慧榮科技 (SIMO) 2026 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to Silicon Motion Technology Corporation's third quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位好，感謝您稍候。歡迎參加慧榮科技股份有限公司（Silicon Motion Technology Corporation）2026 年第三季財報電話會議。（接線員指示）請注意，今天的會議將被錄音。

This conference call contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1,933 and Section 21E of the Securities Exchange Act of 1,934 as amended. Such forward-looking statements include, without limitations, statements regarding trends in the semiconductor industry and our future results of operations, financial conditions, and business prospects.

本次電話會議包含《1933 年證券法》第 27A 條及經修訂之《1934 年證券交易法》第 21E 條所定義的前瞻性陳述。此等前瞻性陳述包括但不限於：有關半導體產業趨勢，以及我們未來營運成果、財務狀況與業務前景的陳述。

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

儘管此等陳述係基於我們自身資訊及我們認為可靠之其他來源資訊，您不應對其作任何依賴。這些陳述涉及風險與不確定性，實際市場趨勢及我們的結果可能因多種原因而與下述陳述所明示或暗示者存在重大差異。

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

潛在風險與不確定性包括但不限於：半導體產業持續的競爭壓力及該等壓力對價格的影響、技術的不可預測變化、消費者對多媒體消費性電子產品的需求、我們與主要客戶關係的現況及任何變化，以及台灣政治、經濟、法律與社會條件的變動。

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

關於上述風險與不確定性及其他因素的進一步討論，請參閱我們不時向美國證券交易委員會（SEC）提交的文件。我們不承擔更新任何前瞻性陳述之義務；該等陳述僅適用於本次電話會議當日。

And with that, I'll now hand you over to Mr. Tom Sepenzis, Vice President of Investor Relations and Strategy. Please go ahead.

接下來，我將把電話交給投資人關係與策略副總裁 Tom Sepenzis 先生。請開始。

Good morning, everyone, and welcome to Silicon Motion's Third Quarter 2026 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 third quarter results and outlook.

各位早安，歡迎參加慧榮 2026 年第三季財務結果電話會議與網路直播。今天與我一同出席的有：總裁暨執行長 Wallace Kou，以及財務長 Jason Tsai。Wallace 將先回顧我們的主要業務進展，接著 Jason 將說明第三季業績與展望。

Following our prepared remarks, we will conclude with a Q&A session. Before we begin, 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 U.S. Securities and Exchange Commission.

在我們的準備稿說明之後，將以問答環節作結。在開始之前，我想提醒各位注意我們的「安全港」政策，該政策已於本次電話會議開頭宣讀。如需投資本公司證券所涉風險的完整概述，請參閱我們向美國證券交易委員會提交的申報文件。

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. This webcast will be available for replay in the investor relations section of our website for a limited time. To enhance investors' understanding of our ongoing economic performance, we will discuss non-GAAP information during this call. We use non-GAAP financial measures internally to evaluate and manage our operations.

如需更多財務結果細節，請參閱我們的新聞稿；該新聞稿已於昨日收盤後以 Form 6-K 形式提交。本次網路直播將在我們網站的投資人關係專區提供限期回放。為增進投資人對我們持續經濟表現的理解，我們將在本次電話會議中討論非 GAAP 資訊。我們在內部使用非 GAAP 財務衡量指標來評估並管理營運。

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. 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.

因此，我們選擇提供此資訊，使您能以與我們分析自身營運結果一致的方式，對我們的營運結果進行比較。GAAP 與非 GAAP 財務數據之調節表可見於我們昨日發布的財報新聞稿中。敬請您在收聽本次電話會議時一併查閱。

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

接下來，我把電話交給 Wallace。

Thank you, Tom. Hello. Thank you for joining us on the call today. I'm pleased to report that we delivered another quarter of strong growth with revenue of $560 million, and gross margin of 53.7%, driven by the growth in ferrite for automotive, edge AI, and blue dry storage, our edge SD business and our immersion Mount Titan controller for Enterprise SD.

謝謝你，Tom。各位好。感謝各位今天加入我們的電話會議。我很高興報告，我們再度交出強勁成長的一季：營收 5.60 億美元、毛利率 53.7%；成長動能來自車用、邊緣 AI 與藍色乾式儲存（blue dry storage）相關的 ferrite 成長、我們的邊緣 SD 業務，以及用於企業級 SD 的 Mount Titan 控制器。

We drove another quarter of higher operation performance, delivering the second concentrated quarter of record earnings per ADS, but we continue to capitalize on our product and market diversification strategy. We are on track to deliver record revenue in 2026 with over 100% top-line growth.

我們再度推動營運表現提升，連續第二個季度創下每 ADS 盈餘新高；同時，我們也持續落實產品與市場多元化策略。我們正按計畫在 2026 年創下歷史新高營收，營收年增率超過 100%。

Our strategy is simple, deliver real value to customers and focus where we are uniquely differentiated, so we can generate strong ROI for shareholders. For our edge controllers, we have become the de facto standard for mobile, IoT, and PC controller solution. For NAND makers and virtually every module maker is outsourcing become a much more meaningful portion of the market.

我們的策略很簡單：為客戶創造真正價值，並聚焦於我們具備獨特差異化的領域，從而為股東創造強勁的投資報酬率（ROI）。在邊緣控制器方面，我們已成為行動裝置、物聯網（IoT）與 PC 控制器解決方案的事實標準。對 NAND 製造商以及幾乎所有模組製造商而言，外包已成為市場中更具意義的一部分。

Our matched controller technology and design expertise deliver solution that are better performing, consume less power and are more cost efficient than either in-house or other merchant solutions. Our strong share gains are driving significant growth despite end market weakness, and we expect this to continue.

我們的匹配式控制器技術與設計專長所提供的解決方案，效能更佳、耗電更低，且成本效率優於自研方案或其他商用（merchant）方案。即使終端市場疲弱，我們強勁的市占提升仍帶動顯著成長，我們預期此趨勢將持續。

On Titan, Enterprise D controllers are winning across the ecosystem with leading NAND makers, hyperscalers and CSPs. And with a module maker that supply AI server to hyperscale and enterprise customers. Our success is based on our unique combination of two decades of controller and firmware design experience and our history of managing more NAND than anyone in the industry.

在 Titan 方面，企業級 D 控制器正於整個生態系中持續勝出，涵蓋領先的 NAND 製造商、超大規模業者（hyperscalers）與雲端服務供應商（CSPs），以及為超大規模與企業客戶供應 AI 伺服器的模組製造商。我們的成功來自獨特的組合：二十年的控制器與韌體設計經驗，以及我們在業界管理 NAND 規模領先同業的歷史。

This has created an incredible solid foundation for our leading enterprise controller products. And then we expect our Mount Titan revenue ramp to accelerate as we introduce our next-generation PCIe 6 controller next year. And lastly, for our storage solutions segment, our strategy has always been to focus in areas that are underserved by NAND mic makers.

這為我們領先的企業級控制器產品奠定了極為穩固的基礎。此外，隨著我們明年推出下一代 PCIe 6 控制器，我們預期 Mount Titan 的營收爬坡將加速。最後，在我們的儲存解決方案事業部門，我們的策略一向是聚焦於 NAND 記憶體製造商服務不足的領域。

And we are rapidly growing share in these vital low-density, smaller volume market that require more design and customization work. We have spent more than a decade building one of the industry's broadest automotive grade portfolio, supported by dedicated quality and supporting team. Today, that foundation positioned us to capture fast-growing compute and storage demand across cars, drones, and increasingly, robotics.

我們正在這些關鍵的低密度、小量市場快速提升市占；這些市場需要更多設計與客製化工作。我們投入超過十年時間，建立業界最廣泛的車規產品組合之一，並由專責的品質與支援團隊提供後盾。如今，這一基礎使我們得以掌握汽車、無人機，以及日益成長的機器人領域中快速成長的運算與儲存需求。

For our enterprise boot drive solution, our unique combination of broad controller platforms, fast-in-class firmware, technical know-how, land supplies relationship and manufacturing capability put us in an ideal position to serve the growing need of the AI infrastructure market. As a result, we are rapidly evolving into much more balanced and possible company as a new enterprise and AI product enhance our leading consumer controllers here, strengthening.

在企業級開機碟（boot drive）解決方案方面，我們結合廣泛的控制器平台、同級最快的韌體、技術專業、與晶圓供應商的合作關係以及製造能力，使我們處於理想位置，得以服務 AI 基礎設施市場日益成長的需求。因此，隨著新的企業級與 AI 產品強化我們領先的消費性控制器產品線，我們正快速演進為一家更均衡、也更具韌性的公司。

Our competitive position from AI infrastructure to the edge to deliver long-term sustainable revenue and earnings growth. I would like to take a moment to address the current market environment. The AI supercycle has driven robust demand of FBN, DRAM, NAND HDD for the past several quarters with no sign of slowing down.

我們的競爭地位涵蓋從 AI 基礎設施到邊緣端，可望帶來長期且可持續的營收與獲利成長。我想花一點時間談談目前的市場環境。AI 超級循環在過去數季帶動了對 HBM、DRAM、NAND 與 HDD 的強勁需求，且看不出放緩跡象。

Prices have risen sharply over the past year and the strain substrate supply across memory and storage enterprise market remain relatively insensitive to price, but the PC, smartphone and other consumer device OEM are struggling to bring affordable product to market given today's memory and storage cost. And the consumer unit volume are declining as a result.

過去一年價格大幅上漲，且記憶體與儲存領域的基板供應吃緊；企業市場對價格相對不敏感，但 PC、智慧型手機及其他消費性裝置 OEM 在當前記憶體與儲存成本下，正面臨將可負擔產品推向市場的困難。因此，消費性產品出貨量正在下滑。

We expect conditions to stay difficult until bit supply come back into balance with demand. New NAND sets are planned for 2028, and NAND makers continue to add bit through higher layer count. But we do not see this changing the current supply demand imbalance to any great degree. Freshmate continued to prioritize enterprise and high capacity solutions, creating new and expanding opportunity for Silicon Motion.

