慧榮科技 (SIMO) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Silicon Motion Technology Corporation's Q2 2025 earnings conference. (Operator Instructions)

您好，感謝您的支持。歡迎參加慧榮科技2025年第二季財報發表會。（操作員指示）

This conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitations, statements regarding trends in the semiconductor industries; and our future results of operation, 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.

本次電話會議包含經修訂的 1933 年證券法第 27A 節和 1934 年證券交易法第 21E 節所定義的前瞻性陳述。此類前瞻性陳述包括但不限於有關半導體行業趨勢的陳述；以及我們未來的經營業績、財務狀況和業務前景的陳述。儘管此類聲明基於我們自己的資訊以及我們認為可靠的其他來源的信息，但您不應過分依賴它們。

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

這些聲明涉及風險和不確定性，由於各種原因，實際市場趨勢和我們的結果可能與這些前瞻性聲明中表達或暗示的結果有重大差異。潛在風險和不確定因素包括但不限於半導體行業持續的競爭壓力及其對價格的影響；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狀況和任何變化；以及台灣政治、經濟、法律和社會條件的變化。

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 obligation to update any forward-looking statements which apply only as of the date of this conference call.

有關這些風險、不確定性和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。我們不承擔更新僅適用於本次電話會議之日的任何前瞻性陳述的義務。

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

請注意，今天的通話正在錄音。

I would now like to hand the conference over to Mr. Tom Sepenzis, Senior Director of IR and Strategy. Thank you. Please go ahead.

現在，我想將會議交給投資者關係和策略高級總監 Tom Sepenzis 先生。謝謝。請繼續。

Good morning, everyone, and welcome to Silicon Motion's second quarter 2025 financial results conference call and webcast. Joining me today is Wallace Kou, our President and CEO; and Jason Tsai, our CFO. Wallace will first provide a review of our key business developments; and then Jason will discuss our second quarter results and outlook. Following our prepared remarks, we will conclude with a Q&A session.

大家早安，歡迎參加 Silicon Motion 2025 年第二季財務業績電話會議和網路廣播。今天與我一起出席的還有我們的總裁兼執行長 Wallace Kou 和我們的財務長 Jason Tsai。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展望。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. For a comprehensive overview of the risks involved in investing in our securities, please refer to our filings with the US 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 market yesterday.

在我們開始之前，我想提醒大家注意我們的安全港政策，該政策已在本次電話會議開始時宣讀過。有關投資我們證券所涉及的風險的全面概述，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，請參閱我們昨天收盤後以 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. 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 consistent with how we analyze our own operating results. The reconciliation of the GAAP to non-GAAP financial data can be found in our earnings release issued yesterday. We ask that you review it in conjunction with this call.

為了增強投資者對我們持續經濟表現的了解，我們將在本次電話會議中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，我們選擇提供這些信息，以便您以與我們分析自身經營業績一致的方式對我們的經營業績進行比較。在我們昨天發布的收益報告中可以找到 GAAP 與非 GAAP 財務數據的對帳。我們要求您結合本次通話對其進行審查。

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

說完這些，我會把電話轉給華萊士。

Thank you, Tom. Hello everyone and thank you for joining us today. I'm pleased to report that we exceeded our revenue in the operation margin guidance for the second quarter that we further benefited from the introduction of new controller that drive higher market share and our continuing expansion and growth into new markets.

謝謝你，湯姆。大家好，感謝大家今天加入我們。我很高興地報告，我們第二季的營業利潤率預期收入超出預期，這進一步受益於新控制器的推出，這推動了更高的市場份額，以及我們繼續向新市場擴張和成長。

As we further scale and shift to high-end UFS PCIe controllers and then grow our automotive and MonTitan products in the second half of this year, we expect our revenue growth to remain strong and probability to further improve. We are excited by the progress and foundation for growth we are building. And based on our backlog diversification strategy and design win momentum, we are well-positioned for a strong second half and remain confident that we will exit the year with our target $1 billion revenue run rate.

隨著我們進一步擴大規模並轉向高階 UFS PCIe 控制器，然後在今年下半年發展我們的汽車和 MonTitan 產品，我們預計我們的營收成長將保持強勁，並且有可能進一步提高。我們對正在取得的進展和成長基礎感到興奮。基於我們的積壓多樣化策略和設計獲勝勢頭，我們已為強勁的下半年做好了準備，並且仍然有信心在今年年底實現 10 億美元的目標收入運行率。

Let me start by discussing our view of the broader NAND fash environment and how it's positively affecting our business today and the opening new opportunity longer term as well. The NAND industry experienced improvement in the second quarter with the flash finances increasing, but the inventory level in the PC and smartphone market declined further given the modestly (inaudible) environment.

首先，我來討論我們對更廣泛的 NAND 快閃記憶體環境的看法，以及它如何對我們目前的業務產生積極影響，以及如何在長期內開闢新的機會。NAND產業在第二季隨著快閃記憶體財務的增加而有所改善，但鑑於溫和的（聽不清）環境，PC和智慧型手機市場的庫存水準進一步下降。

Enterprise storage demand remains strong in the quarter with the AI expanding into nearly every industry. NAND flash makers have reduced capital expenditures (inaudible) and continue to increase prices for the enterprise and AI growth are limiting NAND supply. Our module maker partner continue to build inventory ahead, but unexpected increasing NAND prices in the second half of 2025. We will remain flexible and well-positioned with both NAND flash makers and module makers to fulfill their growing requirements.

隨著人工智慧擴展到幾乎所有產業，本季企業儲存需求依然強勁。NAND 快閃記憶體製造商已經減少了資本支出（聽不清楚）並繼續提高企業價格，而人工智慧的成長正在限制 NAND 的供應。我們的模組製造商合作夥伴繼續提前建立庫存，但 2025 年下半年 NAND 價格意外上漲。我們將保持靈活性，並與 NAND 快閃記憶體製造商和模組製造商保持良好關係，以滿足他們日益增長的需求。

With NAND price expected to increase, demand for more cost-effective TLC NAND expanding in (inaudible) smartphone and enterprise storage, increasing TLC production as a lower cost way to rapidly growing (inaudible) growth for flash makers while TLC based solution deliver a high-density storage and is definitely lower cost. We are the only controller company partnered with all flash makers, giving us significant advantage and the insight into current and future NAND technologies.

隨著 NAND 價格預計上漲，（聽不清楚）智慧型手機和企業存儲對更具成本效益的 TLC NAND 的需求不斷擴大，增加 TLC 產量是實現閃存製造商快速增長（聽不清）的低成本方式，而基於 TLC 的解決方案可提供高密度存儲，並且成本肯定更低。我們是唯一一家與所有快閃記憶體製造商合作的控制器公司，這為我們帶來了顯著的優勢以及對當前和未來 NAND 技術的洞察。

We believe these partnerships and our unmatched experience in managing TLC NAND will allow us to maintain our industry leadership and drive long-term sustainable revenue and earnings growth for many years.

我們相信，這些合作夥伴關係以及我們在管理 TLC NAND 方面的無與倫比的經驗將使我們保持行業領先地位，並在未來多年推動長期可持續的收入和盈利增長。

In addition, the demand for memory and storage solution is expanding to new end market in consumer, commercial, industrial, automotive, and enterprise. Memory makers are constrained in where they allocate R&D resources and capital resource between NAND, HBM, and DRAM. The demand from each of these markets continue to rise and new generation of NAND evolves the need for next generation controller for this different application expanding.

