Silicon Motion Technology CorporationSilicon Motion Technology Corporation

Silicon for Mobile Information

Investor PresentationJuly 29, 2005

2

Safe Harbor Statement

This presentation does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Specifically, this presentation does not constitute a “prospectus” within the meaning of the

Securities Act of 1933, as amended.This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of

the Securities Exchange Act of 1934, as amended. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations

and financial condition of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and

actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company does not undertake

to revise forward-looking statements to reflect future events or circumstances.

3

Agenda

Our CompanyOur Company

Our StrategyOur Strategy

Our FinancialsOur Financials

4

Investment Highlights

Provider of universally compatible, high performance, low power portable digital media devices

A leader in the NAND flash controller market

Highly defensible technology backed by patent protection

Strategically located to the Asia-based electronics supply chain

US-styled gross margins and Asian operating expenses

One of a Kind Company with Ability to Deliver Superior Performance

5

Our CompanyOur Company

Our StrategyOur Strategy

Our FinancialsOur Financials

6

Our Company

Launched CF controllers (1st in Asia)

19981998

Wallace Kou, CEO, elected a Director of MMCA and the Chairman of MMCA Compliance committee

Launched MP3 player controllers NASDAQ IPO on June 30, 2005

20052005

MissionMissionOverviewOverview

A leader in the flash memory controller marketMarket position:

Founded in 1997Incorporation:

Silicon Motion is a leading fabless

semiconductor company that provides

universally compatible, high-

performance, low-power semiconductor

solutions for the multimedia consumer

electronics markets

Silicon Motion is a leading fabless

semiconductor company that provides

universally compatible, high-

performance, low-power semiconductor

solutions for the multimedia consumer

electronics markets

Key milestonesKey milestones

Financial highlightsFinancial highlights

2004 1H05

Net Sales (US$m) 68.9 33.9

Gross margin 41% 45%

Operating margin 18% 20%

Net margin 12% 20%

Headquartered in Taiwan, with offices in U.S., Japan, Korea, Germany and ChinaLocation:

196 employees as of June 30, 2005Employees:

First million CF controllers shipped in 2-years

20002000 1M CF controllers shipped

20022002 Launched MMC and SD controllers with 1M of each

shipped

20020033 Launched USB 2.0 controllers with:

7M USB 2.0 controllers shipped 7M MMC controllers shipped 20M SD controllers shipped

20042004

7

Our Team

Name Position ExperienceName Position Experience

Wallace Kou Western Digital, VP and Chief Architect of Multimedia Products

20-years industry experience

M.S. in Electrical & Computer Engineering, UCSB

B.S. in Electrical & Control Engineering, NCTU

President & CEO

The Team:

Experienced senior management team

– 15 VPs and directors avg. 15 yrs experience

– Extensive international work experience

Richard Wei CFO Experienced CFO of a US-listed semiconductor company

Research Analyst, Lehman Brothers & Morgan Stanley

MBA, Cornell University

B.S. in Computer Science, MIT

Robust R&D team of 110 engineers

– 93 engineers with Masters degrees or PhDs

– Engineering managers avg. >10 yrs experience

8

Our Products and End Markets

Flash controller

69%

USB controller

17%

Others1%

Graphics controller

13%

Product Mix 2004Product Mix 2004

Flash controller

63%

MP3 controller & Others

2%

Graphics controller

15%

USB controller

20%

Product Mix 1H05Product Mix 1H05

Wide-Ranging End MarketsWide-Ranging End Markets

Flash memory controllers

Portable audio SoCs

Multimedia display processors

Card reader

MP3 Controller

Graphics

USB 2.0 Flash Disk (UFD)

xD-Picture

Secure Digital (SD)

Our Controllers and ProcessorsOur Controllers and Processors

Multimedia Card (MMC)

Compact Flash (CF)

Universal Serial Bus (USB) 2.0 controllers

9

A Driver of Growth in Our End-Markets: Digital Cameras

0

10

20

30

40

50

60

2001 2002 2003 2004 2005 2006 2007 2008

No

. of e

xp

osu

res

(bill

ion

s)

Growth accelerated since 2004

No. of Digital Photo ExposuresNo. of Digital Photo Exposures

$6.4

$10.6

$13.2

$14.9$15.8

$17.4$18.2

$4.2

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

2001 2002 2003 2004 2005 2006 2007 2008

US

$ in

bill

ions

Source: IC Insights

CAGR 23.3%

Digital Camera SalesDigital Camera Sales

Driving Increased Use of Flash Memory Cards

•Larger digital camera base•Increased picture resolution•Improved convenience with camera phone

