慧榮科技 (SIMO) 2021 Q2 法說會逐字稿

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

美好的一天，謝謝你的支持。歡迎來到慧榮科技 2021 年第二季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）

And 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 limitations, statements regarding trends in the semiconductor industry and our future results of operations, financial condition and business prospects. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them.

本次電話會議包含 1933 年證券法第 27A 條和經修訂的 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和我們未來經營業績、財務狀況和業務前景的陳述。儘管此類聲明基於我們自己的信息和我們認為可靠的其他來源的信息，但您不應過分依賴它們。

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. 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 relationship with our major customers and changes in political, economic, legal and social conditions in Taiwan.

這些陳述涉及風險和不確定性以及實際市場趨勢，我們的結果可能出於各種原因與這些前瞻性陳述中明示或暗示的結果大不相同。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和這種壓力對價格的影響、技術的不可預測的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 obligations 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，請參閱我們不時向美國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'd now like to hand the conference over to your speaker today, Mr. Chris Chaney, Director of Investor Relations and Strategy. Please go ahead.

我現在想把會議交給今天的演講者，投資者關係和戰略總監 Chris Chaney 先生。請繼續。

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

謝謝你，安妮。各位早上好，歡迎收看慧榮科技 2021 年第二季度財務業績電話會議和網絡直播。正如 Annie 提到的，我叫 Chris Chaney，是投資者關係總監。今天和我一起參加這次電話會議的是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 second quarter results and our outlook. And then we'll conclude with a question-and-answer period.

在我發表評論之後，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第二季度的業績和展望。然後我們將以問答環節結束。

Before we get started, I would like to remind you of our safe harbor policy, which Annie just read at the start of the call. For a comprehensive overview of the risks involved in investing in our securities, please refer to our filings with the U.S. SEC. 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，我想提醒您注意我們的安全港政策，安妮剛剛在電話會議開始時閱讀了該政策。如需全面了解投資我們證券所涉及的風險，請參閱我們向美國證券交易委員會提交的文件。有關我們財務業績的更多詳細信息，請參閱我們昨天收市後以 6-K 表格提交的新聞稿。

This webcast will be available for replay in the Investor Relations section of our website for a limited time. To enhance investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call. We 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。為了加強投資者對我們持續經濟表現的了解，我們將在本次電話會議期間討論非 GAAP 信息。我們在內部使用非 GAAP 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 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 財務數據的調節可以在我們昨天發布的收益報告中找到。我們要求您結合此次電話會議對其進行審查。

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

有了這個，我現在想把電話轉給華萊士。

Thank you, Chris. Hello, everyone, and thank you for joining us today. In the second quarter, we delivered another quarter of record sales and earnings. Revenue grew 21% sequentially to a record $221 million and earnings per ADS for a record $1.50. Sales of both SSD controllers and eMMC+UFS controllers grew in the second quarter and both achieved record quarterly sales. We delivered better-than-expected growth and profitability, primarily by up-selling a richer mix of products, allocating more product to higher-margin accounts and where possible, repricing product to cover higher manufacturing costs.

謝謝你，克里斯。大家好，感謝您今天加入我們。在第二季度，我們又實現了創紀錄的銷售額和收益。營收環比增長 21%，達到創紀錄的 2.21 億美元，每 ADS 收益達到創紀錄的 1.50 美元。 SSD 控制器和 eMMC+UFS 控制器的銷售額在第二季度均有所增長，均創下季度銷售額新高。我們實現了好於預期的增長和盈利能力，主要是通過向上銷售更豐富的產品組合，將更多產品分配給利潤率更高的客戶，並在可能的情況下重新定價產品以彌補更高的製造成本。

Additionally, our operation team has been actively working with our contract manufacturers to tune backend processes to improve manufacturing yield and lower costs. This 4-pronged initiative of up-selling of richer mix of products, optimizing product allocation, better pricing discipline and tuning manufacturing processes is critical for creating continued value-add growth and profitability when our manufacturing capacity this year is capped and manufacturing costs remain elevated.

此外，我們的運營團隊一直在積極與我們的合同製造商合作，以調整後端流程以提高製造產量並降低成本。當我們今年的製造能力受到限制且製造成本仍然居高不下時，這一 4 管齊下的計劃包括增加銷售更豐富的產品組合、優化產品分配、更好的定價紀律和調整製造流程，對於創造持續的附加值增長和盈利能力至關重要.

Based on the fusion of the initiative, we are now also expecting better gross margin for the rest of this year. Earlier this year, we had communicated our 2023 $1 billion sales objective and growth road map. We will likely achieve this target much earlier. Based on our latest sales projection, our annual run rate is expected to be already at least $1 billion by this year's fourth quarter.

基於該計劃的融合，我們現在還預計今年剩餘時間會有更好的毛利率。今年早些時候，我們傳達了 2023 年 10 億美元的銷售目標和增長路線圖。我們可能會更早地實現這個目標。根據我們最新的銷售預測，預計到今年第四季度，我們的年營業額將至少達到 10 億美元。

We expect sales of ultimately exceed $1 billion next year as we add meaningful incremental foundry capacity already committed to us and from continued execution of our 4-prong initiative, which includes up-selling a richer mix of products.

我們預計明年的銷售額最終將超過 10 億美元，因為我們增加了已經承諾給我們的有意義的增量代工產能，並繼續執行我們的四管齊下計劃，其中包括向上銷售更豐富的產品組合。

Sales next year will include the rapid scaling of a higher value, high-volume PCIe Gen4 SSD controller. Our customers have also provided us with purchase orders for the next year, and the order book today already exceeds $1.5 billion. Our strong order book is a result of many years of hard work. No last minute opportunistic procurement audit of off-the-shelf parts by customers. We have been building our business pipeline for many years, leading to these purchase orders.

明年的銷售將包括快速擴展更高價值、大容量的 PCIe Gen4 SSD 控制器。我們的客戶還向我們提供了明年的採購訂單，今天的訂單已經超過 15 億美元。我們強大的訂單是多年努力的結果。客戶不會在最後一刻機會主義地對現成零件進行採購審核。多年來，我們一直在建立我們的業務渠道，從而產生了這些採購訂單。

Our OEM projects typically kick off 1 to 3 years before initial sales, depending on product capacity. Projects start with defining the OEM product features and customization requirement before hardware and firmware product development and end with product comparability, performance verification, analysis, quality assurance and manufacturing support activity before we start to manufacture and sales of our controllers.

我們的 OEM 項目通常在初始銷售前 1 至 3 年啟動，具體取決於產品容量。項目開始於在硬件和固件產品開發之前定義 OEM 產品功能和定制要求，結束於我們開始製造和銷售我們的控制器之前的產品可比性、性能驗證、分析、質量保證和製造支持活動。

What is clear from our design wins and order book, we have been gaining share of wallet in some of our NAND flash and tier 1 module maker customers. Several of our customers have been gaining market share in the SSD and UFS marketplace. SSD and UFS adoption continue to grow in PC and smartphones, and our customers are actively using our controller to develop storage solutions for new applications that include game consoles and automotive systems. Our order book runs through full year 2022, and our pipeline of design wins include delivery beyond 2022.

從我們的設計勝利和訂單簿中可以清楚地看出，我們已經在我們的一些 NAND 閃存和一級模塊製造商客戶中獲得了錢包份額。我們的一些客戶已經在 SSD 和 UFS 市場上獲得了市場份額。 SSD 和 UFS 在 PC 和智能手機中的採用率持續增長，我們的客戶正在積極使用我們的控制器為包括遊戲機和汽車系統在內的新應用開發存儲解決方案。我們的訂單持續到 2022 年全年，我們的設計中標管道包括 2022 年以後的交付。

Now let me talk about our key products, starting first with our SSD controllers. This quarter, our SSD controller sales grew 30% to 35% sequentially. Year-to-date, our SSD controller sales grew 75% to 80% year-over-year, significantly faster than SSD market growth as we gain market share. Our growth continues to be driven by further scaling of our PCIe Gen3 SSD controller sales to a diversified set of NAND flash and tier 1 module maker customer who are all primarily supplying SSD to leading PC OEM.

現在讓我談談我們的主要產品，首先是我們的 SSD 控制器。本季度，我們的 SSD 控制器銷售額環比增長 30% 至 35%。年初至今，我們的 SSD 控制器銷售額同比增長 75% 至 80%，隨著我們獲得市場份額，這明顯快於 SSD 市場增長。我們的增長繼續受到我們的 PCIe Gen3 SSD 控制器銷售進一步擴大到多元化的 NAND 閃存和一級模塊製造商客戶的推動，這些客戶都主要向領先的 PC OEM 供應 SSD。

Based on our order book, we expect sale of our PCIe Gen3 SSD controller to grow modestly through next year. Our overall SD controller sale growth momentum will continue as we introduce and ramp up our PCIe Gen4 SSD controllers. Our Gen4 controller OEM sales will start in the third quarter of this year, and we expect sales to ramp rapidly through 2022. Our PCIe Gen4 SSD controller design win with NAND flash makers and tier 1 module maker customers will ramp 3 successive generation of annual performance upgraded, cost reduction and higher layer count and flight support.

