慧榮科技 (SIMO) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Silicon Motion Technology Corporation's second-quarter-2024 earnings conference call.

美好的一天，感謝您的支持，歡迎參加慧榮科技公司 2024 年第二季財報電話會議。

(Operator Instructions)

（操作員說明）

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.

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。

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.

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。

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.

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.

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。

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.

潛在的風險和不確定性包括但不限於半導體行業持續的競爭壓力以及這種壓力對價格的影響、技術和消費者對多媒體消費電子產品的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。

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.

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。

We assume no obligation to update any forward-looking statements, which apply only as of the date of this conference call.

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。

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄製中。

It is now my pleasure to hand you over to Mr. Tom Sepenzis, Senior Director of IR and Strategy of the company.

現在我很高興將您交給公司投資者關係和策略高級總監 Tom Sepenzis 先生。

Please go ahead, sir.

請繼續，先生。

Good morning, everyone, and welcome to Silicon Motion's second-quarter-2024 financial results conference call and webcast.

大家早安，歡迎收看慧榮科技 2024 年第二季財務業績電話會議和網路廣播。

Joining me today is Wallace Kou, our president and CEO; and Jason Tsai, our interim CFO.

今天加入我的是我們的總裁兼執行長 Wallace Kou；以及我們的臨時財務長 Jason Tsai。

Wallace will first provide a review of our key business developments, and then Jason will discuss our second-quarter results and outlook.

華萊士將首先回顧我們的主要業務發展，然後傑森將討論我們第二季度的業績和前景。

Following our prepared remarks, we will conclude with a Q&A session.

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 would like to remind you of our Safe Harbor policy, which was read at the start of this call.

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。

For a comprehensive overview of the risks involved with investing in our securities, please refer to our filings with the US Securities and Exchange Commission.

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。

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.

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。

This webcast will be available for replay in the Investor Relations section of our website for a limited time.

該網絡廣播將在我們網站的投資者關係部分限時重播。

To enhance investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call.

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。

We use non-GAAP financial measures internally to evaluate and manage our operations.

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。

We have therefore chosen to provide this information to enable you to perform comparisons of our operating results in a manner consistent with how we analyze our own operating results.

因此，我們選擇提供此信息，以便您能夠以與我們分析我們自己的經營業績的方式一致的方式對我們的經營業績進行比較。

The reconciliation of the GAAP to non-GAAP financial data can be found in our earnings release issued yesterday.

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。

We ask that you review it in conjunction with this call.

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, Tom.

謝謝你，湯姆。

Hi, everyone, and thank you for joining us today.

大家好，感謝您今天加入我們。

We had a strong start to 2024, building on the momentum that began in second half of calendar 2023.

我們在 2023 年下半年開始的勢頭基礎上，在 2024 年有了一個強勁的開局。

We deliver sequential revenue growth ahead of expectation and achieve gross margin at the high end of our guidance range, as better mix and pricing continue to steadily improve our profitability.

隨著更好的組合和定價繼續穩步提高我們的盈利能力，我們的收入連續增長超出了預期，並實現了我們指導範圍的高端毛利率。

The revenue upside was driven by our continued strength at our NAND flash customer.

營收成長得益於我們在 NAND 快閃記憶體客戶方面的持續實力。

The demand from PC and smartphone OEM increased in anticipation of seasonally stronger second-half demand.

由於預計下半年需求季節性強勁，個人電腦和智慧型手機 OEM 的需求增加。

Additionally, we benefited from increased market share at the top NAND flash makers as they continue to source controller externally rather than develop them in-house.

此外，我們受益於頂級 NAND 快閃記憶體製造商市場份額的增加，因為他們繼續從外部採購控制器而不是內部開發。

Over the past few quarters, our team have been working hard toward deepening our partnership with our NAND flash maker customers.

在過去的幾個季度中，我們的團隊一直在努力深化與 NAND 快閃記憶體製造商客戶的合作關係。

We are winning more and more sockets, from mainstream to high-end SD and eMMC and UFS controller for PC, smartphones, automotive, and other markets.

我們正在贏得越來越多的插座，從主流到高階 SD 和 eMMC 以及 UFS 控制器，適用於 PC、智慧型手機、汽車和其他市場。

Our success with our flash maker partners has helped improve our visibility and crucial to our strong growth this year, despite market uncertainty, especially in the retail aftermarket.

儘管市場存在不確定性，特別是在零售售後市場，但我們與快閃記憶體製造商合作夥伴的成功幫助提高了我們的知名度，對我們今年的強勁成長至關重要。

This quarter, our revenue from NAND flashmaker grew nearly 15% sequentially, accounting for more than 60% of our total revenue.

本季度，我們來自NAND快閃記憶體製造商的營收較上季成長近15%，占我們總營收的60%以上。

Both SSD and eMMC UF controller strengths found new programs more than offset emerging softness in the retail market.

SSD 和 eMMC UF 控制器的優勢都發現，新方案足以抵銷零售市場新興的疲軟現象。

It is our module maker customers.

這是我們的模組製造商客戶。

Demand for our product is rising, and NAND flash makers increasingly also our controller solutions, and we are in the best position to benefit from this growing trend.

對我們產品的需求不斷增長，NAND 快閃記憶體製造商也越來越多地採用我們的控制器解決方案，我們處於從這一成長趨勢中受益的最佳位置。

We have a matched technical and financial resources to build next-generation controllers.

我們擁有匹配的技術和財務資源來建立下一代控制器。

And we intend to enhance our position through the introduction of multiple new products in the coming year, including our enterprise class MonTitan family, new PCIe 5.0 and UFS 4.0 controllers.

我們打算在未來一年透過推出多種新產品來增強我們的地位，包括我們的企業級 MonTitan 系列、新的 PCIe 5.0 和 UFS 4.0 控制器。

I'm pleased with our team's execution in the first half of the year and the momentum going into second half of this year.

我對我們團隊上半年的執行力和下半年的勢頭感到滿意。

We have significant opportunities ahead of us as we deliver product and solution our customers need and remain focused on driving additional revenue growth, improving profitability across our platform of leading NAND controller solutions.

當我們提供客戶所需的產品和解決方案時，我們面臨著巨大的機遇，並繼續專注於推動額外收入成長，提高我們領先的 NAND 控制器解決方案平台的獲利能力。

I would now like to provide you with an overview of the NAND market dynamics.

現在我想向您概述 NAND 市場動態。

NAND pricing is increasing and expected to move higher throughout the remainder of the year and early 2025, primarily driven by demand from data centers and enterprise storage applications.

NAND 定價正在上漲，預計今年剩餘時間和 2025 年初將會走高，這主要是受到資料中心和企業儲存應用需求的推動。

As pricing continue to increase from the lowest experience last year, NAND maker are beginning to bring some capacity back online and invest in new-generation NAND productions.

隨著價格從去年的最低水準繼續上漲，NAND 製造商開始恢復部分產能並投資新一代 NAND 生產。

But we do not expect NAND supply and demand to come back into balance until middle 2025.

但我們預計 NAND 供需要在 2025 年中期才能恢復平衡。

Higher NAND pricing and the weaker global economy environment caused by higher inflation has softened retail demand for our module maker customers.