10

A Driver of Growth in Our End-markets: Mobile Phones

Camera PhonesCamera Phones

80.0

190.0

280.0

660.0

0

200

400

600

800

2003 2004 2005 2008

Un

its in

mill

ion

s

CAGR: 52.5%

SmartphonesSmartphones

1.3

2.4

3.4

6.0

0

2

4

6

8

2003 2004 2005 2008

Un

its in

mill

ion

s

CAGR: 35.8%

3G Phones3G Phones

58.0100.0

155.0

475.0

0

200

400

600

2003 2004 2005 2008

Un

its in

mill

ion

sCAGR: 52.3%

MP3 PhonesMP3 Phones

60.0110.0

440.0

0

200

400

600

2004 2005 2008

Un

its in

mill

ion

s

CAGR: 64.6%

Increased functionalities

Need for memory

11

2005-08 CAGR: 65% Fastest transfer speed - v4.0 available in

x1, x4, x8 bit, up to 52MHz Capacity ranges from 8MB to 2GB Dual voltage support for v4.0

2005-08 CAGR: 65% Fastest transfer speed - v4.0 available in

x1, x4, x8 bit, up to 52MHz Capacity ranges from 8MB to 2GB Dual voltage support for v4.0

Flash Memory Card Storage Options

Secured Digital (SD)Secured Digital (SD)

MultiMedia Card (MMC)MultiMedia Card (MMC)

xD-Picture (xD) /SmartMedia (SM)xD-Picture (xD) /SmartMedia (SM)

2005-08 CAGR: 4% SM has large form factor and low density

of up to 128MB xD will replace SM xD v1.2 contains a controller as well as

memory xD available with capacity of up to 1GB

2005-08 CAGR: 4% SM has large form factor and low density

of up to 128MB xD will replace SM xD v1.2 contains a controller as well as

memory xD available with capacity of up to 1GB

Compact Flash (CF)Compact Flash (CF)

2005-08 CAGR: 30% Unique encryption feature ideal for

applications requiring IP protection Capacity ranges from 4MB to 2GB Up to x4 bit, 50MHz Popular due to small size and low power

2005-08 CAGR: 30% Unique encryption feature ideal for

applications requiring IP protection Capacity ranges from 4MB to 2GB Up to x4 bit, 50MHz Popular due to small size and low power

2005-08 CAGR: 1% High capacity of up to 4GB x8 bit, up to 25MHz Single voltage Large form factor suitable for high

resolution digital camera

2005-08 CAGR: 1% High capacity of up to 4GB x8 bit, up to 25MHz Single voltage Large form factor suitable for high

resolution digital camera

Note: SD includes miniSD; MMC includes RS-MMCSource: IDC

CF15%

MMC17%

SD54%

xD/SM14%

2005 Shipment

219.1 million

12

Our Role in a Flash Memory Card

World-class Flash Memory Controller FunctionalitiesWorld-class Flash Memory Controller Functionalities

Flash memory controller

NAND Flash memory

Functions:

Controls data flow between host device and NAND flash

Determines read/write speed

Functions:

Stores dataNAND Flash

Memory

Item Item

ASPASP

~$50.00 512MB SD card

~$1.25 Flash controller

~$30.00 Flash memory

(512MB)

13

Our CompanyOur Company

Our StrategyOur Strategy

Our FinancialsOur Financials

14

Past and Future Growth Drivers

Mobile Graphics

01 03 04 05 06 – 07

Flash Controller (MMC and SD)

USB 2.0 Controller

Portable Audio SoC

Image Processor and Video Codec

Flash Controller (CF)

02

15

4.4%

11.6%

0%

2%

4%

6%

8%

10%

12%

14%

2003 2004

% M

ark

et S

hare

Flash Memory Card and USB Flash Drive Controllers

Flash Memory Card Controller(1)Flash Memory Card Controller(1)

142.0

235.8

314.6

715.9

0

200

400

600

800

2003 2004 2005 2008

Un

its in

mill

ion

s

CAGR: 38.2%

Silicon Motion Market ShareSilicon Motion Market Share

(1) Assumes 1 controller per flash memory card; Source: IDC

USB 2.0 Flash Drive Controller(1)USB 2.0 Flash Drive Controller(1)

