1

Silicon for Mobile Information

Richard WeiJanuary 2007

2

Safe Harbor Statement

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. Such forward-looking statements include, without limitation, statements regarding trends in the multimedia consumer electronics market and our future results of operations, financial condition and business prospects.Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or ouractual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward looking statements for a variety of reasons.

3

Our Company

Our Strategy

Our Financials

Agenda

4

Investment Highlights

Provider of universally compatible, high performance, low power semiconductors for 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

Agenda

Our Strategy

Our Financials

6

Our CompanyOverview

Founded in 1997Incorporation:

Headquartered in Taiwan, with offices in U.S., Japan, Korea and China

Location:

318 employees as of June 30, 2006Employees:

Key milestones

Launched CF controllers (1st in Asia)

Wallace Kou, CEO, elected a Director of MMCA and the Chairman of MMCA Compliance committeeLaunched MP3 controllersNASDAQ IPO on June 30, 2005

First million CF controllers shipped in 2-years1M CF controllers shippedLaunched MMC and SD controllers with 1M of each shippedLaunched USB 2.0 controllers with:

7M USB 2.0 controllers shipped7M MMC controllers shipped20M SD controllers shipped

19981998

20052005

20002000

20022002

20032003

20042004

Mission

Silicon Motion is a leading fabless semiconductor company that provides

universally compatible, high-performance, low-power semiconductor solutions for the multimedia consumer electronics markets

Financial highlights

2004 2005 9M 2006

Net Sales (US$m) 68.9 83.6 70.6

Gross margin 41% 50% 53%

Operating margin 18% 25% 26%

Net margin 12% 25% 27%

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Our Products and End Markets

Flashcontroller

71%

MultimediaSoCs14%

Others1%

USBcontroller

14%

Flashcontroller

68%

MultimediaSoCs15%

Others1%

USBcontroller

16%

Product Mix 2005

Flash memory controllers

Multimedia SoCs

Universal Serial Bus (USB) 2.0 controllers

Wide-Ranging End Markets

Card reader

MP3 Controller

Graphics

USB 2.0 Flash Disk (UFD)

xD-Picture

Secure Digital (SD)

Our Controllers and Processors

Multimedia Card (MMC)

Compact Flash (CF)

Product Mix 9M 2006

8

$4.5$6.8

$11.5

$15.0$17.2 $18.1 $18.1 $17.9

$0$2$4$6$8

$10$12$14$16$18$20$22

2001 2002 2003 2004 2005 2006 2007 2008

US

$ i

n b

illi

on

sA 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

xpos

ures

(bill

ions

)

Growth accelerated since 2004

No. of Digital Photo ExposuresNo. of Digital Photo Exposures

Source: Nov. 2006, IC Insights

CAGR 22%

Digital Camera SalesDigital Camera Sales

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

Driving Increased Use of Flash Memory Cards

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

Increased functionalities

Need for Storage

MP3 Phones

65.0 120.0226.0

383.0

857.0

0

200

400

600

800

1000

2004 2005 2006 2007 2008 2009

Uni

ts in

mill

ions

CAGR: 68%

~Assumes 1 controller per MP3 Phones; Source: Apr. 2006, Topology Research Institute

Camera Phones

380.6508.1

627.8

887.9

0

200

400

600

800

1000

2005 2006 2007 2010

Uni

ts in

mill

ions

CAGR: 19%

~Assumes 1 controller per Camera Phones;Source: Dec. 2006, IDC

5.512.0

25.7

67.6

01020304050607080

2005 2006 2007 2010

Uni

ts in

mill

ions

CAGR: 65%

~Assumes 1 controller per Smartphones; Source: Jul.2006, IDC

Notes: Smartphones includes Microsoft Pocket PC Phone Edition, Microsoft Smartphone, and Symbian (pen-based UIQ, Series 80, Series 90)

Smart Phones

Assumes 1 controller per 3G Phones;Source: Dec..2006, IDC

3G Phones3G Phones

66.0152.0

262.3

527.4

0

100

200

300

400

500

600

2005 2006 2007 2010

Uni

ts in

mill

ions

CAGR: 52%

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Flash Memory Card Storage Options

2005- 10 CAGR: 47%Fastest transfer speed - v4.0 available in x1, x4, x8 bit, up to 52MHzCapacity ranges from 8MB to 2GBDual voltage support for v4.1

MultiMedia Card (MMC)

xD-Picture (xD) /SmartMedia (SM)

2005- 10 CAGR: -10%SM has large form factor and low density of up to 128MBxD will replace SMxD v1.2 contains a controller as well as memoryxD available with capacity of up to 1GB

Secured Digital (SD)

2005-10 CAGR: 52%Unique encryption feature ideal for applications requiring IP protectionCapacity ranges from 4MB to 2GBUp to x4 bit, 50MHzPopular due to small size and low power

Compact Flash (CF)

2005-10 CAGR: -16%High capacity of up to 8GBx8 bit, up to 25MHzSingle voltageLarge form factor suitable for high resolution digital camera

Note: SD includes miniSD and microSD; MMC includes RS-MMC and MMC micro; Memory Stick includes Memory Stick Duo (Duo)Source: May 2006, IDC