此外，對記憶體和儲存解決方案的需求正在擴展到消費者、商業、工業、汽車和企業等新的終端市場。記憶體製造商在 NAND、HBM 和 DRAM 之間分配研發資源和資本資源受到限制。每個市場的需求都在持續成長，新一代 NAND 的發展需要下一代控制器來滿足不同應用的擴展。

Our flash maker partners are turning into Silicon Motion as their primary merchant supplier to help build comprehensive portfolios, expanding our market share and building the foundation for strong multiyear growth with an increasingly diversified range of products in end markets.

我們的快閃記憶體製造商合作夥伴正在將 Silicon Motion 作為其主要商業供應商，以幫助建立全面的產品組合，擴大我們的市場份額，並透過在終端市場中日益多樣化的產品範圍為強勁的多年增長奠定基礎。

So let me share some update for each of our business segments, beginning with eMMC and UFS. Our mobile business (inaudible) our expectation in the second quarter as we benefited from several positive trends for our eMMC and UFS controllers. We continue to see strong booking momentum from both flash maker and module maker customers entering the second half of the year.

因此，讓我分享我們每個業務部門的一些最新情況，首先從 eMMC 和 UFS 開始。我們的行動業務（聽不清楚）對第二季度的預期是，我們受益於 eMMC 和 UFS 控制器的幾個積極趨勢。進入下半年，我們繼續看到快閃記憶體製造商和模組製造商客戶的強勁預訂動能。

Module makers, in particular, are experiencing strong growth in mobile as they are benefiting from the trend toward discrete eMMC and UFS solution driven by the increase of variability of low-cost mobile DRAM. Flash makers have also adopted our controller as they continue to embrace outsourcing to stay competitive, improve their time to market, and prioritize their own internal R&D resources for other technologies and end markets.

模組製造商在行動領域尤其經歷了強勁成長，因為他們受益於低成本行動 DRAM 多樣性增加所推動的向分立 eMMC 和 UFS 解決方案的趨勢。快閃記憶體製造商也採用了我們的控制器，因為他們繼續採用外包來保持競爭力、縮短產品上市時間，並優先將自己的內部研發資源用於其他技術和終端市場。

Our family of UFS controllers for smartphone and other mobile and IoT devices grew meaningfully in the quarter as demand from both our flash maker and module maker customers accelerated. Driven by strong end market demand. The increasing share of UFS in smartphone is driving stronger demand for our new high (inaudible) UFS controller in mainstream and high-end devices. In addition, our new engagement with handset OEMs for TLC UFS solution are also expanding and diversifying our market penetration. We expect this trend to continue in the second half of this year.

由於快閃記憶體製造商和模組製造商客戶的需求加速成長，我們用於智慧型手機和其他行動和物聯網設備的 UFS 控制器系列在本季度實現了顯著成長。受強勁的終端市場需求推動。UFS 在智慧型手機中的份額不斷增加，推動了主流和高階裝置對我們新的高（聽不清楚）UFS 控制器的更強勁需求。此外，我們與手機 OEM 廠商在 TLC UFS 解決方案方面的新合作也正在擴大並多樣化我們的市場滲透率。我們預計這一趨勢將在今年下半年持續下去。

For eMMC, our increasing share and robust demand in the quarter also delivers strong sequential growth for our controllers. Demand is accelerating in multiple existing emerging markets, including IoT, smart watches, smart TV, setup box, and emerging consumer products such as AI glasses. The market for eMMC account for over 800 million units per year and the non-smartphone account for much of this market. We believe our eMMC business will remain a strong contributor for many years to come as these additional market further scale.

對於 eMMC，我們本季不斷成長的份額和強勁的需求也為我們的控制器帶來了強勁的連續成長。現有的多個新興市場的需求正在加速成長，包括物聯網、智慧手錶、智慧電視、機上盒以及人工智慧眼鏡等新興消費產品。eMMC市場每年的出貨量超過8億台，其中非智慧型手機佔據了很大一部分市場份額。我們相信，隨著這些額外市場的進一步擴大，我們的 eMMC 業務將在未來許多年內繼續發揮強勁貢獻作用。

Now I would like to move on to our SSD business. The PC market appear to be [flattened out] in the first quarter of 2025 and stabilized in the second quarter. We believe that market will grow in the low single-digit in 2025. And we are expecting a stronger second half given typical seasonality. We benefited from the back-to-school and how they sell. This year, we'll also see further benefit from sunsetting of Window 10 in October, and we are beginning to see more widespread adoption of AI (inaudible) in consumer and commercial PC. Which is increasing demand of higher-performance solution, including SSD powered by our PCIe5 controllers.

現在我想談談我們的 SSD 業務。2025 年第一季度，PC 市場似乎將趨於平穩，第二季將趨於穩定。我們相信，到 2025 年，市場將實現低個位數成長。考慮到典型的季節性，我們預計下半年業績將會更加強勁。我們從返校季和他們的銷售中受益。今年，Windows 10 將於 10 月退市，這將進一步帶來好處，我們也開始看到 AI（聽不清楚）在消費性和商用 PC 中得到更廣泛的應用。這推動了對更高效能解決方案的需求，包括基於我們 PCIe5 控制器的 SSD。

So as we have discussed previously, we expect to drive significant market share gains (inaudible) to be over the next few years, especially in the high end, driven by our leading position in PCIe5. Our overall 8-channel controller launched in December of last year, continued to grow quickly in the second quarter, increasing by more than 75% sequentially and already account for more than 10% of our clients (inaudible) controller their revenue, driven by a strong share gain and high ASP.

因此，正如我們之前所討論過的，我們預計在未來幾年內，尤其是在高端市場，我們的市場份額將大幅增長（聽不清楚），這得益於我們在 PCIe5 領域的領先地位。我們去年 12 月推出的整體 8 通道控制器在第二季度繼續快速增長，環比增長超過 75%，並且已經占到我們客戶 (聽不清楚) 控制器收入的 10% 以上，這得益於強勁的市場份額增長和高 ASP。

We found additional momentum with our PCIe5 controllers throughout this year as OEMs increased sales at the high end. Additionally, We will start initial ramp of our 4-channel DRAM PCIe5 controllers at the end of this year and have already won design with four of six flash makers and nearly all the module makers. This new controller will target the broadest segment of PC and aftermarket SSD sales. And we believe that this introduction will help us achieve 40% of SSD market by 2028, up from 30% today.

隨著 OEM 廠商增加高階銷量，我們發現我們的 PCIe5 控制器今年獲得了額外的發展動力。此外，我們將在今年年底開始初步生產我們的 4 通道 DRAM PCIe5 控制器，並且已經贏得了六家快閃記憶體製造商中的四家以及幾乎所有模組製造商的設計。這款新控制器將針對最廣泛的 PC 和售後市場 SSD 銷售領域。我們相信，這項措施將有助於我們在 2028 年實現 SSD 市場 40% 的佔有率，高於目前的 30%。

I will now provide an update to our automotive and other business. As I mentioned earlier, we continue to experience tremendous design win activity in our automotive segment. Vehicle capacity is increasing with a growing demand of high-speed and low-latency storage. We support the motor storage in across nearly our product line including PCIe, eMMC, UFS, and (inaudible).

我現在將介紹我們的汽車和其他業務的最新情況。正如我之前提到的，我們在汽車領域繼續經歷巨大的設計勝利活動。隨著高速和低延遲儲存的需求不斷增長，車輛容量也在不斷增加。我們支援幾乎所有產品線的馬達存儲，包括 PCIe、eMMC、UFS 和（聽不清楚）。

Our Ferri embedded solution. We were the first company to achieve ASPICE Level 3 Certification for our PCIe4 solution and we are on track to (inaudible) our new automotive PCIe5 controller in 2026. Demand for more storage solution is increasing in conventional cars, as well as with next generation electrical vehicle makers. Our controller power increased storage density, speed, and reliability for diverse (inaudible) including smart cockpit, data censors, cameras, navigation, and other application.

