慧榮科技 (SIMO) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Silicon Motion Technology Corporation's First Quarter 2024 Earnings Conference Call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加慧榮科技公司 2024 年第一季財報電話會議。 （操作員說明）

This conference call contains forward-looking 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. 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 條含義內的前瞻性內容。此類前瞻性陳述包括但不限於有關半導體產業趨勢以及我們未來營運績效、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資訊以及我們認為可靠的其他來源的信息，但您不應過度依賴它們。

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 relations 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，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有重大差異。潛在的風險和不確定性包括但不限於半導體產業持續的競爭壓力以及這種壓力對價格的影響；科技和消費者對多媒體消費電子產品需求的不可預測的變化；我們與主要客戶的關係的狀況和任何變化；以及台灣政治、經濟、法律和社會狀況的變化。

For additional discussions 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. Please be advised that today's call is being recorded.

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。請注意，今天的通話正在錄音。

I would now like to hand you over to the Interim Chief Financial Officer, Mr. Jason Tsai. Please go ahead.

現在我想將您交給臨時財務長 Jason Tsai 先生。請繼續。

Thank you, and good morning, everyone, and welcome to Silicon Motion's First Quarter 2024 Financial Results Conference Call and Webcast. Joining me today is Wallace Kou, our President and CEO; Wallace will first provide a review of our key business developments, and then I will discuss our first quarter results and outlook. Following our prepared remarks, we will conclude with a Q&A session.

謝謝大家，大家早安，歡迎參加慧榮科技 2024 年第一季財務業績電話會議和網路廣播。今天加入我的是我們的總裁兼執行長 Wallace Kou；華萊士將首先回顧我們的主要業務發展，然後我將討論我們第一季的業績和前景。在我們準備好的發言之後，我們將以問答環節結束。

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 our 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，該政策已在本次電話會議開始時閱讀。有關投資我們的證券所涉及風險的全面概述，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，請參閱昨天收市後以 6-K 表格形式提交的新聞稿。

The 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. 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.

該網絡廣播將在我們網站的投資者關係部分限時重播。為了增強投資者對我們當前經濟表現的了解，我們將在本次電話會議上討論非公認會計準則資訊。我們在內部使用非公認會計準則財務指標來評估和管理我們的營運。因此，我們選擇提供此信息，以便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。公認會計原則與非公認會計原則財務數據的調節可以在我們昨天發布的收益報告中找到。我們要求您結合本次電話會議進行審查。

With that, I will turn the call over to Wallace.

這樣，我就把電話轉給華萊士。

Thank you, Jason. Hello, everyone, and thank you for joining us today. We had a good start to 2024. We delivered sequential revenue growth ahead of our expectations, achieved gross margin at the high end of our guidance range and exceeded our operation margin outlook.

謝謝你，傑森。大家好，感謝您今天加入我們。我們在 2024 年有了一個良好的開端。

Our SSD controller business was better than expected, primarily driven by demand from 2 of our flash maker customers. We continue to improve our pricing in the quarter, which is driving the steady improvement in our gross margin and profitability.

我們的 SSD 控制器業務好於預期，主要是受到兩家快閃記憶體製造商客戶需求的推動。本季我們持續改善定價，這推動了我們毛利率和獲利能力的穩定提高。

Our results this quarter reinforce our leadership position in controller technology and our products continue to be in high demand because our customer recognized how important our technology, innovation and service are to their business.

我們本季的業績鞏固了我們在控制器技術方面的領導地位，我們的產品繼續受到很高的需求，因為我們的客戶認識到我們的技術、創新和服務對其業務的重要性。

(inaudible) Micro environment remains uncertain, I'm pleased by our teams execution in this quarter. We are taking the right steps to efficiently navigate in market dynamics, remain steadfast in delivering the products and solutions our customers need and focus on continuing growth, improving profitability across our platform.

（聽不清楚）微觀環境仍然不確定，我對我們團隊本季的執行力感到滿意。我們正在採取正確的步驟，有效地駕馭市場動態，堅定不移地提供客戶所需的產品和解決方案，並專注於持續成長，提高整個平台的獲利能力。

Let me start now with an overview of NAND market and dynamics we are in today. We have seen NAND flash prices continue to increase since the late last year and more recently, have seen flash maker gradually increase utilization in their past, but more meaningful capacity increase from the build out on next generation NAND flash is unexpected until next year.

現在讓我先概述 NAND 市場和我們今天所處的動態。自去年年底以來，我們看到 NAND 快閃記憶體價格持續上漲，最近，快閃記憶體製造商過去也逐漸提高利用率，但下一代 NAND 快閃記憶體的建設帶來的更有意義的產能成長預計要到明年才會出現。

Demand remained robust, especially with Chinese handset OEMs as well as with enterprise and data center storage markets, while PC demand has been steadily increasing. All of this will continue to drive NAND flash prices higher throughout this year.

需求依然強勁，尤其是中國手機原始設備製造商以及企業和資料中心儲存市場，而個人電腦需求一直在穩步增長。所有這些都將在今年繼續推高 NAND 快閃記憶體價格。

We are seeing some near-term pricing fluctuations in the China's SSD market, that may cause some uncertainty with our customers that are more focused on the retail aftermarkets. But demand for our controller for PC OEM and SSD remain robust, especially with our flash maker customers.

我們看到中國SSD市場的近期價格波動，這可能會為我們更關注零售售後市場的客戶帶來一些不確定性。但 PC OEM 和 SSD 對我們控制器的需求仍然強勁，尤其是我們的快閃記憶體製造商客戶。

Our leadership in controller technology continued to drive stronger demand across the board with our customers. It is becoming [serious] each day that our experience and expertise with QLC NAND is a defining differentiator that has resulted in significant wins with the flash makers and other customers across all product categories.

我們在控制器技術方面的領先地位持續推動客戶全面更強勁的需求。我們在 QLC NAND 方面的經驗和專業知識日益成為決定性的差異化因素，並為快閃記憶體製造商和所有產品類別的其他客戶帶來了重大勝利。

With the 3D NAND layer continue to increase, managing QLC NAND become even more challenging and continue to require more sophisticated controller technology to ensure high-data retention and we do rewrite if there are any issues.

隨著 3D NAND 層數不斷增加，管理 QLC NAND 變得更具挑戰性，並且繼續需要更複雜的控制器技術來確保高資料保留，如果出現任何問題，我們會重寫。

Our advanced LDPC in the 3D Ray technology are the best in class to protect data during high-speed data transfer between the controller and the NAND and operate on the wide temperature range. We can deliver controller that enables a no-compromise, high-performance and low-cost solid state storage solution incorporating the latest generation of QLC NAND, especially with the rapid adoption of AI, whether it's in edge devices like PC and smartphone or in the data center and enterprise storage.

我們採用 3D Ray 技術的先進 LDPC 是同類產品中最好的，可在控制器和 NAND 之間高速數據傳輸期間保護數據，並在寬溫度範圍內運行。我們可以提供控制器，實現結合最新一代 QLC NAND 的不妥協、高效能和低成本固態儲存解決方案，特別是隨著人工智慧的快速採用，無論是在 PC 和智慧型手機等邊緣設備中，還是在資料中心和企業儲存。

QLC star devices are becoming increasingly central to AI application and growth going forward. OEM no longer need to choose between high performance or lower cost. With QLC, especially upcoming 2 terabyte [mono die] QLC NAND, we're able to have high sequential read performance, high density and lower cost solution to meet their ever-increasing AI compute and store requirement.