根據我們的訂單，我們預計明年 PCIe Gen3 SSD 控制器的銷售額將適度增長。隨著我們推出和提升我們的 PCIe Gen4 SSD 控制器，我們的整體 SD 控制器銷售增長勢頭將繼續。我們的 Gen4 控制器 OEM 銷售將於今年第三季度開始，我們預計銷售額將在 2022 年之前快速攀升。我們的 PCIe Gen4 SSD 控制器設計贏得 NAND 閃存製造商和一級模塊製造商客戶，將連續 3 代年度業績提升升級，降低成本和更高的層數和飛行支持。

3 successive generation of PCIe Gen4 controller solutions to be introduced annually from 2021 to 2023. We have timed our rapid introduction of first and second-generation PCIe Gen4 SSD controller, so OEM can align their product with Intel's notebook CPU platform flash in the third quarter of this year and introduction of their next-generation much higher volume chipset platform next year.

從 2021 年到 2023 年，每年將推出連續 3 代 PCIe Gen4 控制器解決方案。我們已經安排了快速推出第一代和第二代 PCIe Gen4 SSD 控制器的時間，因此 OEM 可以在第三季度將其產品與英特爾的筆記本 CPU 平台閃存對齊今年和明年推出下一代更高容量的芯片組平台。

We will start the ramp of our first-generation Gen4 with 2 customers. We will then quickly expand our Gen4 customer base from 2 to 8 customers next year with our second-generation solution. Our third-generation will follow in 2023. We will then follow up with the upcoming series of PCIe Gen5 SSD controllers. Of our 8 customers next year, by our manufacture makers, our 8 customers are developing SSD for OEM projects. When all of our second-generation project are fully ramped towards the end of 2022 in the first half of the following year, we expect to be in approximately half of our PC OEM PCIe Gen4 SSD targets.

我們將與 2 個客戶一起開始我們的第一代 Gen4 的量產。然後，我們將在明年使用我們的第二代解決方案將我們的 Gen4 客戶群從 2 個快速擴展到 8 個客戶。我們的第三代將在 2023 年推出。然後我們將跟進即將推出的 PCIe Gen5 SSD 控制器系列。在我們明年的 8 個客戶中，我們的製造商有 8 個客戶正在為 OEM 項目開發 SSD。當我們所有的第二代項目在明年上半年到 2022 年底全面啟動時，我們預計將實現我們 PC OEM PCIe Gen4 SSD 目標的大約一半。

Separately, our enterprise-class SSD controller continues to make solid progress in data center application, and we're ramping toward our first 1 million unit milestone. Our unique hardware plus firmware turnkey enterprise-class PCIe Gen 4 SSD controller expected to start shipping to customers such as Alibaba, Baidu and Kingston by end of this year and lay the foundation for upcoming PCI Gen5 enterprise SSD controllers.

另外，我們的企業級 SSD 控制器在數據中心應用方面繼續取得穩步進展，我們正朝著我們的第一個 100 萬個里程碑邁進。我們獨特的硬件加固件一站式企業級 PCIe Gen 4 SSD 控制器預計將於今年年底開始向阿里巴巴、百度和金士頓等客戶發貨，並為即將推出的 PCI Gen5 企業級 SSD 控制器奠定基礎。

With our upcoming flagship enterprise-class PCIe Gen5 SSD controller, we continue to meet design milestones and track towards doubling in the second half of next year and sale the following years. Feedback from potential U.S. and China hyper-scale customers continue to be very positive.

憑藉我們即將推出的旗艦企業級 PCIe Gen5 SSD 控制器，我們將繼續實現設計里程碑，並有望在明年下半年翻一番，並在接下來的幾年內實現銷量增長。來自美國和中國超大規模潛在客戶的反饋仍然非常積極。

Next, I will discuss our eMMC+UFS controllers. Our eMMC+UFS sales grew 10% to 15% during the second quarter. Year-to-date, our eMMC+UFS controller sales grew 35% to 40% year-over-year, significantly faster than the overall smartphone market grows as we and our customers gain market share. Our UFS NAND customer with industry-leading NAND and DRAM technologies is very well-positioned to gain further market share.

接下來，我將討論我們的 eMMC+UFS 控制器。我們的 eMMC+UFS 銷售額在第二季度增長了 10% 至 15%。年初至今，我們的 eMMC+UFS 控制器銷售額同比增長 35% 至 40%，隨著我們和我們的客戶獲得市場份額，增長速度明顯快於整個智能手機市場的增長速度。我們的 UFS NAND 客戶擁有業界領先的 NAND 和 DRAM 技術，非常有能力獲得更多的市場份額。

Additionally, we continue to support a diversified set of module maker in China and now elsewhere, growing eMMC and new U.S. business activity in the low-cost smartphone as well as the large, but fragmented IoT and smart devices market.

此外，我們繼續支持中國和其他地方的多元化模塊製造商，在低成本智能手機以及龐大但分散的物聯網和智能設備市場中發展 eMMC 和新的美國業務活動。

eMMC is a JEDEC standard embedded storage that is generally a low capacity solution usually at the most 64 gigabyte. Manufacture makers who are focusing on maximizing the sales of NAND density have communicated their intention to exit from this low-density marketing next year, which will create a large incremental opportunity for our EMC controllers. Since we are effectively the sole merchant supply of EMC controllers to this large and growing 1 billion-plus unit eMMC storage market, we also have a responsibility to work with our foundry and other supply chain partners to ensure product availability to OEMs.

eMMC 是一種 JEDEC 標準嵌入式存儲，通常是一種低容量解決方案，通常最多 64 GB。專注於最大化 NAND 密度銷售的製造商已經表達了明年退出這種低密度營銷的意圖，這將為我們的 EMC 控制器創造一個巨大的增量機會。由於我們實際上是這個龐大且不斷增長的超過 10 億單位的 eMMC 存儲市場的 EMC 控制器供應商，我們還有責任與我們的代工廠和其他供應鏈合作夥伴合作，以確保 OEM 的產品可用性。

This large market for eMMC controller range from low-cost smartphones to smart TV, smart speakers, Chromebooks, setup box, streaming TV dongles, smart watches and other wearables, drones, portable game console and many more applications popular with consumers.

eMMC 控制器的這個龐大市場範圍從低成本智能手機到智能電視、智能揚聲器、Chromebook、機頂盒、流媒體電視加密狗、智能手錶和其他可穿戴設備、無人機、便攜式遊戲機以及更多受消費者歡迎的應用。

We are also seeing increasing design activity relating to the adoption of automotive AEC-Q100 and (inaudible) compliant eMMC and UFS embedded storage solution, as electronic content in cars and other vehicle grows. And furthermore, we are seeing increasing design activity involving multiple eMMC or [uStar] devices per vehicle. Automotive OEMs are now designing vehicle with multiple eMMC and UFS-based storage devices or central console infotainment system, navigation system, [real see] entertainment, dashboard instrumentation and ADAS image recognition, route decision and data recording systems that enhance low use safety and parking.

隨著汽車和其他車輛中電子內容的增長，我們還看到越來越多的設計活動與採用汽車 AEC-Q100 和（聽不清）兼容的 eMMC 和 UFS 嵌入式存儲解決方案有關。此外，我們看到越來越多的設計活動涉及每輛車的多個 eMMC 或 [uStar] 設備。汽車原始設備製造商現在正在設計具有多個基於 eMMC 和 UFS 的存儲設備或中央控制台信息娛樂系統、導航系統、[real see] 娛樂、儀表板儀表和 ADAS 圖像識別、路線決策和數據記錄系統的車輛，以提高低使用安全性和停車.

Since going public in 2005, we have seen the explosive proliferation of NAND-based storage solution into more and more category of locations. From initially just memory cards and USB flash drive to embedded storage for smartphones, IoT and smart devices as well as SSD for PC and data center. And now we are seeing growing design activity in automotive applications.

自 2005 年上市以來，我們已經看到基於 NAND 的存儲解決方案爆炸式地擴散到越來越多的位置類別。從最初的存儲卡和 U 盤到用於智能手機、物聯網和智能設備的嵌入式存儲，以及用於 PC 和數據中心的 SSD。現在我們看到汽車應用中的設計活動不斷增加。

We are delighted to share with you our growing NAND controller design activity and our successful results so far by our 4-pronged initiative of optimizing resources to deliver higher value scales and enhanced profitability. We believe current market condition favors Silicon Motion in partnership with our customers in continuing market share gains in a broad range application due to our relatively large and favorable position in the supply chain and in managing OEM product availability.

我們很高興與您分享我們不斷增長的 NAND 控制器設計活動以及迄今為止我們通過優化資源以提供更高價值規模和更高盈利能力的 4 管齊下計劃所取得的成功成果。我們認為，由於我們在供應鍊和管理 OEM 產品可用性方面的相對較大和有利的地位，目前的市場狀況有利於 Silicon Motion 與我們的客戶合作，在廣泛的應用中繼續獲得市場份額。

In comparison, smaller merchant supplier and (inaudible) program are disadvantaged. We believe current market conditions could remain unchanged for the next few years.

相比之下，較小的商家供應商和（聽不清）程序處於不利地位。我們相信當前的市場狀況在未來幾年內可能會保持不變。

Now I will 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來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 second quarter results and then provide our guidance. 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. In the second quarter, revenue reached a record $221 million, 21% higher sequentially and 62% higher year-over-year. Earnings per ADS were $1.50, 35% higher sequentially and 84% higher year-over-year.