我們的 Ferri 嵌入式解決方案。我們是第一家獲得 PCIe4 解決方案 ASPICE 3 級認證的公司，我們預計在 2026 年推出（聽不清楚）新的汽車 PCIe5 控制器。傳統汽車以及下一代電動車製造商對更多儲存解決方案的需求正在增加。我們的控制器功率提高了多種（聽不清楚）應用的儲存密度、速度和可靠性，包括智慧駕駛艙、資料審查員、攝影機、導航和其他應用。

We are now seeing increased demand for storage solution to support AI and multi-screen integration to help automaker drive depanciation and customer loyalty. We are currently shipping to many of the largest multi-brands in the business including Mercedes, Tesla, BYD, Xiaomi, Toyota, Honda, and many others. So when we enter the second half, we are seeing greater-than-expected demand from our partner in China. This brand is successfully taking worldwide market share for low-cost automobiles and leading electrical vehicles. Given the strength in China and increasing design win activity globally, we are increasingly confident that automotive will account for at least 10% of our revenue by 2026 to '27.

我們現在看到對支援人工智慧和多螢幕整合的儲存解決方案的需求不斷增加，以幫助汽車製造商推動去中心化和客戶忠誠度。我們目前正在向業內許多最大的多品牌發貨，包括梅賽德斯、特斯拉、比亞迪、小米、豐田、本田等。因此，當我們進入下半年時，我們看到來自中國合作夥伴的需求超出預期。該品牌成功佔領了全球低成本汽車和領先電動車的市場份額。鑑於中國市場的實力和全球設計贏單活動的不斷增加，我們越來越有信心，到 2026 年至 2027 年，汽車業務將占我們收入的至少 10%。

During the second quarter, we also experienced strong growth in our memory card business due to the highly successful launch of Nintendo Switch 2. We saw ramping with the leading South Korea flash maker with direct attach to the (inaudible) as well as partnering with leading brand like ADATA and (inaudible) for retail expendable storage with PCIe SSD level performance in a microSD phone factor.

在第二季度，由於 Nintendo Switch 2 的巨大成功，我們的記憶卡業務也實現了強勁成長。我們看到與韓國領先快閃記憶體製造商的合作正在加速，直接連接到（聽不清楚），並與 ADATA 和（聽不清楚）等領先品牌合作，在 microSD 手機中提供具有 PCIe SSD 級性能的零售消耗性儲存。

For the first half of 2025, our memory card revenue more than doubled year-over-year. And then we expect to see continuous success in the second half of the year as the Switch 2 demand remain robust and as we enter the holiday season. The SM2708 delivered a high-density, high-speed required by modern portable gaming devices, and we are pursuing other opportunity with this exceptional controller to drive, diversify (inaudible) growth.

2025年上半年，我們的記憶卡營收年增一倍以上。隨著 Switch 2 需求保持強勁且我們進入假期季節，我們預計下半年將繼續取得成功。SM2708 提供了現代便攜式遊戲設備所需的高密度、高速度，我們正在利用這款卓越的控制器尋求其他機會來推動、多樣化（聽不清楚）成長。

Finally, I would like to provide a highlight on our enterprise business. Both memory and storage needs are evolving radically in AI era. And the opportunity for Silicon Motion are expanding. (inaudible) to set data more quickly, driving increased adoption of SSd throughout the data center. The current infrastructure comprise high-performance memory, (inaudible) GPU storage, compute storage, warm storage, and cold storage.

最後，我想重點介紹一下我們的企業業務。在人工智慧時代，記憶體和儲存需求都在發生根本性的變化。Silicon Motion 的機會正在擴大。 （聽不清楚）以更快設定數據，推動整個數據中心對 SSd 的採用。目前的基礎設施包括高效能記憶體、（聽不清楚）GPU 儲存、運算儲存、熱儲存和冷儲存。

Our MonTitan platform is ideally suited to manage high -density, high-performance SSD that are both cost effective and power efficient to serve the one storage market with a leading controller when paired with QLC NAND. The warm storage market has traditionally been served by HDD. But storage performance requirement have increased due to AI application and the price parity between HDD and QLC SSD converge. We expect more hyperscalers in (inaudible) adopt high-capacity QLC SSD for warm storage while new line (inaudible) move to support growing cold storage need.

我們的 MonTitan 平台非常適合管理高密度、高效能 SSD，它既經濟又節能，與 QLC NAND 搭配使用時，可透過領先的控制器服務於單一儲存市場。傳統上，熱儲存市場一直由 HDD 提供服務。但由於AI應用以及HDD與QLC SSD價格趨於平價，對儲存效能的要求也隨之提高。我們預計 (聽不清楚) 中會有更多超大規模企業採用高容量 QLC SSD 進行熱存儲，而新生產線 (聽不清楚) 則會轉向支援日益增長的冷存儲需求。

Recently, we have been receiving (inaudible) from customer to expand beyond one storage and compute storage market with our MonTitan. The new product will appear MonTitan with up to 16 terabytes of TLC NAND Tinan toati to target the high performance near CPU market and they represent an exciting new opportunity for MonTitan.

最近，我們收到了來自客戶的（聽不清楚）請求，希望透過我們的 MonTitan 擴展儲存和運算儲存市場。新產品將採用 MonTitan 高達 16 TB 的 TLC NAND Tinan toati，瞄準高性能近 CPU 市場，這為 MonTitan 帶來了令人興奮的新機會。

Longer term. We are also beginning to work with our industry and the flash maker partner to support the development of a new (inaudible) standard for (inaudible). That will likely come to market in the next three to five years to further drive adoption of SSD in warm storage application, especially the need to access more data more quickly and grow with AI

長期而言。我們也開始與業界和快閃記憶體製造商合作夥伴合作，支持開發新的（聽不清楚）標準（聽不清楚）。這款產品很可能在未來三到五年內上市，以進一步推動 SSD 在熱存儲應用中的採用，特別是滿足更快地訪問更多數據和隨著 AI 一起成長的需求

The new NAND flash rquirement will allow for more relaxed sophistication called QLC with a lower cost driven by higher yield. This should drive even greater adoption of QLC NAND kerosene in warm storage. And by extension, it shall create a bigger market opportunity for MonTitan.

新的 NAND 快閃記憶體要求將允許更寬鬆的複雜程度，稱為 QLC，其成本更低，產量更高。這將推動 QLC NAND 煤油在熱儲存領域的更廣泛應用。由此，它將為 MonTitan 創造更大的市場機會。

At the upcoming SMS conference next week, we will be co-hosting a demo with the best data to demonstrate how our MonTitan SSD can deliver a compelling solution for the insatiable growth in AI application. The collaboration will showcase the vast data storage class memory or SCM. (inaudible) new V2 platform.

在下週即將舉行的 SMS 會議上，我們將共同主持一個擁有最佳數據的演示，以展示我們的 MonTitan SSD 如何為 AI 應用的持續增長提供引人注目的解決方案。此次合作將展示海量資料儲存層級記憶體或 SCM。 （聽不清楚）新的 V2 平台。

Series V2 (inaudible) platform for AI storage. So, (inaudible) storage platform that used by integrated and architects and employee at hundreds of large enterprise around the world, including banks, data centers, retailers, multinational conglomerate, and other leading companies that are leveraging or developing AI application. We invite you to join us at SMS to see how our MonTitan solution will try the next way of AI solution for the next several years.