QLC 明星設備對於人工智慧應用和未來的成長變得越來越重要。 OEM 不再需要在高性能或低成本之間進行選擇。借助 QLC，特別是即將推出的 2 TB [單晶片] QLC NAND，我們能夠提供高順序讀取效能、高密度和低成本解決方案，以滿足他們不斷增長的 AI 運算和儲存需求。

Now let me start with our SSD controllers. We are seeing strong traction with our new PCIe Gen5, 8 channel controller we tape out last year. This is the first 6-nanometer 8-channel PCIe Gen5 controller available in the market, and we are winning, it is virtually every top module maker in addition to our 3 flash maker customers.

現在讓我從 SSD 控制器開始。去年我們流片的新型 PCIe Gen5、8 通道控制器為我們帶來了強勁的吸引力。這是市場上第一個 6 奈米 8 通道 PCIe Gen5 控制器，我們正在獲勝，除了我們的 3 家閃存製造商客戶之外，幾乎所有頂級模組製造商都獲得了它。

The result from our early testing has been very good. This is a premium product that will be ideally, solely for high-end notebook and desktop, AI, PC as well as for gaming and workstation PC that offer unparalleled performance with ultra-low power consumption.

我們早期測試的結果非常好。這是一款優質產品，非常適合高階筆記型電腦和桌上型電腦、人工智慧、PC 以及遊戲和工作站 PC，提供無與倫比的效能和超低功耗。

In addition, we have a strong pipeline of design activity with several flash makers for PCIe Gen4 SSD using in their next-generation TLC and QLC NAND. This deliver a high performance, high-density, low-cost SSD ideal for rapidly growing AI PC market.

此外，我們還與多家快閃記憶體製造商開展了強大的設計活動，用於在其下一代 TLC 和 QLC NAND 中使用 PCIe Gen4 SSD。這提供了高性能、高密度、低成本的 SSD，非常適合快速成長的 AI PC 市場。

Beyond the PC market, we also have automotive-grade PCIe Gen4 controller win with 2 of our flash maker customers that will ramp with a leading electrical car platform next year. We also expect to tape out our due for PCIe Gen5 controller for the automotive market next year for several of our flash maker customers to further our leadership in the market.

除了 PC 市場之外，我們還贏得了兩家快閃記憶體製造商客戶的汽車級 PCIe Gen4 控制器，這些客戶將於明年推出領先的電動車平台。我們也預計明年將為我們的幾家快閃記憶體製造商客戶推出用於汽車市場的 PCIe Gen5 控制器，以進一步鞏固我們在市場上的領導地位。

We are confident that our broad based SSD controller solution will continue to scale this business meaningfully this year and into 2025, as many of these new products in platform begin to ramp.

我們相信，隨著平台中的許多新產品開始增加，我們廣泛基礎的 SSD 控制器解決方案將在今年和 2025 年繼續有意義地擴展該業務。

Moving to our eMMC+UFS controller. We have successfully tape out our first UFS 4.0 controllers in the first quarter and are on track to start qualification with this new controller in the second half of this year. We also continue to see stronger than ever demand for our UFS 3.1 and 2.2 controllers, especially to support new generation of low-cost NAND.

轉向我們的 eMMC+UFS 控制器。我們已在第一季成功流片首個 UFS 4.0 控制器，並預計在今年下半年開始對這款新控制器進行資格認證。我們也繼續看到對 UFS 3.1 和 2.2 控制器的需求比以往任何時候都強勁，特別是支援新一代低成本 NAND。

In addition to several top module markers serving the smartphone market we started ramping up a new flash maker customer for UFS 3.1 and 2.2 this quarter. And this customer is expected to ramp with our UFS 4.0 controller next year.

除了服務於智慧型手機市場的幾家頂級模組製造商之外，我們本季也開始為 UFS 3.1 和 2.2 增加新的快閃記憶體製造商客戶。該客戶預計明年將使用我們的 UFS 4.0 控制器。

While the smartphone market has predominantly used QLC NAND. We are now seeing increasing interest of QLC NAND, especially in mainstream handset where the OEM can offer higher density without significant increase in cost.

而智慧型手機市場主要使用QLC NAND。我們現在看到 QLC NAND 的興趣日益濃厚，尤其是在主流手機中，OEM 可以在不顯著增加成本的情況下提供更高的密度。

We are collaborating with one of the leading handset OEMs directly for QLC UFS solution that is expected to come to market later this year for their mainstream smartphone. We expect the demand for QLC UFS product especially in mainstream and entry-level 5G smartphone will continue to increase this higher-density low-cost UFS solution will be required to drive adoption of AI beyond the premium segment of the smartphone market over the next few years.

我們正在與領先的手機 OEM 廠商之一直接合作開發 QLC UFS 解決方案，該解決方案預計將於今年稍後針對其主流智慧型手機上市。我們預計，對QLC UFS 產品的需求，尤其是主流和入門級5G 智慧型手機的需求將繼續增加，這種更高密度、低成本的UFS 解決方案將在未來幾年內推動人工智慧在智慧型手機市場高端市場之外的應用。

In addition, we are seeing a significant traction with our eMMC and UFS controller in the automotive market as well as in commercial, industrial and other connected and smart devices. This non-smart qualification account for more than 40% of the overall eMMC+UFS market today.

此外，我們還看到我們的 eMMC 和 UFS 控制器在汽車市場以及商業、工業和其他連網和智慧型裝置中具有巨大的吸引力。這種非智慧資質佔了當今整個 eMMC+UFS 市場的 40% 以上。

With the market automotive application growing faster than smartphone market, we are working with several flash makers and building eMMC and UFS controller for this customer, especially for the automotive market and expect this to scale meaningfully in the next years to come.

隨著市場汽車應用的成長速度快於智慧型手機市場，我們正在與多家快閃記憶體製造商合作，為該客戶打造eMMC 和UFS 控制器，特別是汽車市場，並預計該市場在未來幾年將大幅擴展。

Now let me turn to our MonTitan platform that we have talked about before, the enterprise data center starting market are tremendous opportunity that we believe we now have a truly differentiated solution with MonTitan to scale with the flash makers and solid solution enabler as well as directly with data centric and enterprise customers.

現在讓我談談我們之前討論過的MonTitan 平台，企業資料中心啟動市場是巨大的機會，我們相信我們現在透過MonTitan 擁有真正差異化的解決方案，可以與快閃記憶體製造商和固體解決方案推動者一起擴展，並直接擴展與以數據為中心的企業客戶。

Based on market data from Gartner and IDC as well as our own analysis, we anticipate the market for enterprise SSD for both enterprise storage and data center will grow by more than 50% to approximately 35 million units by 2027. But more importantly, the market for PCIe Gen5 SSD is expected to increase more than 5 times to more than 60 million units in 2027.