NAND 定價上漲以及通膨上升導致的全球經濟環境疲軟，削弱了我們模組製造商客戶的零售需求。

With continuing inflationary pressure, expected NAND price increase for the remainder of the year, we expect muted back to school and holiday sales of retail aftermarket SSD.

由於通膨壓力持續存在，預計 NAND 價格在今年剩餘時間內將上漲，我們預計零售售後市場 SSD 的學校和假期銷售將回落。

Despite the headwind, the overall PC demand appears stable, and we also continue to see incremental improvement in the smartphone market, with the unit sales expected to grow modestly year over year.

儘管存在逆風，整體個人電腦需求似乎穩定，而且我們也繼續看到智慧型手機市場的逐步改善，單位銷售預計將同比小幅增長。

OEM entry in QLC-NAND continue to increase in both the data center and the edge in PC, smartphone and other devices.

OEM 進入 QLC-NAND 領域的資料中心以及 PC、智慧型手機和其他裝置的邊緣領域持續增加。

This is being driven by device OEM anticipating the need to support AI and other applications that require higher performance and higher density solid state storage solutions.

這是由設備 OEM 推動的，他們預計需要支援人工智慧和其他需要更高效能和更高密度固態儲存解決方案的應用程式。

They become clearer each day that our experience and the expertise with QLC NAND is a defining differentiator that has resulted in significant wins with the flash maker and other customers across major product categories.

他們每天都更加清楚，我們在 QLC NAND 方面的經驗和專業知識是一個決定性的差異化因素，為快閃記憶體製造商和主要產品類別的其他客戶帶來了重大勝利。

The 3D NAND layer continue to increase.

3D NAND層數不斷增加。

Managing QLC NAND becomes even more challenging.

管理 QLC NAND 變得更具挑戰性。

They require more sophisticated controller technology such as our proprietary advanced LDPC and 3D RAID technology and advanced firmware algorithm to ensure data retention and reduce rewrite

它們需要更複雜的控制器技術，例如我們專有的高級 LDPC 和 3D RAID 技術以及高級韌體演算法，以確保資料保留並減少重寫

[determine issue].

[確定問題]。

We expect QLC NAND will increasingly be deployed across all major market category that we serve given its ability to deliver high density and low cost.

鑑於 QLC NAND 能夠提供高密度和低成本，我們預計 QLC NAND 將越來越多地部署在我們服務的所有主要市場類別中。

And we believe we are best positioned to balance it from the trend in the coming years.

我們相信，我們最有能力在未來幾年的趨勢中平衡它。

Now, I'd like to discuss each of our major product segments, beginning with our SSD controllers.

現在，我想討論我們的每個主要產品領域，首先是我們的 SSD 控制器。

We experienced strong demand in June quarter by our flash maker customer driven by PC OEMs.

在 PC OEM 的推動下，我們的快閃記憶體製造商客戶在六月季度經歷了強勁的需求。

PC OEM SD controller sales represent approximately 80% over our clients' SD controller sales.

PC OEM SD 控制器銷售量約占我們客戶 SD 控制器銷售量的 80%。

It's the high end of our historical range.

這是我們歷史範圍的高端。

As the high NAND prices are putting pressure on channel and module makers, we continue to generate strong interest in our new PCIe Gen5 8-channel controller that we tape out last year.

由於高 NAND 價格給通道和模組製造商帶來壓力，我們繼續對去年流片的新型 PCIe Gen5 8 通道控制器產生濃厚興趣。

This is a premium product that will be ideally suited for high-end notebooks and desktop AI PCs, as well as for gaming and workstation PCs that offer unparalleled performance with ultra-low-power consumption.

這是一款優質產品，非常適合高階筆記型電腦和桌上型人工智慧電腦，以及遊戲和工作站電腦，提供無與倫比的效能和超低功耗。

The controller offers best-in-class power to performance, offer 20% to 30% lower power consumption than competing controllers, including those internally developed by NAND makers.

該控制器提供一流的功率性能比，比競爭控制器（包括 NAND 製造商內部開發的控制器）功耗低 20% 至 30%。

This is the first 6-nanometer 8-channel PCIe5 controller available in the market, which has led to significant wins, including our fourth NAND maker, which I am pleased to announce we won this quarter, in addition to nearly every major module maker.

這是市場上第一個6 奈米8 通道PCIe5 控制器，它帶來了重大勝利，包括我們的第四家NAND 製造商，我很高興地宣布，除了幾乎所有主要模組製造商之外，我們在本季度贏得了勝利。

We remain on track to ramp initial units of the new PCIe 5 controller with our customers later this year.

我們仍有望在今年稍後與客戶一起量產新型 PCIe 5 控制器的初始設備。

Additionally, we have a strong pipeline of design activity with several flash makers of a PCIe 4 SSD using next generation TLC and QLC NAND.

此外，我們還與多家使用新一代 TLC 和 QLC NAND 的 PCIe 4 SSD 快閃記憶體製造商進行了強大的設計活動。

This new SSD delivers high performance and high density at a lower cost, ideal for rapidly growing AI-PC market that is searching for lower cost solutions.

這款新型 SSD 以更低的成本提供高性能和高密度，非常適合快速成長的尋求更低成本解決方案的 AI-PC 市場。

While the PC market remains a top priority and will continue to drive significant growth and revenue, we are seeing emerging opportunities with our automotive, commercial, industrial-grade SSD controllers.

雖然 PC 市場仍然是重中之重，並將繼續推動顯著成長和收入，但我們也看到了汽車、商業、工業級 SSD 控制器帶來的新機會。

This includes our automotive grade PCIe 4 controller, as well as multiple controller targeting industrial and commercial application.

這包括我們的汽車級 PCIe 4 控制器，以及針對工業和商業應用的多個控制器。

We intend to expand our leadership through the introduction of our upcoming dual port PCIe 5 controller for the automotive market next year.

我們打算透過明年推出即將推出的汽車市場雙端口 PCIe 5 控制器來擴大我們的領導地位。

And we expect to continue adding meaningful growth opportunity in 2025 and beyond with a more diversified customer and end market base.

我們預計在 2025 年及以後，將透過更多元化的客戶和終端市場基礎繼續增加有意義的成長機會。

Now, I would like to move to our eMMC and UFS business.

現在，我想轉向我們的 eMMC 和 UFS 業務。

We continue to benefit from improving smartphone market during the June quarter, as well as we strength with our two eMMC and UFS NAND customers.

我們繼續受益於第二季智慧型手機市場的改善，以及我們的兩個 eMMC 和 UFS NAND 客戶的實力。

We successfully tape out our first UFS 4.0 controller early this year, and the response has been positive.

今年年初，我們成功流片了第一個 UFS 4.0 控制器，並獲得了正面的迴響。

We are beginning qualification, and we are targeting production ramp in the second half of calendar 2025.

我們正在開始資格認證，目標是在 2025 年下半年實現產量提升。

UFS 3.1 and 2.2 continue to account for most of the smartphone market volume today and are expected to stay relevant in the coming years.