我們預期在位元供給重新與需求達到平衡之前，市場狀況仍將艱困。新的 NAND 產能（sets）規劃於 2028 年導入，而 NAND 製造商也持續透過提高層數來增加位元供給。但我們不認為這會在很大程度上改變目前的供需失衡。記憶體（Freshmate）仍持續優先聚焦企業級與高容量解決方案，為慧榮創造新的且持續擴大的機會。

Our growth is benefiting from more outsourcing and large opportunity in enterprise and the SARI solution market that we are uniquely positioned to win. We are at the beginning of the journey in the enterprise AI market, and our early success will drive accelerating demand for our next-generation SARI technologies.

我們的成長正受惠於更多外包，以及我們在企業級與 SARI 解決方案市場中所面臨的龐大機會；在這些領域，我們具備獨特優勢可望勝出。我們正處於企業級 AI 市場旅程的起點，而我們的早期成功將帶動對下一代 SARI 技術日益加速的需求。

Let me now discuss our embedded EMC and UFS business, which include controller for smartphone IoT connected devices. Our EMC/UFS business was up over 100% year-over-year in the first half of 2026, as the NAND makers are shifting their resources toward DRAM and HBN solutions, allowing multi maker to take share in the mobile market.

現在我來談談我們的嵌入式 eMMC 與 UFS 業務，涵蓋用於智慧型手機與 IoT 連網裝置的控制器。2026 年上半年，我們的 eMMC/UFS 業務年增超過 100%，因為 NAND 製造商正將資源轉向 DRAM 與 HBM 解決方案，使多家廠商得以在行動市場取得市占。

This has helped drive our market share gains as multi maker look to third-party controller partner to make their mobile solution. In the third quarter. EMSE and UFS revenue declined modestly from the prior quarter, reflecting customer launch timing and the challenging smartphone OEM face in offering affordable device amid the higher NAND and during prices.

這也推動了我們的市占提升，因為多家廠商尋求第三方控制器合作夥伴來打造其行動解決方案。在第三季。eMMC 與 UFS 營收較前一季小幅下滑，反映客戶產品上市時程，以及智慧型手機 OEM 在 NAND 與 DRAM 價格較高的情況下，面臨提供平價裝置的挑戰。

We expect a headwind to persist in the near to mid-terms until additionally memory and storage supply comes online. Across the markets that we sell our EMC UX controller, OEM are reducing certification to try to offset the rising memory and storage cost.

我們預期在短期至中期內，直到更多記憶體與儲存供給上線之前，逆風仍將持續。在我們銷售 eMMC/UFS 控制器的各個市場中，OEM 正降低認證投入，以試圖抵銷記憶體與儲存成本上升。

We expect our EMC UX business to remain relatively flat in the near term given the recent current market challenging, but I do believe we can return to growth next year. And beyond as our new UFS 4.1 controller and UFS 5 controller ramp and driving higher ASPs. Now turning to our SD controller business, which include Edge and Mount Titan Enterprise SD controllers.

鑑於近期市場挑戰，我們預期 eMMC/UFS 業務在短期內將大致持平，但我相信明年可以重回成長。此外，隨著我們新的 UFS 4.1 控制器與 UFS 5 控制器放量並帶動更高 ASP。接著談我們的 SSD 控制器業務，涵蓋 Edge 與 Mount Titan 企業級 SSD 控制器。

This business delivers strong sequential and year-over-year growth. In Edge SD. Our PCIe 5 investment continued to pay off. With growth in both our four-channel and eight-channel controllers, PCIe 5 currently represents approximately 10% of the PC market, and we expect this will grow to 20% to 25% of market by the end of 2027, providing a strong runway for further growth.

此業務帶來強勁的季增與年增成長。在 Edge SSD 方面，我們對 PCIe 5 的投資持續見效。我們的四通道與八通道控制器皆成長；目前 PCIe 5 約占 PC 市場的 10%，我們預期到 2027 年底將成長至 20% 至 25%，為後續成長提供強勁跑道。

Our leading position in PCIe5 is driving greater market share gains within the PC market, and as the industry transition from PCIe4 to PCIe5, we expect to see further top-line improvement given the higher ASP associated with these next-generation products. We are currently working with all the major NAND makers and most of the leading module makers to deliver compelling SD solutions that leverage PCIe 4 and PCIe 5 controllers.

我們在 PCIe 5 的領先地位正推動在 PC 市場取得更大的市占提升；隨著產業從 PCIe 4 轉向 PCIe 5，鑑於這些次世代產品具備更高 ASP，我們預期營收將進一步改善。我們目前正與所有主要 NAND 製造商以及多數領先模組廠合作，提供運用 PCIe 4 與 PCIe 5 控制器的具競爭力 SSD 解決方案。

We are tracking well ahead of expectations to achieve our market share goals of 40%, exclude Apple, by 2028, and believe we will continue to improve our position. While PC unit having associated with higher memory and storage prices present challenges, we believe we will drive further top-line growth through the market share gains and ASV increases as the market shift to PCIe 5 continue.

我們的進度明顯超前預期，朝著在 2028 年達成（不含 Apple）40% 市占目標邁進，並相信我們將持續改善市場地位。儘管 PC 出貨量受較高的記憶體與儲存價格影響而面臨挑戰，我們仍相信可透過市占提升與 ASP 增加，在市場持續轉向 PCIe 5 的過程中推動營收進一步成長。

I would now like to provide you with an update on our new Mount Titan Enterprise SSD business. (Iinaudible) remains a critically important technology across enterprise and AI storage ecosystem, and MonTitan is positioned for rapid growth in the coming years.

接下來我想更新我們新的 Mount Titan 企業級 SSD 業務。(聽不清) 仍是企業與 AI 儲存生態系中極其重要的關鍵技術，而 Mount Titan 已為未來數年的快速成長做好布局。

These ESD solutions deliver high-speed, low-latency storage that target compute and data storage applications for enterprise AI platforms. Our first two customers began shipping TLC/ESD for compute that leverage our MonTitan controller in the second quarter, and all seven of our announced customers are on track to begin commercial ramp in 2026, with both TLC-based compute and QLC-based data storage products.

這些企業級 SSD 解決方案提供高速、低延遲的儲存，鎖定企業 AI 平台的運算與資料儲存應用。我們的前兩家客戶已於第二季開始出貨用於運算的 TLC 企業級 SSD，並採用我們的 Mount Titan 控制器；我們已公布的七家客戶也都按計畫在 2026 年開始商業化放量，涵蓋以 TLC 為基礎的運算產品與以 QLC 為基礎的資料儲存產品。

TLC-based compute ESD using MonTitan are expected to grow more quickly than QRC-based data storage ESD in the near term until greater supply of 2 terabit dye become available. Four of our six NAND makers have started production of 2 terabit QLC die today, and we expect all NAND makers to begin shipping 2 terabit QLC by end of 2027. So momentum will accelerate throughout next year.

短期內，採用 Mount Titan 的 TLC 運算型企業級 SSD，預期將比以 QLC 為基礎的資料儲存型企業級 SSD 成長更快，直到 2Tb die 的供給更充足為止。我們六家 NAND 製造商中的四家目前已開始量產 2Tb QLC die，我們預期到 2027 年底所有 NAND 製造商都將開始出貨 2Tb QLC。因此，動能將在明年持續加速。

During the third quarter, we tape our next generation. 4-nanometer PCIe-4 Mount Titan controller targeting hyperscaler and CSP. They expect to begin sampling in the first quarter of 2027. We have one design with multiple Tier 1 customers, including NAND flash makers, hyperscalers and CSP.

在第三季，我們完成了下一代產品的流片。這是一款採用 4 奈米製程、PCIe 4 的 Mount Titan 控制器，鎖定 hyperscaler 與 CSP，預計於 2027 年第一季開始送樣。我們已有一項設計案，對應多家 Tier 1 客戶，包括 NAND 快閃記憶體製造商、hyperscaler 與 CSP。

The new controller was designed for both computer application using QLC and data storage using QLC NAND as a performance shaping and multiple aging service architecture extremely well suited for agenda AI infrastructure. We continue to see increased inbound interest in our Mount Titan controllers. I expect this new enterprise controller segment will help us deliver long-term sustainable top and bottom-line growth.

這款新控制器同時為運算應用（使用 QLC）與資料儲存應用（使用 QLC NAND）而設計，具備效能調校與多種老化服務架構，特別適用於代理式（agentic）AI 基礎設施。我們持續看到市場對 Mount Titan 控制器的主動洽詢增加。我預期這個新的企業級控制器產品線將協助我們實現長期、可持續的營收與獲利成長。

And finally, I would like to provide an update on our Ferri Automotive edge and enterprise bull dry storage business. Our solution business, which includes Ferri and (inaudible), delivered the strongest result in the third quarter, with revenue up over 75% sequentially, representing over 40% of our revenue.

最後，我想更新我們的 Ferri 車用邊緣與企業級 Boot Drive 儲存業務。我們的解決方案業務（包含 Ferri 與（聽不清））在第三季交出最強勁的成果，營收季增超過 75%，占我們營收超過 40%。

Our automotive business has been a particular source of strength, delivering better-than-expected top-line results and higher gross margins. We continue to scale this business quickly as we know automotive market, its customers and the supply chain extremely well, which has driven significant backlog for long-term growth as we accelerate our share gains.