Silicon Motion Market ShareSilicon Motion Market Share

23.434.7

55.4

124.9

0

20

40

60

80

100

120

140

2003 2004 2005 2008

Un

its in

mill

ion

s

CAGR: 39.7%

0.1%

19.8%

0%

5%

10%

15%

20%

25%

2003 2004

% M

ark

et S

ha

re

(1) Assumes 1 controller per USB flash drive; Source: IDC

16

Portable Audio SoC and Embedded Graphics

Portable Audio SoCPortable Audio SoC

Portable audio player controller(1)Portable audio player controller(1)

Market participantsMarket participants

(1) Assumes 1 controller per portable audio player; Source: IDC

Embedded GraphicsEmbedded Graphics

Market participantsMarket participants

Embedded graphics controller(1)Embedded graphics controller(1)

12.5

23.7

36.3

55.5

0.0

20.0

40.0

60.0

2003 2004 2005 2008

Un

its in

mill

ion

s

CAGR: 34.8%

20.8

23.6

26.1

30.8

15171921232527293133

2003 2004 2005 2008

Un

its in

mill

ion

s CAGR: 8.2%

(1) Includes only car navigation and handheld computers; Assumes 1 controller per unit; Source: Gartner

17

05

1015202530354045

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

Uni

ts (

milio

ns)

Flash card controllers USB 2.0 controllers

HIGH

LOW HIGH

Captives

Emerging Asiancompetition

Necessary Learning CurveNecessary Learning Curve

LOW

Learning curvePricing floor for

captives

CostStructure

Pricing ceiling forAsia competitors

Our Competitive Advantage in Flash and USB Flash Drive Controllers

18

Our Customer Base

Multimedia SoCsMultimedia SoCs

Mobile Storage Products Mobile Storage Products

1H05 Customer Concentration

1H05 Customer Concentration

Others61% Customer

E6%

Customer D

7%

Customer C

8%

Customer B

9%

Customer A

9%

2004 Customer Concentration

2004 Customer Concentration

19

Our CompanyOur Company

Our StrategyOur Strategy

Our FinancialsOur Financials

20

Our Sales Trend

243

327379 402

622

763

515552

0

100

200

300

400

500

600

700

800

900

NT

$ M

illio

n

3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

2Q05:

+7% Sequentially

+37% Year-Over-Year

21

Sales By Product

80%

20%

80%

18%

87%

13%

92%

7%

86%

13%

80%

19%

0%

20%

40%

60%

80%

100%

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

Others

MultimediaSoCs

MobileStorageProducts

Mobile Storage Products include flash card controllers and USB 2.0 controllers.Multimedia System-on-Chip Products include multimedia display processors and portable audio SoCs.

22

Unit Shipments

4,9

13

114

10

,91

2

16

3

14

,12

0

33

7

0

2000

4000

6000

8000

10000

12000

14000

16000

Un

its

(th

ou

san

d)

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

MobileStorageProducts

MultimediaSoCs

Others

Mobile Storage Products include flash card controllers and USB 2.0 controllers.Multimedia System-on-Chip Products include multimedia display processors and portable audio SoCs.

23

Our Margin Trend

44.7% 43.6%46.9%

4.8%

18.8% 20.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

GrossMargin

OperatingMargin

24

Our Net Income Trend

3

96

116

0

20

40

60

80

100

120

NT

$ M

illio

n

3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

2Q05:+21% Sequentially+3,734% Year-Over-Year

25

Our Balance Sheet

As of 12/31/04 (NT$ Million)

As of 6/30/05 (NT$ Million)

As of 6/30/05 (US$ Million)

Cash & Cash Equivalent

727 150 4.8

Short Term Investments

154 886 28.0

Total Assets 2,167 1,975 62.5

Total Debt - - -

Total Liabilities 719 317 10.0

Shareholders’ Equity

1,448 1,658 52.5

26

Our Financial Ratios

1Q05 2Q05

A/R Days (average) 61 45

Inventory Days (average) 136 87

Inventory Days (ending balance) 112 63

Current Ratio 6.0 5.9

ROE 26% 29%

ROA 19% 24%

27

Investment Highlights

Provider of universally compatible, high performance, low power portable digital media devices

A leader in the NAND flash controller market

Highly defensible technology backed by patent protection

Strategically located to the Asia-based electronics supply chain

US-styled gross margins and Asian operating expenses

One of a Kind Company with Ability to Deliver Superior Performance