謝謝你，華萊士，大家早上好。我將討論我們第二季度業績的更多細節，然後提供我們的指導。除非另有特別說明，否則我今天的評論將主要關注我們的非 GAAP 結果。我們的 GAAP 與非 GAAP 數據的對賬包含在昨天發布的收益報告中。第二季度，收入達到創紀錄的 2.21 億美元，環比增長 21%，同比增長 62%。每份 ADS 的收益為 1.50 美元，環比增長 35%，同比增長 84%。

Now I will walk through the performance of our 3 key products during the first quarter. SSD controller sales increased 30% to 35% sequentially and 105% to 110% year-over-year. Growth was driven entirely by our PCIe Gen3 SSD controllers, which are primarily for OEMs. eMMC+UFS controller sales also reached a record high, growing 10% to 15% sequentially and 25% to 30% year-over-year. Growth was driven by our UFS controllers. SSD solutions sales increased 35% to 40% sequentially and were down 15% to 20% year-over-year. Our Ferri products grew year-over-year, while our Shannon products declined sharply.

現在，我將介紹我們 3 種主要產品在第一季度的表現。 SSD 控制器銷售額環比增長 30% 至 35%，同比增長 105% 至 110%。增長完全由我們的 PCIe Gen3 SSD 控制器推動，這些控制器主要面向 OEM。 eMMC+UFS 控制器的銷售額也創歷史新高，環比增長 10% 至 15%，同比增長 25% 至 30%。增長是由我們的 UFS 控制器推動的。 SSD 解決方案銷售額環比增長 35% 至 40%，同比下降 15% 至 20%。我們的 Ferri 產品同比增長，而我們的 Shannon 產品急劇下降。

Gross margin in the second quarter increased slightly to 51% from 50.7% in the prior quarter. As Wallace had discussed earlier, our better gross margin compared to guidance came from the execution of our 4-pronged initiatives of up-selling, a richer mix of products, optimizing product allocation, better pricing discipline and the tuning of manufacturing processes. Operating expenses in the second quarter were $48.4 million, $4.5 million higher than the prior quarter, primarily from higher compensation accruals.

第二季度的毛利率從上一季度的 50.7% 小幅上升至 51%。正如華萊士之前所討論的那樣，與指導相比，我們更好的毛利率來自我們四管齊下的向上銷售計劃的執行、更豐富的產品組合、優化產品分配、更好的定價紀律和製造流程的調整。第二季度的運營費用為 4840 萬美元，比上一季度增加 450 萬美元，主要是由於應計薪酬增加。

Operating margin in the second quarter was 29.2%, an increase from 26.6% in the first quarter and up significantly from 22.2% a year ago. Our 29.2% operating margin this quarter is higher than the 26% to 28% guidance due to stronger revenue growth and better gross margin, partially offset by higher operating expenses. We are delivering strong operating leverage and making good progress towards our 30% operating margin target.

第二季度的營業利潤率為 29.2%，高於第一季度的 26.6%，也高於一年前的 22.2%。我們本季度 29.2% 的營業利潤率高於 26% 至 28% 的指導，這是由於收入增長強勁和毛利率提高，部分被更高的營業費用所抵消。我們正在提供強大的運營槓桿，並在實現 30% 的運營利潤率目標方面取得了良好進展。

Our effective tax rate in the second quarter was 18.6%, slightly lower than our 20% tax rate guidance. Stock-based compensation in our operating expense, which we exclude from our non-GAAP results, was $2.4 million in the second quarter, within our guidance of $2 million to $3 million. We had $412.3 million of cash, cash equivalents, restricted cash and short-term investments at the end of the second quarter compared to $371 million at the end of the first quarter. We paid $12.2 million in dividend to shareholders, the third quarterly installment of our $1.40 per ADS annual dividend that was announced last October.

我們第二季度的有效稅率為 18.6%，略低於我們 20% 的稅率指導。我們從非 GAAP 結果中排除的基於股票的營業費用補償在第二季度為 240 萬美元，在我們 200 萬至 300 萬美元的指導範圍內。與第一季度末的 3.71 億美元相比，第二季度末我們擁有 4.123 億美元的現金、現金等價物、受限制的現金和短期投資。我們向股東支付了 1220 萬美元的股息，這是我們去年 10 月宣布的每 ADS 年度股息 1.40 美元的第三季度分期付款。

Now let me turn to our third quarter and full year guidance and forward-looking business trends. For the third quarter, we expect revenue to increase 7.5% to 12.5% sequentially to approximately $238 million to $249 million. We expect revenue growth from continued strong SSD controllers and eMMC+UFS controller sales, partially offset by declining SSD solution sales.

現在讓我談談我們的第三季度和全年指導以及前瞻性業務趨勢。對於第三季度，我們預計收入將環比增長 7.5% 至 12.5%，達到約 2.38 億美元至 2.49 億美元。我們預計持續強勁的 SSD 控制器和 eMMC+UFS 控制器銷售將帶來收入增長，部分被 SSD 解決方案銷售下滑所抵消。

Third quarter gross margin is expected to be in the range of 48.5% to 50.5%, which is significantly higher than our gross margin outlook 3 months ago and the result of the execution of our 4-prong initiative, which Wallace discussed previously. Third quarter operating margin should be in the range of 27.5% to 29.5%. In the third quarter, we expect stock-based compensation in the range of $4.6 million to $5.6 million.

第三季度毛利率預計在 48.5% 至 50.5% 之間，這大大高於我們 3 個月前的毛利率預期，也是執行我們四管齊下計劃的結果，華萊士之前曾討論過。第三季度營業利潤率應在 27.5% 至 29.5% 之間。第三季度，我們預計股票薪酬在 460 萬至 560 萬美元之間。

For the full year 2021, we are now expecting the following: revenue is now expected to grow in the range of 65% to 70% to $890 million to $917 million. Our full year gross margin is now expected to be in the range of 49.5% to 50.5% range, again, much higher than our full year gross margin previously provided 3 months ago and the successful result of the execution of our 4-prong initiatives, which Wallace had previously discussed. Fourth quarter gross margin should be flat sequentially.

對於 2021 年全年，我們現在預計如下：收入現在預計將增長 65% 至 70%，達到 8.9 億至 9.17 億美元。我們的全年毛利率現在預計在 49.5% 至 50.5% 的範圍內，再次遠高於我們 3 個月前提供的全年毛利率以及我們執行四項舉措的成功結果，華萊士之前曾討論過。第四季度毛利率應環比持平。

Operating margin is expected to be in the range of 27.5% to 29.5%, up sharply from 21.8% last year, up further from our previous guidance and approaching our 30% target. For the full year, we expect stock-based compensation in the range of $18 million to $20 million, more than the prior year. We expect our effective tax rate for the year to be about 20%, similar to our year-to-date rate.

營業利潤率預計在 27.5% 至 29.5% 之間，較去年的 21.8% 大幅上升，進一步高於我們之前的指引並接近我們 30% 的目標。對於全年，我們預計股票薪酬在 1800 萬至 2000 萬美元之間，高於上一年。我們預計今年的有效稅率約為 20%，與年初至今的稅率相似。

To conclude, this year, we will be able to power ahead and pull in our strategic sales and profitability targets without additional incremental foundry wafer supply. Let me reiterate that by the fourth quarter of this year, we will likely meet or meet on a run rate basis, our $1 million -- $1 billion sales target. This $1 billion run rate is the foundation on top of which we expect to add strong sales growth from committed incremental foundry wafer capacity next year and the continued up-selling of a richer product mix. Already, our order book for next year is at least $1.5 billion, and our team is currently working to ensure we can deliver this.

總而言之，今年，我們將能夠在沒有額外增量代工晶圓供應的情況下繼續推進並實現我們的戰略銷售和盈利目標。讓我重申，到今年第四季度，我們很可能會達到或按運行率達到我們 100 萬至 10 億美元的銷售目標。這 10 億美元的運行率是我們預計明年承諾增加的代工晶圓產能以及更豐富的產品組合的持續追加銷售將帶來強勁銷售增長的基礎。我們明年的訂單已經至少達到 15 億美元，我們的團隊目前正在努力確保我們能夠實現這一目標。

Next quarter, we will provide an update on our work. And at the start of next year, we will provide our official 2022 revenue guidance. Additionally, we continue to invest resources to expand our pipeline of R&D activities relating to our core SSD, eMMC and UFS controllers as well as expansion into new applications, such as automotive.

下個季度，我們將提供工作的最新情況。明年年初，我們將提供 2022 年的官方收入指導。此外，我們繼續投入資源以擴大與我們的核心 SSD、eMMC 和 UFS 控制器相關的研發活動渠道，並擴展到汽車等新應用。

This concludes our prepared remarks, and we will now open the call to your questions.

我們準備好的發言到此結束，現在我們將開始回答您的問題。

(Operator Instructions) First question comes from the line of Rajvindra of Needham and Company.

（操作員說明）第一個問題來自 Needham and Company 的 Rajvindra。

Yes. Congratulations on the great momentum that you're seeing. When you're indicating that your order book now points to $1.5 billion, I'm wondering if you could elaborate further on what you're seeing within that order book. What's driving the uptick in the growth? And then secondly, can you talk about your conversations with TSMC regarding capacity allocation next year? What have those conversations been like? How much capacity has been allocated to support those targets?