根據Gartner 和IDC 的市場數據以及我們自己的分析，我們預計到2027 年，用於企業儲存和資料中心的企業級SSD 市場將成長50% 以上，達到約3,500 萬台。市場PCIe Gen5 SSD預計到2027年將成長5倍以上，達到6,000萬台以上。

QLC based SSD are expected to account for nearly 30% of the total paid-up volume in 2027, up from less than 10% in 2023, representing a huge growth opportunity that we are uniquely positioned to lead.

基於 QLC 的 SSD 預計將佔 2027 年總付費量的近 30%，而 2023 年這一比例還不到 10%，這代表著我們具有獨特優勢的巨大成長機會。

Our first MonTitan PCIe Gen5 controller, well-managed TLC or QLC NAND on the single platform, enabling the seamless transition and adoption of QLC NAND with enterprise and data center solid application long term.

我們的首款 MonTitan PCIe Gen5 控制器，在單一平台上管理良好的 TLC 或 QLC NAND，可實現 QLC NAND 與企業和資料中心長期穩定應用的無縫過渡和採用。

I'm excited to announce that we have won 2 Tier 1 customers in the first quarter for the MonTitan PCIe Gen5 controller, 1 in the United States and 1 in China and are expected to begin ramping later next year.

我很高興地宣布，我們的 MonTitan PCIe Gen5 控制器在第一季贏得了 2 個一級客戶，其中 1 個在美國，1 個在中國，預計將於明年晚些時候開始擴大規模。

We continue to [suffer] with more than a dozen additional customers expect to secure more wins throughout this year. We are on track to begin mass production late this year and ran more meaningfully next year.

我們繼續[遭受損失]，還有十多個客戶希望在今年獲得更多勝利。我們預計在今年年底開始大規模生產，並在明年進行更有意義的生產。

Our earnings success here has been our ability to differentiate with our high performance and power efficient controllers that support more NAND including TLC and QLC for high-capacity SSD than any other platform in the market today.

我們的獲利成功在於我們能夠憑藉高效能和高能效控制器脫穎而出，這些控制器比當今市場上的任何其他平台支援更多的 NAND，包括用於高容量 SSD 的 TLC 和 QLC。

Using our patented performance and power shipping technology, we enable our customers to dynamically adjustable peak performance versus low power consumption, depending on the various workload requirements to achieve the best results. We are seeing inbound interest from the world-leading data center providers because of our ability to deliver high density, high performance, low-cost TLC and QLC SSD for the increasingly data-hungry AI compute and storage needed.

利用我們的專利性能和電力傳輸技術，我們使客戶能夠根據各種工作負載要求動態調整峰值性能與低功耗，以實現最佳結果。我們看到世界領先的資料中心供應商對我們產生了濃厚的興趣，因為我們有能力為日益需要資料的人工智慧運算和儲存提供高密度、高效能、低成本的 TLC 和 QLC SSD。

Given our proven-track record of managing more QLC NAND than any one other vendor in the market over the past decade, we can leverage our unparalleled experience expertise with QLC into the MonTitan controller platform. To build SSD solution that can effectively display portion of the new line HDD with high-capacity new line SSD.

鑑於我們在過去十年中管理的 QLC NAND 數量超過市場上任何其他供應商的良好記錄，我們可以將我們在 QLC 方面無與倫比的經驗專業知識融入到 MonTitan 控制器平台中。建構SSD解決方案，可以有效地用大容量新線SSD來顯示部分新線HDD。

These solutions offer a lower [TCO] compared to legacy HDD due to their smaller compacted, higher storage densities, lower power consumption and higher reliability and resiliency. We see an incredible market opportunity here to differentiate with our MonTitan platform and deliver solutions that are critical to the further build out and adoption of AI in the enterprise and data center, driving a multiple-year growth cycle for the company.

與傳統 HDD 相比，這些解決方案具有更低的 [TCO]，因為它們結構更小、儲存密度更高、功耗更低以及可靠性和彈性更高。我們在這裡看到了一個令人難以置信的市場機會，可以透過我們的MonTitan 平台實現差異化，並提供對於在企業和資料中心進一步建構和採用人工智慧至關重要的解決方案，從而推動公司的多年增長週期。

Overall, I'm excited by a strong start to 2024 and the achievable opportunity on our horizon for the rest of the year. Beyond our strong results, our underlying business momentum continue to accelerate as we add more products and more wins to drive a sustainable long-term growth of our business.

總體而言，我對 2024 年的強勁開局以及今年剩餘時間可實現的機會感到興奮。除了我們的強勁業績之外，隨著我們添加更多產品和更多勝利，我們的基本業務勢頭繼續加速，以推動我們業務的可持續長期成長。

We continue to see very strong traction across the board with the controllers. We are beginning -- bringing to the market and have greater confidence that our strategy to diversify beyond DC and smartphone aimed to new opportunity in the enterprise and automotive market will soon scale meaningfully with our Tier 1 customers.

我們繼續看到控制器在各個方面都具有非常強大的吸引力。我們正在開始將產品推向市場，我們更有信心，我們的多元化策略將超越DC 和智慧型手機，旨在企業和汽車市場的新機遇，很快就會在我們的一級客戶中實現有意義的擴展。

We are very proud of this, and it gives us good confidence in our pipeline, our ability to serve our current and new customers to drive long-term growth.

我們對此感到非常自豪，這讓我們對我們的管道以及我們服務現有和新客戶以推動長期成長的能力充滿信心。

Now let me turn the call over to Jason to go over our financial results and outlook.

現在讓我把電話轉給傑森，討論我們的財務表現和前景。

Thank you, Wallace, and good morning, everyone. I will discuss additional details of our first 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.

謝謝你，華萊士，大家早安。我將討論我們第一季業績的更多細節，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關注我們的非公認會計原則結果。

The reconciliation of our GAAP to non-GAAP data is included with the earnings release issued yesterday. In the first quarter, sales increased -- actually sales decreased 6% sequentially to 189 million. SSD controller sales increased slightly by 0% to 5% sequentially. eMMC and UFS controllers declined 10% to 15% sequentially. SSD solutions sales decreased 5% to 10% sequentially.

我們的 GAAP 與非 GAAP 數據的調整包含在昨天發布的收益報告中。第一季的銷售額有所增長，但實際上銷售額環比下降了 6%，至 1.89 億美元。 SSD控制器銷量較上月小幅成長0%至5%。 eMMC 和 UFS 控制器季減 10% 至 15%。 SSD 解決方案銷售額季減 5% 至 10%。

Gross margin in the first quarter increased to 45%, reflecting both better mix and higher ASPs. Operating expenses in the first quarter were $62.5 million, $1 million higher than the prior quarter, primarily due to higher R&D expenses to support our technology leadership. Operating margins in the first quarter was 12%, down from 13.8% in the fourth quarter.

第一季毛利率增加至 45%，反映出更好的產品組合和更高的平均售價。第一季的營運費用為 6,250 萬美元，比上一季增加 100 萬美元，主要是因為支持我們技術領先地位的研發費用增加。第一季營業利潤率為 12%，低於第四季的 13.8%。

Our effective tax rate in the first quarter was 16%, an increase from the 2.3% tax rate in the fourth quarter, primarily due to a tax reversal benefit we had in the fourth quarter.