用於 AI 儲存的 V2 系列（聽不清楚）平台。因此，（聽不清楚）儲存平台被全球數百家大型企業的整合架構師和員工使用，包括銀行、資料中心、零售商、跨國企業集團和其他正在利用或開發人工智慧應用的領先公司。我們邀請您加入 SMS，了解我們的 MonTitan 解決方案如何在未來幾年嘗試下一種 AI 解決方案方式。

In conclusion, the second quarter of 2025 had delivered a significant rebound in our business. And we are beginning to see return on the investment we have made over the past few years. This includes our leading 6-nanometer product, our new UFS and PCIe5 controllers, our new MonTitan SSD and the boost storage solutions. Our market-leading automotive portfolio and our new microSD product for multiple application, including Nintendo Switch 2.

總而言之，2025 年第二季我們的業務出現了顯著反彈。我們開始看到過去幾年的投資回報。其中包括我們領先的 6 奈米產品、我們的新 UFS 和 PCIe5 控制器、我們的新 MonTitan SSD 和 boost 儲存解決方案。我們市場領先的汽車產品組合和適用於多種應用的新型 microSD 產品，包括 Nintendo Switch 2。

We're in a better position to expand our market share across each of our markets in 2025 than ever before, but we continue to capture additional share with the flash maker across a product portfolio. Given the current customer demand in our legacy business and the growing success with our new product, I'm increasingly confident that we will achieve our goal of exiting 2025 with $1 billion revenue run rate and growth further in 2026.

到 2025 年，我們比以往任何時候都更有能力擴大我們在每個市場的市場份額，但我們將繼續透過產品組合與快閃製造商爭奪更多的市場份額。鑑於我們傳統業務的當前客戶需求以及我們新產品的不斷成功，我越來越有信心，我們將實現 2025 年結束時 10 億美元的收入運行率並在 2026 年進一步增長的目標。

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，讓他介紹我們的財務表現和前景。

Thank you, Wallace. Good morning, everyone, for joining us today. I will discuss additional details of our second quarter results and then provide our outlook. Please note that my comments today will focus primarily on our non-GAAP results unless specifically noted. Reconciliation of our GAAP to non-GAAP data is included with the earnings release issued yesterday.

謝謝你，華萊士。大家早安，歡迎今天加入我們。我將討論我們第二季業績的更多細節，然後提供我們的展望。請注意，除非特別說明，我今天的評論將主要集中於我們的非 GAAP 結果。昨天發布的收益報告中包含了我們的 GAAP 數據與非 GAAP 數據的對帳。

The June quarter sales increased 19.3% sequentially to $198.7 million, coming in well above the high end of our guided range as we experience a strong rebound in mobile demand and strong growth in our PCIe5 client SSD business.

由於行動需求強勁反彈以及 PCIe5 用戶端 SSD 業務強勁成長，6 月份季度銷售額環比增長 19.3%，達到 1.987 億美元，遠高於我們預期範圍的高端。

Gross margin was at the higher end of our guidance range, it increased again in the quarter to 47.7% as we continue to capitalize on new product introductions and improving mix.

毛利率處於我們預期範圍的較高水平，由於我們繼續利用新產品的推出和產品組合的改善，本季毛利率再次上升至 47.7%。

Operating expenses, increased sequentially to $69.3 million as we continue to invest in new enterprise storage products and as additional resources to support our significant pipeline of new projects. Higher operating expenses in the second quarter were also impacted by the stronger Taiwan dollar as most of our compensation expenses are paid in Taiwan dollar.

由於我們繼續投資新的企業儲存產品並投入額外資源來支持我們大量的新項目，營運費用較上季增加至 6,930 萬美元。由於我們的大部分薪資費用都是以新台幣支付的，因此第二季度較高的營運費用也受到新台幣走強的影響。

Operating margin increased sequentially to 12.8%, well above our guided range, resulting from improved gross margins and higher-than-expected revenues during the quarter. Our earnings for ADS would be $0.69.

由於本季毛利率提高且收入高於預期，營業利潤率環比增長至 12.8%，遠高於我們的預期範圍。我們的 ADS 收益為 0.69 美元。

Total stock-based compensation, which we exclude from non-gap results, was $0.2 million in the second quarter. We had $282.3 million cash, cash equivalents, and restricted cash at the end of the second quarter compared to 331.7 million at the end of the first quarter of 2025.

我們從非差距結果中排除的股票薪酬總額在第二季為 20 萬美元。截至第二季末，我們的現金、現金等價物和受限現金為 2.823 億美元，而 2025 年第一季末為 3.317 億美元。

Cash declined in the second quarter primarily from the combination of the dividend payout of $16.7 million and an increase in inventory to support our expected strong business ramp. We did not repurchase any shares in the second quarter.

第二季現金減少主要是因為支付了 1,670 萬美元的股息以及為支持我們預期的強勁業務成長而增加的庫存。我們在第二季沒有回購任何股票。

Our team executed well and delivered significant outperformance despite ongoing global macro uncertainty and continuing investments in new advanced geometry products and our MonTitan platform for the enterprise and AI markets.

儘管全球宏觀不確定性持續存在，並且我們繼續對新的先進幾何產品和麵向企業和人工智慧市場的 MonTitan 平台進行投資，但我們的團隊表現良好，並取得了顯著的優異表現。

Now I'll discuss our third quarter outlook. Revenue is expected to increase 10% to 15% to $ 219 million to $228 million, driven by growth across all segments of our businesses, these newer products continue to ramp in PCIe5 UFS, eMMC, and the Enterprise. Gross margins are expected to be in the range of 48% to 49% as we continue to transition customers to newer platforms. And we return back to our historical range.

現在我將討論我們第三季的展望。預計營收將成長 10% 至 15%，達到 2.19 億美元至 2.28 億美元，這得益於我們所有業務部門的成長，這些新產品在 PCIe5 UFS、eMMC 和企業領域的持續成長。隨著我們繼續將客戶轉向更新的平台，預計毛利率將在 48% 至 49% 之間。我們又回到了歷史範圍。

Operating margin is expected to be in the range of 12.3% to 14.3% as we benefit from higher revenue and gross margins, partially offset by higher operating expenses from higher R&D development and headcount expense and the continuing strength of the Taiwan dollar.

由於我們受益於更高的收入和毛利率，預計營業利潤率將在 12.3% 至 14.3% 之間，但研發和員工費用增加以及新台幣持續走強導致的營運費用增加部分抵消了這一影響。

Our effective tax rate is expected to be approximately 18%. Stock-based compensation, dispute-related expenses are expected to be in the range of $6.5 millionto $ 7.5 million. For the full year, PC and smartphone growth targets remain in the low to mid single-digit range with an above-average second half weighting. We believe that our business will reflect the broader industry with significant growth expected in the second half, driven by the strong ramp of new products and project wins. We continue to target an annual revenue run rate of approximately $1 billion as we exit the year.

我們的有效稅率預計約為18%。股票薪酬、糾紛相關費用預計在 650 萬美元至 750 萬美元之間。就全年而言，個人電腦和智慧型手機的成長目標仍維持在低至中等個位數範圍內，下半年的權重高於平均水準。我們相信，我們的業務將反映更廣泛的行業情況，預計下半年將在新產品和專案勝利的強勁推動下實現顯著增長。我們繼續將今年的年收入運行率定為約 10 億美元。

We expect to continue to grow gross margins as the product sila scale enterprise business begins to ramp in the second half of the year. We remain confident that we can drive gross margins towards the higher end of the historical range of 48% to 50% by the end of this year.