是的。祝賀你看到的巨大勢頭。當你表示你的訂單簿現在指向 15 億美元時，我想知道你是否可以進一步詳細說明你在該訂單簿中看到的內容。是什麼推動了增長的上升？其次，您能否談談您與台積電就明年的產能分配進行的對話？這些談話是什麼樣的？為支持這些目標分配了多少容量？

I think regarding from our order book, $1.5 billion, majority come from OEM projects and some come from the order, the backlog we cannot ship this year. So we have a solid $1.5 billion. By end of this year, we believe we should see even much higher in our backlog. Regarding the discussion with the TSMC, as you -- everybody know, TSMC probably has announced they see the wafer allocation will continue through the 2021, also to entire 2022 because all the new investment probably will not contribute (inaudible) mature technology until 2023.

我認為從我們的訂單來看，15 億美元，大部分來自 OEM 項目，還有一些來自訂單，我們今年無法發貨的積壓訂單。所以我們有 15 億美元。到今年年底，我們相信我們的積壓量應該會更高。關於與台積電的討論，眾所周知，台積電可能已經宣布他們認為晶圓分配將持續到 2021 年，甚至整個 2022 年，因為所有新投資可能要到 2023 年才會貢獻（聽不清）成熟技術。

With the incremental company wafer supply, we have confidence to increase our sales revenue to grow in 2022 with fair amount of percentage. However, we will continue to negotiate discovery TSMC and other foundry maker to increase wafer supply in order to meet the very large amount of demand from our worldwide customers.

隨著公司晶圓供應的增加，我們有信心增加我們的銷售收入，以在 2022 年以合理的百分比增長。然而，我們將繼續與台積電和其他晶圓代工商談判，以增加晶圓供應，以滿足我們全球客戶的大量需求。

With respect to the upside in gross margins that you're seeing in the quarter. I'm wondering how sustainable that gross margin shift is. You mentioned in the press release a shift towards higher-value products, higher -- you're now engaging in where you can actually increase the price. I think that's a change to what you talked about before where I believe the pricing was set in some of these contracts. So maybe you could talk a little bit about those 2 dynamics in terms of pricing and also in terms of mix of higher, richer mix of products?

關於您在本季度看到的毛利率的上升空間。我想知道毛利率變化的可持續性如何。你在新聞稿中提到了向更高價值產品的轉變，更高——你現在正在從事可以實際提高價格的地方。我認為這改變了你之前所說的，我認為其中一些合同的定價是確定的。那麼，也許您可以在定價方面以及在更高、更豐富的產品組合方面談談這兩種動態？

Rajiv, we feel very good about our current situation. With the rollout of the initiatives that Wallace had pointed out earlier, focusing on up-selling a richer mix of products, allocating more products to higher-margin accounts and where possible repricing products to cover our higher manufacturing costs, these are all initiatives that we're already executing, and we'll continue to execute throughout the rest of the year and into next year.

拉吉夫，我們對目前的情況感覺很好。隨著華萊士早些時候指出的舉措的推出，專注於向上銷售更豐富的產品組合，將更多產品分配給利潤率更高的客戶，並在可能的情況下重新定價產品以支付我們更高的製造成本，這些都是我們的舉措已經在執行，我們將在今年剩餘時間和明年繼續執行。

So we feel very good about our gross margins at today's levels, extending through this year and into next year. And possibly, if there are opportunities, we'd love to take up our gross margin even more than where we are indicating, but there's a lot of work to do. And for what we're doing right now the gross margin guidance that we just talked about, those are numbers that we feel fairly comfortable about.

因此，我們對今天的毛利率感到非常滿意，從今年一直延續到明年。並且可能，如果有機會，我們很樂意將毛利率提高到比我們所指示的水平更高的水平，但是還有很多工作要做。對於我們現在正在做的事情，我們剛剛談到的毛利率指導，這些數字讓我們感到相當舒服。

Next question is from the line of Anthony Stoss of Craig-Hallum.

下一個問題來自 Craig-Hallum 的 Anthony Stoss。

Riyadh, probably for you. Can you give us a breakdown of your non kind of notebook business? What percent of revenues that might be, the IoT bucket, if you will, what kind of growth rates you're seeing? And then I had a follow-up after that.

利雅得，可能適合你。您能否向我們介紹一下您的非筆記本電腦業務？如果你願意，物聯網桶可能佔收入的百分比是多少，你看到什麼樣的增長率？之後我進行了跟進。

Right. So for the notebooks products primarily related to eMMC+UFS as our SSD controllers are very PC -- notebook PC-oriented. Now for the eMMC+UFS, they were about 25% to 30% of sales last year, and we expect this to inch up this year given the very strong growth. And within that bucket, a large part of it is smartphone, but we also have a lot of eMMC going into non-smart applications. Was that -- I mentioned a long list of those applications are very popular with consumers, including smart TVs and other application, smart speakers. So these are products that are still growing, and we expect this part of the market to continue to grow modestly over the foreseeable future.

正確的。所以對於筆記本產品主要與eMMC+UFS相關，因為我們的SSD控制器非常PC——面向筆記本電腦。現在，對於 eMMC+UFS，它們大約佔去年銷售額的 25% 到 30%，鑑於非常強勁的增長，我們預計今年這一比例會有所上升。在這個桶中，很大一部分是智能手機，但我們也有很多 eMMC 進入非智能應用程序。那是——我提到了一長串非常受消費者歡迎的應用程序，包括智能電視和其他應用程序、智能揚聲器。所以這些產品仍在增長，我們預計這部分市場在可預見的未來將繼續溫和增長。

Okay. And then just as a follow-up, the question that I get asked most from investors and increasing amounts recently is a share buyback. You have incredible visibility. You're talking about a order book of over $1.5 billion heading into next year, 3 years worth of visibility, you've got your stock trading at an 8 [PEX] cash. It just astounds me and investors that you guys haven't initiated a share buyback. So I'm hoping your Board has listened to this call, and I'd love to hear your thoughts on why you haven't initiated a share buyback.

好的。然後作為後續行動，投資者問我最多而且最近問得越來越多的問題是股票回購。你有令人難以置信的能見度。你說的是明年超過 15 億美元的訂單，3 年的知名度，你的股票交易價格為 8 [PEX] 現金。你們還沒有發起股票回購，這讓我和投資者感到震驚。所以我希望你們的董事會已經聽取了這次電話會議，我很想听聽你們對為什麼你們還沒有啟動股票回購的想法。

Tony, our primary means of returning capital to shareholders is from our dividend payments. And historically, we paid up to half of our free cash flow. Given our very strong operating performance and good visibility into 2022, it is likely that our Board during the next dividend declaration in October, they could consider something, a dividend higher than what we paid last year.

托尼，我們向股東返還資本的主要方式是支付股息。從歷史上看，我們支付了高達一半的自由現金流。鑑於我們非常強勁的經營業績和對 2022 年的良好預見性，我們的董事會很可能在 10 月份的下一次股息宣布中考慮一些事情，即高於我們去年支付的股息。

Next question is from the line of Craig Ellis of B. Riley Securities.

下一個問題來自 B. Riley Securities 的 Craig Ellis。

Congratulations on the very strong performance in the business. I wanted to start with a question for Wallace. And Wallace, what I want to do is kind of pick up where I left off on the last quarter's call where I inquired about really the trends you were seeing as more of your customers look to outsource eMMC controllers and you lined up with a dominant share of the market like you talked about again today.

祝賀您在業務中的強勁表現。我想先問華萊士一個問題。華萊士，我想做的是在上個季度的電話會議上我停下來的地方繼續，我詢問了你所看到的真正趨勢，因為越來越多的客戶希望外包 eMMC 控制器，而你已經佔據了主導份額像你今天再次談到的市場。

And the question is a little bit different, and it focuses on the SSD controller opportunities. Given the very robust outlook you have for PCIe Gen4, do you get the sense that more of the NAND OEMs are starting to outsource more of their controller work? And to the extent that they are, to what extent do you think you're going to benefit or benefit disproportionately from such a move?

問題有點不同，它側重於 SSD 控制器機會。鑑於您對 PCIe Gen4 的非常樂觀的前景，您是否感覺到更多的 NAND OEM 開始外包更多的控制器工作？就他們的程度而言，您認為您將從這樣的舉措中受益或不成比例地受益到什麼程度？

It's a very good question. In general, we see NAND maker, they all want to maximize their NAND day solution profitability. For eMMC, it's very natural because eMMC, the every (inaudible) is small. Maximum is 64 gigabyte. It's very few in 120 gigabyte. We see a lot of the even 32 gigabyte application. So NAND maker, they also see the wafer supply constrained. So they move out the wafer, variable wafer move to higher density solid product. That's why we see tremendous demand from eMMC controller to our company. It doesn't matter from NAND maker, our leading module maker, we have much more than we can supply and support. But we will continue the effort and try to not industrial breakdown for eMMC solution to many, many consumer electronic devices.