我們第一季的有效稅率為 16%，比第四季 2.3% 的稅率有所提高，這主要是由於我們在第四季度獲得了稅收逆轉優惠。

Earnings per ADS were $0.64, down from $0.93 we reported in the fourth quarter. Total stock-based compensation, which we exclude from our non-GAAP results, was $3.2 million in the first quarter. We had $349.3 million of cash, cash equivalents and restricted cash and short-term investments at the end of the first quarter compared to $369 million at the end of the fourth quarter.

每份 ADS 收益為 0.64 美元，低於我們第四季報告的 0.93 美元。第一季基於股票的薪酬總額（我們將其排除在非 GAAP 業績之外）為 320 萬美元。截至第一季末，我們擁有 3.493 億美元的現金、現金等價物以及限制性現金和短期投資，而第四季末為 3.69 億美元。

Inventory increased sequentially in the first quarter to $253 million from $217 million in the fourth quarter to support revenue growth in the second quarter and the rest of the year.

第一季庫存較上季從第四季的 2.17 億美元增加到 2.53 億美元，以支持第二季和今年剩餘時間的營收成長。

Let me now turn to our outlook. As Wallace mentioned, the continuing success we are seeing with flash makers and providing more clarity around the improving fundamentals of our business. We're seeing strong demand in smartphones and coupled with improving demand in PCs, our design wins for this year are well positioned to drive better growth than we had anticipated just 3 months ago.

現在讓我談談我們的前景。正如華萊士所提到的，我們看到快閃記憶體製造商不斷取得成功，並讓我們業務基本面的改善變得更加清晰。我們看到智慧型手機的強勁需求，加上個人電腦需求的改善，我們今年的設計勝利將有能力推動比三個月前更好的成長。

While the strength we are seeing with our current products as well as the increasing interest in monetizing products, we are prudently increasing investments in R&D primarily through higher head count to support increasing programs we are engaging in with our customers.

雖然我們看到當前產品的實力以及對產品貨幣化的興趣日益濃厚，但我們主要透過增加人員數量來謹慎地增加研發投資，以支持我們與客戶開展的不斷增加的計劃。

Now let me turn to our second quarter outlook. Revenue is expected to increase 5% to 10% sequentially to approximately $199 million to $208 million. We expect eMMC+UFS sales to increase and SSD controller sales will be stable sequentially. Second quarter gross margin is expected to continue to improve and be in the range of 45% to 46% and second quarter operating margin is expected to improve and to be in the range of 16.5% to 17.5%.

現在讓我談談第二季的展望。營收預計將比上一季成長 5% 至 10%，達到約 1.99 億美元至 2.08 億美元。我們預計 eMMC+UFS 銷售將成長，SSD 控制器銷售將保持穩定。第二季毛利率預計將繼續改善，介於 45% 至 46% 之間，第二季營業利潤率預計將改善，介於 16.5% 至 17.5% 之間。

Second quarter effective tax rate to be approximately 19% and second quarter stock-based compensation and dispute-related expenses in the range of $2.5 million to $3 million.

第二季有效稅率約為 19%，第二季股票薪資和爭議相關費用在 250 萬美元至 300 萬美元之間。

For the full year 2024, we are increasing our outlook given the strong momentum we are seeing from our customers. Revenue is now expected to increase 25% to 30% sequentially to approximately $800 million to $830 million.

鑑於我們從客戶那裡看到的強勁勢頭，我們正在提高對 2024 年全年的展望。目前預計營收將比上一季成長 25% 至 30%，達到約 8 億至 8.3 億美元。

Gross margin is expected to be in the range of 45% to 47%. Operating margin is expected to be in the range of 14.7% to 16.7% as we further invest in our technology leadership, 2024 tax rate to be approximately 19% and 24 stock-based compensation and dispute-related expenses in the range of $30 million to $32 million.

毛利率預計在45%至47%之間。隨著我們進一步投資於我們的技術領先地位，營業利潤率預計將在14.7% 至16.7% 之間，2024 年稅率約為19%，24 股票薪資和爭議相關費用將在3,000 萬美元至3,000 萬美元之間3200萬美元。

With a strong start to the year and the building momentum in our backlog, we expect to see sequential revenue growth and profitability improvements around the balance of the year. For operating expenses, we take out our new 6-nanometer UFS 4.0 controller in the first quarter, and expect to tape out our 6-nanometer PCIe Gen5 4 channel SSD controller in the third quarter.

由於今年開局強勁，積壓訂單動能強勁，我們預計今年剩餘時間收入將持續成長，獲利能力將有所改善。對於營運費用，我們將在第一季推出新的 6 奈米 UFS 4.0 控制器，並預計在第三季將 6 奈米 PCIe Gen5 4 通道 SSD 控制器流片。

We expect our operating expenses to decline sequentially -- but to increase again in the third quarter to support the technology leadership investments we continue to make. We have accelerated some R&D hiring, especially in our MonTitan enterprise controller group to support the opportunities we are seeing with our sampling customers as well as an increasing amount of inbound interest.

我們預計我們的營運支出將環比下降，但在第三季將再次增加，以支持我們繼續進行的技術領先投資。我們加快了一些研發人員的招募速度，特別是在我們的 MonTitan 企業控制器團隊中，以支持我們在抽樣客戶中看到的機會以及不斷增加的入站興趣。

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

我們準備好的演講到此結束。我們現在將開始電話詢問您的問題。

(Operator Instructions) Our first question comes from the line of Mehdi Hosseini from SIG.

（操作員說明）我們的第一個問題來自 SIG 的 Mehdi Hosseini。

Two follow-ups. First, for Wallace. Can you give us an update or review some of the key milestones determining your penetration into the enterprise segment with the PCIe Gen5? I think in the past, you've talked about evaluation in the second half of '24, vision by '25. Where are we with those milestones? And then for Jason, what are your thoughts on the longer-term growth and operating margin targets?

兩個後續。首先是華萊士。您能否向我們介紹最新情況或回顧一些決定您透過 PCIe Gen5 進軍企業市場的關鍵里程碑？我想在過去，你談到了24年下半年的評估，25年的願景。這些里程碑我們在哪裡？那麼賈森，您對長期成長和營業利潤率目標有何看法？

We see the very strong momentum for demand for MonTitan. Q1, we had a 2 Tier 1 customer (inaudible) one from United States, the other from China. We also have some ongoing module maker design as we will start to see some revenue by end of 2024, become (inaudible) 2025, with the 2 Tier 1 customers were (inaudible) by late 2024. But we had announced our goal is to win minimum 2 Tier 1 U.S. and 2 Tier 1 in China is on track. We might have more than what we really can support. We believe 2025, late 2026 will be much more meaningful sales revenue growth for our MonTitan business for enterprise.

我們看到對 MonTitan 的需求勢頭非常強勁。第一季度，我們有 2 個一級客戶（聽不清楚），一個來自美國，另一個來自中國。我們還有一些正在進行的模組製造商設計，因為我們將在2024 年底開始看到一些收入，到2025 年（聽不清楚），到2024 年底，2 個一級客戶（聽不清楚）。已經宣布，我們的目標是贏得至少 2 個美國 1 級和 2 個中國 1 級正在步入正軌。我們擁有的可能超出了我們真正能夠支持的範圍。我們相信，2025 年、2026 年底，我們的 MonTitan 企業業務將實現更有意義的銷售收入成長。

And Mehdi, in terms of gross margin and profitability, certainly, our goal is to continue to gradually improve our gross margins. We believe we can return back to our historical gross margins level by early next year.