我們的車用業務尤其是成長動能來源，營收表現優於預期，且毛利率更高。我們持續快速擴大此業務規模，因為我們對車用市場、客戶與供應鏈非常熟悉；隨著我們加速市占提升，也帶動了顯著的長期成長訂單能見度（backlog）。

We have spent more than a decade developing our automotive products and certifications. Today, our story controller and firmware offer the broadest portfolio of solution to serve every part of the automotive market. Our success in automotive has drawn interest in Ferri for other large growing markets, including robotics, drones and advanced networking.

我們投入超過十年開發車用產品與相關認證。如今，我們的儲存控制器與韌體提供最完整的解決方案組合，可服務車用市場的各個環節。我們在車用領域的成功，也讓 Ferri 在其他大型且快速成長的市場受到關注，包括機器人、無人機與先進網路。

In the emerging robotic market, we are actively engaged with several companies that want to use our storage product. We've seen multiple opportunities in humanoid, robots, and other physical AI systems, including vision, LiDAR and computer storage. Our early conversation, such as robotic opportunity, may be larger than automotive, and we believe fair eye is ideally suited to address it.

在新興的機器人市場，我們正積極與多家公司合作洽談，這些公司希望採用我們的儲存產品。我們在類人型機器人與其他實體 AI 系統上看到多項機會，涵蓋視覺、LiDAR 與運算儲存。我們早期的交流顯示，這些機器人機會可能比車用更大，而我們相信 Ferri 非常適合切入並滿足其需求。

Our fast-growing blue drive business is also gaining momentum. We estimate that the market will be approximately $3 billion in 2026, growing to over $5 billion by 2030. In the third quarter, we won design with several new Tier 1 customers for networking and AI infrastructure products. These programs are expected to ramp over the next two years and will substantially improve our backlog visibility.

我們快速成長的 Boot Drive 業務也正在累積動能。我們估計該市場在 2026 年約為 30 億美元，並將於 2030 年成長至超過 50 億美元。在第三季，我們與多家新的 Tier 1 客戶贏得設計案，應用於網路與 AI 基礎設施產品。這些專案預期在未來兩年放量，並將大幅提升我們對訂單能見度（backlog visibility）的掌握。

As the average capacity of enterprise bull drives is much smaller than compute and data storage SD drives, the NAND maker no longer prioritize this market. Additionally, our during-less controller delivers the performance, reliability and during this drive need with lower power consumption requirement, smaller fun factor and the lower cost and during-based design.

由於企業級 Boot Drive 的平均容量遠小於運算與資料儲存 SSD，NAND 製造商已不再優先投入此市場。此外，我們的無 DRAM 控制器可在更低功耗需求、更小的外形尺寸（form factor）下，提供此類硬碟所需的效能與可靠性，且相較於採用 DRAM 的設計具備更低成本。

[Boot Drive] handles the operation system, logging and system management rather than heavy data workload, so they don't need the expense of onboard DRAM for DPU, router and switch products. As AI infrastructure builds out at the large numbers of servers, the networking and DPU equipment shipment are increasing rapidly, each needing reliable boot storage, driving the growing demand for D-Runners boot drives.

[Boot Drive]主要負責作業系統、記錄（logging）與系統管理，而非大量資料工作負載，因此對於 DPU、路由器與交換器產品而言，不需要負擔配置板載 DRAM 的成本。隨著 AI 基礎設施在大量伺服器上擴建，網路設備與 DPU 設備出貨快速增加，而每台都需要可靠的開機儲存，進而帶動對無 DRAM Boot Drive 的需求成長。

We have been the primary supplier for D-Runners boot drive controllers to the NAND maker that have a historically serviced market, but they are moving on the higher density opportunity. SegaMotion is uniquely positioned with the right technology, the right support, the leading security firmware and proven ability to procure NAND, making us the best partner for those needing a boot drive solution.

過去我們一直是向歷來服務此市場的 NAND 製造商供應無 DRAM Boot Drive 控制器的主要供應商，但他們正轉向更高密度的機會。SegaMotion 具備獨特優勢：正確的技術、到位的支援、領先的安全韌體，以及經驗證的 NAND 採購能力，使我們成為需要 Boot Drive 解決方案客戶的最佳合作夥伴。

Looking ahead, however, we are seeing significant new opportunity for Boot Drive with onboard DRAM. Driven the strong demand of AI inference and giant AI, near CPU Boot Drive with DRAM provide lower latency and open compute project features that are increasingly high demand.

展望未來，我們也看到搭載板載 DRAM 的 Boot Drive 存在顯著的新機會。受 AI 推論與大型 AI 的強勁需求帶動，靠近 CPU 的含 DRAM Boot Drive 可提供更低延遲，並支援 Open Compute Project 的功能，而這些特性正日益受到高度需求。

As the NAND makers have shifted the resources toward HBM, DRAM and high-capacity compute and data storage SD, there is a growing shortage of near CPU Boot Drives with DRAM. We estimate that this market will reach over $10 billion by 2030, making a significant new opportunity for Silicon Motion.

隨著 NAND 製造商將資源轉向 HBM、DRAM 以及高容量運算與資料儲存 SSD，具備 DRAM 的近 CPU 開機磁碟（Boot Drive）正出現日益嚴重的短缺。我們估計到 2030 年，該市場規模將超過 100 億美元，為慧榮科技帶來一個重要的新機會。

We are already in discussion with multiple potential customers for full drive that leverage our industry-leading and channel and PCIe 5 controller that can serve the near CPU market to further expand our market opportunity, and expect to begin ramping product for this market in the second-half of 2027.

我們已與多家潛在客戶就完整硬碟方案展開討論，該方案將運用我們業界領先的通路能力與 PCIe 5 控制器，以服務近 CPU 市場並進一步擴大我們的市場機會；我們預期將於 2027 年下半年開始為此市場進入量產爬坡。

Our fairway for automotive, edge AI and blue drive solution business are performing especially exceptionally well and these are many large and growing opportunity for our product in the segment. Our backlog has increased infantly in just the past three months. And we expect many additional customer design wins in automotive, edge AI and Boot Drive solution to deliver significant future growth.

我們在車用、邊緣 AI 與 Blue Drive 解決方案業務的發展態勢表現尤為出色，這些領域為我們在該細分市場的產品帶來多項龐大且持續成長的機會。僅在過去三個月內，我們的在手訂單（backlog）已大幅增加。我們也預期在車用、邊緣 AI 與開機磁碟（Boot Drive）解決方案方面，將取得更多客戶設計導入（design win），以帶動未來顯著成長。

We continue to benefit from our proven ability to secure NAND in a difficult environment from multiple NAND suppliers, and this continues to be a powerful differentiator for our company. In conclusion, Silicon Motion delivered its fourth count second quarter of record revenue as we executed across a rapidly diversifying business.

我們持續受惠於在艱困環境下，仍能從多家 NAND 供應商取得 NAND 的既有能力，這也持續成為我們公司的強大差異化優勢。總結而言，慧榮科技在業務快速多元化的過程中持續落實執行，並繳出連續第四個季度的創紀錄營收。

We are a fundamentally stronger company today with a strongest balance sheet, broadest range of solution and product and more opportunity ahead than at any time in our history. Our broad portfolio serve surging AI demand from the data center to the edge. The breadth give us balance across our market and the flexibility to seize growing opportunity while navigating challenge like those we face today in PC and smartphones.

今日的我們在基本面上更為強健，擁有史上最強的資產負債表、最廣的解決方案與產品範圍，且未來機會比公司歷史上任何時點都更多。我們的廣泛產品組合可滿足從資料中心到邊緣端的 AI 需求激增。產品廣度讓我們在各市場之間更為均衡，並具備彈性以把握成長機會，同時因應如目前 PC 與智慧型手機所面臨的挑戰。

I am extremely proud of our teams. Together, we have built a durable, diversified business powered by basin-class technology, expanding share and new end markets, strengthened by two decades of relationship with OEMs, multi-makers and NAND makers. I'm more confident than ever that we will continue to deliver broad-based sustainable growth long-term.

我為我們的團隊感到無比自豪。我們共同打造了一個耐久且多元化的事業體，以同級最佳（best-in-class）技術為動能，擴大市占並開拓新終端市場，並由與 OEM、多家製造商及 NAND 製造商長達二十年的合作關係所強化。我比以往任何時候都更有信心，我們將在長期持續交付廣泛且可持續的成長。

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

接下來我把電話交給 Jason，請他說明我們的財務表現與展望。

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

謝謝 Wallace，也向今天加入我們的各位道早安。我將補充說明第三季業績的更多細節，並提供我們的展望。請注意，除非特別說明，我今天的評論將主要聚焦於非 GAAP（Non-GAAP）結果。GAAP 與非 GAAP 數據的調節表已包含在我們昨日發布的財報新聞稿中。

Before I get into the results, I'd like to comment briefly on our convertible bond issuance on August 13. We raised an aggregate $1.15 billion with net proceeds to the company of $1.127 billion. This successful raise was increased from the initial offering of $800 million.

在進入業績之前，我想先簡要評論我們於 8 月 13 日發行的可轉換公司債。我們共募集 11.5 億美元，公司取得的淨募資金額為 11.27 億美元。此次成功募資規模也由最初的 8 億美元上調。

This new CB at 0% interest and initial conversion price of $380.5 represents a conversion premium of 65% over the last reported sale price of SIMO on August 10, the day the deal was announced. This additional capital significantly strengthens our balance sheet and will help fuel our growth and enhance our working capital to scale our business.

這筆新的可轉債（CB）票面利率為 0%，初始轉換價格為 380.5 美元，相較於 8 月 10 日（宣布交易當日）SIMO 的最後成交價，轉換溢價為 65%。這筆額外資金將顯著強化我們的資產負債表，並有助於推動成長、提升營運資金，以擴大我們的業務規模。

Now turning to our results. We delivered an outstanding third quarter, surpassing our expectations, driven by stronger execution and demand trends. In the September quarter, sales increased 24% sequentially and 131% year-on-year to $560 million, coming in well above the high end of our guided range of $519 million to $541 million, delivering our fourth consecutive quarter record revenue.

