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, targeting 5%-10% of revenue by 2026-2027).

• 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.

• Boot drive solutions gaining traction, especially with NVIDIA and Google.

Enterprise and MonTitan strategy

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

• Leading controller for QLC, collaborating with all NAND makers for high-capacity SSDs.

• MonTitan architecture tailored for AI workloads, offering scalable performance and power.

• Gen 6 controller development underway, with multiple tier-one design wins expected.

• Qualification for new silicon takes 9-12 months, with ramp-up expected post-2026.

Boot drive and AI server opportunities

• Boot drive business with NVIDIA BlueField-3 ramped in September, with significant forecasted orders.

• BlueField-4 qualification ongoing, with higher capacity drives (up to 1TB) and higher ASPs.

• Boot drive solutions also supplied to Google and other CSPs, with potential for further expansion.

• Business model allows for margin protection via NAND pass-through pricing.

• Boot drive business expected to scale meaningfully over the next few years.