這是一個很好的問題。一般來說，我們看到NAND maker，他們都希望最大化他們的NAND day solution的盈利能力。對於 eMMC，這是很自然的，因為 eMMC，每個（聽不清）很小。最大為 64 GB。它在 120 GB 中非常少。我們看到很多甚至 32 GB 的應用程序。所以NAND製造商，他們也看到晶圓供應受限。因此，他們將晶圓移出，將可變晶圓移至更高密度的固體產品。這就是為什麼我們看到 eMMC 控制器對我們公司的巨大需求。 NAND 製造商，我們領先的模塊製造商並不重要，我們擁有的供應和支持遠遠超過我們的能力。但我們將繼續努力，並努力使 eMMC 解決方案不會出現工業故障，適用於許多消費電子設備。

For SSD, that's another story, because we do see NAND makers, they have a tendency to start to outsource mainstream and value line project to third-party like Silicon Motion because we have a strong track record with long history with all NAND makers that we become the default standard candidate to take the opportunity. Frankly speaking, today, we have a more (inaudible) opportunity than we can -- we are resorting support. So this is very, very important moment. We'll continue to grow and recruit talent and R&D to join us and continue work on our really new project to make it successful.

對於 SSD，這是另一回事，因為我們確實看到 NAND 製造商，他們傾向於開始將主流和價值線項目外包給像 Silicon Motion 這樣的第三方，因為我們在所有 NAND 製造商方面都有良好的業績記錄和悠久的歷史成為默認的標準候選人，藉此機會。坦率地說，今天，我們有更多的（聽不清）機會——我們正在尋求支持。所以這是非常非常重要的時刻。我們將繼續發展並招募人才和研發人員加入我們，並繼續致力於我們真正的新項目以使其取得成功。

It's very, very important is because the new generation of technology for NAND beyond 128-layer or even beyond 200-layer [SoC] is very critical for controller maker have deep knowledge work closely with the NAND maker, so we can provide sufficient compensation for NAND endurance and retention. This is very, very important. We can work closely with NAND maker deliver various profound solution to the OEM customer as well as consumer.

這非常非常重要，因為新一代NAND技術超過128層甚至超過200層[SoC]非常關鍵，控制器製造商有深厚的知識與NAND製造商密切合作，因此我們可以提供足夠的補償NAND 耐用性和保留。這非常非常重要。我們可以與 NAND 製造商緊密合作，為 OEM 客戶和消費者提供各種深刻的解決方案。

So this is a great opportunity. We see the trend will continue, and we are in a very favorable position to take the opportunity on all source opportunity from NAND makers.

所以這是一個很好的機會。我們看到這種趨勢將繼續下去，我們處於非常有利的位置，可以抓住 NAND 製造商所有來源的機會。

That's really helpful color. And then for my follow-up question, I wanted to flip it over to Riyadh. Very helpful framework that you've provided and that Wallace has provided on the factors that are leading to higher gross margin. And Riyadh, my question is for the change in gross margin in the back half of the year that we're seeing very significant improvement from prior expectations, what's the relative contribution from each of the 4 factors that were mentioned? And as we look to calendar '22, which of those factors has the greatest potential? And how significant would that be for further gross margin improvement?

那是非常有用的顏色。然後對於我的後續問題，我想把它交給利雅得。您提供的非常有用的框架以及華萊士提供的關於導致更高毛利率的因素的框架。利雅得，我的問題是今年下半年毛利率的變化，我們看到與之前的預期相比有非常顯著的改善，提到的 4 個因素中的每一個的相對貢獻是什麼？當我們展望 22 年日曆時，哪些因素具有最大的潛力？這對進一步提高毛利率有多大意義？

Craig, the largest piece relates to our product mix, which also includes our allocation of products towards higher accounts. The initiatives relating to these moves have been the biggest driver in terms of contributing to higher gross margin. But that said, where possible we also seek to reprice our products to better reflect the higher cost of our products that we're seeing going into what we need to do to deliver.

克雷格，最大的部分與我們的產品組合有關，其中還包括我們將產品分配給更高的客戶。與這些舉措相關的舉措是提高毛利率的最大推動力。但話雖如此，我們也會在可能的情況下尋求重新定價我們的產品，以更好地反映我們正在看到的產品的更高成本，這些成本將進入我們需要做的交付。

Our next question is from the line of Karl Ackerman of Cowen & Company.

我們的下一個問題來自 Cowen & Company 的 Karl Ackerman。

This is Eddie for Karl Ackerman. I have a couple of questions. There have been reports that your largest foundry partner will increase 28-nanometer capacity from 40,000 to 100,000 wafers per month by the end of this year. While that should enable you to fulfill existing customer orders, have you seen any indication from NAND OEMs reversing earlier decisions to outsource to you next year as incremental capacity on the line?

這是卡爾阿克曼的埃迪。我有一些問題。有報導稱，你們最大的晶圓代工合作夥伴將在今年年底之前將 28 納米產能從每月 40,000 片提高到 100,000 片晶圓。雖然這應該使您能夠履行現有的客戶訂單，但您是否看到 NAND OEM 有任何跡象表明他們改變了早先的決定，明年將外包給您作為生產線的增量容量？

I cannot comment for TSMC because they have their re-capacity guidance and because some factory expansion also relate to some political issue, and we really have no insight, sorry. However, we do know the -- we do have many opportunities come from NAND maker or directly from major OEM customers, including the very large-scale customer from automotive as well as other sectors. Now it's really how we really can manage so many opportunities under the supply shortage condition, it has to be very careful to make a decision because when we commit, we have put out the resource, development, IP, support development, quality people, everything and count.

我不能對台積電發表評論，因為他們有他們的重新產能指導，因為一些工廠擴張也涉及一些政治問題，我們真的沒有見識，抱歉。然而，我們確實知道——我們確實有很多機會來自 NAND 製造商或直接來自主要 OEM 客戶，包括來自汽車和其他行業的超大規模客戶。現在真的是我們如何在供應短缺的情況下管理這麼多機會，必須非常謹慎地做出決定，因為當我們承諾時，我們已經投入了資源、開發、IP、支持開發、高素質的人才，一切併計數。

And we have to make sure to use our R&D resources wisely in order to get a sufficient financial return. It's very, very important. We don't really worry about the business today. We just -- our constraint is the wafer supply. So that's the most important thing we should focus on and to secure more supply in order to meet customers' demand for next year and 2023.

我們必須確保明智地使用我們的研發資源，以獲得足夠的財務回報。這非常非常重要。我們今天並不真正擔心業務。我們只是 - 我們的限制是晶圓供應。因此，這是我們應該關注的最重要的事情，並確保更多的供應，以滿足客戶明年和 2023 年的需求。

Eddie, let me also add with the investments at TSMC have been announcing, we do not believe it's going to change the direction of our NAND partners outsourcing to us. The reason Wallace had talked about earlier.

Eddie，讓我再補充一下台積電已經宣布的投資，我們認為這不會改變我們的 NAND 合作夥伴外包給我們的方向。華萊士剛才說的原因。

No, that's great. And another question is NAND demand appears to further outset supply and our field work indicates NAND OEMs are prioritizing high-capacity SSDs. Now in the past, as NAND capacity has (inaudible) OEMS, enterprise SSAs and that became a growth challenge for you, may you address why that reasoning may not make sense in the current environment. Congrats on the results.

不，那太好了。另一個問題是 NAND 需求似乎進一步超過供應，我們的實地調查表明 NAND OEM 正在優先考慮高容量 SSD。現在在過去，由於 NAND 容量有（聽不清）OEM、企業 SSA，這對您來說是一個增長挑戰，請您解釋一下為什麼這種推理在當前環境中可能沒有意義。祝賀結果。

This year, it's the underlying condition that we're facing for our business is more about the supply picture. We have demand that is significantly outstripping our ability to deliver. So the underlying conditions on the NAND flash dynamics side of industry conditions, whether their allocation is more towards enterprise or into other application, those decisions have no real material impact to our business as it relates to the shifting of the demand picture. Right now, the key focus for us is about the supply side, how we can drive more products given the supply capacity that we have on hand.

今年，我們業務面臨的基本條件更多是關於供應情況。我們的需求大大超出了我們的交付能力。因此，行業條件的 NAND 閃存動態方面的基本條件，無論是更多地分配給企業還是分配給其他應用程序，這些決定對我們的業務沒有真正的實質性影響，因為它與需求圖的轉變有關。目前，我們的重點是供應方面，即我們如何在現有供應能力的情況下推動更多產品。

Next question is from the line of Suji Desilva of ROTH Capital.

下一個問題來自 ROTH Capital 的 Suji Desilva。

Congratulations on the momentum here. So given the NAND supply demand situation, I'm wondering if the mix of OEM versus module maker is higher historically if you're leaning your shipments toward OEM. And if that's one of the factors in the gross margin tailwind that might correct back if module makers get allocation into the future?

祝賀這裡的勢頭。因此，鑑於 NAND 供需情況，我想知道如果您將出貨量傾向於 OEM，那麼 OEM 與模塊製造商的組合是否在歷史上更高。如果模塊製造商獲得未來的分配，這是否是毛利率順風因素之一可能會修正？

I think it's a very good question. I think every company has to make the wise choice, but keep a balance. Definitely OEM project is more important because we have to allocate sufficient wafer and to supply the OEM project because that's what we commit. At the same time, we also want to balance module maker. We don't want the majority margin maker die because many of them being with us for 16 or 18 years. I think we really have a look at the product itself and important for the supply chain.