接著談我們的業績。我們第三季表現非常出色，超越自身預期，主要受惠於更強的執行力與需求趨勢。在 9 月季度，營收季增 24%、年增 131% 至 5.6 億美元，明顯高於我們先前指引區間 5.19 億至 5.41 億美元的上緣，並創下連續第四季的單季營收新高。

We experienced strong growth across most of our businesses in the third quarter with standout growth in Ferri for Automotive. Automotive, enterprise boot drives, and SSD controllers, including Edge and Mount Titan for Enterprise.

第三季我們多數業務均呈現強勁成長，其中以車用 Ferri 的成長最為突出。車用、企業級開機磁碟（boot drive）以及 SSD 控制器（包含 Edge 與面向企業的 MonTitan）皆有貢獻。

Gross margins of 53.7% was significantly better than guidance as we capitalized on new product introductions and benefited from better mix and better-than-expected margins in our Ferri automotive products. Operating expenses slightly decreased sequentially to $120.7 million.

毛利率 53.7% 顯著優於指引，因我們把握新產品導入機會，並受惠於更佳的產品組合，以及 Ferri 車用產品毛利率優於預期。營業費用季比小幅下降至 1.207 億美元。

And operating margin increased 32.1%, well exceeding our guidance, driven by higher than expected revenue and gross margin in the quarter. Earnings per ADS was $4.35, a 79% increase sequentially and a 333% increase compared to the same quarter last year. Total stock-based compensation, which we exclude from non-GAAP results, was $17.3 million in the September quarter.

營業利益率提升至 32.1%，大幅超越我們的指引，主要由於本季營收與毛利率均高於預期所致。每 ADS 盈餘為 4.35 美元，季增 79%，較去年同期成長 333%。9 月季度的股票基礎給付費用合計為 1,730 萬美元，我們在非 GAAP 結果中予以排除。

We had $953.6 million cash equivalents and restricted cash at the end of the third quarter, compared to $181.8 million at the end of the second quarter. Cash increase in the third quarter due to the successful $1.15 billion convertible notes offering that we executed in the quarter, offset by the increase in working capital, dividend payment and the repayment of the short-term bank loan.

第三季末我們的現金及約當現金與受限制現金為 9.536 億美元，相較第二季末的 1.818 億美元大幅增加。第三季現金增加主要來自我們在本季完成的 11.5 億美元可轉換公司債成功發行，但部分被營運資金增加、股利發放以及償還短期銀行借款所抵銷。

Our strategy, as Wallace outlined at the start of this call, continues to drive growth and expand our opportunities. Our experience, our customers and partners and our unmatched technology and development of NAND controllers and solutions has driven a significant transformation of the company.

正如 Wallace 在本次電話會議開場所說明，我們的策略持續推動成長並擴大機會。我們的經驗、客戶與合作夥伴，以及在 NAND 控制器與解決方案方面無可匹敵的技術與研發能力，已推動公司完成顯著轉型。

While the NAND market continues to be dynamic, our investments across consumer, enterprise, data center and AI applications are the foundation of our rapidly growing business. As a result, we believe the momentum in our business will continue in the fourth quarter and now expect revenue to grow 5% to 10% sequentially to $588 million to $616 million, with growth across nearly all our product segments, led by Ferrari for Automotive, Enterprise Boot Drive Solutions and MonTitan Enterprise SSD controllers.

儘管 NAND 市場仍持續變動，我們在消費、企業、資料中心與 AI 應用上的投資，是我們業務快速成長的基礎。因此，我們相信第四季的業務動能將延續，並預期營收將季增 5% 至 10%，達 5.88 億至 6.16 億美元；成長將來自幾乎所有產品線，並由車用 Ferri、企業級開機磁碟解決方案以及 MonTitan 企業級 SSD 控制器領軍。

We believe our SSD controller business will be flat to slightly down given the current memory and storage environment and typical seasonality. Gross margins are expected to increase sequentially to 54% to 55% in the December quarter, given the continuing improvement in product mix.

考量目前記憶體與儲存市場環境及典型季節性因素，我們認為 SSD 控制器業務將持平至小幅下滑。由於產品組合持續改善，我們預期 12 月季度毛利率將季比提升至 54% 至 55%。

Operating margin is expected to grow to 36% to 37% as continued strong revenue growth and higher profitability drives leverage to the bottom line. Our effective tax rate is expected to be 20%, and stock-based comp, and dispute-related expenses are expected to be in the range of $34.6 million to $35.6 million.

隨著營收持續強勁成長與獲利能力提升帶來的槓桿效應，我們預期營業利益率將提高至 36% 至 37%。我們預期有效稅率為 20%，而股票基礎給付與爭議相關費用預計落在 3,460 萬至 3,560 萬美元區間。

2026 is on track to deliver record revenue for Silicon Motion, with top-line expected to more than double year over year. While we continue to invest heavily in R&D this year to expand our portfolio with leading-edge solutions, we are confident that along with the higher revenue and improved gross profitability, our operating margins will exceed 30% exiting this year.

2026 年有望為慧榮科技帶來創紀錄營收，預期營收年增將超過一倍。儘管今年我們仍大幅投入研發以擴充產品組合並推出領先解決方案，我們有信心在更高營收與毛利率改善的帶動下，今年結束時的營業利益率將超過 30%。

We expect this momentum to carry into 2027. Our strong backlog across all of our businesses gives us confidence that we can grow revenue by at least 40% next year with gross profitability to be in the low to mid-50% range. Our mix is improving. With more contribution from enterprise controllers and Farai automotive solutions, we should be able to sustain this higher margin level.

我們預期這股動能將延續至 2027 年。我們在各項業務的強勁在手訂單，使我們有信心明年營收至少可成長 40%，毛利率可維持在 50% 出頭至中段（low to mid-50%）區間。我們的產品組合正在改善。隨著企業級控制器與 Farai 車用解決方案的貢獻提高，我們應能維持較高的毛利率水準。

It's also worth emphasizing that these new enterprise opportunities represent larger addressable markets than our consumer segments. And because there are greenfield opportunities for Silicon Motion, we can grow significantly by gaining share without depending on further market growth. Any market expansion would only add to our potential upside.

同時也值得強調的是，這些新的企業級機會所對應的可服務市場（TAM）規模，較我們的消費性產品區隔更大。而且由於對慧榮科技而言屬於綠地（greenfield）機會，我們可以透過提升市占而實現顯著成長，而不必依賴市場進一步擴張。任何市場擴張都只會增加我們的上行潛力。

We set out to diversify beyond consumer applications into automotive and enterprise and that strategy is now producing outsized results. Our long-standing leadership in merchant controllers and our multi-year investments in enterprise and AI SSDs are beginning to bear fruit.

我們致力於從消費性應用多元化拓展至車用與企業領域，而這項策略如今正產生超額成果。我們在第三方（merchant）控制器的長期領導地位，以及多年來在企業與 AI SSD 的投資，正開始開花結果。

The solutions we are winning in these markets offer far greater visibility, much longer product cycles and significantly higher barriers to entry, which together underpin sustained growth in revenue and profitability. As these wins ramp across a broad mix of end markets, consumer cycles will have less influence on our results.

我們在這些市場中贏得的解決方案，提供了更高的可見度、更長的產品週期，以及顯著更高的進入門檻；這些因素共同支撐營收與獲利能力的持續成長。隨著這些勝出案在多元終端市場加速放量，消費性景氣循環對我們業績的影響將會降低。

Our visibility is improving significantly, and our business will become meaningfully more resilient and predictable. Our balance sheet has never been stronger, and we are well positioned to capitalize on the fundamental drivers that are foundation of the transformation that Wallace spoke about earlier. I look forward to sharing more on our progress next quarter.

我們的可見度正在顯著改善，我們的業務也將變得更具韌性且更可預測。我們的資產負債表從未如此強健，並且已做好充分準備，把握 Wallace 先前提到、推動這場轉型的根本驅動因素。我期待在下個季度與各位分享更多我們的進展。

This concludes our prepared comments. I'd like to open up the questions now.

以上為我們預先準備的發言。現在我想開放提問。

(Operator Instructions)

(接線員指示)

Neil Young, Needham & Company Inc.

Neil Young，Needham & Company Inc.

Hey, good morning, guys. First question, just given that you just gave us expecting revenue to grow by at least 40% next year and gross margin in the low 50% range, curious if you can sort of dive into maybe the main drivers of that.

各位早安。第一個問題，鑑於你們剛提到預期明年營收至少成長 40%，且毛利率在 50% 出頭的區間，我想請你們更深入說明一下，主要的驅動因素是什麼。

I mean, given that gross margin, you expect sort of resetting the long-term target, it sounds like now, I would expect more of the growth to be driven by sort of the higher-margin business like Ferri on Titan, but any comments that you can add further on to '27?

我的意思是，考量到這樣的毛利率，你們現在聽起來像是在重新設定長期目標；我會預期成長更多是由像 Ferri on Titan 這類高毛利業務所帶動，但你們對 2027 年還有什麼可以補充的看法嗎？

Yes, I think that's right. I think we're seeing significant traction with MonTitan. We're seeing the automotive, fair for automotive ramping very aggressively as well. A lot of these Ferri projects, especially in automotive, these are multi-year engagements where once we're qualified in, we've got a really long-standing position with that socket, with that customer.

