us to make it more cost effective, also prepare for upcoming new TLC NAND and then as well as the legacy NAND support. I just really cannot say what market share we have definitely more than 30%, but just if we can have a sufficient wafer support, we can easily achieve more than 50% of market share next year.

所以這是一個非常非常強烈的需求，甚至一些 NAND 製造商因為他們向 EMC 提出要求，但他們仍然想提供解決方案。所有這些 [收益] 都屬於星美。因此，我們確實有義務擴大我們的晶圓供應以支持這些客戶，以避免任何潛在的細分市場崩潰。因此，這是我們的義務，並嘗試真正增加我們所有可用的技術晶圓，以使其更具成本效益，同時為即將推出的新 TLC NAND 以及傳統的 NAND 支持做好準備。實在說不上什麼市場份額我們肯定超過30%，但只要我們有足夠的晶圓支持，明年我們可以輕鬆達到50%以上的市場份額。

And then I'll follow-up with one to Riyadh, so that I don't ignore you, and then I'll hand it off to others. So the question is this, Riyadh. So given that the company year-to-date has talked about 4 drivers to executing on gross margin, richer mix, allocations to more profitable accounts, recovering manufacturing costs and then doing things on the back end. And with things like transition from much more mature nodes to 28-nanometer for eMMC, it seems there would be significant momentum to keep the trajectory on gross margin moving higher next year. So why would we not see gross margin moving up next year versus something that's at 50%, admittedly, a good point relative to the target range, but it seems there's momentum in the business for something that would be higher.

然後我會跟進一個到利雅得，這樣我就不會忽視你，然後我會把它交給其他人。所以問題是這個，利雅得。因此，鑑於公司年初至今已經談到了 4 個驅動因素來執行毛利率、更豐富的組合、分配到更有利可圖的賬戶、收回製造成本，然後在後端做事。隨著 eMMC 從更成熟的節點向 28 納米的過渡，似乎有很大的動力來保持明年毛利率的軌跡走高。那麼，為什麼我們不會看到明年毛利率上升，而毛利率為 50%，誠然，相對於目標範圍而言，這是一個很好的點，但似乎該業務的勢頭會更高。

Well, unfortunately, because TSMC increased wafer price for 20%. So I think, as you know, EMC really is -- should be lower cost product, because lower density for consumer electronic and automotive devices. So we carefully try to transition the manufacturing costs from wafer and test to the end customers. I think we state we're targeting, we are confident to reach a 50% gross margin doesn't mean we cannot have upside, so -- but just the 50% is our target incumbent for 2022.

好吧，不幸的是，因為台積電將晶圓價格提高了 20%。所以我認為，正如你所知，EMC 確實是——應該是成本更低的產品，因為消費電子和汽車設備的密度更低。因此，我們仔細嘗試將製造成本從晶圓和測試轉移到最終客戶。我認為我們聲明我們的目標是，我們有信心達到 50% 的毛利率並不意味著我們沒有上漲空間，所以——但只有 50% 是我們 2022 年的目標。

Craig, we're just leading ourselves in pushing -- while we're targeting 50%, we'd love to do more.

克雷格，我們只是在推動自己——雖然我們的目標是 50%，但我們願意做得更多。

And just given the sector's broader trailing 10-year trajectory, I think if the company did more, it would be very meaningful for the stock.

鑑於該行業更廣泛的 10 年軌跡，我認為如果該公司做得更多，這對股票將非常有意義。

We have the next question. This is coming from the line of Mehdi Hosseini from Susquehanna International.

我們有下一個問題。這是來自 Susquehanna International 的 Mehdi Hosseini 系列。

A couple of follow-ups. Based on your guide for December quarter, it seems to me that 2021 revenues are on target to increase by 70%. Can you help me have a feel for how blended pricing has changed '21 versus '20 and how unit shipment is tracking? I think it's very important for us to understand the mix and improving ASP? And any color you can provide would be great. And just to extend that into '22, how do you see a better mix improving your blended pricing without even raising prices on your customer? And I have a follow-up.