我認為這是一個很好的問題。我認為每個公司都必須做出明智的選擇，但要保持平衡。絕對OEM項目更重要，因為我們必須分配足夠的晶圓並提供OEM項目，因為這是我們的承諾。同時，我們也想平衡模塊製造商。我們不希望多數利潤製造者死去，因為他們中的許多人已經和我們在一起 16 或 18 年了。我認為我們真正了解了產品本身並且對供應鏈很重要。

If the customer -- the (inaudible) customer, they have multiple stores, sometimes we will try to reduce the weight. But really, we are sole supplier, we have to make sure we can meet to fulfill the supply. It's a pretty complicated decision equation. But through that, we also will review all of the gross margin from -- among all the products and put as a priority. So this is the thing we feel very comfortable because it doesn't matter every customer, I think they all based small percentage, a large percentage shortly from Silicon Motion. We feel very sorry for that situation. That's why we work very hard to try to secure more wafer to meet the customer demand.

如果客戶——（聽不清）客戶，他們有多家商店，有時我們會嘗試減輕重量。但實際上，我們是唯一的供應商，我們必須確保我們能夠滿足供應。這是一個相當複雜的決策方程。但通過這種方式，我們還將審查所有產品的所有毛利率，並將其作為優先事項。所以這是我們感到非常舒服的事情，因為每個客戶都無關緊要，我認為他們都基於一小部分，很快來自 Silicon Motion 的很大一部分。我們對這種情況感到非常抱歉。這就是為什麼我們非常努力地嘗試獲得更多晶圓以滿足客戶需求的原因。

Suji, let me also add, some of our module makers are now very large and very sophisticated and our ability to -- and are already engaged in taking projects with OEMs like the PC OEMS. And so for these large sophisticated module makers, we don't treat them any differently than the NAND flash makers. And the level of profitability, it really depends on the projects. It doesn't necessarily mean that the profitability is better with one class of customers or the other. It really is the value asset that we are bringing that matters.

Suji，我還要補充一點，我們的一些模塊製造商現在非常龐大且非常複雜，我們有能力——並且已經參與了與 PC OEM 等 OEM 的項目合作。因此，對於這些大型精密模塊製造商，我們對待他們的方式與 NAND 閃存製造商沒有任何區別。而盈利水平，實際上取決於項目。這並不一定意味著一類客戶或另一類客戶的盈利能力更好。真正重要的是我們帶來的價值資產。

Okay. (inaudible). And then the SSD solutions business, trying to understand where the Shannon revenue level is now? Is that going to have a further step down as you kind of manage away from that? And what the margin implications there? I imagine that's also a lower-margin business that you'd be moving away from?

好的。 （聽不清）。然後是 SSD 解決方案業務，試圖了解 Shannon 現在的收入水平在哪裡？當您設法擺脫它時，它會進一步下降嗎？那裡的保證金影響是什麼？我想這也是您要放棄的利潤率較低的業務？

Regarding Shannon business, our really main goal this year and net transition has really maintained the relationship with the customer because it's also Shannon some NAND procurement also is challenging. We do not want to grow Shannon business due to lower margin to dilute overall gross margin. But however, we have maintained certain important part in gate with Alibaba, Baidu, and our major customer, make sure that our development technology will continue waiting for our really Gen5 major controller coming and to shine the market.

關於Shannon業務，我們今年真正的主要目標和net transition確實保持了與客戶的關係，因為它也是Shannon，一些NAND採購也很有挑戰性。我們不希望由於較低的利潤率而增加香農業務以攤薄整體毛利率。但是，我們與阿里巴巴、百度和我們的主要客戶保持了一定的重要聯繫，確保我們的開發技術將繼續等待我們真正的 Gen5 主控制器的到來並閃耀市場。

But I think it's also due to -- because we have a wafer constraint, wafer allocation. That's why we have to allocate carefully that we have so many OEM demand from NAND maker as well PC OEM and smartphone customers.

但我認為這也是由於 - 因為我們有晶圓限制，晶圓分配。這就是為什麼我們必須謹慎分配，因為我們有來自 NAND 製造商以及 PC OEM 和智能手機客戶的大量 OEM 需求。

Next question is from the line of Mehdi Hosseini of SIG.

下一個問題來自 SIG 的 Mehdi Hosseini。

A couple of follow-ups. And thanks for -- and also, thanks for providing visibility into '22 with minimum revenue of $1.5 billion. And the question I have here is what are the key growth assumptions for different sectors? And if you don't want to elaborate, how should I think about the fastest growth versus the relatively lower growth segment?

一些後續行動。並感謝 - 也感謝您以 15 億美元的最低收入提供對 22 年的了解。我的問題是不同行業的關鍵增長假設是什麼？如果你不想詳細說明，我應該如何考慮增長最快的部分與增長相對較低的部分？

I will say our client revenue will continue to grow. Although PCIe Gen3 next year growth rate will be modestly, but PCIe Gen4 will grow very strong to carry because we have a very large design share in PC OEM. We stated almost 50% higher by end of the next year so that we have 8 different customer, 5 on NAND maker with our Gen4 controller and ramping next year. For eMMC+UFS, we also will grow very, very strongly.

我會說我們的客戶收入將繼續增長。雖然 PCIe Gen3 明年的增長率會適度，但 PCIe Gen4 的增長將非常強勁，因為我們在 PC OEM 中擁有非常大的設計份額。我們表示到明年年底將提高近 50%，因此我們有 8 個不同的客戶，其中 5 個是 NAND 製造商，他們使用我們的 Gen4 控制器並在明年增加。對於eMMC+UFS，我們也會增長得非常非常強勁。

It also depend how many wafer we can secure. We say it's going not to grow for a certain level, we guarantee is exceed the $1 billion of revenue next year. But we think the backlog will continue to pile up by end of this year. But we'll continue to work very hard to secure more wafer, especially in mature technology because many eMMC are in 55, 40-nanometer and 28-meter. These mature technology wafer are in severe allocation from all foundry makers. So this is very critical, how fast we can porting, work with TSMC as well as other foundry maker that can grow overall the eMMC+UFS business.

這也取決於我們能獲得多少晶圓。我們說它不會增長到一定水平，我們保證明年的收入超過 10 億美元。但我們認為，到今年年底，積壓將繼續堆積。但我們將繼續非常努力地工作以確保獲得更多晶圓，尤其是在成熟技術方面，因為許多 eMMC 處於 55、40 納米和 28 米。這些技術成熟的晶圓，正由各晶圓代工廠商嚴格分配。所以這是非常關鍵的，我們能以多快的速度移植，與台積電以及其他可以整體發展 eMMC+UFS 業務的代工製造商合作。

Wallace, PCIe 4.0 is used for commercial segment of the notebook, is that correct?

華萊士，PCIe 4.0 用於筆記本的商用部分，對嗎？

It's used both commercial and consumer. We have 2 generations of mentioned PCIe Gen4 controller. One use 28-nanometer, one use 12-nanometer. This year, we're ramping with more 28-nanometer next year, majority will be transitioned to 12-nanometer.

它用於商業和消費者。我們有 2 代提到的 PCIe Gen4 控制器。一種使用 28 納米，一種使用 12 納米。今年，我們將在明年推出更多 28 納米，大部分將過渡到 12 納米。

Sure. I think what I was trying to highlight is there is a concern that a consumer notebook like Chromebook may roll over. It can't grow 20%-some plus per year in the perpetuity. But I think commercial segment, which has been relatively quiet or muted, could turn on, and that's a significant positive catalyst for Silicon Motion. Am I thinking about this the right way?

當然。我想我想強調的是，有人擔心像 Chromebook 這樣的消費類筆記本電腦可能會翻車。它不可能永遠每年增長 20% 甚至更多。但我認為一直相對安靜或靜音的商業部門可能會開啟，這對 Silicon Motion 來說是一個重要的積極催化劑。我是不是以正確的方式思考這個問題？

Let me just try to get it straight. Chromebook this year, the total volume which is around 40 million to 50 million units is really small. And majority use eMMC, not SSD, they're using (inaudible) SSD. And we are in a very small portion in the Chromebook today and the Chromebook going up and going down have relatively no impact to our business. And for SSD, we talk about really for mainstream notebook. And for both commercial for corporate accounts of consumer notebook. So that is to use M.2 SSD. And that portion, I think, will grow very strongly and consistently without the top 5 PC OEMs.

讓我試著把它弄直。 Chromebook今年4000萬到5000萬台的總出貨量實在是少之又少。大多數人使用 eMMC，而不是 SSD，他們使用的是（聽不清）SSD。我們今天在 Chromebook 中只佔很小的一部分，Chromebook 的上升和下降對我們的業務相對沒有影響。而SSD，我們說的是真正的主流筆記本。並且對於消費者筆記本電腦的企業賬戶都是商業的。那就是使用M.2 SSD。我認為，如果沒有前 5 名 PC 原始設備製造商，那部分將非常強勁且持續地增長。

Sure. Got it. And then one follow-up for Riyadh. Is it a product mix that is going to put a lid on the gross margin in the back half of the year despite sequential revenue growth? It seems like margins are going to calm down. And I'm just trying to better understand, is that because of a higher base? Is that because of the mix? Or is it just your year-end gross margin operating margin guide is conservative?

