Silicon Motion Technology (SIMO) UBS’s 2025 Global Technology and AI Conference summary

Business mix and product lines

• Four major product lines: Client SSD (50-60% of revenue, 30% global share), mobile controllers (30-40% of revenue, 20-23% share), Ferri Automotive (5% now, targeting 10% by 2026), and Enterprise MonTitan (PCIe Gen 5, 5-10% of revenue by 2026-27).

• Strong design wins in automotive with major OEMs and rapid ramp expected.

• Enterprise MonTitan has six customers, with two tier-one design wins ramping from 2026.

• BlueDrive boot drive solutions shipping to major customers, including Google and NVIDIA.

Enterprise and MonTitan strategy

• Shifted from Shannon acquisition to MonTitan, focusing on controller and firmware flexibility.

• MonTitan offers turnkey and SDK solutions, adaptable to customer workloads and NAND types.

• Leading in QLC controller technology, positioning for high-capacity SSD growth.

• Confident in ramping volume as firmware nears final qualification; guidance may improve if NAND procurement strengthens.

• PCIe Gen5 MonTitan architecture targets AI ecosystem needs, with scalable performance and power.

Product development and market outlook

• Initial ramp for TLC in 2025, QLC to follow; Gen 6 design momentum strong, with silicon available in 2H 2026.

• Qualification for new silicon takes 9-12 months, with multiple tier-one customers engaged.

• Enterprise Gen 6 transition expected from late 2026-2027, with R&D investment ramping for Gen 6 and Gen 7.