幾個後續。根據您對 12 月季度的指導，在我看來，2021 年的收入有望增長 70%。您能幫我了解一下混合定價在 '21 與 '20 之間的變化以及單位出貨量的跟踪方式嗎？我認為了解混合和改進 ASP 對我們來說非常重要？你能提供的任何顏色都會很棒。只是為了將其擴展到 22 年，您如何看待更好的組合來提高您的混合定價，甚至不提高您的客戶的價格？我有一個後續行動。

Well, our prices this year -- our blended prices have been going up this year, which is quite a good momentum that we have this year, which is a little bit different. I mean generally, in the past, we would keep our blended ASPs flat versus this year, our blended ASPs have been going up. And this is coming from the factors that we had previously talked about, everything from selling a richer mix of products, focusing -- since our wafers are limited we're focusing on manufacturing products, allocating to higher ASP, higher-margin products, right.

嗯，我們今年的價格——今年我們的混合價格一直在上漲，這是我們今年的一個很好的勢頭，這有點不同。我的意思是，在過去，我們將保持我們的混合平均售價與今年持平，我們的混合平均售價一直在上升。這來自我們之前談到的因素，從銷售更豐富的產品組合到專注——由於我們的晶圓有限，我們專注於製造產品，分配到更高的 ASP、更高利潤的產品，對.

And it's also giving us an opportunity to be more focused about how we allocate products to customers. And where possible, we are also readjusting our prices and being more disciplined on the cost side, for example, wafer cost and substrate costs, those have been going up and so we need to recover those costs in order to preserve -- ability. So all these 3 factors as well as focusing on improving our manufacturing operations -- that's the fourth leg -- all of these are leading to strong gross margins. But obviously, the first 3 factors are what's keeping our blended ASPs going up and we expect this trend likely to continue into next year since wafer supply will still be very tight next year.

這也讓我們有機會更加專注於我們如何將產品分配給客戶。在可能的情況下，我們也在重新調整價格，並在成本方面更加自律，例如晶圓成本和基板成本，這些成本一直在上漲，因此我們需要收回這些成本以保持能力。因此，所有這三個因素以及專注於改善我們的製造業務——這是第四站——所有這些都導致了強勁的毛利率。但很明顯，前三個因素是我們的混合平均售價保持上升的原因，我們預計這種趨勢可能會持續到明年，因為明年晶圓供應仍將非常緊張。

So on all those 4 legs or 4 drivers for 70% revenue growth, which is -- which has the highest impact.

因此，在所有這 4 條腿或 4 種驅動因素上，收入增長 70%，這是影響最大的。

The impact is coming from all 3 elements from product mix, from customer allocation and also from increasing our prices to recover our costs.

影響來自產品組合、客戶分配以及提高價格以收回成本的所有三個要素。

So let me add a point here. I think from mathematically, if we want to achieve higher sales revenue growth, we should ship everything as a component with the packaging, right? That is each wafer we can maximize sell revenue. Doesn't mean you have the best gross margin, but they have the best sales revenue and best profit. However, we cannot do that, because we have obligation to support -- for UFS for microSD and some automotive business, and we cannot just for ourselves to allow certain market segment breakdown. So we have obligation, because we are largest controller supplier. So we have to be very cautiously to balance where we can achieve the sale revenue and maximize profit also avoid the market sector breakdown.

所以讓我在這裡補充一點。我認為從數學上講，如果我們想實現更高的銷售收入增長，我們應該將所有東西作為一個組件與包裝一起發貨，對嗎？這是我們可以最大化銷售收入的每個晶圓。並不意味著你有最好的毛利率，但他們有最好的銷售收入和最好的利潤。但是，我們不能這樣做，因為我們有義務支持——用於 microSD 和一些汽車業務的 UFS，我們不能只為自己允許某些細分市場細分。所以我們有義務，因為我們是最大的控制器供應商。所以我們必須非常謹慎地平衡我們可以在哪裡實現銷售收入和最大化利潤，同時避免市場部門崩潰。

And just to look forward, could the mix continue to improve richer mix. So even with a weak channel, a richer mix and therefore, higher blended ASP would be another -- would help with another year of double-digit revenue growth. Is that richer mix sustainable into '22?