UFS 3.1 和 2.2 繼續佔據當今智慧型手機市場的大部分份額，預計在未來幾年仍將保持重要地位。

While flash makers allocate more resources to next-generation UFS products in support of new generation NAND, we are seeing greater opportunity in high-volume applications as flash makers look to outsource mainstream controllers so that they can more effectively compete at leading edge.

雖然快閃記憶體製造商將更多資源分配給下一代UFS 產品以支援新一代NAND，但我們在大量應用中看到了更大的機會，因為快閃記憶體製造商希望外包主流控制器，以便能夠更有效地在領先優勢上競爭。

As with our leading PCIe product, we are generating strong inbound activity in our QLC controller technology in UFS and eMMC.

與我們領先的 PCIe 產品一樣，我們在 UFS 和 eMMC 中的 QLC 控制器技術產生了強勁的入站活動。

With a growing interest in edge AI, smartphone OEMs are looking for cost-effective ways to increase own-device memory density.

隨著人們對邊緣人工智慧的興趣日益濃厚，智慧型手機原始設備製造商正在尋找經濟高效的方法來增加自有設備的記憶體密度。

Our leadership in QLC-NAND controller technology place Silicon Motion at the forefront of QLC adoption, as smartphone manufacturer are looking to deploy QLC with the UFS for mid- to high-end devices, and QLC with eMMC in low-end handset for AI, and other storage intensification over the next few years.

我們在QLC-NAND 控制器技術方面的領先地位使慧榮處於QLC 採用的最前沿，因為智慧型手機製造商正在尋求在中高階設備中部署帶有UFS 的QLC，以及在低階手機中為AI 部署帶有eMMC 的QLC，以及未來幾年的其他儲存強化。

Our first handset OEM partner that will deploy QLC on UFS expected to ramp later this year.

我們的第一個手機 OEM 合作夥伴將在 UFS 上部署 QLC，預計今年稍後推出。

What is more, I'm pleased to report to you today that this customer expects to expand production of this new QLC-UFS solution into additional smartphone models next year.

此外，我今天很高興向您報告，該客戶預計明年將這種新的 QLC-UFS 解決方案的生產擴展到更多智慧型手機型號。

Looking beyond the smartphone market, OEM are interested in adoption UFS eMMC for smart connected devices and other consumer applications.

放眼智慧型手機市場之外，OEM 有興趣在智慧連網裝置和其他消費應用中採用 UFS eMMC。

Our growing list of the win in customer in this additional area will further diversify our end-market growth opportunity.

我們在這一附加領域贏得的客戶數量不斷增加，這將進一步使我們的終端市場成長機會多樣化。

Given the increasing opportunity to capture share with our flash maker partners and show the introduction of new eMMC and UFS QLC solution, we believe we are well positioned for continued growth.

鑑於與我們的快閃記憶體製造商合作夥伴爭奪份額並展示新的 eMMC 和 UFS QLC 解決方案的推出的機會越來越多，我們相信我們已做好持續成長的準備。

Now, let me turn to our MonTitan platform.

現在，讓我談談我們的 MonTitan 平台。

As we have mentioned before, enterprise and data center storage offers the Silicon Motion a tremendous new revenue opportunity combined with a meaningfully high ASP and margin profile over the medium to long term.

正如我們之前提到的，企業和資料中心儲存為慧榮科技提供了巨大的新收入機會，並在中長期內提供了相當高的平均售價和利潤率。

We continue to see more inbound interest in our MonTitan solution.

我們繼續看到越來越多的人對我們的 MonTitan 解決方案產生興趣。

Given our unique differentiation, we believe we are well positioned to scale with the flash maker and storage solution enabler, as well as directly with data center and enterprise customers in the coming years.

鑑於我們獨特的差異化優勢，我們相信我們有能力在未來幾年與快閃記憶體製造商和儲存解決方案推動者以及直接與資料中心和企業客戶進行擴展。

Our first MonTitan PCIe 5 controller manages TLC and QLC NAND on a single platform, enabling the seamless transition and adoption of QLC NAND with enterprise and data center storage applications.

我們的首款 MonTitan PCIe 5 控制器在單一平台上管理 TLC 和 QLC NAND，從而實現 QLC NAND 與企業和資料中心儲存應用的無縫過渡和採用。

As we announced last quarter, we have won two Tier 1 customers for our new MonTitan PCIe 5 controller, one in the US and one in China, and expect to secure two additional Tier 1 wins later this year.

正如我們在上季度宣布的那樣，我們的新型 MonTitan PCIe 5 控制器贏得了兩個一級客戶，一個在美國，一個在中國，並預計在今年稍後再獲得兩個一級客戶。

We are on track to begin early mass production later this year and ramp more meaningfully next year.

我們預計在今年稍後開始早期大規模生產，並在明年進行更有意義的增產。

Our early success has been driven through differentiation with our controller offering high performance and greater power efficiency with support for more NAND than any other platform in the market today.

我們早期的成功是透過差異化推動的，我們的控制器提供高效能和更高的能源效率，並且支援比當今市場上任何其他平台更多的 NAND。

MonTitan delivers two key technologies, Zone Name Space and flexible data placement with QLC, which is combined to improve latency and throughput speed while lowering overall cost to reduce DRAM demand.

MonTitan 提供兩種關鍵技術，即區域命名空間和 QLC 的靈活資料放置，兩者相結合可改善延遲和吞吐速度，同時降低整體成本以減少 DRAM 需求。

Additionally, our proprietary power and performance shaving technology enable our customers to dynamically adjust their storage to meet rapidly changing data center performance requirement.

此外，我們專有的功耗和性能調整技術使我們的客戶能夠動態調整其存儲，以滿足快速變化的資料中心效能要求。

This includes in the upcoming 2-terabit mono-di-QLC NAND, the ability to deliver 128-terabyte SSD.

這包括即將推出的 2 TB mono-di-QLC NAND，能夠提供 128 TB SSD。

These high-capacity SSDs have the highest sequential read performance and lower cost to meet ever increasing AI compute and storage requirements.

這些大容量 SSD 具有最高的順序讀取效能和更低的成本，可滿足不斷增長的 AI 運算和儲存需求。

It is becoming increasingly clear for our customers that our MonTitan solution will be essential for the next-generation data center and storage build view of plan, especially for delivering faster and more accurate AI capability to the market.

我們的客戶越來越清楚，我們的 MonTitan 解決方案對於新一代資料中心和儲存建置計劃至關重要，特別是對於向市場提供更快、更準確的 AI 功能。

But we have mentioned on previous calls, given our record of managing our QLC NAND than anyone over the past decade, we believe that this new product platform will drive multiple-year growth cycle for Silicon Motion as we enter a greenfield market opportunity for our company with leading technology.

但我們在之前的電話會議中提到，考慮到我們在過去十年中管理QLC NAND 的記錄比任何人都多，我們相信，隨著我們進入公司的綠地市場機會，這個新產品平台將推動慧榮科技的多年成長週期擁有領先的技術。

Given the early MonTitan performance and widespread interest in our products, we expect the platform to grow to 5% to 10% of our total revenue in the 2026 to 2027 time frame.

鑑於 MonTitan 的早期表現以及人們對我們產品的廣泛興趣，我們預計該平台將在 2026 年至 2027 年期間增長到我們總收入的 5% 至 10%。

Overall, I'm excited by our strong start to 2024, and I'll look for the remainder of the year.