而邁赫迪，就毛利率和獲利能力而言，當然，我們的目標是繼續逐步提高我們的毛利率。我們相信，我們可以在明年初恢復到歷史毛利率水準。

And then in terms of operating profitability, again, as we scale our revenue, as we see our gross margins further improve, we believe we can continue to improve long-term operating profitability and get back to our historical range of 25% plus as well. We don't have a specific guidance around timing at this point. But certainly, as we continue to execute and deliver, we expect to get closer and closer to that journey each quarter.

然後就營業利潤率而言，隨著我們擴大收入規模，隨著我們看到毛利率進一步提高，我們相信我們可以繼續提高長期營業利潤率，並回到 25% 以上的歷史範圍。目前我們還沒有關於時間安排的具體指導。但當然，隨著我們繼續執行和交付，我們預計每個季度都會越來越接近這個旅程。

Just a quick follow-up. Given the mix in your revenue, could you hit the 25% operating margin at a lower revenue run rate?

只是快速跟進。考慮到您的收入結構，您能否以較低的收入運行率達到 25% 的營業利潤率？

Look, I think if you take a look at our products today, our revenue -- our SSD controller business, those SSD controllers tend to be above corporate average gross margins. while our eMMC and UFS controllers are below corporate average gross margins.

看，我想如果你看看我們今天的產品，我們的收入——我們的 SSD 控制器業務，這些 SSD 控制器往往高於企業平均毛利率。而我們的 eMMC 和 UFS 控制器的毛利率低於企業平均值。

There is certainly a number of growth vectors in both of these businesses. But typically, what we've seen historically is that SSD controllers account for anywhere from half to 2/3 of our business in any given period and eMMC and UFS account for about 1/4 to 1/3 in any given period.

這兩個業務肯定都有許多成長動力。但通常情況下，我們從歷史上看到的是，在任何特定時期內，SSD 控制器占我們業務的一半到2/3，而eMMC 和UFS 在任何特定時期內約佔1/4 到1/ 3。

So we don't see that percentage changing much. And certainly, if we see automotive or MonTitan becoming a bigger portion of revenue, then that can skew our gross margins to be better than longer than what historical average has been. But it's too early to say what those long-term targets are yet given that we have had to scale those products meaningfully.

所以我們認為這個百分比沒有太大變化。當然，如果我們看到汽車或 MonTitan 在收入中所佔的比例越來越大，那麼我們的毛利率就會比歷史平均值更好。但考慮到我們必須有意義地擴展這些產品，現在說這些長期目標還為時過早。

Our next question comes from the line of Quinn Bolton from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

Wallace, Jason, congratulations on the nice results and particularly on the MonTitan wins. Wallace, I am wondering if you might try to size the opportunity for us for MonTitan for Silicon Motion in 2025. Is this something that you see contributing tens of millions of dollars as the 2 Tier 1 ramp next year. Could you try to help level set us on what's a reasonable expectation for MonTitan revenue next year?

華萊士、傑森，恭喜你們取得了良好的成績，特別是 MonTitan 的勝利。 Wallace，我想知道您是否可以嘗試評估我們在 2025 年為慧榮 (Silicon Motion) 提供 MonTitan 的機會。您能否嘗試幫助我們確定 MonTitan 明年收入的合理預期是多少？

Yes. We need a 2 Tier 1 customer would run in late 2025. They were probably more meaningful in 2026. But we believe MonTitan enterprise controller revenue will be around meaningful 2026 or '27. Meaningfully is at least 5% to 10% of total revenue.

是的。我們需要 2 個一級客戶在 2025 年末運行。 它們可能在 2026 年更有意義。有意義的是，至少佔總收入的 5% 到 10%。

Perfect. And then I think you commented in the script but also in the press release about increasing backlog and visibility. I'm guess wondering, I guess I would think the NAND controller space would typically be a pretty short sort of lead time business because it's just the market can change pretty quickly. How far does your backlog extend? Do you have pretty good visibility now into the second half or is your backlog shorter term in nature, really only cover say, 90 or so days?

完美的。然後我認為您在劇本中以及新聞稿中都評論了關於增加積壓和可見性的問題。我想知道，我想我會認為 NAND 控制器領域通常是一個交貨時間相當短的業務，因為市場變化得很快。您的積壓工作有多長？您現在對下半年是否有很好的了解，或者您的積壓工作本質上是短期的，實際上只涵蓋 90 天左右？

Yes. So our backlog, we obviously have some long-term customers, especially with our NAND makers, where we have much better clarity on what their demand profile looks like over a longer term. These are rolling forecasts, and we do get updated on that pretty regularly.

是的。因此，我們的積壓訂單顯然有一些長期客戶，特別是我們的 NAND 製造商，我們對他們的長期需求狀況有了更清晰的了解。這些是滾動預測，我們確實會定期更新。

So it does vary depending on the end markets they're serving. They're serving PC OEM customers. There's certainly a little bit better visibility there. But I would also point out that from an inventory management standpoint, it does take us about 3 months to get products in and out of our manufacturing partner stores.

因此，它確實會根據他們所服務的終端市場而有所不同。他們為 PC OEM 客戶提供服務。那裡的能見度肯定好一點。但我還要指出，從庫存管理的角度來看，我們確實需要大約 3 個月的時間才能將產品進出我們的製造合作夥伴商店。

So we do need that advanced notice in order to build inventory to support those upcoming products, those upcoming sales, those upcoming ramps, especially going into the back half of the year, where NAND is typically stronger, we need to make sure that we've got adequate inventory to support that revenue growth.

因此，我們確實需要提前通知，以便建立庫存來支援即將推出的產品、即將到來的銷售、即將到來的產能提升，特別是進入下半年，此時 NAND 通常會更強，我們需要確保我們「我們有足夠的庫存來支持收入成長。

Let me add a comment, if we are able to increase our annual sales guidance, which mean we have better visibility for the second half of this year.

讓我補充一點，如果我們能夠提高年度銷售指導，這意味著我們今年下半年的能見度會更好。

Got it. And then lastly, Wallace, you mentioned price -- the NAND price sort of fluctuations might cause some perturbations in the retail SSD market. Just wondering if you could sort of expand on those comments? Is it just the pricing is coming up pretty quickly, and that could create sort of lower demand temporarily in the retail channel? Or were you trying to imply some other behavior?

知道了。最後，華萊士，您提到了價格——NAND 價格的波動可能會對零售 SSD 市場造成一些幹擾。只是想知道您是否可以擴展這些評論？難道只是價格上漲很快，這可能會暫時降低零售通路的需求嗎？還是你試圖暗示其他一些行為？

Well, I think the current situation like this, the NAND maker have pretty high confidence because demand from data center and enterprise is very, very strong. So that's why they definitely continue see the supply shortage going to increase the wafer price and we see it going to increase gradually throughout whole year. However, for certain channel market while demand for SSD, see the demand is not that strong as the wafer price increase.