當然。知道了。然後是利雅得的後續行動。儘管收入連續增長，但這種產品組合是否會限制下半年的毛利率？利潤率似乎要平靜下來。我只是想更好地理解，這是因為更高的基數嗎？是混血的原因嗎？或者只是你的年終毛利率營業利潤率指南是保守的？

Mehdi, our gross margin expectations for the second half of the year is going to be significantly higher than what we had originally guided. But obviously, we still have a lot of work to do. We love to take our gross margin even higher than what we've just talked about. And so this is going to be coming from the continued execution of the initiatives that -- the 4-prong initiatives that Wallace had talked about relating to up-selling our product mix to richer product mix, relating to how we allocate towards higher-margin accounts, more profitable accounts relating to the ability to reprice our products where possible to reflect the higher costs that we have in our products.

Mehdi，我們對今年下半年的毛利率預期將大大高於我們最初的指導。但顯然，我們還有很多工作要做。我們喜歡把我們的毛利率提高到比我們剛剛談到的更高的水平。因此，這將來自於這些舉措的持續執行——華萊士談到的與將我們的產品組合向上銷售到更豐富的產品組合有關的 4 管齊下的舉措，與我們如何分配給更高利潤的產品有關帳戶，與在可能的情況下重新定價我們的產品以反映我們產品中更高的成本的能力相關的更有利可圖的帳戶。

And furthermore, we're also working -- our operations team are also working very hard to see how we can better debottleneck our processes with our contract manufacturer for backend services. So all 4 of these are still in execution. And the more we are able to work our initiatives, the better our gross margin could be. But as a baseline, the gross margins we talked about are what we're guiding. And if we can execute even better, we'd love to take up our gross margin higher than what we decided.

此外，我們也在努力——我們的運營團隊也在非常努力地工作，看看我們如何才能更好地消除我們與合同製造商的後端服務流程的瓶頸。所以所有這 4 個仍在執行中。我們越能實施我們的計劃，我們的毛利率就越高。但作為基準，我們談到的毛利率就是我們的指導。如果我們能執行得更好，我們很樂意將毛利率提高到比我們決定的更高的水平。

Sure. And on the execution side, you're executing flawlessly on managing working capital. Your free cash flow margin for the June quarter was 25%. You have grown cash. And if I just take your base assumption for '22 of $1.5 billion of revenue, your cash could go towards mid-teens, $15 net cash per share. And I know the question came up earlier, but I'm going to ask it again. Is there something you can offer us, why not become more aggressive with buyback? Or why not consider a strategic options because the cash is going up, valuation not changing, and I'm just trying to think how the management team is thinking about reconciling execution, free cash flow margin with the valuation on share price.

當然。在執行方面，您在管理營運資金方面執行得非常完美。您在 6 月季度的自由現金流利潤率為 25%。你增加了現金。而且，如果我只採用您對 22 年 15 億美元收入的基本假設，您的現金可能會達到 15 美元左右，每股淨現金 15 美元。我知道這個問題早些時候出現過，但我會再問一遍。您能為我們提供什麼嗎？為什麼不通過回購變得更加積極？或者為什麼不考慮一個戰略選擇，因為現金在上漲，估值沒有變化，我只是想想想管理團隊是如何考慮協調執行、自由現金流利潤率和股價估值的。

So I think, let me just answer the question. I think you're looking for Silicon Motion today, our outstanding share total diluted 35 million shares. So really it's not really very meaningful for us to do share buyback. We -- as Riyadh said, we definitely as the Board, when we have more free cash, we either do more investment for certain MMA or we would have potentially increase the dividend. That is a Board to try to provide to the shareholder. I think this is the direction we think in next quarter is likely to happen, but wait for the next quarter after our Board meeting.

所以我想，讓我來回答這個問題。我想你今天正在尋找 Silicon Motion，我們的已發行股份總數被稀釋了 3500 萬股。所以對我們來說，進行股票回購真的不是很有意義。我們——正如利雅得所說，我們絕對是董事會，當我們有更多的自由現金時，我們要么為某些 MMA 做更多的投資，要么我們可能會增加股息。這是董事會試圖向股東提供的。我認為這是我們認為下個季度可能發生的方向，但要等到下個季度我們的董事會會議之後。

And Mehdi, let me add, basically we've been pretty good about returning capital to shareholders. We typically return up to half of our free cash flow, and we've been doing that, returning half of our free cash flow to shareholders for over the last few years, and we expect to continue that. And for us, the primary means of returning capital to shareholders is through our dividend payments.

邁赫迪，讓我補充一下，基本上我們在向股東返還資本方面做得很好。我們通常會返還最多一半的自由現金流，過去幾年我們一直在這樣做，將一半的自由現金流返還給股東，我們希望繼續這樣做。對我們來說，向股東返還資本的主要方式是通過股息支付。

And so with our upcoming -- we've just paid our third installment of our quarterly dividend. The last one will be coming soon. So by the October of this year, we'll have to decide on our dividend for the upcoming 4 quarters. And at that time, in October, given the strong performance of our business and good visibility into next year, the likelihood of a higher dividend being declared is a good one. And so back to your question about what do we do with our cash, and the answer to you is we will continue to return to our shareholders. And for us, the primary means is through our dividend payments.

因此，隨著我們即將到來的——我們剛剛支付了第三期季度股息。最後一個即將到來。因此，到今年 10 月，我們必須決定未來 4 個季度的股息。那時，在 10 月份，鑑於我們的業務表現強勁以及對明年的良好可見性，宣布更高股息的可能性很大。回到你關於我們如何處理我們的現金的問題，你的答案是我們將繼續回報我們的股東。對我們來說，主要手段是通過我們的股息支付。

Our next question is from the line of Gokul Hariharan of JPMorgan.

我們的下一個問題來自摩根大通的 Gokul Hariharan。

Congrats on the great results. First of all, Wallace or Riyadh, could you talk a little bit about the SSD controller market? You're growing at almost 100% in the first half, looks like the growth rate is still going to continue around the same pace. How much of that is the volume growth? How much of that is pricing roughly? Are we still looking at average ASP per SSD controller in the $4.50 to $5 range? And could you also give us a bit of context in terms of how much market share you have of your addressable market in SSD controllers, in consumer SSD controllers?

恭喜取得好成績。首先，Wallace 或 Riyadh，您能談談 SSD 控制器市場嗎？上半年你幾乎以 100% 的速度增長，看起來增長率仍將以同樣的速度繼續。其中有多少是銷量增長？其中有多少是粗略的定價？我們是否仍在關注 4.50 美元至 5 美元範圍內的每個 SSD 控制器的平均 ASP？您能否也給我們一些背景信息，說明您在 SSD 控制器、消費類 SSD 控制器的目標市場中擁有多少市場份額？

So we will continue to grow our client SSD controller business. We outperformed in the market growth. But we cannot comment regarding ASP dollars, but what we can assure you, the PCIe Gen3 is higher than SATA controller, the PCIe Gen4 also higher than PCIe Gen3. So we definitely expect next year because of strong growth for our PCI Gen4. So every ASP for client controller should go higher.

因此，我們將繼續發展我們的客戶 SSD 控制器業務。我們在市場增長方面表現出色。但我們不能對 ASP 價格發表評論，但我們可以向您保證，PCIe Gen3 高於 SATA 控制器，PCIe Gen4 也高於 PCIe Gen3。因此，由於我們的 PCI Gen4 的強勁增長，我們肯定會期待明年。因此，客戶端控制器的每個 ASP 都應該更高。

Regarding the market share, we believe for last year we are around between 25% to 30% market share. This year will grow 5% to 10%. So we roughly -- it's around 35% to 40% range. We have ambition to grow beyond 40% and just depend -- it's really not -- depend how quickly we can build a more R&D team and to serve more demand, especially also with our NAND makers.

關於市場份額，我們認為去年我們的市場份額在 25% 到 30% 之間。今年將增長5%至10%。所以我們粗略地 - 它大約在 35% 到 40% 的範圍內。我們有志於增長超過 40%，並且僅僅取決於——實際上不是——取決於我們能夠多快地建立一個更多的研發團隊並滿足更多的需求，尤其是我們的 NAND 製造商。

Okay. So is it fair to assume that most of the growth this year is coming from units and a little bit of it is coming from mix improvement, not really pricing?

好的。那麼，假設今年的大部分增長來自銷量，而有一小部分來自混合改進，而不是真正的定價，這是否公平？

Also from the mix price improvement.

也來自混合價格的改善。

Okay. Maybe move on to second question. I think you talked about M&A. It feels like one of the problems I think that the market has in terms of evaluating Silicon Motion is that the addressable market is still primarily SSD controller, which I think at least is this limited TAM in terms of units, but obviously there is ASP upgrade. Could you talk about any of the initiatives that Silicon Motion is doing to potentially address some newer addressable market, either an adjacency or something else that you have in mind given that you've executed extremely well in the current SSD controller and eMMC market?

好的。也許轉到第二個問題。我想你談到了併購。我認為市場在評估 Silicon Motion 方面存在的問題之一是可尋址市場仍然主要是 SSD 控制器，我認為至少在單位方面是有限的 TAM，但顯然有 ASP 升級.您能否談談 Silicon Motion 為潛在解決一些較新的可尋址市場而採取的任何舉措，無論是鄰接還是您考慮的其他問題，因為您在當前的 SSD 控制器和 eMMC 市場上表現非常出色？

Gokul, we're doing really well in the client device market, right? So in this part of the market, SSDs already account for 60%, 65% last year. We'll probably up to 75%. But clearly, there is a cap in terms of what's addressable. Same thing with UFS in smartphones. There's still a lot of upside opportunity there. But again, there is a natural cap.