是的，我想你說得沒錯。我們看到 MonTitan 正在取得顯著進展。我們也看到汽車相關的 Ferri 正在非常積極地放量爬坡。許多這些 Ferri 專案，特別是在汽車領域，都是多年期合作；一旦我們通過認證導入，就能在該插槽、該客戶端維持非常長期且穩固的地位。

We're working with virtually every automaker in the world for a variety of solutions going into a significant amount their portfolio, but significant room for growth still. So based upon our backlog, based upon the growth we anticipate from Titan, as well as other SSD controllers and Ferri for automotive, we believe that we can sustain these low to mid 50% gross margins.

我們幾乎與全球所有車廠合作，提供多種解決方案，導入到其產品組合中的相當大一部分，但仍有很大的成長空間。因此，基於我們的在手訂單（backlog）、我們預期 Titan 的成長，以及其他 SSD 控制器與汽車用 Ferri 的成長，我們相信能夠維持 50% 出頭到中段的毛利率水準。

Okay, great. That's helpful. And then just in this quarter, bringing it back, looking at the Ferri and Boot Drive, obviously, the growth continuing is really great. But could you by any chance give us some more detail? It sounds like Ferri might have outgrew Boot Drive in the quarter.

好的，很棒，這很有幫助。接著回到本季，看看 Ferri 和 Boot Drive，顯然持續成長非常好。但你們是否能提供更多細節？聽起來 Ferri 在本季的成長可能超過了 Boot Drive。

And obviously, across beyond automotive, I should say, and Ferri, curious to learn more about the robotics and sort of where you guys play in that.

另外，除了汽車之外，我也想問 Ferri 在其他領域的情況；也想更了解機器人（robotics）方面，以及你們在那個市場的切入點。

I think because the Ferri for automotive has been for a long time, so we see the customer base are very strong. So for this year, Japanese Ferri for automotive, it grow stronger. However, our Boot Drive also gaining momentum with diversified customers more than just GPU customers and TPU customers. We recently winning all the networking and server customers.

我想因為汽車用 Ferri 已經做了很長一段時間，所以我們看到客戶基礎非常強。因此在今年，日本的汽車用 Ferri 成長更強勁。不過，我們的 Boot Drive 也正在累積動能，客戶更加多元，不再只限於 GPU 客戶與 TPU 客戶。我們最近也贏得了所有網通與伺服器客戶。

We see our enterprise Boot Drive will grow even much faster next year. And robotics, I think, is still very stage and the total volume is still very small, but we try to make sure we'll be in when the market is taking boom.

我們看到企業級 Boot Drive 明年將成長得更快。至於機器人，我認為仍處於非常早期的階段，總量仍然很小，但我們會確保在市場起飛時能夠參與其中。

And keep in mind, a lot of the features within the Ferri for automotive products are the same features that the robotics requires, right, which is high temp, vibration, all of the things that go into a car largely go into the robotics as well. So having that certification already and having those products already puts us in a significant advantage to penetrate this market as it grows.

另外請記住，汽車用 Ferri 產品中的許多功能，其實也是機器人所需要的，對吧？例如耐高溫、抗震動，以及車用所需的大多數特性，在機器人上也同樣需要。因此，我們已經具備相關認證、也已有既有產品，讓我們在市場成長時能以顯著優勢切入並滲透這個市場。

Craig Ellis, B. Riley Securities, Inc.

Craig Ellis，B. Riley Securities, Inc.

Yeah. Thanks for taking the question. And team, congratulations on the tremendous momentum that it seems you have in the business. I wanted to start with a question for you, Wallace. Very exciting. Very exciting to hear about the engagement that you've got with near CPU boot drives because the performance gains given reduced latency with the way that can implement are really quite profound and it seems like that could be a very significant market.

是的，謝謝讓我提問。各位團隊，恭喜你們在業務上展現出看起來非常強勁的動能。我想先問 Wallace 一個問題。非常令人振奮。聽到你們在近 CPU boot drive 的合作進展非常令人興奮，因為以這種方式實作所帶來的延遲降低與效能提升非常顯著，看起來可能會是一個非常重要的市場。

The question is this. Do you see this implementing on more of a custom basis across customers or is [JDAC] going to move super quickly and get standards out here in another quarter or two? And then can you just talk a little bit more about how you would see the early part of the ramp for Silicon Motion?

問題是這樣：你們認為這會更偏向針對不同客戶做客製化導入，還是 [JDAC] 會在接下來一兩個季度內非常快速地推進並制定標準？另外，你能否再多談一點，你如何看 Silicon Motion 在早期放量階段的發展？

We see opportunity come from the early third quarter because conventionally this near CPU boot drive with DRAM belong to NAND makers because all NAND makers are busy and try to produce at least 8 terabyte, 16 terabyte computer CD, so they have a less interest of resource on NAND allocation for the low capacity near CPU Boot Drive.

我們看到機會會從第三季初開始出現，因為傳統上這種帶 DRAM 的近 CPU boot drive 是 NAND 廠的領域；但由於所有 NAND 廠都很忙，並且努力生產至少 8TB、16TB 的電腦（產品），因此他們對於把 NAND 產能資源分配到低容量的近 CPU Boot Drive 的興趣較低。

The near CPU boot drive primary is about 1 terabyte, 2 terabyte and some also 512 gigabyte, 4 terabyte is very few. So I think because we can see it will be probably very big gap of shortage supply for 2027, many customers come to Silicon Motion and we are preparing discussion. And I think the solution definitely to have a customize some feature and tailor for individual server and leading hyperscalers.

近 CPU boot drive 主要容量大約是 1TB、2TB，也有一些是 512GB；4TB 的非常少。所以我認為，因為我們看到 2027 年可能會出現很大的供應缺口，許多客戶來找 Silicon Motion，我們也正在準備相關討論。我認為這個解決方案確實需要在某些功能上做客製化，並針對個別伺服器與領先的超大規模業者（hyperscalers）進行調整。

So this is another simple work. So we will try to focus on select the NAND and make sure we follow the OCP requirement and provide the firmware. I think we will be ready for the firmware and solution by early Q1, and production RAM will be second-half 2027.

因此這又是一項相對直接的工作。我們會專注於選定 NAND，並確保符合 OCP 的要求，同時提供韌體。我認為我們在明年第一季初就能準備好韌體與解決方案，而量產爬坡會在 2027 年下半年。

That's really helpful. And then the second question is really a higher-level question for you and Jason. The team has done a phenomenal job operationally this year, putting the business in a position to grow 100% plus year on year. Can you help us understand the positioning that you feel like you're in with wafer supply, packaging, et cetera, to support the 40% growth?

這非常有幫助。第二個問題是比較高層次的問題，想請教你和 Jason。團隊今年在營運上做得非常出色，讓公司處於能夠年增 100% 以上的成長位置。你們能否協助我們理解，在晶圓供應、封裝等方面，你們目前的供應鏈配置是否足以支撐 40% 的成長？

And if demand is greater, given some reports that things like Agentic, AI, CPUs could grow 47% next year. Can you just help us understand if there's upside potential in the supply chain to meet greater demand in that 40%?

如果需求更強，例如有些報告指出像 Agentic、AI、CPU 明年可能成長 47%。你們能否也說明一下，供應鏈是否有上行空間，能在你們所說的 40% 成長之上，去滿足更高的需求？

As you know very well, in the same industry today, everything is in shortage, right from substrate, from material, from wafer, from NAND, from memory, from even test capacity. But I think our manufacturing operating team did a very good job, and we secured our 2027 wafer with TSMC primarily, and also, we also secured the test capacity and the assembly capacity and the substrate material.

如你非常清楚的，今天在同一個產業裡，從載板、材料、晶圓、NAND、記憶體，甚至測試產能，幾乎所有環節都處於短缺狀態。但我認為我們的製造營運團隊做得非常好；我們主要已向台積電（TSMC）確保了 2027 年的晶圓供應，同時也確保了測試產能、組裝產能以及載板材料。

So we believe we are able to support our growth for 2027. Jason mentioned we see we definitely can grow minimum 40% year-over-year. I think in next quarter’s earnings call, we will provide more meaningful guidance for our 2027.

因此我們相信，我們有能力支援 2027 年的成長。Jason 提到，我們確實看到年增至少 40% 的成長是可以達成的。我想在下個季度的法說會上，我們會提供更具體、也更有意義的 2027 年指引。

Sebastien Naji, William Blair Capital Partners.

Sebastien Naji，William Blair Capital Partners.

Yeah. Thank you, and good morning. Thanks for taking the questions, and congrats on another record quarter here. My first question is maybe a little bit higher level and strategic. As your SSD solution business continues to grow as a share of revenue hit over 40% in Q3, it is driving greater NAND pricing exposure into Silicon Motion's model, and that's a little bit of a shift for a company that was largely tied to volume growth historically.

是的，謝謝，早安。謝謝讓我提問，也恭喜你們再創一個創紀錄的季度。我的第一個問題可能比較偏高層次與策略面。隨著你們的 SSD 解決方案業務在第三季占營收比重持續提升並超過 40%，這讓 Silicon Motion 的營運模式承受更高的 NAND 價格曝險；對一家過去主要與出貨量成長連動的公司而言，這算是一個轉變。

So maybe just how do you think about managing this new pricing dynamic and how it could impact your growth in margins, particularly if NAND pricing starts to come down?

那麼也許想請教您，您如何看待管理這種新的定價動態，以及它可能如何影響您毛利率的成長，特別是如果 NAND 價格開始下滑的話？

You asked a very good question. I think we definitely manage a NAND price increase and negotiate with customers to pass through the cost to customers, so we benefit from the sales revenue growth. But we believe the NAND price increase will come to moderate because the spot price for a model maker now has become challenging.

你問了一個非常好的問題。我認為我們確實會管理 NAND 的漲價，並與客戶協商把成本轉嫁給客戶，因此我們能從銷售營收成長中受益。但我們相信 NAND 的漲價會趨於溫和，因為目前對模組廠而言現貨價格已變得具有挑戰性。

We see. Q3, Q4, then pricing is really similar. For next year, we also see that although will be single-digit growth quarter, but it will be moderate. And for our business, why we focus on automotive and bull dry, because the end customer want to have a long-term contract and support and supply.