嗯，我認為目前這樣的情況，NAND製造商有相當高的信心，因為資料中心和企業的需求非常非常強勁。因此，這就是為什麼他們肯定會繼續看到供應短缺將導致晶圓價格上漲，而我們看到供應短缺將在全年逐漸上漲。然而，對於某些通路市場來說，雖然SSD需求旺盛，但隨著晶圓價格的上漲，需求卻不那麼強勁。

That's why some fluctuation. But overall, we see it stabilized and we see the demand for our controller is still strong and stable. So I think primarily because a lot of our module customers have acquired quite many inventory last year, so they can balance for their cost.

這就是為什麼有些波動。但總體而言，我們看到它穩定下來，我們看到對控制器的需求仍然強勁且穩定。所以我認為主要是因為我們的許多模組客戶去年購買了相當多的庫存，所以他們可以平衡成本。

Our next question is from Craig Ellis from B. Riley Securities.

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

Congratulations on the very strong start to 2024. Wallace, I wanted to start with a higher level question for you that helps put into context what you're seeing with NAND OEM controller outsourcing. So if we take a look at where we are today and compare it to January and early February.

恭喜 2024 年取得了強勁的開局。因此，如果我們看一下今天的情況並將其與一月和二月初進行比較。

Can you talk about the incremental design wins that you've seen with NAND OEMs that would ship in 2024? And it seemed from your prepared commentary that you're also being actively engaged with some 2025 projects. So the question is, what have you seen in the last 3 months that impacts this year's revenues? And what are you seeing that kind of starts to give at least project visibility for 2025?

您能否談談您在 2024 年出貨的 NAND OEM 中看到的增量設計勝利？從您準備的評論來看，您似乎也在積極參與一些 2025 年專案。那麼問題是，過去 3 個月您看到什麼影響了今年的收入？您認為這種開始至少能在 2025 年提供專案可見度嗎？

I think that the 3 years don't really have a major changes, but we really start to see the NAND makers, they all focus on profitability. Every NAND maker have their own strategy and how to really [invest in] CapEx for the equipment. But we're definitely working even since from last year for several 2025 OEM project covered from clients for UFS for automotive eMMC, automotive PCIe, for SSD, multiple projects with individual NAND makers. So they're quite busy and MonTitan also working with quite a -- we have 2 major design wins for Tier 1 customers, we have several in the process incorporating engagement. So we're quite busy this year, and we are pretty confident of our design pipeline for 2025.

我認為這3年並沒有真正發生重大變化，但我們確實開始看到NAND製造商，他們都專注於獲利能力。每個 NAND 製造商都有自己的策略以及如何真正[投資]設備的資本支出。但從去年開始，我們就致力於多個 2025 年 OEM 項目，這些項目涵蓋了汽車 eMMC、汽車 PCIe、SSD 的 UFS 客戶，以及與各個 NAND 製造商合作的多個項目。所以他們非常忙碌，MonTitan 還與相當多的人合作——我們為一級客戶贏得了 2 個主要設計勝利，我們有幾個正在參與的過程中。所以我們今年非常忙碌，我們對 2025 年的設計流程非常有信心。

And on that on MonTitan point to follow up Mehdi and Quinn's questions. It seemed like you were saying, if we look in 2027, at market projections with QLC, where you have just an amazing history with product development and performance that -- that part of the market would be about 1/3 of the market or maybe 25 million units.

關於這一點，請在 MonTitan 上跟進 Mehdi 和 Quinn 的問題。您似乎在說，如果我們看看 2027 年 QLC 的市場預測，您在產品開發和性能方面擁有令人驚嘆的歷史，這部分市場將佔市場的 1/3 左右，或者可能是2500萬台。

The question is, given your history with the technology, given the solution you've developed what might be a reasonable share position that investors could look at even if it's a fairly wide range for 2027, Wallace?

問題是，考慮到您在技術方面的歷史，考慮到您開發的解決方案，投資者可以考慮的合理股票頭寸是什麼，即使 2027 年的範圍相當廣泛，華萊士？

Yes, we cannot comment regarding our market share for 2027. While I can give you a certain guidance regarding why MonTitan meaningfully get tremendous traction and interest from the Tier 1 customer. The main reason is because the AI cloud and AI server demand is very, very strong. And we see many Tier 1 customers from the U.S. and China. They really try to export the QLC based SSD for enterprise storage solutions because QLC base it will be cheaper and can build us much bigger capacity we see so many demand (inaudible) high density for future SSD.

是的，我們無法對 2027 年的市場份額發表評論。主要原因是因為AI雲和AI伺服器的需求非常非常強勁。我們看到許多來自美國和中國的一級客戶。他們確實嘗試出口基於QLC的SSD用於企業儲存解決方案，因為基於QLC的SSD會更便宜並且可以為我們建立更大的容量，我們看到未來SSD有如此多的需求（聽不清楚）高密度。

So that will be suitable for AI data process, especially sequential rate and low latency. So because we have a very, very strong position and know-how in QLC so that we get a tremendous interest from customers to engage with that for quantification and joint development. That's why we see that trigger the stronger demand than using process and we receive especially for 2 terabyte [mono die] QLC, they become a main, main product to enable the future near line SSD to replace portion of HDD. So we are very happy we can be part of it.

因此這將適合人工智慧資料處理，特別是順序速率和低延遲。因為我們在 QLC 方面擁有非常非常強大的地位和專業知識，所以我們引起了客戶的極大興趣，參與量化和共同開發。這就是為什麼我們看到這引發了比使用製程更強烈的需求，我們特別收到了 2 TB [單晶片] QLC，它們成為使未來近線 SSD 取代部分 HDD 的主要產品。所以我們很高興能夠成為其中的一部分。

That's really helpful color. And then, Jason, if I could follow up with one for you before hopping back in the queue. Appreciate the point on revenues rising sequentially through the year. Any color as we look at the year's progression on how mix between SSD controllers and eMMC, UFS and some of the other segments might play out even at a high level?

這真是有用的顏色。然後，傑森，我是否可以在重新排隊之前為您跟進一個。欣賞全年收入連續增長這一點。當我們審視今年 SSD 控制器與 eMMC、UFS 和其他一些細分市場之間的混合如何在高水平上發揮作用時，有什麼顏色嗎？

Yes. I mean, look, I think we anticipate growth this year from both of those segments. Obviously, eMMC, I think we obviously have a much more difficult year for eMMC and UFS last year given where inventory levels were in the smartphone market.

是的。我的意思是，我認為我們預計今年這兩個領域都會成長。顯然，對於 eMMC，我認為考慮到智慧型手機市場的庫存水平，去年 eMMC 和 UFS 顯然經歷了更困難的一年。

So I think you'll see certainly a stronger year-on-year growth given that it was a bit more depressed last year. SSDs were a bit more stable. And so while it will still grow, it's not going to grow at the same growth rates as we saw with -- as we expect to see in the eMMC and UFS this year. But overall, again, the percentage of our business for SSDs and eMMC to UFS kind of typically stay in those bands that we talked about earlier, and we don't see that changing any time in the near future.

