Silicon Motion at JPMorgan Conference: Strategic Moves and Market Prospects

On Wednesday, 14 May 2025, Silicon Motion Technology (NASDAQ:SIMO) presented its strategic vision at the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. The company highlighted its growth in enterprise markets and expansion in mobile and automotive sectors. While Silicon Motion is optimistic about its future, challenges in R&D resource allocation remain a concern.

Key Takeaways

• Silicon Motion aims for a $1 billion revenue run rate by Q4 2025.
• The company targets a gross margin of 48% to 50% and an operating margin of over 25%.
• Significant growth is expected in enterprise, mobile, and automotive markets.
• Strengthened relationships with major NAND manufacturers bolster product offerings.
• Diversification in foundry sourcing is under exploration to mitigate geographic risks.

Financial Results

• Revenue target: $1 billion by Q4 2025.
• Gross margin goal: 48% to 50%.
• Operating margin target: Over 25% in the mid-term.
• R&D expenses include tape-out costs between $15 million and $20 million per controller.
• PCIe Gen5 controllers show substantial performance improvements over Gen4.

Operational Updates

• Strengthened ties with NAND makers like Samsung, Hynix, Micron, and others.
• Focused on key product lines: PCIe Gen5 controllers, UFS solutions, and AI server applications.
• New product launches: PCIe Gen5 8-channel and 4-channel controllers, UFS 4.0, and UFS 2.2.
• Automotive market expansion with design wins from Sandisk and Samsung.

Future Outlook

• Enterprise sales expected to contribute 5% to 10% of revenue by 2026-2027.
• PCIe Gen5 8-channel controller aims for a 50%-60% market share in the high-end segment.
• Client SSD market share target: 40% or more through PCIe Gen5 products.
• Mobile segment market share goal: 30% within three years, including iPhone integration.
• Automotive sector is a key growth area, with a revenue inflection point anticipated by 2026.

Q&A Highlights

• Enterprise QLC SSDs will target the US market, while China will focus on TLC.
• Revenue from NVIDIA BlueField platform expected in late Q3/Q4 2025.
• More R&D resources needed to meet customer demand.
• Considering Samsung as an alternative foundry to reduce geographic concentration risks.

For a detailed understanding of Silicon Motion’s strategic plans and market outlook, refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Morning, and, welcome to the second day of the JPMorgan, Global TMC Conference. I’m Gokul Hariharan, senior tech analyst at JPMorgan. I’m happy to host Silicon Motion here, President and CEO, Wallace Kho and CFO, Jason Tsai. Thanks very much for being here. Maybe Wallace, to set the stage, I think there was a period where you were grappling with the MaxLinear acquisition, and you have been kind of accelerated your R and D pipeline quite a bit since then in the last twelve to eighteen months.

So could you let’s set the stage for what you’ve been working on in terms of products, in terms of a lot of the R and D reacceleration, a lot of tape out activity that has happened just to start off with?

Wallace Kho, President and CEO, Silicon Motion: So first of all, thank you for having us here today. Very happy to see the investor. I think in the last eighteen to twenty months, we really have accomplished so many things internally and externally. Externally, after the Maclinia deal broke, we really have started very intensive communication with customer investors, especially customer because we need to really customer to stay. And also we set a goal to rebuild the relationship with all the NAND maker.

Today, we have the best close relationship with all NAND maker, right, from Samsung, Hynix, Micron, KuSha, Sanders, even YMTC. Now internally, we restructured our nation, focused on main product. We set a goal to grow our product line to gain market share. So we added R and year, and we continue to add about R and D this year to support the demand from the customers. So from the client SSD, we develop a new PCIe Gen five leading 2,508 channel as well we just launched two thousand five hundred and four four channel controller.

For mobile, we launched a new product like UEFA four point zero and UEFA two point two. For Mount Titan, we also gaining strong demand through the AI server, AI storage. That’s why we really very enjoy the heavy release opportunity and to grow with AI. For automotive, beside Micron, which is our largest automotive partner and customer, we add Sandus and Samsung last year. For our Ferri product ourselves, we also grow very rapidly.

So really, this is a very good timing for us And also, we feel very good about where we are today in market position.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Got it. So if we zoom in on enterprise, I think you’ve tried to crack into the data center enterprise market before. What is the approach this time around? How is it different? And could you also talk a little bit about how big is this addressable market?