總的來說，我對 2024 年的強勁開局感到興奮，我將展望今年剩餘時間。

I'm especially pleased that we continue to target year-over-year revenue growth of 25% to 30%, despite the challenging in the near term from increased NAND price prices in the sum of our customers.

我特別高興的是，儘管短期內我們的客戶總數面臨 NAND 價格上漲的挑戰，但我們繼續將收入同比增長 25% 至 30% 的目標繼續實現。

Looking ahead, we are confident that our technology leadership and diversified portfolio of our controller across a wide range of market and application will accelerate and drive the substantial long-term growth of our business.

展望未來，我們相信，我們的技術領先地位以及控制器在廣泛市場和應用領域的多元化產品組合將加速並推動我們業務的長期大幅成長。

We continue to push beyond PC and smartphone into new opportunity including the enterprise, automotive, industrial, commercial and consumer markets.

我們持續超越個人電腦和智慧型手機，進入新的機遇，包括企業、汽車、工業、商業和消費者市場。

I'm especially excited about emerging MonTitan opportunity, and one expect, will be a significantly positive impact on our revenue growth and operation margins over the next few years.

我對 MonTitan 的新興機會感到特別興奮，預計這將對我們未來幾年的營收成長和營運利潤產生顯著的正面影響。

As we capture share in the enterprise market, I look forward to detailing more about our progress in the area in the future update.

隨著我們在企業市場佔據份額，我期待在未來的更新中詳細介紹我們在該領域的進展。

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

現在，讓我將電話轉給傑森，討論我們的財務表現和前景。

Thank you, Wallace, and good morning, everyone, joining us today.

謝謝華萊士，大家早安，今天加入我們。

I will discuss additional details of our second-quarter results, and then provide our guidance.

我將討論我們第二季業績的更多細節，然後提供我們的指導。

Please note that my comments today will focus primarily on our non-GAAP results unless otherwise specifically noted.

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。

A reconciliation of our GAAP to non-GAAP data is included in the earnings release issued yesterday as well as the presentation that was uploaded to our website a little while ago.

我們的 GAAP 與非 GAAP 數據的調整包含在昨天發布的收益報告以及不久前上傳到我們網站的簡報中。

In the second quarter, sales increased 11% sequentially to $211 million. SSD

第二季銷售額較上季成長 11%，達到 2.11 億美元。固態硬碟

sales increased modestly sequentially, representing our fifth consecutive quarter of growth.

銷售額連續第五個季度小幅成長。

Our strong share gains of flash makers continues to deliver outstanding results despite some market uncertainties from continued inflationary pressure and higher NAND flash prices contributing to weaker aftermarket SSD demand.

儘管持續的通膨壓力和 NAND 快閃記憶體價格上漲導致售後市場 SSD 需求疲軟，導致市場存在一些不確定性，但我們快閃記憶體製造商的強勁份額成長繼續帶來出色的業績。

eMMC and UFS controllers increased 25% to 30% sequentially as demand inflected in the second quarter from increased smartphone builds in anticipation of demand growth in the second half of this year.

eMMC 和 UFS 控制器連續成長了 25% 至 30%，因為預計今年下半年的需求成長，智慧型手機產量增加，導致第二季需求發生變化。

SSD solution sales increased 20% to 25% sequentially.

SSD 解決方案銷售額較上季成長 20% 至 25%。

Gross margin in the second quarter increased to 46% primarily from better mixed and newer products.

第二季毛利率成長至 46%，主要得益於更好的混合產品和更新的產品。

Operating expenses in the second quarter were $62.1 million, a slight decrease from the first quarter.

第二季營運費用為6,210萬美元，較第一季略有下降。

Operating expenses, specifically R&D project expense, was higher than expected in the second quarter as we made the decision to re-tape out our upcoming high-performance 8-channel PCIe 5 client SSD controller to deliver superior yields when we enter mass production later this year.

第二季的營運費用，特別是研發專案費用，高於預期，因為我們決定重新流片即將推出的高效能8 通道PCIe 5 客戶端SSD 控制器，以便在今年稍後進入量產時提供卓越的產量年。

This will result in higher overall gross margins for this product in the long term.

從長遠來看，這將導致該產品的整體毛利率更高。

Operating margins increased to 16.5% in the quarter, up from 12% in the first quarter.

本季營業利潤率從第一季的 12% 增至 16.5%。

Our effective tax rate in the second quarter is 16.5%, a modest increase from the 16.1% tax rate in the first quarter.

我們第二季的有效稅率為16.5%，比第一季的16.1%略有上升。

Earnings per ADS were $0.96, an increase from the $0.64 in the first quarter.

每份 ADS 收益為 0.96 美元，較第一季的 0.64 美元有所增加。

Total stock-based compensation, which we exclude from our non-GAAP results was $385,000 in the second quarter.

第二季基於股票的薪酬總額（我們將其排除在非 GAAP 業績之外）為 385,000 美元。

We had $343.6 million of cash, cash equivalents, restricted cash and short-term investments at the end of the second quarter compared to $349.3 million at the end of the first quarter.

截至第二季末，我們擁有 3.436 億美元的現金、現金等價物、限制性現金和短期投資，而第一季末為 3.493 億美元。

Inventory decreased sequentially in the second quarter to $241 million from $253 million in the first quarter.

第二季庫存季減，從第一季的 2.53 億美元降至 2.41 億美元。

Before I turn to outlook, I'd like to talk a bit more about our higher R&D investments that we are making this year.

在展望前景之前，我想多談談我們今年加大的研發投資。

As the industry adopts new high-performance standards that doubles the performance from previous standards, power consumption needs to remain at the same or lower to assure the same battery life for smartphones and notebooks that consumers demand.

隨著行業採用新的高性能標準，性能比以前的標準提高一倍，功耗需要保持在相同或更低，以確保智慧型手機和筆記型電腦具有消費者所需的相同電池壽命。

The only way to balance both significantly higher performance and lower power is to move to lower process geometry production.

平衡顯著更高的性能和更低的功耗的唯一方法是轉向更低的製程幾何尺寸生產。

And that means building these next-generation PCIe and UFS controllers on 6 nanometer.

這意味著在 6 奈米上建構這些下一代 PCIe 和 UFS 控制器。

In addition, we need to develop new SOC architecture, new firmware architecture, and customized mixed signal capabilities that collaborate closely with our NAND partners to achieve these goals.

此外，我們需要開發新的 SOC 架構、新的韌體架構以及客製化的混合訊號功能，與我們的 NAND 合作夥伴密切合作以實現這些目標。

While all of this does result in higher R&D expenses in the near term, we do see significant benefits including higher ASPs, more outsourcing, and a bigger moat around our product leadership than ever before.

雖然所有這些確實會導致短期內研發費用增加，但我們確實看到了顯著的好處，包括更高的平均售價、更多的外包以及比以往任何時候都更大的圍繞我們產品領先地位的護城河。

We have unmatched technical and financial resources and intend to make this essential investment in order for us to continue to grow faster and increase our market share and to drive higher growth and better profitability over the long term.