因此，我認為，鑑於去年的情況更加蕭條，您肯定會看到更強勁的同比增長。 SSD 穩定一些。因此，雖然它仍然會成長，但它的成長速度不會像我們今年在 eMMC 和 UFS 中看到的那樣。但總的來說，我們的 SSD 和 eMMC 到 UFS 業務的百分比通常停留在我們之前討論過的範圍內，我們認為這種情況在不久的將來不會改變。

I think, let me add some comment. We definitely both SSD and mobile eMMC UFS will gain market share this year. However, our mobile controller eMMC UFS last year, the base is smaller. So we have much bigger momentum to gain market share in mobile controller.

我想，讓我補充一些評論。我們肯定SSD和行動eMMC UFS今年都會獲得市場份額。不過我們去年的手機控制器eMMC UFS，基數更小。因此，我們有更大的動力來獲得行動控制器的市場份額。

Our next question will come from the line of Suji Desilva from ROTH.

我們的下一個問題將來自羅斯的 Suji Desilva。

Wallace and Jason, congrats on the progress here and the strong start to the year. On the -- sticking on MonTitan and the AI opportunity, if it is supporting AI, do you have a sense of whether it's supporting inference or whether it's supporting training or traditional cloud instances. Any specific color on those programs and where you're seeing traction?

華萊士和傑森，祝賀你們取得的進展以及今年的強勁開局。關於——堅持 MonTitan 和人工智慧機會，如果它支援人工智慧，你是否知道它是支援推理還是支援訓練或傳統雲端實例。這些計劃有什麼具體的顏色嗎？

You asked a very, very good question, but naturally, we really don't know but I think that SSD today is not helping any for compute for AI, but they're supporting it for storage. But [storage] I think, fundamentally uses real data. I believe when you really see the upcoming Flash Memory Summit in August in Santa Clara, you're going to see many NAND maker and enterprise these suppliers are going to tell you what exactly they see regarding supporting AI and associate.

你問了一個非常非常好的問題，但當然，我們真的不知道，但我認為今天的 SSD 對人工智慧的計算沒有任何幫助，但他們支持它進行儲存。但我認為[存儲]從根本上使用真實數據。我相信，當你真正看到即將於8 月在聖克拉拉舉行的閃存峰會時，你會看到許多NAND 製造商和企業，這些供應商將告訴你他們在支持人工智能和合作方面到底看到了什麼。

So that is related to inference also related to training process. Also, it's really regarding the swapping between the LLM model and during the different application running. So I think the storage has a specific performance requirement and their certain feature, we can add especially for edge devices because there are limited in density. SSD, mobile UFS, they have many, many technology we can help in the AI application.

所以這與推理有關，也與訓練過程有關。此外，它實際上涉及 LLM 模型之間以及不同應用程式運行期間的交換。所以我認為存儲有特定的性能要求和某些功能，我們可以特別為邊緣設備添加，因為密度有限。 SSD、行動UFS，它們有很多很多技術我們可以在AI應用中提供幫助。

Okay. And then my other question is on the smartphone market. I heard you guys talk about a OEM that is trying to in-source the controller efforts versus using a merchant controller? I know some of the flagships have been doing that for years. But curious if that's a trend you're seeing or if that's an exception and what that impact might be for SIMO in terms of opportunity?

好的。我的另一個問題是關於智慧型手機市場的。我聽到你們談論 OEM 試圖內購控制器工作而不是使用商業控制器？我知道一些旗艦產品多年來一直這樣做。但想知道這是否是您所看到的趨勢，或者是否是一個例外，以及這種影響可能會為 SIMO 帶來哪些機會？

So it's very, very good that we see the momentum from some smartphone makers. They are considering a data QLC into the mobile solution. I think as you can see, Samsung is the one of the leading smartphone maker in the last 2 years and bring the solution to the market since the Q4 production last year. And we are very happy to what we serve one major leading smartphone maker for QLC project, and we believe this will be in production by later this year and this is going to bring us real momentum.

因此，我們看到一些智慧型手機製造商的勢頭非常非常好。他們正在考慮將數據 QLC 納入行動解決方案中。我認為正如您所看到的，三星是過去兩年中領先的智慧型手機製造商之一，並自去年第四季度生產以來將該解決方案推向市場。我們非常高興能夠為一家主要的領先智慧型手機製造商提供 QLC 專案服務，我們相信該專案將在今年稍後投入生產，這將為我們帶來真正的動力。

I think a lot of the players in the smartphone segment, they are looking for how to bring the flagship model into the AI smartphone because everybody is looking for very high performance and how to maintain low power and to supporting different (inaudible) model. But in the other area, many smartphone makers also bring the mainstream smartphone into the AI arena.

我認為智慧型手機領域的許多玩家都在尋找如何將旗艦機型帶入人工智慧智慧型手機，因為每個人都在尋求非常高的性能以及如何保持低功耗並支援不同的（聽不清楚）機型。但在另一個領域，許多智慧型手機製造商也將主流智慧型手機帶入人工智慧領域。

So this is why we see the leading smartphone makers try to increase the density, but without increase the cost, and that's why QLC becomes the best candidate. And so many smartphone makers, we believe are going to try to export the potential opportunity to bring the UFS with a QLC solution and to try the market. And I think eventually, they will become the key to enable smartphone -- AI smartphone from the flagship to mainstream and beyond.

因此，這就是為什麼我們看到領先的智慧型手機製造商試圖在不增加成本的情況下增加密度，這就是為什麼 QLC 成為最佳候選人。我們相信，如此多的智慧型手機製造商將嘗試輸出潛在機會，將 UFS 與 QLC 解決方案結合起來，並嘗試進入市場。我認為最終，它們將成為智慧型手機——人工智慧智慧型手機從旗艦走向主流甚至更廣泛的關鍵。

Our next question comes from the line of Matt Bryson from Wedbush Securities.

我們的下一個問題來自韋德布希證券公司 (Wedbush Securities) 的 Matt Bryson。

I have a few. So on the enterprise SSD side, we've seen substantial demand for 32 and 64 terabyte SSDs recently. I guess it sounds like what you're doing with your technologies enabling QLC, so allowing other vendors beyond, say, [Solodyn] with their QLC solution to address this market with those capacities and higher capacities.

我有幾個。因此，在企業級 SSD 方面，我們最近看到了對 32 TB 和 64 TB SSD 的大量需求。我想這聽起來像是您正在利用支援 QLC 的技術所做的事情，因此允許 [Solodyn] 之外的其他供應商使用其 QLC 解決方案以這些容量和更高的容量來滿足這個市場的需求。

Historically, there hasn't been a ton of success for third-party controller vendors in the enterprise market. I mean do you see your advantage around QLC as enabling that opportunity for you, so you can get some success in this market. Is that correct? And have you seen more momentum over the last 3, 4 months when it appears like these high-capacity SSDs have all of a sudden started to see incremental demand?

從歷史上看，第三方控制器供應商在企業市場上並沒有取得太大的成功。我的意思是，您是否認為 QLC 的優勢在於為您提供了這個機會，以便您可以在這個市場上取得一些成功。那是對的嗎？在過去的 3、4 個月裡，當這些大容量 SSD 突然開始出現需求增量時，您是否看到了更大的動力？

I want to say that Silicon Motion will be the first in both QLC for enterprise SSD that mean we're the leader for client (inaudible) with QLC, because lately, we got tremendous demand, but also because all NAND makers are going to have a QLC available in the market.