我們了解。第三季、第四季的定價其實非常相近。對於明年，我們也看到雖然每季會是個位數成長，但會較為溫和。就我們的業務而言，我們為什麼聚焦在車用和 boot drive（開機碟），是因為終端客戶希望有長期合約、支援與供應。

And so, our contract with customers and price will stay at least two quarters and we negotiate price every six months. So we are able to manage the price and the cost and that's why we can see through the demand and we can manage our gross margin continually and we see the NAND wafer price will be more stable compared to last year.

因此，我們與客戶的合約與價格至少會維持兩個季度，我們每六個月議價一次。所以我們能夠管理價格與成本，這也是為什麼我們能看穿需求、持續管理毛利率；而且我們看到 NAND 晶圓價格相較去年會更穩定。

And one more thing, Sebastian, as I think certainly there's a fear that if NAND flash prices begin to come down, how does that affect our growth? I think one of the things that we're seeing in automotive, even in boot drives, is that there's some despising going on. I think all things being equal, if NAND availability was better, if pricing was better, our customers would double their density or more in some cases.

另外一點，Sebastian，我想確實有人擔心如果 NAND 快閃記憶體價格開始下滑，會如何影響我們的成長？我認為我們在車用、甚至在 boot drive 看到的是，正在發生一些「降規／降配」（de-specing）。我想在其他條件相同下，如果 NAND 供應更充足、價格更好，我們的客戶在某些情況下會把容量密度加倍或更多。

And so I think between a combination of kind of re-specing to normal specs as well as additional opportunities, additional customers that's coming online over the next 12, 18, 24 months, I think we're well positioned to continue to grow even as the NAND market stabilizes over the next two years.

因此，我認為結合回到正常規格的重新規格化（re-specing），以及未來 12、18、24 個月會上線的更多機會與新增客戶，我們具備良好條件，即使未來兩年 NAND 市場趨於穩定，我們仍能持續成長。

Got it. Great. That's helpful. And then maybe just as a related follow-up around the funding that you raised and the working capital needs, I just wanted to get maybe a better sense for your ability to continue funding all of your working capital, and inventory build with the cash that you have on hand.

了解。很好。這很有幫助。接著也許作為相關追問，關於你們募得的資金與營運資金需求，我想更清楚了解你們用手上現金持續支應所有營運資金與存貨建立（inventory build）的能力。

Can you maybe just talk a little bit about how quickly you expect inventory, particularly around NAND, to flow through the model and what it would take to maybe potentially need further capital down the line?

你能否談談你預期存貨（特別是 NAND）在模型中周轉的速度，以及未來若可能需要進一步資金，大概會是什麼情況？

Yeah. So for us, we're targeting about two quarters turnaround time between when we get the NAND and when we generate the cash flow. So our expectation is to be able to turn that inventory relatively quickly and generate the cash flow to support ongoing growth of our business.

可以。對我們而言，我們目標是在取得 NAND 到產生現金流之間，大約兩個季度的周轉時間。因此我們預期能相對快速地周轉該存貨，並產生現金流以支撐業務的持續成長。

But when we did the raise, we talked about the raise being sufficient to fund our growing our working capital needs for the next couple of years based upon today's expectations. Obviously, as the business continues to grow and hopefully as it exceeds expectations, we'll continue to reevaluate that. But that's at least right now for our visibility, we believe we're in a good spot.

不過在我們募資時，我們談到這次募資在以目前預期為基礎下，足以支應未來幾年不斷成長的營運資金需求。當然，隨著業務持續成長，並且希望能超出預期，我們也會持續重新評估。但至少就目前我們的能見度而言，我們認為狀況良好。

Great. Thank you.

很好。謝謝。

Suji Desilva, Roth Capital Partners LLC

Suji Desilva，Roth Capital Partners LLC

Hi, Wallace. Hi, Jason. Hi, Tom. Congratulations on the progress here. The MonTitan product, the higher KB cash density you're expecting, are there innovations coming from HBM and DRAM that might offset the opportunity for us to use in KB cash? And what's a good concept of the number of, and SSDs needed per GPU for (technical difficulty)?

嗨，Wallace。嗨，Jason。嗨，Tom。恭喜你們在這裡的進展。MonTitan 產品、你們預期更高的 KB 快取密度，是否會有來自 HBM 與 DRAM 的創新，可能抵消我們在 KB 快取上使用的機會？另外，關於每顆 GPU 需要的 SSD 數量，有沒有一個好的概念（技術問題）？

So I think the mountain demand from very wide range, not only from the AI server and for hyperscaler and also for the CSP, but also for NVIDIA ecosystem. I think we don't know the percentage how, but we see the demand for [COMP/USD]. This year was bigger due to the NAND price is very expensive, but we also see the momentum for high-capacity QLC coming for next year.

我認為 Mount Titan 的需求來自非常廣泛的範圍，不僅來自 AI 伺服器、超大規模客戶（hyperscaler）以及 CSP，也來自 NVIDIA 生態系。我想我們不知道比例是多少，但我們看到對 [COMP/USD] 的需求。今年因為 NAND 價格非常昂貴而更大，但我們也看到明年高容量 QLC 的動能正在形成。

And I believe from when Samsung Hynix 2 terabit QLC can move to production, we'll see more QLC demand for data storage. And so Mount Titan itself can handle both the compute SD and storage SD. Cash, particularly for CMX for NVIDIA structure, I think they will redefine and try because the price is very expensive, they try to reduce the minimum capacity for each of (inaudible).

我相信當 Samsung、Hynix 的 2 terabit QLC 能夠進入量產時，我們會看到更多用於資料儲存的 QLC 需求。因此 Mount Titan 本身可以同時支援運算 SSD 與儲存 SSD。至於快取，特別是針對 NVIDIA 架構的 CMX，我認為他們會重新定義並嘗試，因為價格非常昂貴，他們會嘗試降低每個（聽不清）所需的最低容量。

So I think this will be probably they will announce early next year and I think the related ecosystem and we're helping provide. I think as long as the CMX or KV Cache demand is growing, that's also demand additional ESD. That's good for us for Titan because it increased our controller demand.

所以我認為他們可能會在明年初宣布，我也認為相關生態系我們正在協助提供。我認為只要 CMX 或 KV Cache 的需求在成長，也會帶動額外的 ESD 需求。這對我們的 Titan 是好事，因為它會提升我們控制器的需求。

Okay, thanks. Well, it's very helpful. Any other questions for Jason? Perhaps, 40% plus revenue growth next year. You talked about an operating margin guide in the 30s. Just how are you managing the OpEx and R&D growth given that you have so many different end marketing projects you're focusing on? And what's the kind of a growth rate for OpEx versus revenue that would be kind of a framework for us to think about?

好的，謝謝。這非常有幫助。Jason 還有其他問題嗎？也許談談明年 40% 以上的營收成長。你提到營業利益率指引在 30% 多。鑑於你們聚焦這麼多不同的終端市場專案，你們如何管理營運費用與研發的成長？在思考框架上，OpEx 相對於營收的成長率大概會是什麼樣子？

Yeah. We'll get into more specific guidance around 2027 in January, but the expectation this year, we taped out a number of 6 nanometer as well as 4-nano products, so we're spending a lot of money on tape-out and design this year already. We anticipate continuing to invest next year.

是的。我們會在一月提供更多關於 2027 年的具體指引，但今年的預期是，我們已經完成多個 6 奈米以及 4 奈米產品的 tape-out，因此今年我們已經在 tape-out 與設計上花了很多錢。我們預期明年會持續投資。

And, again, we'll talk more about the specific OpEx guidance next year in January, but our expectation is that we will continue to be able to deliver operating margin leverage next year as well.

而且同樣地，我們會在一月更詳細談明年的 OpEx 指引，但我們的預期是，明年我們也將能持續帶來營業利益率的槓桿效益。

Oka. Thanks. Appreciate it.

好的。謝謝。感謝。

Mehdi Hosseini, Susquehanna Financial Group LLLP.

Mehdi Hosseini，Susquehanna Financial Group LLLP。

Yes. Thanks for taking my question. A couple of follow-ups for me. Wallace, Jason, can you quantify what percentage of your total revenue were attributable to Ferrite, Boot Drive and PCIe SSD and how each percentage would change into next year? And I have a couple of follow-ups.

是的，謝謝讓我提問。我有幾個追問。Wallace、Jason，你們能否量化 Ferrite、Boot Drive 與 PCIe SSD 各自占你們總營收的百分比，以及明年各自的占比會如何變化？我還有幾個追問。

So I would say we cannot, part of the detail, but. For about 40% of our total revenues around the solution from full drive automotive, 60% from controller.

我會說我們無法提供那部分的細節，不過。大約我們總營收的 40% 來自車用完整硬碟（full drive）解決方案，60% 來自控制器。

Would those mixes change dramatically next year?

明年這些組合會有劇烈變化嗎？

The solution for automotive might be grow to 50%, but so far, we didn't accurate, but I think that we see probably will be balanced next year 50/50 between controller and solution.

車用解決方案可能會成長到 50%，但目前我們沒有精確數字；不過我認為明年控制器與解決方案大概會更平衡，約 50/50。

Okay. And given how your exposure to the consumer end market is less looking forward compared to prior years, should I assume that there is no more seasonality from Q4 to Q1?

好的。那麼鑑於你們未來相較於過去幾年對消費性終端市場的曝險更低，我是否可以假設從第四季到第一季不再有季節性？

Again, we'll get into more specific Q1 and 2027 guidance in January.