我們擁有無與倫比的技術和財務資源，並打算進行這項重要的投資，以便我們能夠繼續更快地成長，增加我們的市場份額，並在長期內推動更高的成長和更好的獲利能力。

Let me now turn to our outlook.

現在讓我談談我們的前景。

As Wallace talked about earlier, due to the ongoing higher NAND prices and weaker retail consumer electronics demand, our customers, especially module makers, are seeing demand soften in the retail aftermarket.

正如 Wallace 之前談到的，由於 NAND 價格持續上漲和零售消費性電子產品需求疲軟，我們的客戶，尤其是模組製造商，發現零售售後市場的需求疲軟。

As a result, they're anticipating a much more muted seasonal pattern for retail demand for the second half of this year.

因此，他們預計今年下半年零售需求的季節性模式將更加溫和。

Despite this, our ongoing success with flash makers customers and the increased outsourcing we have won over the past year gives us confidence that we'll be able to achieve our full-year revenue outlook.

儘管如此，我們在快閃記憶體製造商客戶方面的持續成功以及我們在過去一年中贏得的外包數量的增加使我們有信心能夠實現全年收入前景。

For the third quarter, we expect revenue to be flat plus or minus 2.5% sequentially to approximately $205 million to $216 million due to the expected weaker than seasonal aftermarket SSD demand.

由於預期售後市場 SSD 需求弱於季節性售後市場，我們預期第三季營收將與上一季持平正負 2.5%，至約 2.05 億至 2.16 億美元。

We expect eMMC and SSD controller sales to be stable sequentially.

我們預計 eMMC 和 SSD 控制器的銷售將持續穩定。

Third-quarter gross margins is expected to continue to improve and be in the range of 46% to 47%.

第三季毛利率預計將持續改善，介於46%至47%之間。

Our improving mix of sales towards newer products should lead to sustained gross margin improvements.

我們改進新產品的銷售組合應該會帶來毛利率的持續改善。

Third-quarter operating margin will experience a one-quarter decline driven by the expected tape out of our new 6-nanometer 4-channel mainstream client PCIe 5 SSD controller.

由於我們的新型 6 奈米 4 通道主流用戶端 PCIe 5 SSD 控制器的預期流片，第三季營業利潤率將出現四分之一的下降。

We expect this new controller will enter mass production early 2026 as PCIe 5 SSDs expand into the mainstream market.

我們預計隨著 PCIe 5 SSD 擴展到主流市場，這款新控制器將於 2026 年初進入量產。

Operating margin is expected to be in the range of 14.3% to 15.3% in the September quarter, and then return to more normalized levels.

預計九月季度的營業利潤率將在 14.3% 至 15.3% 之間，然後恢復到更正常的水平。

Third-quarter effective tax rate should be 18%, and third-quarter stock-based compensation and dispute-related expenses to be in the range of $6.4 million to $7.4 million.

第三季有效稅率應為 18%，第三季股票薪酬與爭議相關費用應在 640 萬美元至 740 萬美元之間。

For the full year, we are maintaining our revenue outlook given the continuing strong demand from our NAND maker customers but improving our profitability.

鑑於 NAND 製造商客戶的持續強勁需求，我們維持全年收入預期，但我們的獲利能力有所提高。

Revenue is expected to increase 25% to 30% this year to approximately $800 million to $830 million.

今年營收預計將成長 25% 至 30%，達到約 8 億至 8.3 億美元。

We're tightening our gross margin range given the strength of our margin improvement this year already.

鑑於今年我們的利潤率改善勢頭強勁，我們正在收緊毛利率範圍。

Full-year gross margins is expected to be in the 46% to 47% range.

全年毛利率預計在 46% 至 47% 之間。

Operating margin is expected to improve modestly given the better gross margin performance in the first half of this year and is expected to be in the range of 14.8% to 16.8%, despite accelerated investments in our technology leadership and the new product introductions that should lead to revenue growth in 2025 and beyond.

鑑於今年上半年毛利率表現較好，營業利潤率預計將小幅改善，預計將在 14.8% 至 16.8% 的範圍內，儘管我們加快了對技術領先地位的投資和新產品的推出，這將導致2025年及以後的收入增長。

Our 2024 effective tax rate is expected to come down slightly and be now approximately 18%. 2024 stock-based compensation, dispute-related expenses and loss from settlement of litigation should be in the range of $29 million to $31 million.

我們 2024 年的有效稅率預計將略有下降，目前約為 18%。 2024年股票薪酬、糾紛相關費用、訴訟和解損失應在2,900萬美元至3,100萬美元之間。

With the dedication of our team over the past year, we have been able to develop and deliver cutting edge controller solutions that will power AI applications in PCs, smartphones, and soon data centers and enterprises.

憑藉我們團隊過去一年的奉獻精神，我們已經能夠開發和提供尖端的控制器解決方案，為個人電腦、智慧型手機以及即將到來的資料中心和企業中的人工智慧應用提供動力。

Our wide range of controller solutions are gaining significant traction in other markets such as automotive, industrial, and commercial applications, further diversifying our long-term growth drivers.

我們廣泛的控制器解決方案在汽車、工業和商業應用等其他市場中獲得了巨大的吸引力，進一步使我們的長期成長動力更加多元化。

Our efforts to collaborate more with flash makers have allowed us to benefit from the recent trend but more outsourcing, driving more predictable growth and better visibility despite near-term market volatility.

我們與快閃記憶體製造商進行更多合作的努力使我們能夠從最近的趨勢中受益，但更多的外包，推動了更可預測的成長和更好的可見性，儘管近期市場波動較大。

While we will continue to invest in growing our R&D capabilities and building more leading edge controllers, we're seeing these investments begin to pay dividends and we expect these products to scale meaningfully next year, driving additional revenue growth and profitability and further extending our technology and market-share leadership in the flash controller market.

雖然我們將繼續投資於提高研發能力並打造更多領先的控制器，但我們看到這些投資開始帶來紅利，我們預計這些產品明年將大幅擴展，推動額外的收入增長和盈利能力，並進一步擴展我們的技術以及在快閃記憶體控制器市場的市佔率領先地位。

This concludes our prayer remarks.

我們的禱告詞到此結束。

We'll now open the call for your questions.

我們現在將開始電話詢問您的問題。

(Operator Instructions) Craig Ellis, B. Riley Securities.

（操作員指示）Craig Ellis，B. Riley Securities。

Yeah.

是的。

Thanks for taking the question.

感謝您提出問題。

Wallace, I wanted to start off with one that was high level and followed up on some of your comments regarding execution with NAND OEM share gain.

Wallace，我想從高層次的內容開始，並跟進您關於執行 NAND OEM 份額增長的一些評論。

At the beginning of the year, we were intending to see 500 basis points of share gain this year.

今年年初，我們預計今年股價將上漲 500 個基點。

Can you just talk about where you think you stand at mid-year against that objective?

您能談談您認為在年中實現這一目標的情況嗎？

And any positive or negative variances versus what you were hoping for six months ago?

與您六個月前的期望相比，有任何積極或消極的差異嗎？

So far, I think we're on track for all the project we're aiming and plan to do.

