Silicon Motion Technology (SIMO) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Strategic initiatives and R&D acceleration

• Rebuilt customer and NAND maker relationships post-MaxLinear deal, now maintaining strong ties with all major NAND suppliers.

• Organizational restructuring focused on main product lines and market share growth, with significant R&D hiring over the past two years.

• Launched new PCIe Gen5 controllers, UFS 4.0/2.2 for mobile, and expanded automotive partnerships.

• MonTitan platform positioned for AI server and storage growth, with strong demand in the AI ecosystem.

Enterprise and data center market expansion

• Renewed enterprise push with dedicated teams and advanced firmware, targeting high-density QLC SSDs for AI and storage applications.

• Two tier one customers secured, with enterprise revenue expected to ramp meaningfully in 2026-2027, potentially contributing 5%-10% of sales.

• BlueField 3 design win with NVIDIA, with boot storage ramping late Q3/Q4 2024 and high-capacity storage following soon after.

• MonTitan platform's performance shaping aligns with AI data pipeline needs, driving strong demand.

Client SSD and mobile market leadership

• Holds about 30% global market share in client SSDs, aiming for 40%+ with PCIe Gen5 ramp and new controller launches.

• PCIe Gen5 controllers expected to achieve 50%-60% share in high-end, with gross margins improving due to higher ASPs.

• eMMC business benefits from market shifts, expanding into automotive, IoT, and AI glasses, with 25% market share and growth expected.

• UFS initiatives target direct engagement with smartphone makers, aiming for 30% market share in three years.