What portion of that addressable market are you kind of targeting right now with this enterprise solutions?

Wallace Kho, President and CEO, Silicon Motion: Okay. For any controller maker, if you want to grow, eventually, you will move to enterprise because this is a larger TAM for controller maker. So we start to engage with the enterprise market ten years ago through for channel system in Shanghai. And we learned quite a lot from channel system. And we engaged with Alibaba and Baidu.

And I think initially the business doing okay. We reached around $150,000,000 and should open channel architecture. But however, this architecture is now mainstream. It cannot sustain. So I think later, really, we run down the opportunity.

We rebuilt a new team five years ago, a dedicated team with ASIC firmware architecture team, C modeling, testing. And we also go through all the review with hyperscaler, CSP, major NAND maker and server maker, short spec. We’re aiming for the storage and high density storage, leveraging our know how in TLC and QLC, especially QLC. So now as you see the AI trend and also high demand for 28 terabyte QLCSD. That’s why we are really very, very busy to work with our customer.

I think officially, announced there are two Tier one customer and total about six customer we have. They’re going to start to ramp in second half more meaningfully in 2026 and 2027. I think through 2026, ’20 ’20 ’7 should be around 5% to 10% of our sale revenue. And we also mentioned each of the Tier one could be 5% to 10% of cell revenue. So we have pretty exciting and very positive.

We give more conservative guidance. I think when our firmware ready to ramp by year end, we should have more demand customer design win in 2026.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. So just to zoom in on this a little bit more, is your opportunity mostly QLC related or do you think that you can penetrate into more customers as well in addition to the QLC opportunity? So

Wallace Kho, President and CEO, Silicon Motion: today, China does not need a QLC SSD. I think China maximum capacity is 32 terabyte. I think two year from now, China going to demand QLCSD and majority demand QLCSD refund U. S. And that’s why we’re so busy and focused on because on that there is no there are not many two terabyte QLC available today, right, just like Kyusha and Sandoz, as in Micron two terabyte QLC coming.

YMTC two terabyte QLC also coming. So we want to capture opportunity to be the second player to deliver 120 terabyte QLC to the market by year end.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: This is specifically to China, right?

Wallace Kho, President and CEO, Silicon Motion: China is only TLC.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Only TLC and second in the global market. Yes. Understood. And in the last earnings call, in addition to the QLC NAND opportunity for enterprise, you also talk about the NVIDIA design win for BlueField three and also potentially working with some of the newer storage solution providers like MOS Data, etcetera. Could you help us understand how relevant and big is this opportunity compared to what you have already secured with like the two Tier one customers?

Wallace Kho, President and CEO, Silicon Motion: It’s a very exciting news for Silicon Motion. So first of all, let me just say, in the past, we never tried to talk about our enterprise boot storage product. Nobody knows we own 100% of Google boot storage drive seen five years ago. We own 100, right? Since the revenue and the volume is now compared to the client SSD is too small, right?

We never talk about it. But NVIDIA is really it’s a big potential of Second Motion. We’re starting with two years ago, but I think in the beginning, they didn’t show strong interest, which will keep the dialogue. Start from one year ago and become busy. And they not only choose a spec review and we send a product for qualification.

Until probably late Q3 last year, we know that’s a BlueField. And I see most of us don’t understand what exactly BlueField will do. I think BlueField is a data processing unit and release acceleration for the networking. And for this platform is you to expand the ecosystem for NVIDIA for storage system, a storage bay. So you look for from Blackwell and should see null band and Ethernet connect to Bluefield platform.

And through Bluefield, they have connected PCIe switches and that’s why it create a storage bay and the storage system as our server. So the opportunity for us is a design win in Bluefield and the Bluefield three. I think through the collaboration and for final qualification stage, now we realize there are two supplier and the other supplier also use silicon motion controller and firmware with different So technically speaking, own 100% FieldStreet boot storage as a new platform. And through the ecosystem, we now we know the vast and several others, I think they create NVIDIA selling the Brookfield platform and they use for their storage system, right? So there’s opportunity for us not only in the Brookfield boost storage, but also in the data storage with a 120 terabyte QLC SSD.

That’s why we are very busy trying to the same solution can send to other ecosystem provider such as DDN, such as NAV, Dell and others.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: So when do you think this starts to kind of kick into some revenues?