Gokul，我們在客戶端設備市場做得很好，對吧？所以在這部分市場中，SSD已經佔了60%，去年是65%。我們可能會達到 75%。但很明顯，可尋址的內容是有上限的。智能手機中的 UFS 也是如此。那裡仍然有很多上行機會。但同樣，有一個自然上限。

The opportunities that are coming incremental to the client device and to the smartphone for us includes a couple of pieces. The first piece is our enterprise SSD controller market. We've -- year-to-date, we're just getting to our first million milestone. We have our upcoming Gen5. We're still executing with our enterprise-class Gen4.

對我們來說，客戶端設備和智能手機的增量機會包括幾個部分。第一塊是我們的企業級SSD控制器市場。我們已經 - 年初至今，我們剛剛達到我們的第一個百萬里程碑。我們有即將推出的 Gen5。我們仍在執行我們的企業級 Gen4。

So this is a huge blue sky opportunity for us. That will be a big piece of how we continue to grow rapidly beyond when our client-based devices start plateauing. But additionally, in addition to the enterprise-class of SSD controllers, we also have our eMMC products, where with the NAND flash makers exiting -- beginning to exit the low-density applications, this creates an opportunity for us to step in. And we're talking about a 1 billion unit plus opportunity with eMMC.

所以這對我們來說是一個巨大的藍天機會。這將是我們如何在基於客戶端的設備開始趨於穩定之後繼續快速增長的重要組成部分。但除此之外，除了企業級SSD控制器，我們還有我們的eMMC產品，隨著NAND閃存製造商的退出——開始退出低密度應用，這為我們提供了一個介入的機會。和我們談論的是 10 億個單位加上 eMMC 的機會。

And so this is another interesting area for us to step into. Additionally, Wallace also talked extensively about the automotive applications relating to what we can play in. And this is still at a pretty early stage. But already, we're seeing a lot of design activities by the automotive OEMs and their partners, and we've been involved in a lot of these projects.

因此，這是我們要涉足的另一個有趣領域。此外，Wallace 還廣泛討論了與我們可以玩的遊戲相關的汽車應用。這仍處於早期階段。但是，我們已經看到汽車原始設備製造商及其合作夥伴的大量設計活動，並且我們參與了其中的許多項目。

Let me just add some comments. As you see from the business model, traditionally, when a storage product become mature and the NAND maker moving to the new generation and they move into higher density, higher performance. But looking for the eMMC, for example, this is one of a great example today because eMMC, the maximum density, probably 120 gigabyte, majority around 64, 32 or even 16 gigabyte. And there's less interest for the NAND maker because manufacturing cost is similar. But as a financial return, it's very limited.

讓我補充一些評論。正如您從商業模式中看到的那樣，傳統上，當存儲產品變得成熟並且 NAND 製造商轉向新一代時，他們會轉向更高的密度、更高的性能。但是以 eMMC 為例，這是當今一個很好的例子，因為 eMMC 的最大密度可能是 120 GB，大多數在 64、32 甚至 16 GB 左右。而且 NAND 製造商的興趣不大，因為製造成本相似。但作為經濟回報，它是非常有限的。

However, that is a huge -- because they achieve that standard, that's a huge demand from all consumer electronics and growing IoT devices, and we become the seller from merchant controller maker provide solution, right? Our really backlog is at 2x than what we can supply today. So there's quite a lot of things because we continue to develop new controller supporting upcoming new 3D NAND. So that makes us a unique position. NAND maker probably won't use their R&D resources for this kind of a trend because this product is mature.

然而，這是一個巨大的——因為他們達到了那個標準，這是所有消費電子產品和不斷增長的物聯網設備的巨大需求，我們成為賣家，從商戶控制器製造商提供解決方案，對吧？我們真正積壓的數量是我們今天能夠提供的數量的 2 倍。所以有很多事情是因為我們繼續開發支持即將推出的新 3D NAND 的新控制器。因此，這使我們處於獨特的地位。 NAND製造商可能不會將他們的研發資源用於這種趨勢，因為該產品已經成熟。

Same thing for clients being in the future. And we also have some larger important products to do because to really sell revenue is very, very small. We really do not want to talk about it. When it become very mature, and we will try to talk with the investor analysts because I think Silicon Motion, we are not counting on just a few controller, we have a much bigger ambition than where we are today.

對於未來的客戶來說也是如此。而且我們還有一些更大的重要產品要做，因為真正銷售收入非常非常小。我們真的不想談論它。當它變得非常成熟時，我們將嘗試與投資者分析師交談，因為我認為 Silicon Motion，我們不僅僅指望幾個控制器，我們的野心比今天大得多。

Last question is from the line of Matt Bryson of Wedbush Securities.

最後一個問題來自 Wedbush Securities 的 Matt Bryson。

So the prominent -- predominant pushback or concern I hear from investors around SMI is tied to the cyclicality of end markets for NAND. So whether it's PCs, handsets, what have you. Wallace, I think what you've described is a number of secular growth opportunities that are very company-specific, whether it's new Gen4 PCIe customer wins, opportunities you're just talking about in IoT with eMMC, new UFS customers. Is there any way when we look at that order book of $1.5 billion for 2022, you can talk to how much of that incremental -- how much of those incremental orders are tied to new business versus either existing designs or follow-on design to existing designs? Like any characterization you could provide, that would be very helpful.

因此，我從 SMI 周圍的投資者那裡聽到的主要阻力或擔憂與 NAND 終端市場的周期性有關。所以無論是 PC、手機，你有什麼。華萊士，我認為你所描述的是一些非常特定於公司的長期增長機會，無論是新的 Gen4 PCIe 客戶贏得，你剛剛在物聯網中談論的機會與 eMMC，新的 UFS 客戶。當我們查看 2022 年 15 億美元的訂單時，有沒有什麼辦法可以談談增量訂單中有多少——這些增量訂單中有多少與新業務相關，與現有設計或現有設計的後續設計相關設計？就像您可以提供的任何特徵一樣，這將非常有幫助。

So I think in the past couple of years, it looked like our business really not show growth consistency. That's why a lot of the investors have a concern regarding how stable and how fast Silicon Motion can grow. Now I think we are moving to the more healthy business model, all our sales revenue this year is dittoing from last year or 2 years ago.

所以我認為在過去的幾年裡，我們的業務看起來確實沒有表現出增長的一致性。這就是為什麼許多投資者擔心 Silicon Motion 的增長速度和穩定性。現在我認為我們正在轉向更健康的商業模式，今年我們所有的銷售收入都與去年或兩年前相同。

And while we are working on today is working for next year and beyond next year and 2024. So that's why the book we have is very, very stable. That's really doesn't need any new design that happen today. And that's why the order book is very rock solid. And I'm pretty sure they will pile up to even higher number by end of this year. And our really main goal is to secure more wafer and such we can fulfill the demand from many, many customers.

在我們今天工作的同時，我們也在為明年以及明年和 2024 年以後的工作而努力。這就是為什麼我們擁有的這本書非常非常穩定。這真的不需要今天發生的任何新設計。這就是為什麼訂單非常堅如磐石的原因。而且我很確定到今年年底他們的數量會增加到更高。我們真正的主要目標是獲得更多晶圓，這樣我們就可以滿足許多客戶的需求。

Some are very, very important project, very, very critical, not just for PC, not just for smartphone, not just for consumer electronic devices, all see the -- some new innovation. We do have quite a lot for automotive sector. We really haven't really speak for. But I think we have a very diversified product portfolio. We have very strong, very broad customer base. We have many, many opportunities.

有些是非常非常重要的項目，非常非常關鍵，不僅適用於 PC，不僅適用於智能手機，不僅適用於消費電子設備，都可以看到——一些新的創新。我們在汽車行業確實有很多。我們真的沒有真正說話。但我認為我們擁有非常多元化的產品組合。我們擁有非常強大、非常廣泛的客戶群。我們有很多很多機會。

Now we really want to leverage our base, our technology product and try to have a more [manufactural] capacity and to fill the demand. And we think our growth is very, very solid and consistent and the market trend favors Silicon Motion and our customers gain market share. That's a fact.

現在我們真的想利用我們的基礎，我們的技術產品，並嘗試擁有更多的[製造]能力來滿足需求。我們認為我們的增長非常、非常穩固和一致，市場趨勢有利於 Silicon Motion，我們的客戶獲得了市場份額。這是事實。

And I'd like to hand the conference back to Mr. Wallace Kou for closing remarks. Please go ahead, sir.

我想將會議交還給 Wallace Kou 先生作閉幕詞。請繼續，先生。

Thank you, everyone, for joining us today and for your continuing interest in Silicon Motion. We'll be attending several investor conferences over the next few months, all of which we believe remain virtual events. The schedule of this event will be posted on the Investor Relations section of our corporate website. Thank you, everyone, for joining us today. Goodbye for now.

感謝大家今天加入我們，感謝您對 Silicon Motion 的持續關注。在接下來的幾個月裡，我們將參加幾場投資者會議，我們認為所有這些會議都將是線上活動。該活動的時間表將發佈在我們公司網站的投資者關係部分。謝謝大家今天加入我們。暫時再見。

Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now all disconnect.

謝謝。女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可能會全部斷開連接。