到目前為止，我認為我們正在按計劃完成我們的目標和計劃的所有項目。

We maintain very, very close relationship with all the NAND makers and we capture all the variable sockets open to us.

我們與所有 NAND 製造商保持著非常非常密切的關係，並且我們捕獲了所有向我們開放的可變套接字。

And so, see, our share last year was about 25% to 30%, and we believe we'll continue to gain share with this as a forecast and design win.

所以，看，我們去年的份額約為 25% 到 30%，我們相信，作為預測和設計的勝利，我們將繼續獲得份額。

And we believe the mobile portion, we're also gaining around 20% to 25% range by year end.

我們相信，到年底，移動部分的份額也將增長約 20% 至 25%。

So we cautiously monitor all the opportunity to capture all sorts to serve parties, especially Silicon Motion.

因此，我們謹慎地監控所有機會，捕捉各種服務各方的機會，尤其是慧榮科技。

That's helpful.

這很有幫助。

And then the follow-up question relates to the PCIe Gen5 transition.

接下來的問題涉及 PCIe Gen5 過渡。

Can you just help us put that in context by providing a summary of where PCIe Gen4 mix would be this year?

您能否透過總結今年 PCIe Gen4 組合的情況來幫助我們了解這一點？

And as we look to next year when PCIe Gen5 would ship in higher volume, how much of the business on the SSD controller side shifts over to PCIe Gen5 next year?

當我們展望明年 PCIe Gen5 的出貨量會更高時，明年 SSD 控制器方面有多少業務會轉移到 PCIe Gen5？

Thank you.

謝謝。

Yeah, PCIe Gen5 will start to ramp from early 2025, but 2025 will maintain the high-end premium line.

是的，PCIe Gen5 將從 2025 年初開始普及，但 2025 年將保持高階產品線。

So that will be the high-end notebook in the high-end PC for AI PC and gaming PC and workstation PC. So next year, the volume probably will still maintain very low.

所以這將是高階PC中的高階筆記型電腦，用於AI PC和遊戲PC和工作站PC。所以明年，成交量可能仍會維持在很低的水準。

We're only about 5% transition.

我們只有大約 5% 的轉變。

But for 2026, they're moving to the high volume and the mainstream PCIe Gen5 coming.

但到 2026 年，他們將轉向大量生產，主流 PCIe Gen5 即將到來。

So next year, I think PCIe majority for SSD will maintain in the PCIe Gen4.

因此，我認為明年 SSD 的 PCIe 主流將維持在 PCIe Gen4 中。

By 2026, probably PCIe Gen5 will occupy around 30% of total market.

到 2026 年，PCIe Gen5 可能將佔據總市場的 30% 左右。

Very helpful, Wallace.

非常有幫助，華萊士。

Thanks, and I'll hop back into the queue.

謝謝，我會重新加入隊列。

Tony Stoss, Craig-Hallum.

東尼·斯托斯，克雷格·哈勒姆。

Thank you.

謝謝。

Good morning, guys.

早上好傢伙。

Maybe for you, Jason.

也許適合你，傑森。

Just want to follow up on the tape-out commentary expected for Q3, can you maybe size that for us?

只是想跟進第三季預計的流片評論，您能為我們估量一下嗎？

And also, do you expect any continued tape outs in Q4?

另外，您預計第四季會繼續流片嗎？

And then, I'd love to hear your thoughts.

然後，我很想聽聽你的想法。

A lot of positive commentary related to increasing gross margins.

許多積極的評論都與毛利率的提高有關。

Can you give us a sense of what you think ballpark might be heading into 2025?

能為我們介紹一下您認為 2025 年的情況嗎？

I would assume it's higher than 2024.

我認為它會高於 2024 年。

Yeah.

是的。

So for tape out costs, we talked about 6-nanometer tape-out costs typically running $15 million to $20 million per controller.

因此，對於流片成本，我們討論了 6 奈米流片成本，通常每個控制器為 1500 萬至 2000 萬美元。

Obviously, that's over the entire production of the tape out.

顯然，這就是整個磁帶製作的過程。

In any given quarter where we do actually tape out, that's probably a $5 million to $10 million charge in that quarter.

在我們實際流片的任何特定季度，該季度的費用可能為 500 萬至 1000 萬美元。

So that's the ballpark that we're talking about here from an incremental perspective in Q3 given the new 6-nanometer 4-channel PCI 5 controller we're taping out this quarter.

鑑於我們本季即將推出的新型 6 奈米 4 通道 PCI 5 控制器，這就是我們在第三季從增量角度討論的大致情況。

Going into Q4, we do not expect any additional tape outs for PCIe -- for 6 nanometer.

進入第四季度，我們預計 PCIe（6 奈米）不會有任何額外的流片。

So you should see our OpEx come down in the fourth quarter.

因此，您應該會看到我們的營運支出在第四季度有所下降。

In terms of gross margins, we've been steadily progressing over the last year or so, improving our gross margins due to better mix, and we expect that to continue as more and more of our products come from newer generation products.

就毛利率而言，我們在過去一年左右一直在穩步進步，由於更好的組合而提高了毛利率，並且隨著我們越來越多的產品來自新一代產品，我們預計這種情況將繼續下去。

Next year, we'll also have PCIe 5 as well as MonTitan starting to ramp a little more meaningfully.

明年，我們還將推出 PCIe 5 和 MonTitan，開始進行更有意義的升級。

So those should be positive and additive for us as well.

因此，這些對我們來說也應該是正面的和有益的。

Historically, we've been at 48% to 50% gross margins.

從歷史上看，我們的毛利率一直在 48% 到 50% 之間。

I think we're gonna get pretty close to that this year.

我想今年我們會非常接近這個目標。

And then going into next year, we should be in that range.

然後進入明年，我們應該會在這個範圍內。

Got it.

知道了。

And then, Wallace, may I follow up for you on the Montitan and your adding of two additional customers to make it four at the end of this year.

然後，華萊士，我可以為您跟進 Montitan 的情況嗎？

I think in the last quarterly conference call, you talked about a number of customers that you can handle.

我想在上個季度的電話會議中，您談到了一些您可以處理的客戶。

Can you update us and do you think you can take on even more customers?

您能否向我們介紹最新情況？

And maybe, give us a sense of how many additional ones you think you can take on in 2025?

也許，請告訴我們您認為 2025 年您還可以承擔多少額外的工作？

Yeah.

是的。

So we have -- roughly, our R&D resource can handle maximum around four Tier 1 customers simultaneously.

因此，粗略地說，我們的研發資源最多可以同時處理四個左右的一級客戶。

But as of today, we're winning two Tier 1 customers.

但截至今天，我們贏得了兩個一級客戶。

One of the customers would develop the firmware themselves with our SDK, so that would help us offload the resources.

其中一位客戶會使用我們的 SDK 自行開發固件，這可以幫助我們減輕資源負擔。

We provide complete documentation, just about technology, and by the way, help them to porting their firmware into our platform.

我們提供完整的文檔，僅涉及技術，順便幫助他們將韌體移植到我們的平台。

So once it gets done, I think that will be the golden basis for the complete SDK and documentation we can offer to other OEM customers.