我們預計，隨著下半年產品規模企業業務開始成長，毛利率將持續成長。我們仍然有信心，到今年年底，我們可以將毛利率推高至 48% 至 50% 的歷史高點。

Our pipeline of new design wins continues to grow, and we're committed to investing in next generation advanced geometry products that allow us to enhance our market share in business long term and help us to diversify our product portfolio and enter new markets.

我們贏得的新設計管道不斷擴大，我們致力於投資下一代先進幾何產品，這使我們能夠長期提高業務市場份額，並幫助我們實現產品組合多樣化並進入新市場。

We will also continue to add additional R&D resources to address the growing range of customer projects that will drive long term growth.

我們也將持續增加研發資源，以滿足日益增長的客戶專案需求，從而推動長期成長。

Despite the higher investments, we're confident that we can return to our historical operating margin range of 25% plus in the midterm as the investments we have made over the past 18 months, begin to scale and drive stronger revenue growth. Better gross profitability and improve our operating process. Our overall tax rate is expected to be approximately 15% for the full year and stock-based comp and dispute-related expenses will be in the range of $32 million to $34 million.

儘管投資增加，但我們相信，隨著過去 18 個月的投資開始擴大規模並推動更強勁的收入成長，我們可以在中期恢復到 25% 以上的歷史營業利潤率範圍。提高毛利率並改善我們的營運流程。預計全年整體稅率約為 15%，股票補償和糾紛相關費用將在 3,200 萬美元至 3,400 萬美元之間。

As we enter the second half, our pipeline new project continue to build and position us for strong growth for the rest of this year and into 2026 and beyond. Investments we have made in client SSD and eMMC and (inaudible) controllers are beginning to scale, driving better ASPs and higher margins.

隨著我們進入下半年，我們的新項目管道繼續建設，並為我們在今年剩餘時間以及 2026 年及以後的強勁增長做好準備。我們對客戶端 SSD 和 eMMC 以及（聽不清楚）控制器的投資開始擴大，從而推動了更好的 ASP 和更高的利潤率。

Momentum behind our enterprise business driven by strong progress in MonTitan development and expanding opportunities in enterprise (inaudible) will deliver a new avenue of high-margin growth for the company longer term. We're confident that our controller products paired with our unmatched customer relationships with all the flash makers and virtually, every module maker will drive significant long-term revenue and profitability growth for the company.

在 MonTitan 開發的強勁進展和企業領域不斷擴大的機會（聽不清楚）的推動下，我們的企業業務將為公司長期高利潤成長帶來新的途徑。我們相信，我們的控制器產品與我們與所有快閃記憶體製造商以及幾乎所有模組製造商建立的無與倫比的客戶關係相結合，將為公司帶來顯著的長期收入和盈利增長。

This puts are prepared remarks will now open the call to questions from the investment community operator, please go ahead with the first question.

準備好發言後，現在將開始向投資界接線生提問，請繼續提問第一個問題。

(Operator Instructions)

（操作員指示）

Craig Ellis, B. Riley Securities.

克雷格·艾利斯 (Craig Ellis)，B. Riley 證券。

Thanks for taking the question and congratulations on a very strong quarter of execution and the momentum you have here. I wanted to start with a clarification question on some of your operating expense comments, Jason. So we've all seen that there's been exchange rate fluctuations at unusual degrees as we've gone through the last three months and with where we stand here early in the third quarter. I'm wondering if you can quantify what the new Taiwan dollar exchange impact was to 2Q and 3Q expenses versus the impact of some of the growth-related R&D expenses that you also talked about. Just to help us calibrate the the currency dynamic in the middle of the income.

感謝您回答這個問題，並祝賀您本季的執行情況非常強勁，並取得了良好的發展勢頭。傑森，我想先就你關於一些營運費用的評論提出一個澄清問題。因此，我們都看到，在過去三個月以及第三季初，匯率出現了異常程度的波動。我想知道您是否可以量化新台幣匯率對第二季和第三季支出的影響以及您談到的一些與成長相關的研發支出的影響。只是為了幫助我們校準收入中間的貨幣動態。

Yeah The NT dollar strength meaningfully and quickly in the second quarter, and it was up by over 10% sequently, so while our revenue, costs of goods sold, and most of our development costs are all denominating US dollars. Our compensation is primarily denominated Taiwan dollars given that the majority of our employees are based here in Taiwan.

是的，新台幣在第二季度顯著且迅速地走強，環比增長了 10% 以上，因此我們的收入、銷售成本和大部分開發成本都是以美元計價的。由於我們的大多數員工都在台灣，因此我們的薪酬主要以台幣計價。

And the Taiwan dollar and the US dollar exchange rate stayed stable, assuming we state similar exchange rates to what we saw in Q1, our operating margin in the second quarter for our outlook would have been about 1 percentage points higher than what we had reported for the second quarter and what we're guiding to in the third quarter.

而新台幣和美元的匯率保持穩定，假設我們的匯率與第一季的匯率相似，我們預計第二季的營業利潤率將比我們報告的第二季和第三季的預期高出約 1 個百分點。

That's really helpful thank you. Yeah, absolutely. The second question is for Wallace. Wallace, you're clearly saying robust engagement on the enterprise side of the business and I'm hoping what you can do is talk about this year's exit momentum along thre parameters. With respect to Enterprise, one, what's happening with the initial customer ramps with MonTitan 2. Can you update us on the status of the NVIDIA BlueField DPU program and what you'd expect there at the fourth quarter. nd then we've just seen great engagement from the supply chain pulling in your PCIe 5 controllers into lower end, more efficient. AI-related upscale out configuration. Just help us understand what you see there and what all that means is we looked at 2026. Thank you.

這真的很有幫助，謝謝。是的，絕對是如此。第二個問題是問華萊士的。華萊士，您顯然是在說企業業務方面的強勁參與，我希望您能從三個參數來談談今年的退出勢頭。就 Enterprise 而言，首先，MonTitan 2 的初始客戶進展如何。您能否向我們介紹一下 NVIDIA BlueField DPU 計劃的現狀以及您對第四季度的預期？然後，我們剛剛看到供應鏈的積極參與，將您的 PCIe 5 控制器拉入低端，更有效率。AI相關的高檔輸出配置。只需幫助我們理解您在那裡看到的內容以及我們所展望的 2026 年意味著什麼。謝謝。

Okay, let me share them on Titans status. I've seen them on Titan that momentum is very strong. Now we believe we're going to start to initial RAM in the fourth quarter. It will be more meaningful and strong moment in 2026. So we have a 42 Tier 1 customer for other designs actually we have a more com but we just don't have enough resource to supply. The most important is no number of customers because each of customers. Need some custom made tailored somewhere to feed certain certain category and workload. So we are focused on delivering the robust finalized somewhere and expect to production in late this year. So I think the momentum is coming, but also with both QLC high-capacity and diversity as well as the TLC base for computer storage.

好的，讓我在 Titans 狀態上分享它們。我在泰坦上看到它們，它們的勢頭非常強勁。現在我們相信我們將在第四季開始初始 RAM。2026年將會是更有意義、更強大的時刻。因此，我們有 42 個一級客戶，他們負責其他設計，實際上我們有更多的客戶，但我們沒有足夠的資源來供應。最重要的是沒有顧客數量，因為每個顧客。需要一些客製化來滿足某些特定類別和工作量。因此，我們專注於在某個地方交付穩健的最終產品，並預計在今年稍後投入生產。所以我認為這種勢頭即將到來，而且 QLC 還具有高容量和多樣性，以及用於電腦儲存的 TLC 基礎。

Now, let me address the NVIDIA BlueField. The NVIDIA qualification in the final stage, we believe will enter production in the Q4. Actually, frankly, the solution we are the concroller and the firmware we have with NVIDIA in the past two years with (inaudible) which is we cannot say. So this is a transition that we winning with our own solution with different name type to supply for the long term. We believe that helping us to grow in 2026 and 2027. In addition, they also open the door for us in case with NVIDIA and other BU and other product lines. So very grateful of us to bringing be in the media supply chain and hopefully, that will expend them much more opportunity in the future.