Wallace Kho, President and CEO, Silicon Motion: See, as we’ve seen the Bluefield three ramping will be late Q3 and Q4 timeframe this year.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: And this is starting with boot storage, right? I think and then eventually the high capacity storage.

Wallace Kho, President and CEO, Silicon Motion: High capacity coming also is similar in late this year or early next year. I think the SolidDine is the only company provide 1.2 terabyte QLC SD solution today.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. Very clear. So all this leads to pretty strong momentum on the enterprise side. So is there any gating factor you see or any challenges you see in terms of ramping up these customers? Like you said, even one of these Tier one customer could help you reach your five to 10% target and you issued the target even before you secured this NVIDIA win.

So just wanted to understand like how should we think about this in the next

Wallace Kho, President and CEO, Silicon Motion: What are we actually need is really the R and D resources, because each of OEM customer demands very heavy. And we just don’t have enough resource to meet the customer demand. You probably wonder why second motion on Titan get such as tension and strong demand because our pattern performance shaping is ideally feeding AI ecosystem. It looks at AI data pipeline found in Jazz to transformation preparation to tokenize to training. During the training, you may see the training fail and you need to checkpoint and backup also inference, right?

They all need quite a lot of data, but they need a different bandwidth and peak. Now how you can really achieve the performance efficiency, data efficiency is very critical, important for the AI ecosystem. That’s why our Mt. Titan platform is a very, very in strong demand, a very unique position for AI ecosystem. We just need to keep execution.

We have very flexible business model for OEM. Some is really use our SDK, the device firmware themselves. Some is joint development for Tier two, Tier three, really our turnkey solution. So we have to make sure the turnkey solution ready and we’ll start to kick in revenue in the second half. And next year we see you’re going to see the meaningful ramp next year.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. And how was the NAND maker interest for your solution? Because historically, they have always stuck to their own solutions, right?

Wallace Kho, President and CEO, Silicon Motion: Well, I can only say there’s a couple waiting. NAND maker, they all have their own solution, but also have limitation. Some cannot provide the high density one terabyte solution. That’s what we have value add to them. And we create a certain ecosystem and try to enhance.

I think we don’t provide solution, only provide controller and firmware. But we build ecosystem even for NVIDIA like a vast ecosystem.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. So if we switch a little bit to client SSDs now, you are pretty much the market leader there in the third party controller segment. How do we grow from here? I think you have a few exciting product cycles coming up on PCIe Gen five. So could you talk a little bit about how we see the growth in the client segment?

Wallace Kho, President and CEO, Silicon Motion: So we are about 30% market share today globally for client SSD for PC. As you see, we announced our PCIe Gen five eight channel controller 2,508. Lately, see the press release from Micron, from Kingston, from Sandus yesterday and from ADATA. I think there’ll be more coming in the next few weeks. We see that our eight channel PCIe Gen five will probably achieve minimum 50%, sixty % market share for high end.

Our four channel controller PCIe Gen five DRAM less 2,504, we are variable just two months ago. We also quickly won four NAND maker nearly all module maker design. We believe when they start to ramp by year end, PC OEM will ramp from mid of twenty twenty six, we should own about 50%. So through the mathematically, we should easily achieve 40% in the next three years, probably even more. We don’t see near competition.

The good thing is the PC OEM will not adopt PCIe Gen six until 02/1930, only for high end. So you can imagine the next three to four years, we’re in a dominant position in the market. And NAND maker will never redo the controller to meet their demand for existing standard. So we bought 40% for PCIe Gen four with 30%. I think our PCIe Gen five, we should reach very quickly to 40%.

Forty % more.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: How does it impact the pricing dynamics also? I think we’ve been in that $4 to $5 range for client SSD controllers on an average selling price. Do we see upward move in that as well?

Wallace Kho, President and CEO, Silicon Motion: So let me just give you the comment. I think PCIe Gen5a channel is around two to three times of the PCIe Gen4, four channel controller. PCIe Gen four PCIe Gen five, four channel controller is about 20% to 30% increase compared to PCIe Gen four. And the gross margin is a lot better.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. That’s very clear. Okay. Then I think on maybe we move to mobile. Could you talk a little bit about your eMMC business momentum?

You seem to be getting a lot of market share with the module makers, especially in China and as well as other markets. Maybe we start there.