只是展望未來，這種組合能否繼續改善更豐富的組合。因此，即使渠道較弱，更豐富的組合，因此，更高的混合 ASP 將是另一個 - 將有助於另一年兩位數的收入增長。這種更豐富的組合是否可持續到 22 年？

Absolutely, Mehdi. Our wafer capacity is still going to be very tight next year. We don't expect a foundry wafer supply to loosen up until 2023 and so with wafer capacity being limited, we're going to be working to optimize our scarce resources where we can deliver the strongest revenue and profitability.

絕對的，邁赫迪。明年我們的晶圓產能仍將非常緊張。我們預計代工晶圓供應要到 2023 年才會放鬆，因此在晶圓產能有限的情況下，我們將努力優化我們的稀缺資源，以提供最強勁的收入和盈利能力。

And one last item. Is the enterprise contribution is still more of a '23 target or is there a chance that you can actually pull that in and then benefit earlier?

最後一項。企業貢獻是否仍然更像是 23 年的目標，還是有可能您實際上可以將其拉入，然後更早受益？

For enterprise controller, we already starting to have a sale revenue, but although the volume still is very small, but we will continue to grow. But for our really flagship products our PCIe Gen 5 controller, which will be commercialized in the second half next year, but moving to mass production in second half of 2023.

對於企業控制器，我們已經開始有銷售收入了，雖然數量還很小，但我們會繼續增長。但對於我們真正的旗艦產品，我們的 PCIe Gen 5 控制器將在明年下半年商業化，但在 2023 年下半年開始量產。

We have the next question. This is coming from the line of Karl Ackerman from Cowen.

我們有下一個問題。這是來自 Cowen 的 Karl Ackerman 的系列。

A few questions from me as well. Maybe first off, Riyadh, you indicated that orders for client SSDs at retail -- across retail markets are softening in China. But my understanding was that business is more opportunistic versus NAND OEMs and was instrumental to your $1.5 billion order backlog. And so my question is, for NAND OEMs, do you have quarterly commitments from them that would limit risk from order moderation or pushouts?

我也有幾個問題。也許首先，利雅得，您表示中國零售市場的客戶 SSD 訂單正在走軟。但我的理解是，與 NAND OEM 相比，業務更具機會主義性，對您 15 億美元的積壓訂單很有幫助。所以我的問題是，對於 NAND 原始設備製造商，您是否有來自他們的季度承諾來限制訂單審核或推出的風險？

Well, we're talking more about the current situation right now, looking at our current sales in Q3 as well as in Q4. What we are seeing is on our client SSD business, the strengthening of sales to OEMs, into the OEM market versus softening of demand in the channel market, specifically the retail market in China.

好吧，我們現在更多地談論當前的情況，看看我們目前在第三季度和第四季度的銷售額。我們看到的是我們的客戶 SSD 業務，對 OEM 的銷售加強，進入 OEM 市場，而渠道市場，特別是中國零售市場的需求疲軟。

So the demand we have from PC OEM and NAND maker, the program really is rock-solid because we got a full year [PO] from the major OEM customer.

因此，我們對 PC OEM 和 NAND 製造商的需求，該計劃確實堅如磐石，因為我們從主要 OEM 客戶那裡獲得了整整一年的 [PO]。

I guess in your prepared comments, I'm not sure I heard much update on the progress you're seeing for PCIe Gen 4 enterprise controllers, so then to Europe, China hyperscale providers, and so I'm wondering what sort of market adoption are you seeing from them today? I realized and I'm cognizant that Gen 5 appears to be the primary product opportunity for you for enterprise controllers. But if you could just kind of bridge that time line with what you're seeing with PCIe Gen 4 enterprise controllers today, that would be very helpful.