因此，一旦完成，我認為這將成為我們可以向其他 OEM 客戶提供完整 SDK 和文件的黃金基礎。

We're looking forward to expand more resources, and we try to expand and wider range of customer in 2025.

我們期待擴大更多資源，並努力在 2025 年擴大和更廣泛的客戶範圍。

Because if customer decide to use our standard turnkey solution with both firmware and our ASIC, I think we are able to support more than four Tier 1 customer.

因為如果客戶決定使用我們的標準交鑰匙解決方案以及韌體和 ASIC，我認為我們能夠支援四個以上的一級客戶。

Great.

偉大的。

Thanks guys.

多謝你們。

Appreciate it.

欣賞它。

Quinn Bolton, Needham & Company.

奎因·博爾頓，李約瑟公司。

Hey, guys.

大家好。

Just wanted to follow up a similar question to what Craig asked, except this time maybe on the mix of QLC.

只是想跟進克雷格提出的類似問題，只不過這次可能是關於 QLC 的混合。

Where do you see QLC as percent of both SSDs and the smartphone business as you get into '25 and '26?

當您進入「25」和「26」時，您認為 QLC 在 SSD 和智慧型手機業務中所佔的百分比是多少？

And then, I've got a couple of follow ups.

然後，我有一些後續行動。

So it's a very good question.

所以這是一個非常好的問題。

I think the QLC today in the PC, that's about around a 10% to 15% in the very low single digit, very low side.

我認為今天 PC 中的 QLC 大約是 10% 到 15% 左右，處於非常低的個位數，非常低的水平。

But all the NAND makers are roughly driving into the QLC output.

但所有 NAND 製造商都在粗略地推動 QLC 產量。

So in 2025 for clients of SSD, what should be minimum 20% to 25%.

因此，到 2025 年，對於 SSD 客戶來說，至少應該是 20% 到 25%。

For smartphones, because majority smartphone makers are deploying the opportunity, they're in the trial mode.

對於智慧型手機來說，由於大多數智慧型手機製造商都在部署這個機會，因此他們處於試用模式。

So for next year, the total percentage should be very, very low, single digit, probably less than 5%.

所以明年，總百分比應該非常非常低，個位數，可能低於 5%。

But after they deploy very successful, they will expand to multiple model.

但在他們部署非常成功之後，他們將擴展到多種模型。

We see the UFS adoption initially come from the mid range.

我們看到 UFS 的採用最初來自中檔。

But after mid range, it down, they will try to fill into the high end.

但在中檔下降之後，他們會嘗試填補高端。

And same time, we see two smartphone makers going to try QLC into the eMMC for better line.

同時，我們看到兩家智慧型手機製造商將嘗試將 QLC 引入 eMMC，以獲得更好的產品線。

So this is a tremendous opportunity and momentum, but they have to try the field, try and make sure it's really transparent to end user and consumer.

所以這是一個巨大的機會和動力，但他們必須嘗試這個領域，嘗試並確保它對最終用戶和消費者來說真正透明。

They probably won't see the difference between TLC and QLC, but with a higher density than traditional TLC.

他們可能看不出 TLC 和 QLC 之間的區別，但密度比傳統 TLC 更高。

Got it.

知道了。

Thank you for that, Wallace.

謝謝你，華萊士。

And then, a follow-up question on MonTitan.

然後是關於 MonTitan 的後續問題。

As you ramp that solution, you mentioned it carries premium margins.

當您推出該解決方案時，您提到它具有較高的利潤率。

Wondering if that ramp takes and it hits that 5% to 10% target in '26, '27, do you think that carries enough lift on margins that it puts you to the higher end of your target range of 48% to 50%?

想知道這個成長是否會在 26 年、27 年達到 5% 至 10% 的目標，您認為這是否會為利潤率帶來足夠的提升，使您達到 48% 至 50% 目標範圍的上限？

Could it push you above the 50% level?

它能讓你超過 50% 的水平嗎？

Just any sense on how additive MonTitan could be to the margin profile?

您是否知道 MonTitan 對利潤狀況的附加效果有多大？

Yeah.

是的。

It's a little too early for us to comment about '26, '27 margin profile at this point, Quinn.

Quinn，我們現在評論 26 年、27 年的利潤狀況還為時過早。

But I think historically, we've been able to achieve that 48% to 50% based upon what we have today and what the products that we have today versus MonTitan as a greenfield opportunity like Wallace had pointed out.

但我認為，從歷史上看，我們已經能夠實現 48% 到 50% 的目標，這是基於我們今天所擁有的以及我們今天所擁有的產品與像 Wallace 指出的那樣作為綠地機會的 MonTitan 的產品。

So I think that could be additive to that, maybe potentially lift us up longer term, but it's a little too early to say how additive that is in that '26, '27 time frame.

所以我認為這可能會起到補充作用，也許從長遠來看可能會提升我們的水平，但現在說這在 26 年、27 年時間範圍內有多大作用還為時過早。

Yeah, I know it's a long ways out.

是的，我知道還有很長的路要走。

And then lastly, Jason, just as you look at the expenses you're spending today on the PCI Gen5 products, the UFS4 controllers, wondering if you expect another heavy investment year in '25?

最後，Jason，當您查看今天在 PCI Gen5 產品、UFS4 控制器上花費的費用時，想知道您是否預計 25 年又是一個大投資年？

You guys have done a great job up-siding revenue this year, but obviously, expenses are increasing as well.

你們今年在增加收入方面做得很好，但顯然，支出也在增加。

And so, there's been less fall through to EPS, and just wondering if you might expect additional operating leverage on revenue growth next year as perhaps some of those investments maybe stabilized next year rather than continue to increase at a pretty fast pace?

因此，每股盈餘的下降幅度較小，只是想知道您是否預計明年的營收成長會出現額外的營運槓桿，因為其中一些投資可能會在明年穩定下來，而不是繼續以相當快的速度成長？

Yeah, that's exactly the way we look at it.

是的，這正是我們看待它的方式。

We're going to start seeing the dividends pay off for these investments we're making this year.

我們今年將開始看到這些投資的股息得到回報。

That'll lead to revenue growth, but we do expect to -- I think it's a little early to talk about OpEx for next year, but we wouldn't expect it to grow nearly as fast as we saw it grow this year, just given the initial sting of the 6-nanometer tape out that we had to bear this year.

這將導致收入成長，但我們確實預計——我認為現在談論明年的營運支出還為時過早，但我們預計它的成長速度不會像我們今年看到的那樣快，只是考慮到今年我們不得不承受的6 奈米膠帶的最初刺痛。

Let me just add some comment.

讓我添加一些評論。

I think we try to control our operating span next year.

我認為我們明年會嘗試控制我們的營運跨度。

However, we have a very, very strong demand from NAND maker, so we have to customize new UFS controller.

然而，我們對 NAND 製造商的需求非常非常強烈，所以我們必須客製化新的 UFS 控制器。

We have the base on the resource and financial return to do calculation.

我們有資源和財務回報的基礎來做計算。

If we decide to do it, that will increase some of our operating expense.

如果我們決定這樣做，這將增加我們的一些營運費用。

But I think we will base on every major project, we will be cautiously review all the ROI to make decisions.