現在，讓我來談談 NVIDIA BlueField。NVIDIA 認證已進入最後階段，我們相信將在第四季度投入生產。實際上，坦白說，我們的解決方案是過去兩年與 NVIDIA 合作的控制器和韌體（聽不清楚），我們無法說。因此，這是一個我們憑藉自己的解決方案贏得的轉變，我們採用不同的名稱類型來長期提供解決方案。我們相信這將有助於我們在 2026 年和 2027 年實現成長。此外，他們也為我們與NVIDIA和其他BU以及其他產品線的合作打開了大門。非常感謝我們能將我們納入媒體供應鏈，希望這將在未來為他們帶來更多的機會。

And then Wallace --

然後是華萊士--

(Operator Instructions)

（操作員指示）

Mehdi Hosseini, SIG.

邁赫迪·胡賽尼（Mehdi Hosseini），SIG。

Thanks for taking my question. The first one for Wallace, congrats on increasing the annual revenue run rate. I see, there's about TWD55 million incremental revenue increase from Q4 '24, 2Q for '25. And assuming the majority of these is driven by the new PCIe projects as they look to next year, let's say Q4 '26. This is where I think Blufin is going to kick in and at incremental revenue. So you have a baseline of Q4 '24, and then you overlay $55 billion of the new products, especially driven by storage and then the bluefin would drive or sustain that growth into Q4 of '26, am I thinking about? This transition the right way and feel free to modify and improve that thought process.

感謝您回答我的問題。第一個是華萊士，恭喜你提高了年度收入運行率。我了解到，與 2024 年第四季相比，2025 年第二季的營收增量增加了約 5,500 萬新台幣。假設其中大部分是由新的 PCIe 專案推動的，著眼於明年，比如說 26 年第四季。我認為 Blufin 將會在此發揮作用並帶來增量收入。因此，您以 24 年第四季度為基準，然後疊加 550 億美元的新產品，尤其是受存儲驅動的產品，然後藍鰭金槍魚將推動或維持這種增長到 26 年第四季度，我在想什麼？這種轉變是正確的，並且可以自由地修改和改進思考過程。

Yeah. I think many Jason here. In terms of your comparison between Q4 '24 and Q4 '25, that incremental revenue that we're talking about here as a result of really strength across the board, increasing share new products and eMMC and UFS and PCIe5 for SSDs and then the initial ramp of the MonTitan products as well as the initial ramp of BlueField. Now we haven't guided into 2026, so, you have to bear with us for a little bit so I'm not going to comment on kind of how this goes into 2026. But certainly, we still expect to be achieving that 5% to 10% revenue run rate with Monty in that 2026-2027 time frame, nothing's changed there and certainly the the strength that we're building, the designs we want, the pipeline that we have to support growth longer term continues to get stronger and stronger each day.

是的。我想這裡有很多傑森。就 2024 年第四季和 2025 年第四季的比較而言，我們在此討論的增量收入是由於全面實力的提升、新產品份額的增加以及 eMMC 和 UFS 和 SSD 的 PCIe5 的增長，以及 MonTitan 產品的初始增長以及 BlueField 的初始增長。現在我們還沒有預測到 2026 年的情況，所以，你必須稍微忍耐一下，所以我不會評論 2026 年的情況會如何。但可以肯定的是，我們仍然希望在 2026-2027 年期間透過 Monty 實現 5% 到 10% 的收入運行率，這一點沒有任何改變，而且我們正在打造的實力、我們想要的設計、我們必須支持長期增長的渠道每天都在變得越來越強大。

So I think, let me add a comment we have very strong backlog in the second half of 2025. That's why we have confidence to reach our financial goal. Okay. And then moving on to OpEx, there's a significant step up in '25 a Jason highlighted investment for future. So I expect. Alex intensity to declining to 26 as the new productgran and this is going to give you some OpEx leverage. We certainly expect to see operating margin leverage, as our gross margins improve and our revenue scales.

所以我認為，讓我補充一點，我們在 2025 年下半年有非常強勁的積壓訂單。這就是我們有信心實現財務目標的原因。好的。然後談到營運支出，25 年有了顯著的進步，Jason 強調了對未來的投資。我期待如此。隨著新產品的推出，Alex 的強度將下降到 26，這將為您帶來一些 OpEx 槓桿。隨著毛利率的提高和收入的擴大，我們當然希望看到營業利潤率的槓桿作用。

We do, we will continue to invest, as Wallace pointed out, we have a number of new projects that we actually don't even have enough resources today to support that we have to turn away, so we will continue to invest. We will continue to hire. We have a number of new projects that we're going to be taping out next year, especially in the enterprise and some of the more advancedometry, so these are things that we'll continue to invest in longer term, but we believe you'll. The operating margin leverage, a lot of the investments that we had made over the last two years are now just starting to come to market and they haven't scaled, so that should drive a significant amount of operating margin leverage going into patients as well.

我們確實會繼續投資，正如華萊士指出的那樣，我們有許多新項目，實際上我們今天甚至沒有足夠的資源來支持，我們不得不放棄，所以我們會繼續投資。我們將繼續招募。我們有許多新項目將於明年投入使用，特別是在企業和一些更先進的測量領域，因此這些是我們將繼續長期投資的事情，但我們相信你會。營業利潤率槓桿，我們在過去兩年中所做的許多投資現在才剛開始進入市場，而且還沒有擴大規模，因此這也應該會推動大量的營業利潤率槓桿流向患者。

Okay, thank you.

好的，謝謝。

Suji Desilva, Roth Capital.

羅斯資本的蘇吉·德席爾瓦。

Hi, Wallace. Hi, Jason. Curious with the trends you have and the revenues, whether the gross margin would continue to potentially expand maybe above the target range given the auto coming in at a price some of these there or we should think about there being offsets to that keeping it in the range intermediate term.

你好，華萊士。你好，傑森。我很好奇您的趨勢和收入，考慮到汽車的售價，毛利率是否會繼續擴大甚至超過目標範圍，或者我們應該考慮是否有抵銷措施將其保持在中期範圍內。

Yeah, I think that really depend upon a mix and depending which quarter, for certain product because it's a high volume is, I think the margin is a little below our corporate average with some high-end product definitelyes margins better, so, but I think I, we cannot just I cannot comment right now. We were above the upside of our guiding margin, but that will meet the co march, and I think We should have a better result in 2026. Okay, that's all thanks.

是的，我認為這真的取決於產品組合，取決於哪個季度，對於某些產品，因為銷量很大，我認為利潤率略低於我們公司的平均水平，而一些高端產品的利潤率肯定更好，所以，但我認為，我們現在不能發表評論。我們超出了指導幅度的上限，但這將滿足共同目標，我認為我們在 2026 年應該會取得更好的成績。好的，謝謝。

And then on the on the Monitan firmware efforts and the customer efforts in the R&D are investing. Jason, is there a point in time where you think you get on top of that, or is that going to be a persistent challenge of sort of having to turn away programs or is there some kind of leverage after you do a few of these that you can kind of pull that forward.

然後，我們對 Monitan 韌體工作和客戶在研發方面的努力進行了投資。傑森，您是否認為到了某個時候，您就能解決這個問題，或者這將是一個不得不拒絕項目的持續挑戰，或者在您完成其中一些項目之後，是否存在某種槓桿作用，可以推動這一進程。

Well, I think after we do a few to your point, once we do a few of these, once we get a bunch of, a few of our customers up and running, we'll have a wide range of firmware capabilities that we can bring to market, right? Some folks are going to want SDKs, hardware only where they're building their own firmware and that's pretty easy to support, but some folks have require, full turnkey will require more resources, et cetera.