Wallace Kho, President and CEO, Silicon Motion: We feel very good about our mobile business because market trend is favors the commotion, right? First of all, let me talk about eMMC. EMMC most in smartphone is declining quickly, right? So you want to know how you grow eMMC because eMMC declined quickly, NAND maker tried to move away from EMC, all sorting for serverless second motion. So you look for a Sandus using our EMC for mobile phone.

Samsung decided to use our EMC for automotive. That’s why we gained market share. And in addition, eMMC is a JDA standard. They expand beyond just smartphone, like automotive, smart TV, set top box and all the IoT devices. And lately, we see the AI glasses become very popular and should reach about 20,000,000 units this year and grow much faster next year.

This is all used EMC. So the total TAM for EMC is around 800,000,000 units, and we’re just about 25% than we see last year. So we see we’re going to grow quickly this year and beyond. For mobile phone, I think the in the past, all smartphone maker in mainstream and value line model, they try to use eMCP, UMCP, which mean it’s a controller with the NAND and mobile DRAM together in one single PGA package, right, because save footprint and also secure supply. But from early last year, China, Six Seventeen, they introduced LPDDR4, which are high volume, much lower price that change the momentum and the dialogue for the business.

So I think smartphone maker try to use discrete mobile DRAM and use a standard EMC or UFS for value line. That’s what we see the moment and shift all the money makers are ready to play and they increase the market share. That’s why we benefit. But to say that, don’t make mistake, we also aggressively engage with NAND maker for UFS for mainstream high end. So this is our value add.

So we see the all the scenario in market trend favoring motion. We’re about 20% market share today including iPhone. I think we’ll grow quickly to 30% within three years.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: And could you talk a little bit about more about the UFS initiative? I think you had a big customer, that customer kind of went away a little bit on their latest UFS. You’ve had some other wins as well, not probably as big, but how should we think about the UFS progression design wins?

Wallace Kho, President and CEO, Silicon Motion: I think UFS 2.2 is going to play EMC in the value line. They’re going to stay for next five years, maybe forever. UFS four is a high end and two year from now, UFS5 become high end, four become mainstream, UFS3 is in the middle. So we see opportunities for Silicon Motion. In the past, we rely on engagement with NAND maker to grow our mobile business.

Now we directly engage with smartphone maker. We enable QLC to move into mobile storage. We’re very successful. TianXin is our first smartphone partner. And we also starting engage with the second smartphone maker, Xiaomi, this year.

I think we eventually will try to ingress directly and that’s created ecosystem because NAND maker like to sell standard UFS solution. We can have a customized firmware, show differentiation. We like we are not trying to compete with NAND maker. It’s to create a better value for the NAND maker if they want to sell the wafer with module maker. So they make our business model more flexible and expand opportunity for us to grow.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. It’s clear. So just an extension of I think you’re using eMMC also to penetrate pretty quickly into automotive. I think you talked about revenue contribution already reaching single digit numbers already. How should we think about this market?

Is it like an extension of eMMC? Or are you seeing different characteristics coming to this market also as a lot of the storage solutions also become more complicated?

Wallace Kho, President and CEO, Silicon Motion: So automotive is very important for Silicon Motion to grow in the long term. We set a very good strategy in game with NAND maker as well as our Ferri solution selling directly to our modem maker. So as we said, Micron always our largest NAND partner and customers and we added Sandus in late twenty twenty three and we added Samsung in mid of twenty twenty four. Naturally, they all use different solution. Some use PCIe, some use UFS and the same time primarily focused on eMMC transition to PCIe later.

Now for Ferri, as you all know, it’s challenging and difficult for merchant company to engage with a Tier one automotive customer because we don’t have NAND. We cannot guarantee longevity supply, right? So you have some interesting strategy and value proposition. Let me give example for Toyota. Toyota have three major suppliers, right, Denzel, Denzel ten, Panasonic.

So we start to engage with Denzel ten. Our strategy is try to provide TLC based storage solution because our Toyota is the time you said MLC. And because MLC going to come to end of life, we see it’s a great opportunity to provide a solution. But it’s challenging because they worry about quality, data retention and many others. So we spent two years to provide all the data, work with Dansertan R and D and to convince them and also provide solution for Toyota to check.