但我認為我們會根據每一個重大項目，我們會謹慎地審查所有的投資報酬率來做出決定。

Thank you, Wallace.

謝謝你，華萊士。

Thank you, Jason.

謝謝你，傑森。

Suji Desilva, ROTH Capital.

蘇吉·德西爾瓦，羅仕資本。

Hi, Wallace.

嗨，華萊士。

Hi, Jason.

嗨，傑森。

Congrats on the progress here.

恭喜這裡的進展。

The AI PC, I'm just wondering, what is the content uplift there for the SSDs in terms of product or ASP versus the non-AI PCs?

AI PC，我只是想知道，與非 AI PC 相比，SSD 在產品或 ASP 方面的內容提升是什麼？

Just if you could clarify that, that would be helpful.

如果您能澄清這一點，那就會有幫助。

Yeah, that's a very good question.

是的，這是一個很好的問題。

I hope I can answer you.

我希望我能回答你。

By seeing that so far, AI PC get a tremendous momentum, however, we did not see any meaningful impact or increase at PC unit shipment so far.

到目前為止，AI PC 取得了巨大的發展勢頭，但到目前為止，我們還沒有看到 PC 出貨量出現任何有意義的影響或成長。

Besides Microsoft compiler, I think the market really waiting for more meaningful application coming to add a practical application and purpose to make both the corporate and consumer feel comfortable.

除了微軟編譯器之外，我認為市場確實在等待更多有意義的應用程式來添加實際的應用程式和目的，以使企業和消費者都感到舒適。

So I think there's many, many different new platform coming, but it's also some bundle with PC OEM's own AI application.

因此，我認為將會出現很多很多不同的新平台，但它也與 PC OEM 自己的人工智慧應用程式捆綁在一起。

So we have to wait for see the consumer feedback to see adoption.

因此，我們必須等待消費者的回饋才能看到採用。

So far, I think the PC unit shipment for 2024 is to maintain the same at the beginning of the year or single-digit increase compared to 2023.

到目前為止，我認為2024年PC單位出貨量與2023年相比將維持年初不變或個位數成長。

Okay.

好的。

And then, switching over to the infrastructure side.

然後，切換到基礎架構方面。

Sorry, we definitely see PCIe Gen5 SSD that become a plus because they have much better performance, provided better sequential read, provided much better, shorter latency.

抱歉，我們確實看到 PCIe Gen5 SSD 成為優勢，因為它們具有更好的效能，提供更好的順序讀取，提供更好、更短的延遲。

So that's why we do see potentially, there'll be high demand for PCIe Gen5 8-channel SSD in 2025.

因此，我們確實認為 2025 年 PCIe Gen5 8 頻道 SSD 的需求將會很高。

Okay.

好的。

It's available '25.

25 年上市。

Great.

偉大的。

And then, switching overall to the AI infrastructure side, can you give us some framework for these programs that are on the com, the two you have, the two you might be adding?

然後，整體切換到人工智慧基礎設施方面，您能為我們提供一些 com 上的這些程序的框架嗎？

How to think about the Inter-ASPs, maybe on a content-per-server, content-per-rack framework, maybe that would be one way to get a sense of these MonTitan programs and how big they can get for you?

如何考慮 Inter-ASP，也許是在每個伺服器內容、每機架內容框架上，也許這將是了解這些 MonTitan 程式以及它們能為您帶來多大影響的一種方式？

We talk about it on a volume basis, right?

我們是按數量來討論的，對吧？

Because we sell controllers.

因為我們銷售控制器。

We don't sell density.

我們不賣密度。

I think if you take a look at historically, enterprise SSD controllers, typically in the $50 to $75 plus range in that ballpark.

我認為，如果你看一下歷史上的企業級 SSD 控制器，通常價格在 50 美元到 75 美元以上。

Obviously, configurations for different servers, different applications can vary, so it's difficult for us to assess or to really say that there is any real algorithm you can use on that.

顯然，不同伺服器、不同應用程式的配置可能會有所不同，因此我們很難評估或真正說有任何真正的演算法可以使用。

So we can only give you roughly a range for the 16-channel MonTitan controller.

因此，我們只能為您提供 16 通道 MonTitan 控制器的大致範圍。

The ASP is between $55 to $65 range.

平均售價在 55 美元到 65 美元之間。

It doesn't matter TLC, QLC, it doesn't matter, density, the controller price is similar range.

沒關係TLC，QLC，沒關係，密度，控制器價格都差不多的範圍。

We also have a version for 8-channel controller, which we have a new design, probably will tape out in mid of next year.

我們還有一個8通道控制器的版本，我們有新的設計，可能會在明年中旬流片。

And this will -- for 8-channel controller, the selling price between $42 to $50 range.

對於 8 通道控制器來說，售價將在 42 美元到 50 美元之間。

So this is for the ballpark for the MonTitan family controller price.

這是 MonTitan 系列控制器的大概價格。

Alright.

好吧。

Very helpful.

很有幫助。

Just thanks.

只是謝謝。

(Operator Instructions) Robert Xu, JP Morgan.

（操作員指示）Robert Xu，摩根大通。

Okay, thank you.

好的謝謝。

I'm asking on behalf of Gokul Hariharan.

我代表 Gokul Hariharan 提問。

So I have a quick question on the inventory level.

我有一個關於庫存水平的快速問題。

How should we think about the inventory level for the client SSD or with the PC OEMs, as well as the mobile solutions with the OEM customers?

我們應該如何考慮客戶端 SSD 或 PC OEM 的庫存水平，以及 OEM 客戶的行動解決方案的庫存水準？

Thank you.

謝謝。

So at this moment, we see the inventory level in the channel naturally is relatively healthy.

所以此時此刻，我們看到通路中的庫存水準自然是相對健康的。

But however, just because the demand size is very weak from the channel in retail.

然而，正是因為零售通路的需求規模非常微弱。

So most of our customers, the inventory level, I think is largely healthy and in line now.

因此，我認為我們大多數客戶的庫存水準基本上是健康的，並且目前處於穩定狀態。

And for the NAND maker, I think they definitely have much less inventory for the client SSD.

對於 NAND 製造商來說，我認為他們的客戶端 SSD 庫存肯定要少得多。

Do you have any follow-up questions, Robert?

羅伯特，您還有什麼後續問題嗎？

Yeah, that's it.

是的，就是這樣。

All right, thank you.

好吧。

I'm showing no further questions.

我沒有再提出任何問題。

I'll now turn the conference back to the President and CEO, Mr. Wallace Kou, for closing comments.

現在我將把會議轉回主席兼執行長郭建華先生做總結發言。

Thank you, everyone, for joining us today and for your continued interest in Silicon Motion.

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。

We'll be attending the Future of Memory and Storage Conference in Santa Clara next week, as well as several investor conferences in the coming months.

我們將參加下週在聖克拉拉舉行的記憶體和儲存未來會議，以及未來幾個月的幾場投資者會議。

The schedule of this event will be posted on the Investor Relations section of our corporate website and look forward to speaking with you at this event.

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。

Thank you, everyone, for joining us today.

謝謝大家今天加入我們。

Goodbye for now.

暫時再見了。

Thank you.

謝謝。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。