同樣地，我們會在一月更具體說明第一季與 2027 年的指引。

Okay. I was hoping to get a preview because you mentioned that -- you mentioned you're more driven by enterprise, and I'm just trying to maybe qualitatively, you can help us.

好的。我原本希望能先聽到一些前瞻，因為你提到——你提到你們更受企業端驅動，我只是想從質性角度，也許你可以幫我們說明一下。

I mean, I think there will be -- I think the enterprise -- with enterprise becoming a bigger portion of the mix, Farad becoming a bigger portion of the mix, I think certainly normal consumer seasonality will certainly be more muted going forward as consumer business becomes a smaller percentage of our business.

我的意思是，我認為會——我認為隨著企業端在組合中的占比變得更大、Farad 在組合中的占比也變得更大，我認為可以確定的是，隨著消費性業務在我們整體業務中的占比變小，未來一般消費性季節性波動將會明顯趨於緩和。

Okay. And then, is there any update on arbitration? It would be great to tell us whether the key mind is stone and how we track into those.

好的。那接著，仲裁方面有任何更新嗎？如果你能告訴我們關鍵事項是否已經定案，以及我們如何追蹤進展，會很有幫助。

Yeah. So, we did the closing arguments in Singapore arbitration in March, and we are still anxiously awaiting the results. We don't have any other updates at this point, but certainly once the results come out. We'll be talking about those things quite a bit. But right now, there's no additional comments we're making around the arbitration.

是的。所以，我們在 3 月於新加坡仲裁案完成了結案陳詞，目前仍在焦急等待結果。現階段我們沒有其他更新，但一旦結果出來，我們會就這些事情做相當多的說明。但就目前而言，關於仲裁我們沒有額外評論。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Gokul Hariharan, JPMorgan Chase & Co.

Gokul Hariharan，摩根大通（JPMorgan Chase & Co.）。

Yeah. Hi. Thank you very much. So, my question is on the near CPU boot drive opportunity. Well, I think you said you will start in your solutions in second half of next year. Could you talk a little bit about how big that opportunity can scale into?

是的。嗨。非常感謝。我的問題是關於近 CPU 開機碟（boot drive）的機會。我想你說你們會在明年下半年開始推出你們的解決方案。你能談談這個機會的規模可以擴大到多大嗎？

Because you are enterprise to drive partnering with Nvidia, it scales up very rapidly, but could you talk a little bit about how the opportunity is and how fresh that opportunity is, given that there are already a fair number of incumbents there? Like, I just want to understand the time is big, but how quickly can you scale this business?

因為你們在企業級 SSD 與 Nvidia 合作帶動下，規模成長會非常快，但你能談談這個機會本身有多大、以及在那裡已經有不少既有供應商的情況下，這個機會有多「新」嗎？我想了解的是，市場很大，但你們能多快把這個業務做起來？

I think the 10 will be a minimum $10 billion by 2030 and because the density is bigger than the DRAM is boot drive. Because NAND maker did not pay attention, but this business belonged to NAND maker in the past because they have especially the three NAND makers have DRAN.

我認為到 2030 年至少會是 100 億美元的市場，而且因為密度比 DRAM 更大，這是開機碟（boot drive）。因為 NAND 廠商沒有投入注意力，但過去這個業務本來屬於 NAND 廠商，因為尤其是三家 NAND 大廠也有 DRAN。

But because all the NAND makers, they focus on high capacity computer SD and the data storage SD. So their lack of resource and attention in the near CPU boot drive DRAM. So that's why the supply becomes shortage and many Tier 1 customers come to Silicon Ocean. We see the great opportunity.

但因為所有 NAND 廠商都把重心放在高容量電腦 SSD 與資料儲存 SSD，所以在近 CPU 開機碟 DRAM 這塊缺乏資源與關注。因此供給變得短缺，許多 Tier 1 客戶就來找 Silicon Ocean。我們看到很大的機會。

We also work with the leading NAND maker to see how they want we can work together to resolve the issue. So whether they will support more NAND and also, we need to resolve manufacturing and also including some durian supply too, but we believe we'll start to In the second-half this year.

我們也與領先的 NAND 製造商合作，看看他們希望我們如何一起合作來解決這個問題。所以不論是他們是否會支援更多 NAND，另外我們也需要解決製造問題，還包括一些榴槤供應（durian supply）之類的，但我們相信我們會在今年下半年開始。

We also work with some multi-maker partner because they will use our controller in the firmware, but we will have a different business model to work with them to benefit some financial results. So anyway, this is a new opportunity, and we just really don't have enough R&D resources.

我們也與一些多家製造商的合作夥伴合作，因為他們會在韌體中使用我們的控制器，但我們會用不同的商業模式與他們合作，以帶來一些財務成果上的效益。總之，這是一個新的機會，而我們確實沒有足夠的研發資源。

This is a great opportunity for Silicon Motion to grow and this could be grow even faster in, and '29 because there's a very we have the great idea controller and fitting very well and we have the firmware technology and certainly the controller very lucky to have a certain OCP feature built in, so we don't need to redo the new ASIC.

這對 Silicon Motion 來說是很好的成長機會，而且在 29 年甚至可能成長更快，因為——我們有很好的控制器構想，契合度非常高；我們也有韌體技術，而且控制器很幸運地內建了某些 OCP 功能，所以不需要重新做新的 ASIC。

I think a lot of our Nami, they don't have a certain controller today, so that's why we are in a great position to expand to the new market.

我認為我們很多 Nami（同業/競爭者）目前沒有這樣的控制器，所以我們在擴展到新市場方面處於很有利的位置。

Just to follow-up there, when you win business, do you have to win by individual server customer or you just design into a chip platform and you kind of become the de facto in that chip platform similar to what you do for the current enterprise to drive?

我追問一下，當你們拿下案子時，是必須逐一去贏得每個伺服器客戶的採用，還是只要設計導入某個晶片平台，然後就會像你們目前企業級 SSD 一樣，在那個晶片平台上成為事實上的標準？

All senior CPU boot drive today is [M.2] form factor 22 by 80, so they need a low power because our controller signal meter controller RSM-8008. It's the idea to feed in very well, this controller needs just a DDR4 or LPDDR4, so well positioned and to feed in this surfing.

目前所有資深 CPU 開機碟都是 [M.2] 規格，外形尺寸 22 乘 80，所以需要低功耗；因為我們的控制器——signal meter 控制器 RSM-8008——這個構想非常契合，這顆控制器只需要 DDR4 或 LPDDR4，因此定位很好、很適合這個應用。

So there's some NAME could also want to work with us, but we have limited resources. We just have to make sure that phoneware is ready. We will support two different NAND by Q1 next year and hopefully ramping smoothly in second-half next year.

所以也有一些 NAME 也想跟我們合作，但我們資源有限。我們必須先確保韌體準備就緒。我們會在明年第一季支援兩種不同的 NAND，並希望在明年下半年順利放量。

So as long as it is M.2 standard, you can start shipping. There is no additional qualification by individual server customer, et cetera, which takes time.

所以只要是 M.2 標準，你們就可以開始出貨。不需要再由各個伺服器客戶逐一做額外認證等等，因為那會花時間。

So we are already working with our module maker, our customer, and they will support the leading tier one server maker. So they may be shipped earlier by Q2 next year, but it's only with support controller. But our own solution, total solution will be probably ready shipping in second half next year.

是的，我們已經在與我們的模組廠、也就是我們的客戶合作，他們會支援領先的 Tier 1 伺服器製造商。所以他們可能在明年第二季就能更早出貨，但那只是搭配控制器的支援。至於我們自己的解決方案、完整解決方案，可能要到明年下半年才會準備好出貨。

Understood. Second question is for Jason. So Jason, first of all, on gross margins, historically we've seen Ferri, and any NAND solution business operate in the probably lower than 40% or 40% kind of gross margin levels. Now obviously you've made a meaningful step up in gross margins for solution business as well.

了解。第二個問題是問 Jason。Jason，首先關於毛利率，過去我們看到 Ferri，以及任何 NAND 解決方案業務，毛利率大概都在低於 40% 或接近 40% 的水準。但很明顯你們在解決方案業務的毛利率也有顯著提升。

As NAND price kind of starts to stabilize or not really go up a lot, how should we think about margins? Are these the steady state margins that you expect the solution business to earn, given it's more enterprise-related? And secondly, could you also talk a little bit about next year, it looks like, based on Wallace's comment, the SSD solutions business will grow faster than the 40%?

當 NAND 價格開始趨於穩定、或不再大幅上漲時，我們應該如何看待毛利率？考量到它更偏企業端相關，這些是否就是你們預期解決方案業務的穩態毛利率水準？第二，你也能談談明年嗎？看起來根據 Wallace 的評論，SSD 解決方案業務的成長會快於 40%。

What is the support that you need from an inventory perspective because inventory already has gone up to about $800 million or so? Could you talk a little bit about how you think about how much working capital support you would need to kind of support that kind of additional probably 50-plus percent growth in the solutions business?

從庫存角度來看，你們需要什麼樣的支撐？因為庫存已經增加到大約 8 億美元左右。你能談談你們如何評估需要多少營運資金支撐，才能支援解決方案業務可能額外的、也許 50% 以上的成長嗎？

Yeah. So in terms of the gross margin question on the solutions business. As well as pointed out, we're negotiating six-month pricing contracts with our customers, we expect to turn inventory, our inventory here within that period as well, so maintaining very tight controls around working capital and price protection and margin protection for our products and our P&L.

好的。先談解決方案業務的毛利率問題。如你所指出的，我們與客戶談的是 6 個月期的定價合約；我們也預期在同一期間內把庫存周轉掉，因此我們會對營運資金、價格保護以及產品與損益表的毛利保護，維持非常嚴格的控管。

We anticipate that certainly with automotive. These are qualified products going into projects that are multi-year, three to five years in length. And so pricing as well as supply agreement are agreed upon at the beginning of these engagements. And so we're confident that we can maintain better margins, especially as the solution complexity, the design, the support becomes more onerous.