MemoryStick22%

xD/SM11%

SD37%

MMC19%

CF11%

2005 Shipment

302 million

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Our Role in a Flash Memory Card

Functions:

Controls data flow between host device and NAND flash

Determines read/write speed

Functions:

Stores dataNAND Flash Memory

NAND Flash Memory

World-class Flash Memory Controller Functionalities

Flash Memory Controller

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Our Company

Agenda

Our StrategyOur Strategy

Our Financials

13

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

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Flash Memory Card and USB Flash Drive Controllers

Flash Memory Card Controller(1)

222 304442

660

1508

0200400600800

1000120014001600

2004 2005 2006 2007 2010

Uni

ts in

mill

ions

CAGR: 38%

Silicon Motion Market Share

(1) Assumes 1 controller per flash memory card; Source: May 2006, IDC

4.3%

12.3%

21.2%

0%

5%

10%

15%

20%

25%

2003 2004 2005

% M

arke

t Sha

re

USB Flash Drive Controller(1)

(1) Assumes 1 controller per USB flash drive; Source: May 2006, IDC

48.8

75.7

103.5

125.1

155.2

020406080

100120140160180

2004 2005 2006 2007 2010

Uni

ts in

mill

ions

Silicon Motion Market Share

14.0%

0.0%

20.0%

0%

5%

10%

15%

20%

25%

2003 2004 2005

% M

arke

t Sha

re

CAGR: 21%

~~

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Portable Audio SoC and Embedded Graphics

Portable Audio SoCPortable audio player controller(1)

Market participants

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

Embedded Graphics

Market participants

Embedded graphics controller(1)

12.523.7

36.3

55.5

0.0

20.0

40.0

60.0

2003 2004 2005 2008

Uni

ts in

mill

ions

CAGR: 35%

20.823.6

26.1

30.8

15

20

25

30

35

2003 2004 2005 2008

Uni

ts in

mill

ions CAGR: 8%

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

~ ~

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Our Competitive Advantage in Flash and USB Flash Drive Controllers

HIGH

LOW HIGH

Captives

Necessary Learning Curve

Learning curve

LOW

Pricing floor forcaptives

CostStructure

Pricing ceiling forAsia competitors

Emerging Asiancompetition

020406080

100120140160180200

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

Uni

ts (m

ilio

ns)

Flash card controllers USB 2.0 controllers

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Our Customer Base

Multimedia SoCsMobile Storage Products

2005 Customer Concentration

Others41%

Customer E5% Customer D

5%

Customer C13%

Customer B14%

Customer A22%

Others60%

Customer A11%

Customer B8%

Customer C8%

Customer D7%

Customer E6%

2004 Customer Concentration

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Our Strategy

Agenda

Our Company

Our FinancialsOur Financials

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Our Sales Trend

379 402

622

763

515552

747872

566687

1,037

0

200

400

600

800

1000

1200

NT$

Mill

ion

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

3Q06: +39%YoY+51%Sequentially

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Sales By Product

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

80%

20%

80%

18%

87%

13%

92%

7%

86%

13%

80%

19%

87%

13%

84%

16%

72%

27%

85%

14%

92%

8%

0%

20%

40%

60%

80%

100%

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

Mobile Storage Products Multimedia SoCs Others

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Unit Shipments

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

4,824 4,9139,983

14,54910,912

163

14,120

337

24,265

407

30,146

947

20,306

496

28,976

326

49,563

395

0

10,000

20,000

30,000

40,000

50,000

Uni

ts (t

hous

and)

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

Mobile Storage Products Multimedia SoCs Others

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Our Margin Trend

44.0% 44.7% 44.2% 46.9%

18.5%

4.8%

26.7%

20.2%

28.0%

53.5%53.5%

43.6%

53.0%

35.5%

52.3% 53.9%

24.6%

18.8% 22.3%

16.3%

27.8%30.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

Gross Margin Operating Margin

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Our Net Income Trend

54

3

11794 96

116

215246

137

187

289

0

50

100

150

200

250

300

NT$

Mill

ion

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06

3Q06: +34% YoY+55% Sequentially

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Our Balance Sheet

As of 12/31/05 (NT$ Million)

As of 6/30/06 (NT$ Million)

As of 9/30/06 (NT$ Million)

1,618 1,782

1,334

5,010

-

782

4,228

1,309

4,380

-

538

3,842

As of 9/30/06 (US$ Million)

Cash & Cash Equivalent 1,582 54

40

151

-

24

128

Short Term Investments 1,158

Total Assets 4,088

Total Debt -

Total Liabilities 638

Shareholders’Equity 3,450

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Our Financial Ratios

2Q05 3Q05 4Q05 1Q06 2Q06

85 77

77

81

7.9

20%

18%

92

88

9.1

15%

13%

45

87

63

5.9

3Q06

A/R Days (average)

29%

24%

5547

56

59

6.3

65

Inventory Days (average)

35%

57

Inventory Days (ending balance)

30%

58

63

6.2Current Ratio 5.9

ROE

60

29%30%

25%ROA 25%

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Investment Highlights

Provider of universally compatible, high performance, low power semiconductors for 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

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Thank You!