And finally, we won the design and went to mass production 2023 as for China model. Now later, we leveraged the design win. We engaged with Dansil and we won the Dansil twenty twenty six global model for ADAS. And now we just lately, we just won the Panasonic design, start with EMC, followed by PCIe. So now we become the major supplier storage supplier for Toyota.

So I think every major automotive, we have a different strategy approach. So we’re very, very confident, very grateful to the business. Beside Toyota, we have a Tesla, we have BYD, we have a Xiaomi one hundred percent, we have a Mercedes, we have a Honda, we have a General Motors Cadillac, we have a Waymo and many, many other Renault. So we see the momentum coming in this year’s although the price is very bloody, we say Yuni will grow, especially in China market.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: So a couple of questions on the auto side. One, I think a lot of your design wins have happened in the last maybe twelve to eighteen months, right? So when does the revenue inflection happen? Is it like more like ’27 is when we should see a being full?

Wallace Kho, President and CEO, Silicon Motion: As soon as you start to see the flag in 2026. ’20

Gokul Hariharan, Senior Tech Analyst, JPMorgan: And how is the mix of the business? I think some of the customers you are applying the Ferri kind of business model, many other customers you are largely selling controllers. So what is the long term? Like is it mostly a controller sale? Or is it also like an embedded system kind of sale?

Wallace Kho, President and CEO, Silicon Motion: We keep open. I think Micron is the largest automotive storage player, Samsung is second and Samsung is aiming to be number one too. So we’re very grateful to have both of them, right? With continued support, we believe we’re going to add one more NAND maker next year. And we were selling both solution as well as controller to NAND maker and module maker.

We aim to be the largest player in the automotive sorry market. Great to hear that. If I may now move a

Gokul Hariharan, Senior Tech Analyst, JPMorgan: little bit to the near term dynamics, I think most of the semiconductor companies, your peers have been pretty cautious on second half twenty twenty five. In your guidance a couple of weeks back, Wallace, you still were pretty bullish that we will exit the year with a $1,000,000,000 run rate. So let’s say $240,000,000 to $250,000,000 revenue in Q4. Q4 will be some kind of $240,000,000 to $50,000,000 run rate, which is a pretty jump big jump from where we guided Q2 to be. So could you talk a little bit about how you factor in some of the macro as well as some of the company specific growth drivers in enterprise, in automotive, etcetera, and also the ramp up of PCIe Gen five?

So just Silicon Motion definitely feels like one of the companies that just kind of bucking the trend in terms of how you’re guiding for second half of the year. So I just wanted to get into that a bit more.

Wallace Kho, President and CEO, Silicon Motion: I think that nobody can predict about the geopolitical issue or tariff, right? What are the end to? See, for most of our U. S. Customers, they all have manufacturer oversee, all have manufacturer partners, so they know how to manage their shipment.

Just through our design pipeline and design win, we have very high confident to reach to achieve or exceed our guidance. So we really see the momentum, especially in mobile and client in our side and enterprise is very exciting story. And as I said in earning call to reach $1,000,000,000 run rate in Q4, we don’t count them on Titan and we don’t count on NVIDIA BlueField three, right. This is really a similar momentum for 2026 and 2027 automotive. We do have several major design win.

And when they mature, we will have update. So now it’s really focused execution. I think every customer demand full support, the best team. And just we have around 1,500 R and D right now. So by supporting many, many OEM customer worldwide.

So just have to keep our focus as to our plan, and we definitely will deliver the result.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Understood. Maybe bringing Jason a bit here, I think about a year back or so, you outlined a gross margin target to get back to high 40s, 50%. You’re almost getting there. Operating margin is the one where we’ve still below where we have historically reached like mid-20s or even higher. So what needs to happen from here on?

Like if we just execute to the pipeline that we’ve got, do we naturally get to that kind of operating margin? And I think you’ve also been spending a lot of money on R and D and tape outs, necessarily so. But, how should we think about that over the next maybe several quarters?

Jason Tsai, CFO, Silicon Motion: Yes. So, Walt highlighted a number of new products that we’ve been introducing, a lot of new end markets that we’ve been targeting, right? And we’ve been spending a fair bit of money executing to those strategies. So if you take a look at over the last eighteen months, we’ve taped out six three six nanometer controllers. And what we said is for each controller you’re looking at 15,000,000 to $20,000,000 cost on top of the two fifty engineers that we brought on.