好吧，我認為，在我們完成一些您所指出的工作之後，一旦我們完成了其中的一些工作，一旦我們讓一些客戶開始運行，我們將擁有可以推向市場的廣泛的固件功能，對嗎？有些人只想要 SDK，只需要硬件，他們就可以建造自己的固件，而且這很容易支持，但有些人需要，完整的交鑰匙將需要更多的資源，等等。

Okay, all right, thanks guys.

好的，好的，謝謝大家。

Gokul Hariharan, J.P. Morgan.

摩根大通的 Gokul Hariharan。

Hi. Thanks for taking my question. What is the first question is, you seem to be sounding a lot more optimistic about the automotive, engagement, compared to maybe two quarters pack, could you talk a little bit about What is the incremental margin profile when it comes to automotive both for romargins as well as operating margins given a lot of the R&D is fairly similar to what you do for client access the controllers or client, eMMC controllers, right, so, is there a meaningful operating leverage that we should expect, as automotive starts to scale given it kind of just expands the scope of your revenue base, on the R&D.

你好。感謝您回答我的問題。第一個問題是，與兩個季度的包裝相比，您似乎對汽車的參與度更加樂觀，您能否談談汽車領域的增量利潤率情況，包括 romargins 和營業利潤率，因為很多研發與您為客戶端訪問控制器或客戶端、eMMC 控制器所做的事情非常相似，對吧，那麼，隨著汽車開始擴大規模，我們是否應該期待了發展的槓桿。

Second, question, is on enterprise, could you talk a little bit more about the road map for MonTitan, I think, what I'll be thinking about for future engagement like the next generation of MonTitan, what are you planning in terms of the road map?

第二個問題是關於企業的，您能否再多談談 MonTitan 的路線圖，我想我會考慮未來的參與，例如下一代 MonTitan，您在路線圖方面有什麼計劃？

Right. Good. Let me try to address all the motive business that we feel more positive about our automotive business. I was second quarter and moving to the second half of 2025 because it's through our designing pipeline, and we also had a breakthrough in China on the money market, but you know very well China automotive is very bloody in price very competitive. I think we find a very special way to position our value proposition. To the (inaudible) custom like BYD and Xiaomi and several others. That's why we built a tremendous, a new pipeline and moving into production from late 205 to 2026. And our major program in Toota global model also start to run by late 2025. That's why we have a very strong momentum in our business, we have confidence we have the above 10% of our total revenue from 26 to '27.

正確的。好的。讓我嘗試談談讓我們對汽車業務感到更加樂觀的所有動機。我從第二季開始進入 2025 年下半年，因為這是透過我們的設計管道，而且我們在中國的貨幣市場上也取得了突破，但你很清楚中國汽車的價格非常具有競爭力。我認為我們找到了一個非常特殊的方式來定位我們的價值主張。給比亞迪、小米和其他一些公司（聽不清楚）的客戶。這就是為什麼我們要建造一條巨大的新管道，並在 2005 年底到 2026 年期間投入生產。而我們在Toota全球模型中的主要專案也將於2025年底開始運作。這就是為什麼我們的業務發展勢頭非常強勁，我們有信心在 2026 年至 2027 年期間實現總收入的 10% 以上。

Now let me talk about enterprise and regarding the plan and road map are MonTitan today is channel the PJM 5 controller with performance shaping technology, we also develop take out a 6- or 8-channel MonTitan is called 8,388. And the product would be a variable by the end of this year. And as you, I don't know why it's saying no. Very well, the US have demand high capacity of enterprise from 120 terabytes and some even asked for 256 terabytes, but China also started a new momentum asking for C4 terabyte from late this year to 2026.

現在讓我來談談企業以及計劃和路線圖，今天的 MonTitan 是具有性能塑造技術的 PJM 5 控制器通道，我們還開發了 6 通道或 8 通道 MonTitan，稱為 8,388。到今年年底，該產品仍將是變數。和你一樣，我不知道它為什麼說「不」。很好，美國對企業的高容量要求從 120 TB 開始，有些甚至要求 256 TB，但中國也開始了新的勢頭，要求從今年年底到 2026 年達到 C4 TB。

So a channel lower como Titan, which is perfectly fit in the demand and provide decent performance as well as the high capacity up to 128 terabyte. And we also would develop a PCIe6 on Titan family with SMC 4 nanometers with a tape on next year and this will engage with at least. To name makers in this program, so this is a very exciting. We're very busy. We'll build a design pipeline, we believe Mounan will continue round and they're driving much bigger moments and beyond 26, 27.

因此，較低的通道 como Titan 完全滿足需求，並提供不錯的性能以及高達 128 TB 的高容量。我們還將在明年開發基於 SMC 4 奈米技術的 Titan 系列 PCIe6，並附帶磁帶，這至少會與之相關。在這個項目中命名製造者，所以這是非常令人興奮的。我們很忙。我們將建立一個設計管道，我們相信 Mounan 將繼續發展，並且他們將推動更大的時刻，超越 26、27。

Got it. The one follow up, there, I think, you talked about potentially, seeing some demand for the cold storage market as well, for some of the data centers. Is there anything that you need to really change in your portfolio or the controller itself, to address this market or is it kind of like an adjacency that you can address without too much changing the product.

知道了。我認為，您談到的後續問題可能也對一些資料中心的冷藏市場有一定需求。為了滿足這個市場的需求，您是否需要對您的產品組合或控制器本身進行真正的改變，或者它是否像是一種鄰接關係，您可以在不對產品進行太多改變的情況下解決它。

It probably really want storage and some of the computers are conventional server. I think for coar really is a conventional nearline GDD and but I think the sense that the association with the newly flesh and propose to chair as a standard, that's a very interesting to try a lower cost QLC based enterprise to to expend one data storage for SCD. I think we definitely To see that, and we absolutely will put a good effort to engage with that trend because that's a huge potential for the namaker and the data center for (inaudible) opportunity.

它可能確實需要存儲，並且一些計算機是傳統的伺服器。我認為 coar 確實是一種傳統的近線 GDD，但我認為與新肉體的關聯以及提議作為標準的椅子，嘗試基於低成本 QLC 的企業來為 SCD 擴展一個數據存儲是非常有趣的。我認為我們肯定會看到這一點，而且我們絕對會盡力順應這一趨勢，因為這對命名商和資料中心來說是一個巨大的潛力（聽不清楚）機會。

Do you have any timing on when this could open up in the next couple of years? Do you think it will open up or will take longer than that I think makers working together and looking for how to define the right fact and they definitely need the paper that the performance had to be a little better than IDD, and so they can rely on the back and make sure the performance the AI application in the warm data storage. But time frame, as I said, about three to five years range.

您能預測一下未來幾年內甚麼時候可以開放嗎？您認為它會開放還是需要更長的時間？我認為製造商正在共同努力並尋找如何定義正確的事實，他們肯定需要性能必須比 IDD 更好一點的論文，這樣他們就可以依靠後端並確保熱數據存儲中的 AI 應用程式的性能。但時間範圍，正如我所說，大約是三到五年的範圍。

Okay. Thank you.

好的。謝謝。

Matt Bryson, Wedbush.