我們預期，特別是在車用方面，這些是已完成認證、導入到專案中的產品，而專案週期是多年期，通常是 3 到 5 年。因此定價以及供應協議會在合作一開始就談定。所以我們有信心能維持較好的毛利率，尤其是當解決方案的複雜度、設計與支援要求變得更繁重時。

And so having the higher margin supports all of that. In terms of the working capital, as I said, with the raise that we've done, we're confident that we can support the next couple of years worth of business based upon what current forecasts look like.

因此較高的毛利率可以支撐所有這些投入。至於營運資金，如我所說，透過我們完成的募資/增資，我們有信心能依照目前的預測，支撐未來幾年的業務需求。

So we'll continue to grow inventory, but obviously in anticipation of a 40% plus year, we've grown inventory now. We'll continue to grow inventory in the next quarter, in the fourth quarter, and then we'll start seeing, yeah, obviously the turns of that inventory come back into cash flow as we progress.

所以我們會持續增加庫存，但很明顯是為了因應一年 40% 以上的成長，我們現在已經先把庫存拉高。我們會在下一季、也就是第四季繼續增加庫存，然後隨著業務推進，我們會開始看到——是的——這些庫存周轉回到現金流。

Got it. Okay. Thank you.

了解了。好的。謝謝。

Daniel Yen, Morgan Stanley.

Daniel Yen，摩根士丹利。

Thanks, Wallace and Justin. To take my question and congratulations on a great result. I want to switch gears to a very different question. Wallace, you just mentioned about some opportunities, for example, for your boot drive for some of the enterprise SSD. But I want to ask what will be your strategy right now in China?

謝謝，Wallace 和 Justin。謝謝讓我提問，也恭喜你們取得很好的成果。我想換個方向，問一個很不一樣的問題。Wallace，你剛才提到一些機會，例如用於部分企業級 SSD 的開機碟（boot drive）。但我想問的是，你們目前在中國的策略會是什麼？

So I think China is still important. Region, and I think in China we also have CSP, we have NAND supplier, NAND makers. We also have a lot of module house there, but at the same time, I think competition is still there. So I want to consult you on Silicon Motion's strategy right now in China, both with NAND makers with competitors? And also, how should we address maybe the future demand from the CSP in China?

所以我認為中國仍然很重要。就區域而言，我認為在中國我們也有 CSP，也有 NAND 供應商、NAND 製造商。那邊也有很多模組廠，但同時我認為競爭仍然存在。所以我想請教你們，慧榮（Silicon Motion）目前在中國的策略是什麼，包含與 NAND 製造商以及與競爭對手之間？另外，我們應該如何因應未來來自中國 CSP 的需求？

Okay. You asked a very good question. I think we really want to balance between China and also the rest of the world and China have YMTC, NAND maker, they're very strong, they grow very fast. We also support and collaborate with the YMTC directly or indirectly with the model maker. I think the enterprise portion, we see they will become stronger in 2027.

好的。你問了一個非常好的問題。我認為我們確實希望在中國與世界其他地區之間取得平衡，而中國有長江存儲（YMTC）這樣的 NAND 製造商，他們非常強、成長很快。我們也會直接或透過模組廠間接地支持並與 YMTC 合作。我認為在企業級這一塊，我們看到他們在 2027 年會變得更強。

I think we definitely work closely. For China CFE for hyperscaler, believe us. And I think that's why we try to grow China local R&D. Eventually, China or local R&D can support China customer, and Taiwan will support the rest of the world, especially for U.S. Customers. And secondly, I think China, they are growing enterprise controller company, but in the past, they also like to make enterprise D drive.

我認為我們一定會密切合作。針對中國的 CFE（面向超大規模客戶），請相信我們。也因此我們嘗試擴大中國在地研發。最終，中國或在地研發可以支援中國客戶，而台灣將支援世界其他地區，特別是美國客戶。第二點，我認為中國正在成長一些企業級控制器公司，但過去他們也喜歡做企業級 D drive（硬碟/SSD）。

In the past, NAND pricing is cyclical. They have a downside, they have upside. So see some enterprise controller company, they buy the NAND in the downside, they're selling the drive in the upside. But nowadays, there's no longer the cyclical is price going up or stable, right? So very hard for enterprise controller company, you should convert into selling the whole solution.

過去，NAND 價格是循環性的。有下行，也有上行。所以你會看到一些企業級控制器公司在下行時買 NAND、在上行時賣硬碟。但現在不再是那種循環了，價格是在上升或持平，對吧？因此對企業級控制器公司來說很難，你必須轉型成銷售整體解決方案。

If you don't win hyperscaler or even NAND maker or the CSV customer. So I think our strategy is very simple, we're winning NAND maker business and design win directly, we win hyperscaler customer in both US and China, we also win the CSV directly.

如果你沒有拿下超大規模客戶，甚至沒有拿下 NAND 製造商或 CSP 客戶。所以我認為我們的策略很簡單：我們拿下 NAND 製造商的業務與直接的 design win；我們在美國與中國都拿下超大規模客戶；我們也直接拿下 CSP。

So but we don't make enterprise solution, we only sell controller and our firmware, we engage the module maker and the NAND maker, they sell using our solution our controller in the firmware, mega enterprise solution is selling to the customer. So this is where we are. We think that's why building like second motion ecosystem, working together and supporting the growing opportunity in both China and US.

不過我們不做企業級整體解決方案，我們只賣控制器和我們的韌體；我們會與模組廠和 NAND 製造商合作，由他們使用我們的控制器與韌體方案，將大型企業級解決方案賣給客戶。這就是我們目前的定位。我們認為這也是為什麼要建立像「第二個慧榮」的生態系，大家一起合作，支援中國與美國兩邊成長的機會。

I see, very clear. Once if I may follow up. How should we think about the overall competitive landscape on a controller in China right now? Yeah, so I just want to get your opinion.

了解，很清楚。如果可以的話我追問一下。我們應該如何看待目前中國控制器市場的整體競爭格局？是的，我只是想聽聽你的看法。

So for enterprise, we really don't even there's one or two basic company moved to the IPO, but we don't see they are strong enough to compete in the long-term, not just on technology or business model, right? So I don't really see any stress from them, even some also want to go overseas.

就企業級而言，我們其實——即使有一兩家基礎公司準備 IPO，但我們不認為他們在長期競爭上足夠強，不只是技術或商業模式而已，對吧？所以我不太感受到他們帶來的壓力，甚至有些也想出海。

So today, we feel pretty comfortable for our position with our technology, and we have a very strong development pipeline for both our PGI Gen 5 as well as Gen. 6.

所以今天，我們對於憑藉我們的技術所處的位置感到相當有信心，而且我們在 PCIe Gen 5 以及 Gen 6 都有非常強的開發產品線（pipeline）。

I see. Thanks for this. The second question from me is that since right now you are -- I think you are issuing the comfortable bond; I want to ask if there's any change on your dividend policy potentially in the future. And also, yeah, I think just overall, how should we think about your capital structure going forward?

了解。謝謝你的分享。我的第二個問題是，因為你們現在——我想你們正在發行可轉換公司債（convertible bond）；我想問未來你們的股利政策是否可能有任何變化。另外，是的，整體而言，我們應該如何看待你們未來的資本結構？

Do you have a target, any ratio you are looking at? I think this question is actually coming from some of the investors who subscribe to your convertible bond. Thank you.

你們有沒有目標，或是你們在看的任何比率？我想這個問題其實是來自一些認購你們可轉債的投資人。謝謝。

Yeah. So dividend and capital allocation certainly continues to be a priority. We increased our dividend a couple of weeks ago to $2 to $2.30 per ADS per year. So we've increased we've had a history of increasing our dividend over the last 10 years or so, and our expectation is that we can continue to look at that strategically over time and continue to look at opportunities to raise that.

是的。股利與資本配置當然仍然是優先事項。我們在幾週前把股利提高到每年每 ADS 2 美元到 2.30 美元。所以我們已經——過去大約 10 年我們都有提高股利的歷史，而我們的預期是，隨著時間推進，我們可以持續以策略性的方式檢視，並持續尋找提高股利的機會。

The three priorities for us is on capital return is dividend, share buybacks opportunistically, and then M&A as it makes sense and that is unchanged. But certainly right now working capital needs continue to increase as well. The CB raise puts us in a much better position to drive growth in our business with better working capital as well.

我們在資本回饋上的三大優先順序是：股利、視情況機動進行庫藏股回購，以及在合理時進行併購（M&A），這些都沒有改變。但當然，目前營運資金需求也持續增加。這次可轉債募資讓我們在更充足的營運資金支持下，處於更有利的位置來推動業務成長。

Thank you, Jason. That's all my questions. Thank you.

謝謝你，Jason。我沒有其他問題了。謝謝。

Thank you. We have now reached the end of the question-and-answer session. I'll now turn the conference back to Mr. Wallace Co for closing commands.

謝謝。我們現在已到問答環節的尾聲。接下來我把電話會議交回給 Wallace Co 先生作結語。

Thank you, everyone, for joining us today and for your continued interest in Silicon Motion. We will be attending several investor conferences over the next few months. The schedule of these events will be posted on the Investor Relationships section of our corporate website, and we look forward speaking with you at these events. Goodbye for now.

感謝各位今天參與，也感謝大家持續關注慧榮（Silicon Motion）。未來幾個月我們將參加數場投資人會議。這些活動的行程將公布在我們公司網站的投資人關係（Investor Relations）專區，我們也期待在這些活動中與各位交流。先告辭了。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

感謝各位參與今天的會議。本次議程到此結束。您現在可以掛斷電話線。