All this is to say that we’ve made a lot of investments over the last eighteen months and we haven’t yet really started seeing the ROI on that. That’s coming this year. That will come into 2026 and 2027 longer term. So as we begin to scale some of these newer products that are higher ASP, higher gross margin, that gets us to that gross margin level of 48% to 50% that we’ve historically achieved. And then as the benefits, as we start seeing that revenue kick in from these investments in SM2504, 2 thousand 5 hundred 8 and then our UFS four point zero controller, we’ll start seeing that operating margin leverage kick in as well.

We’ll continue to invest. We’ve got additional advanced geometry products that we are taping out this year and going into next year. So there are going to be continuing investments, but the plus side is that we’ll finally start seeing the ROI for a lot of those investments that we had made over the last eighteen months. So we’re confident that we can get to that 48% to 50% gross margin range and we’re confident that we can achieve over the midterm back to that normalized operating margin of 25% plus.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Got it. Thanks, Jason. Maybe one question on sourcing. Given you are now taping out more and more projects in leading edge, it’s expensive and pricing is going up as well. You have a more diversified portfolio with enterprise and automotive as well.

So how do you think about sourcing strategy, especially on the foundry side where you have been largely sole sourced. Do you think that there needs to be some changes there or you’re comfortable with the current strategy?

Wallace Kho, President and CEO, Silicon Motion: I think TSMC is always our major partner in the sourcing for foundry, right? But we start to see automotive customer ask to tape out in non China, non Taiwan because they worry about concern. So we because some parties relate to Samsung, so we start to use Samsung as alternative solution, but that’s a very small portion, right? But we have to start to prepare a second source. But because TSMC also starting investing in Arizona in U.

S, so this depends how they go and what the cost structure look like. But diversify is the direction we need to go.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: And from a cost perspective, I think you’re obviously ramping six nanometer based chips. You’re also considering four nanometer tape outs. Those are all like pretty expensive compared to your current portfolio, which is like 28 nanometer or 60 nanometer. So how is the appetite from the customers also to kind of absorb some of those increases? Like do you feel like that is what the market needs anyway and that customers will be willing to pay for that?

Wallace Kho, President and CEO, Silicon Motion: So, Go, you are correct. From a cost structure, six nanometer is much more expensive than 12 nanometer, right, and 28 nanometer and four nanometer even more. I’ll give you as an example, if you don’t count R and D expense, six nanometer, it will cost you around $35,000,000 from tape on mask IP related, right? And you have to be one time successful. For four nanometer, it will cost you about $35,000,000 to $40,000,000 from the mass all the way to IP, the IP more expensive and you don’t even count R and D cost.

But in other way, we see less competition coming. So from PCIe Gen five, why we are dominant position with our last competitor. We have few competitor. And if we go to PCIe Gen six, I think probably Play one. So this will give us a new opportunity.

Even NAND maker, they have to rethink again. Shall we really do internally because it doesn’t make sense? Or do you use second motion controller that will just make a solution. So that’s why we see more and more outsourcing opportunity from NAND maker and now they give us very unique position and because we build our IP. And frankly speaking, we have more demand than we can handle today.

We also see some custom design requests from hyperscaler, from leading automotive customer, right. That’s why we have to be smart to utilize our cash position next year after if McAfee deal reach resolution hopefully by year end. So we might have to start some education every day to certainly service and also mixed signal team. We’re eager to grow, which I need more R and D resource to help us support our meet the customer demand. Understood.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: We got a couple of minutes. Any questions from the investors? Okay. Wallace, in the last couple of minutes, any messages that you want to share to end the conversation?

Wallace Kho, President and CEO, Silicon Motion: I think Silicon Motion is a great company. We have a great technology with many, innovation. Are in a very good position today in the market from clients, mobile, enterprise automotive. I think we’re going to continue to grow. Hope we can execute the plan and provide a good update to investor.

Gokul Hariharan, Senior Tech Analyst, JPMorgan: Thanks. Thanks, Wallace, and thanks, Jason. Thank you very much

Wallace Kho, President and CEO, Silicon Motion: for participating

Gokul Hariharan, Senior Tech Analyst, JPMorgan: in the conference. Thank you.

Jason Tsai, CFO, Silicon Motion: Thank you, Gokul.

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