我想在你準備好的評論中，我不確定我是否聽到了關於你在 PCIe Gen 4 企業控制器方面看到的最新進展，然後是歐洲、中國超大規模供應商，所以我想知道什麼樣的市場採用你今天看到他們了嗎？我意識到第 5 代似乎是企業控制器的主要產品機會。但是，如果您可以將這一時間線與您今天在 PCIe Gen 4 企業控制器中看到的內容聯繫起來，那將非常有幫助。

Okay. So regarding the PCIe Gen 4 controller, we are sampling and developing really the solutions through the Shannon product solution as well as through the Kingston. Now because we have a wafer allocation and our enterprise SSD solution, the gross margin is lower -- much lower than our corporate average, so we only focus on 2 to 3 major customer demand. And we do not want the Shannon PCIe Gen 4 SSD solution really dilute our corporate gross margin. But we focus on the quality, firmware development, make sure while our forward capability and performance meets the industry, our customer expectation. The reason we put a focus on PCIe Gen 5 is our PCIe Gen 4 controller was late compared with other leading NAND makers such as from Samsung and Intel. But our PCIe Gen 5 will be ahead of many NAND makers' solution. And we believe our PCIe Gen 5 will be a flagship in that moment all in the industry. So that's why we will put more focus in preparing from Gen 4 transitioning to Gen 5, and we can really ramp with a better position and with a better selling price because we can charge premium in 2023.

好的。因此，關於 PCIe Gen 4 控制器，我們正在通過 Shannon 產品解決方案以及金士頓來採樣和開發真正的解決方案。現在因為我們有晶圓分配和我們的企業級 SSD 解決方案，毛利率較低——遠低於我們公司的平均水平，所以我們只關注 2 到 3 個主要客戶的需求。而且我們不希望 Shannon PCIe Gen 4 SSD 解決方案真的稀釋我們的公司毛利率。但我們專注於質量、固件開發，確保在我們的前瞻性能力和性能滿足行業和客戶期望的同時。我們將重點放在 PCIe Gen 5 的原因是我們的 PCIe Gen 4 控制器與三星和英特爾等其他領先的 NAND 製造商相比較晚。但我們的 PCIe Gen 5 將領先於許多 NAND 製造商的解決方案。我們相信，我們的 PCIe Gen 5 屆時將成為業界的旗艦產品。所以這就是為什麼我們將更加專注於從第 4 代過渡到第 5 代的準備工作，我們真的可以以更好的位置和更好的售價進行爬坡，因為我們可以在 2023 年收取溢價。

We have the next question. This is coming from Anthony Stoss from CH.

我們有下一個問題。這是來自 CH 的 Anthony Stoss。

Riyadh, I wanted to follow-up, just so I'm crystal clear on your comments as well as Wallace's. So if you have, about $1.5 billion in order book, and I think Wallace alluded to this, but again, I want to be clear, based on your materially more wafers at TSMC is committed, could you get close to generating $1.5 billion in revenues in 2022? And then I had a follow-up.

利雅得，我想跟進，所以我對你和華萊士的評論非常清楚。因此，如果你有大約 15 億美元的訂單，我認為華萊士暗示了這一點，但我想再次明確，基於你在台積電承諾的更多晶圓，你能否接近產生 15 億美元的收入2022 年？然後我進行了跟進。

We are working to get towards our goal. We continue to negotiate for more wafers. But based on the wafer supply commitment that we have today, it's very likely that supply -- demand will continue to be -- will be in excess of supply, demand excess of supply. But even with that scenario, we're still going to be generating very strong growth for 2022.

我們正在努力實現我們的目標。我們繼續協商更多的晶圓。但根據我們今天的晶圓供應承諾，供應——需求將繼續——很可能會超過供應，需求超過供應。但即使在這種情況下，我們仍將在 2022 年實現非常強勁的增長。

Okay. Let me ask in a different way. Do you think you'll get at least 50% more wafers in 2022 over 2021?