馬特布萊森，韋德布希。

Thanks for your question this morning, I just have one, so. If I look at your target of 25% plus operating margins, and I work off, kind of current OpEx levels even if I've seen gross margins, move up into the 50 51% range, so at the historical a little bit of. When you run $300 million and that goes higher if OpEx continues to increase, which I think you're suggesting. It will because --

感謝您今天早上提出的問題，我只有一個問題。如果我看一下您的目標 25% 加上營業利潤率，並且我以此為基礎，即使我看到毛利率上升到 50% 到 51% 的範圍，那麼從歷史上看，也差不多。當您營運 3 億美元時，如果營運支出繼續增加，這個數字還會更高，我認為這是您的建議。將會因為--

Hey Matt, you're breaking up. We can't hear you.

嘿，馬特，你要分手了。我們聽不到你的聲音。

Let me, is this better? I will jump out and try dialing in.

讓我看看這樣好些了嗎？我會跳出來並嘗試撥號。

Thank you. Okay, let me answer your first question is, I think that definitely we have a higher expense because we increase R&D and also we have a signaly table that we also have a foreign Naomi Tebow with a major table, so I'll bring a spend probably will increase slightly, but when we grow strongly in the top line of revenue, you will, they will help much faster operation margin. And so, we definitely look forward to move back to 20%, 25% margin in 2026. And you will see even better margin moving to '27.

謝謝。好的，讓我來回答你的第一個問題，我認為我們的費用肯定會更高，因為我們增加了研發費用，而且我們有一個信號表，我們還有一個外國的 Naomi Tebow 和一個主要的表，所以我帶來的支出可能會略有增加，但是當我們的收入強勁增長時，它們將有助於更快地實現運營利潤率。因此，我們絕對期待 2026 年利潤率能回到 20% 或 25%。到 27 年，您會看到利潤率會更高。

Thanks and sorry for the technical difficulties on my end.

謝謝，對於我這邊遇到的技術問題，我們深感抱歉。

Nick Doyle, Needham & Co.

尼克·道爾（Nick Doyle），Needham & Co.

Thanks for taking my questions. Just trying to think about the mobile strength and figuring out how sustainable that is. You mentioned, it's coming, the strength is coming from units and share gains is the bulk of that related to this Chinese domestic market dynamic you've discussed and and you mentioned it again, just how should we be thinking about that growth into next year and if it's sustainable.

感謝您回答我的問題。只是試著思考一下移動實力並弄清楚它的可持續性。您提到，它即將到來，力量來自於單位和份額的增長，這主要與您討論過的中國國內市場動態有關，您再次提到，我們應該如何看待明年的增長以及它是否可持續。

Okay, I think that it's a very good question. It's we have a very specific strategy to grow our mobile controllers for both EMC and UFS. So of course, the China market and because the affordable low-cost mobileian available. That's why most of us smartphone maker, they like to adopt a discrete EMC and UFS that help the marin maker customer to expand quickly and that's why when they expand quickly, I think that also will impact some naic for the value line. So name may for name make it also turned to the motion control.

好的，我認為這是一個非常好的問題。我們有一個非常具體的策略來發展我們的 EMC 和 UFS 行動控制器。因此，當然，中國市場也因為有價格實惠的低成本行動裝置而備受青睞。這就是為什麼我們大多數智慧型手機製造商都喜歡採用分立的 EMC 和 UFS，以幫助船舶製造商客戶快速擴張，這就是為什麼當他們快速擴張時，我認為這也會對價值線的一些 naic 產生影響。因此名稱可能為了名稱而使其也轉向運動控制。

Because they do not want to develop in-house that we utilize our solution quickly to the market and you can either sell the waiver to multimaker or make a low cost solution to come in in the market. That's why we grow very quickly for the For the value line in the mainstream for both EMC and USS.

因為他們不想內部開發，所以我們利用我們的解決方案快速推向市場，您可以將豁免權出售給多家製造商，或製造低成本的解決方案進入市場。這就是為什麼 EMC 和 USS 的主流價值線能夠快速成長的原因。

In addition, we see the (inaudible) also looking for next generation, for example, UFS 41 is in high end, but UFC is $5 a year we're moving to the high end by late '26 and '27. So the 41 become mainstream. So the (inaudible), they don't have enough resource to develop a new framework pointing to the new name, so they come You also into third party as the right position to capture the outsourcing opportunity. So all these pipelines together continue, you see so many opportunities actually we have so many projects in hand. We don't have a resource to take this is what we see in the moment and we definitely see we're growing the market share in the mobile and hopefully you can reach 30% within two years.

此外，我們看到（聽不清楚）也在尋找下一代產品，例如，UFS 41 屬於高端產品，但 UFC 每年 5 美元，我們將在 26 年末和 27 年轉向高端產品。因此 41 成為主流。因此（聽不清楚），他們沒有足夠的資源來開發指向新名稱的新框架，所以他們加入了第三方，以抓住外包機會的正確位置。因此，所有這些管道一起繼續下去，你會看到如此多的機會，實際上我們手頭上有很多項目。我們沒有資源來應對目前的情況，我們確實看到我們在行動領域的市佔率正在成長，希望在兩年內能達到 30%。

Okay. Thanks. And if I understand correctly, it sounds a bit like this transition to the 41 in the mainstream could help the sustainability and into next year. Maybe also asking a bit of a different way. I mean, you talked about the module maker inventory and, you know how they're pulling in orders in in almost fear of price hikes later in the year. I mean, how did their inventories compare to historical, does that make you nervous at all in terms of the future mobile business? Thanks.

好的。謝謝。如果我理解正確的話，這聽起來有點像是向主流 41 的轉變可以幫助永續發展並持續到明年。或許還可以用稍微不同的方式詢問。我的意思是，您談到了模組製造商的庫存，您知道他們是如何因為擔心今年稍後價格上漲而拉攏訂單的。我的意思是，他們的庫存與歷史相比如何，這是否會讓您對未來的行動業務感到緊張？謝謝。

We really don't see I think our customer in early Q2, some worry about the tariff, but later is a civilized, really we don't see many customers pulling the demand, as and the cost if they don't buy that many men, they won't buy controller for inventory, right. So really they will see the balance. Most of it really planned ahead and make sure they also can prepare a price increase. And I think that's why we see the very stable pipeline because we can see 6 months backlog right now. That's why we're very confident about what we can achieve the billion dollar round by CNY.

我們真的沒有看到我認為我們的客戶在第二季度初有些擔心關稅，但後來是一個文明，我們真的沒有看到很多客戶拉動需求，因為如果他們不買那麼多人，他們就不會購買控制器作為庫存，對吧。所以他們確實會看到平衡。他們大多數確實提前做好了計劃，並確保他們也能為漲價做好準備。我認為這就是我們看到非常穩定管道的原因，因為我們現在可以看到 6 個月的積壓。這就是為什麼我們對人民幣兌現十億美元融資目標充滿信心。

(Operator Instructions) At this time, we appear to have no more further questions. I'd like to hand the call back to the management for closing.

（操作員指示）目前，我們似乎沒有其他問題了。我想將電話交還給管理層來結束通話。

Thank you everyone for joining today and for your continuing in Silicon Motion. We'll be attending SMS Conference Santa Clara next week as well as several investor conferences over the next few months. The schedule of these events will be posted in our Investor Relationship section around Corporate Website and we look forward to speaking with you at the event. Thank you, everyone, for joining us today. Thank you for this. You may now disconnect your line.

感謝大家今天的加入以及對 Silicon Motion 的持續支持。我們將參加下週在聖克拉拉舉行的 SMS 會議以及未來幾個月舉行的幾次投資者會議。這些活動的日程安排將在公司網站的投資者關係部分發布，我們期待在活動中與您交談。感謝大家今天加入我們。謝謝你。現在您可以斷開線路了。