我想說的是，Silicon Motion 將成為企業級SSD 中QLC 的第一家，這意味著我們是QLC 客戶（聽不清楚）的領導者，因為最近我們有巨大的需求，而且因為所有NAND 製造商都將擁有市場上有 QLC。

And I believe all NAND maker going to have a 2 terabyte QLC in 2 terabyte QLC in (inaudible) by late 2025. That's why that trigger, the strong interest from hyperscaler data center and server leader, we try to potentially adopt QLC for the upcoming strong demand for AI server, AI cloud services.

我相信，到 2025 年末，所有 NAND 製造商都將擁有 2 TB QLC（聽不清楚）。 AI伺服器、AI雲端服務需求旺盛。

So the -- because QLC financial is built for new line SSD, it'll be much more attractive for new line HDD from data asset point of view. So with Silicon Motion because our controller can work with all NAND maker QLC. So we are in a very unique position for the customer directly work with Silicon Motion and we serve as different NAND supplier. So I cannot say we are better in NAND maker, but we think we are in a very unique position to enable the trend adopt QLC to enterprise SSD.

因此，由於 QLC 金融是為新線 SSD 打造的，因此從資料資產的角度來看，它對新線 HDD 更具吸引力。所以選擇慧榮，因為我們的控制器可以與所有 NAND 製造商 QLC 配合使用。因此，我們處於非常獨特的地位，客戶可以直接與慧榮合作，我們作為不同的 NAND 供應商。所以我不能說我們在 NAND 製造商方面做得更好，但我們認為我們處於非常獨特的地位，能夠推動 QLC 應用於企業級 SSD 的趨勢。

Got it. And Wallace it sounds like you're working with all of the different customers out there, in the sense you've talked about hyperscalers, OEMs, module makers, and I guess my question is, can you characterize what those first 2 customers of selective solution, which bucket they'd be fit into the OEM...

知道了。華萊士，聽起來您正在與所有不同的客戶合作，從某種意義上說，您已經談到了超大規模製造商、原始設備製造商、模組製造商，我想我的問題是，您能否描述一下選擇性的前兩個客戶的特徵？

We cannot comment on such (inaudible) customer until they really announce that name. But 1 Tier 1 in U.S. and 1 Tier 1 in China, we believe by end of the year, we have a 2 more to add on the list.

在他們真正宣布該名稱之前，我們無法對此類（聽不清楚）客戶發表評論。但美國有 1 個一級，中國有 1 個一級，我們相信到今年年底，我們還會在名單上增加 2 個。

Awesome. And then I guess my last question is, I know this has kind of been asked. But just in terms of the TAM on either -- on both that -- with that enterprise product, but also in the automotive market, can you characterize what you see those 2 TAMs as being versus your more traditional markets in UFS, eMMC and SSD controllers?

驚人的。然後我想我的最後一個問題是，我知道有人問過這個問題。但就 TAM 而言，無論是企業產品還是汽車市場，您能否將您所看到的這 2 個 TAM 與 UFS、eMMC 和 SSD 等更傳統的市場進行比較？

In terms of the enterprise TAM, obviously, from a unit volume perspective, it's not going to be anywhere near as big as the PC market or the smartphone market, right? But however, ASPs for our MonTitan product are certainly several multiples higher than our client SSD controllers, margins certainly better than corporate average.

就企業 TAM 而言，顯然，從單位數量的角度來看，它不會像 PC 市場或智慧型手機市場那麼大，對吧？但是，我們的 MonTitan 產品的平均售價肯定比我們的客戶端 SSD 控制器高出幾倍，利潤率肯定高於企業平均水平。

So it is a big opportunity, even though the unit volumes are much smaller compared to our PC and smartphones. On the automotive side, again, the total number of cars shipped today is a lot smaller than either of those other markets. But what we're seeing now is multiple storage requirements and multiple storage devices required per car to run things like not just the infotainment system, but the ADAS, the sensors, the cameras, all those things require individual independent storage solutions that significantly balloon the size of the number of units.

因此，儘管單位數量與我們的個人電腦和智慧型手機相比要小得多，但這是一個巨大的機會。在汽車方面，今天的汽車總出貨量也比其他市場少得多。但我們現在看到的是，每輛車需要多個儲存需求和多個儲存設備來運行資訊娛樂系統，還有 ADAS、感測器、攝影機，所有這些都需要單獨的獨立儲存解決方案，這會大大增加單位數量的大小。

I don't have that number handy. We can get back to you on that one Matt, but these are certainly much higher, more sticky engagements that we would be going into as opposed to the PC and smartphone market.

我手邊沒有那個號碼。我們可以就這個問題與您聯繫，馬特，但與 PC 和智慧型手機市場相比，我們將進入的這些領域肯定是更高、更具黏性的參與。

My other comment regarding automotive. As you know, SIMO has 2 different approach to expand our automotive visibility. One is direct controller, the other are (inaudible). For controller, we have engaged 3 NAND makers and for PCIe also as well as the UFS eMMC development. I think some are in production today. We have 2 makers going to production with PCIe Gen4, and we also have new eMMC with a NAND maker. And for (inaudible) we already -- it's based on our own solution and engage with our multi customer.

我關於汽車的其他評論。如您所知，SIMO 有兩種不同的方法來擴大我們的汽車知名度。一個是直接控制者，一個是（聽不清楚）。對於控制器，我們聘請了3家NAND製造商，對於PCIe以及UFS eMMC也進行了開發。我想有些今天已經投入生產了。我們有 2 家製造商將生產 PCIe Gen4，我們還有一家 NAND 製造商生產新的 eMMC。對於（聽不清楚）我們已經——它基於我們自己的解決方案並與我們的多客戶互動。

And we already win, which we have set with Toyota and Honda, also including China BYD. So we have a multiple design win in the pipeline. We believe we will grow our automotive business very, very strongly from 2025.

我們已經贏了，這是我們與豐田和本田，包括中國比亞迪的合作。因此，我們正在醞釀多項設計勝利。我們相信，從 2025 年開始，我們的汽車業務將會非常非常強勁地成長。

(Operator Instructions) I'm showing no further questions. I'll now turn the conference back to the President and CEO Wallace Kou, for closing comments.

（操作員說明）我沒有再提出任何問題。現在我將把會議轉回總裁兼執行長郭台銘發表總結評論。

Thank you, everyone, for joining us today and for your continued interest in Silicon Motion. We will be attending several investor conferences over the next few months as well as the (inaudible) Tech Conference in Taiwan in June. The schedule of this event will be posted on the Investor Relationship section from our corporate website and look forward to speaking with you at this event. Thank you, everyone, for joining us today. Goodbye for now.

感謝大家今天加入我們，並感謝大家對慧榮科技的持續關注。我們將參加未來幾個月的幾次投資者會議以及 6 月在台灣舉行的（聽不清楚）技術會議。本次活動的日程安排將發佈在我們公司網站的投資者關係部分，並期待在本次活動中與您交談。謝謝大家今天加入我們。暫時再見了。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。