好的。讓我換個方式問。您認為 2022 年的晶圓產量是否會比 2021 年至少增加 50%？

This is impossible because you can see TSMC's all technology now are overbooking. So we does -- got a confirmation. We have incremental wafer increase compared with 2021, but it's impossible for anyone to get a 50% increase. But I think the really increased sale revenue is not just by wafer numbers by how you probably manage the product mix. And especially, we have a new product PCIe Gen 4 and UFS 3.1 ramping sharply, and so we can transition this portion of high-end product and to driving the better profit and better sale revenue. So it's not exactly mathematically, you need 50% wafer to create a 50% sale revenue.

這是不可能的，因為你可以看到台積電現在所有的技術都在超額預定。所以我們這樣做了——得到了確認。與 2021 年相比，我們的晶圓增加了，但任何人都不可能獲得 50% 的增加。但我認為真正增加的銷售收入不僅僅取決於晶圓數量，取決於您可能如何管理產品組合。尤其是，我們有一個新產品 PCIe Gen 4 和 UFS 3.1 急劇增長，因此我們可以過渡這部分高端產品，以推動更好的利潤和更好的銷售收入。所以這並不完全是數學上的，你需要 50% 的晶圓才能創造 50% 的銷售收入。

And then shifting gears, and I don't know if you guys will have this at your fingertips, but what percentage of your total revenue right now is in, call it, consumer IoT and/or auto and how quickly is this new market growing for you guys?

然後換檔，我不知道你們是否會觸手可及，但你們現在總收入的百分比是在消費物聯網和/或汽車領域，以及這個新市場的增長速度有多快給你們？

Well, we -- I think that we really cannot count on customers. But I think we own pretty large eMMC controller business. So customers in everywhere, we have pretty decent smartwatch, smart speakers and smart TV and set-top-box, even cable modem and in U.S., so it's a very, very fragmented market sector with a very large potential. Just alone, we can continue to increase wafer supply from our foundry makers, I think we can continue to gain the market share.

好吧，我們 - 我認為我們真的不能指望客戶。但我認為我們擁有相當大的 eMMC 控制器業務。所以世界各地的客戶，我們都有相當不錯的智能手錶、智能揚聲器、智能電視和機頂盒，甚至電纜調製解調器，在美國，這是一個非常非常分散的市場領域，潛力巨大。僅憑我們一個人，我們就可以繼續增加晶圓廠的晶圓供應，我認為我們可以繼續獲得市場份額。

Tony, let me also add that Wallace had earlier talked about that we already have about 500 million units of backlog relating to eMMC for our module maker customers, 500 million units. Right now, we are not able to deliver all of that. We're delivering maybe 60% of that because of wafer limitations. But if we can deliver 500, that's equivalent to about half of the market.

托尼，我還要補充一點，華萊士早些時候談到我們已經為我們的模塊製造商客戶積壓了大約 5 億個與 eMMC 相關的積壓，5 億個。目前，我們無法提供所有這些。由於晶圓限制，我們可能交付了其中的 60%。但如果我們能交付 500 個，那大約相當於市場的一半。

We have the next question from the line of Suji Desilva from ROTH Capital.

我們有來自 ROTH Capital 的 Suji Desilva 的下一個問題。

Congratulations on what's looking like a strong year. A question on the transition to QLC from TLC. Are there any -- which end markets or QLC most important for, is there a share implication in terms of share gain opportunity as we transition to QLC in terms of technology advantage that might garner you that?

祝賀今年看起來很強勁。關於從 TLC 過渡到 QLC 的問題。是否有任何 - 哪個終端市場或 QLC 最重要，在我們向 QLC 過渡到可能為您帶來的技術優勢方面，在份額獲得機會方面是否存在份額影響？

I think for TLC, doubling enterprise SSD today that is primary preferred to TLC. It will probably take couple of years to adopt the QLC SSD into enterprise SSD. But for client, it's moving quickly, especially for second half next year and 2023. We believe probably all value line SSD will transition to QLC SSD. For the consumer products, I think that because QLC is much more attractive to -- because of the cost advantage. Now many, many consumer and customers, they are used to adopt and comfortable to use QLC based product.

我認為對於 TLC，今天將企業級 SSD 翻倍是 TLC 的首選。將 QLC SSD 應用到企業 SSD 中可能需要幾年時間。但對於客戶而言，它正在迅速發展，尤其是在明年下半年和 2023 年。我們相信所有價值線 SSD 可能都將過渡到 QLC SSD。對於消費產品，我認為這是因為 QLC 更具吸引力——因為它具有成本優勢。現在有很多很多消費者和客戶，他們習慣於採用和舒適地使用基於 QLC 的產品。

For the mobile, as I said, we see the really trigger point is a higher density UFS product, which needs to compete with iPhone 13 Pro. However, I think the technology is very challenging because the controller needs a much more -- a better unique algorithm and also meet performance, endurance (inaudible) everything, you need to be similar like TLC, the user feel the same user experience as a TLC based solution. So it will probably take 2 to 3 years to see the solution happening. So we see the potential launch market sector will be around second half 2023 to 2024, and we're going to see QLC based U.S. product in the market.

對於手機，正如我所說，我們看到真正的觸發點是更高密度的 UFS 產品，它需要與 iPhone 13 Pro 競爭。但是，我認為這項技術非常具有挑戰性，因為控制器需要更多——更好的獨特算法並且還要滿足性能、耐用性（聽不清）的一切，你需要像 TLC 一樣，用戶感覺和用戶體驗一樣基於 TLC 的解決方案。因此，可能需要 2 到 3 年才能看到解決方案的出現。因此，我們看到潛在的發布市場部門將在 2023 年下半年至 2024 年左右，我們將在市場上看到基於 QLC 的美國產品。

And then as you look at calendar '22, I'm curious, are there any additional new NAND flash customers that you'll be ramping either an SSD or eMMC+UFS and if there are, in light of a tight wafer environment, how would you support additional customers coming online?

然後，當您查看日曆 '22 時，我很好奇，是否還有其他新的 NAND 閃存客戶，您將增加 SSD 或 eMMC+UFS，如果有，鑑於晶圓環境緊張，如何你會支持更多的客戶上線嗎？

Yes, it's a very good question. I think we have a 5 NAND customer today for SSD. Our target is to try probably get one more in late next year or early 2023, but we cannot -- it's our target, and we cannot comment very -- too much right now.

是的，這是一個非常好的問題。我想我們今天有一個 5 NAND 客戶的 SSD。我們的目標是嘗試在明年年底或 2023 年初再獲得一個，但我們不能——這是我們的目標，我們現在不能評論太多——太多。

We do not have any further questions at this moment. I would like to hand the conference back to Mr. Wallace Kou for any ending remarks.

目前我們沒有任何進一步的問題。我想把會議交還給郭文貴先生以作結束髮言。

Thanks everyone, for joining us today and for your continuing interest in Silicon Motion. Next week, we will be featuring our leading-edge technology and comprehensive enterprise solution in-person at the OCP Global Summit in San Jose.

感謝大家今天加入我們，感謝您對 Silicon Motion 的持續關注。下週，我們將在聖何塞舉行的 OCP 全球峰會上親自展示我們的領先技術和全面的企業解決方案。

In addition, we will be attending several investor conferences over the next few months. The schedule of these events will be posted on the Investor Relationship section of our corporate website. Thank you, everyone, for joining today again. Goodbye for now.

此外，我們將在接下來的幾個月裡參加幾次投資者會議。這些活動的時間表將發佈在我們公司網站的投資者關係部分。謝謝大家，今天再次加入。暫時告別。

That concludes our conference call for today. Thank you all for your participation. You may disconnect now.

我們今天的電話會議到此結束。謝謝大家的參與。您現在可以斷開連接。