Silicon Motion Technology Corporation Silicon for Mobile Information

Silicon Motion Technology Corporation Silicon for Mobile Information Investor Presentation July 29, 2005

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 27 A of the Securities Act of 1933, as amended, and Section 21 E 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. 2

Agenda Our Company Our Strategy Our Financials 3

Investment Highlights ü üA leader in the NAND flash controller market üHighly defensible technology backed by patent protection üStrategically located to the Asia-based electronics supply chain üUS-styled gross margins and Asian operating expenses Provider of universally compatible, high performance, low power portable digital media devices One of a Kind Company with Ability to Deliver Superior Performance 4

Our Company Our Strategy Our Financials 5

Our Company Overview Incorporation: Mission n Founded in 1997 Silicon Motion is a leading fabless Market position: n A leader in the flash memory controller market n Headquartered in Taiwan, with offices in Location: U. S. , Japan, Korea, Germany and China Employees: n 196 employees as of June 30, 2005 semiconductor company that provides universally compatible, highperformance, low-power semiconductor solutions for the multimedia consumer electronics markets Key milestones 1998 n Launched CF controllers (1 st in Asia) 2000 n First million CF controllers shipped in 2 -years 2002 n 1 M CF controllers shipped 2003 2004 n Launched MMC and SD controllers with 1 M of each shipped n Launched USB 2. 0 controllers with: Ø 7 M USB 2. 0 controllers shipped Ø 7 M MMC controllers shipped Ø 20 M SD controllers shipped n Wallace Kou, CEO, elected a Director of MMCA and the 2005 Chairman of MMCA Compliance committee n Launched MP 3 player controllers n NASDAQ IPO on June 30, 2005 Financial highlights 2004 1 H 05 Net Sales (US$m) 68. 9 33. 9 Gross margin 41% 45% Operating margin 18% 20% Net margin 12% 20% 6

Our Team Name Position Wallace Kou President & CEO Experience n Western Digital, VP and Chief Architect of Multimedia Products n 20 -years industry experience n M. S. in Electrical & Computer Engineering, UCSB n B. S. in Electrical & Control Engineering, NCTU Richard Wei CFO n Experienced CFO of a US-listed semiconductor company n Research Analyst, Lehman Brothers & Morgan Stanley n MBA, Cornell University n B. S. in Computer Science, MIT The Team: n Experienced senior management team – 15 VPs and directors avg. 15 yrs experience – Extensive international work experience n Robust R&D team of 110 engineers – 93 engineers with Masters degrees or Ph. Ds – Engineering managers avg. >10 yrs experience 7

Our Products and End Markets Product Mix 2004 Our Controllers and Processors Wide-Ranging End Markets Flash memory controllers Compact Flash (CF) Multimedia Card (MMC) Secure Digital (SD) x. D-Picture Universal Serial Bus (USB) 2. 0 controllers Product Mix 1 H 05 USB 2. 0 Flash Disk (UFD) Card reader Portable audio So. Cs MP 3 Controller Multimedia display processors Graphics 8

A Driver of Growth in Our End-Markets: Digital Cameras Digital Camera Sales No. of Digital Photo Exposures . 3% 3 R 2 G CA Growth accelerated since 2004 Source: IC Insights • Larger digital camera base • Increased picture resolution • Improved convenience with camera phone Driving Increased Use of Flash Memory Cards 9

A Driver of Growth in Our End-markets: Mobile Phones Camera Phones MP 3 Phones 2. 5% : 5 AGR . 6% C 64 R: G CA Increased functionalities Need for memory Smartphones R: CAG 3 G Phones % 35. 8 . 3% 2 R: 5 G CA 10

Flash Memory Card Storage Options Secured Digital (SD) § § § 2005 -08 CAGR: 30% Unique encryption feature ideal for applications requiring IP protection Capacity ranges from 4 MB to 2 GB Up to x 4 bit, 50 MHz Popular due to small size and low power Multi. Media Card (MMC) § § 2005 Shipment § § Compact Flash (CF) § § § 2005 -08 CAGR: 1% High capacity of up to 4 GB x 8 bit, up to 25 MHz Single voltage Large form factor suitable for high resolution digital camera 2005 -08 CAGR: 65% Fastest transfer speed - v 4. 0 available in x 1, x 4, x 8 bit, up to 52 MHz Capacity ranges from 8 MB to 2 GB Dual voltage support for v 4. 0 x. D-Picture (x. D) /Smart. Media (SM) 219. 1 million § § § 2005 -08 CAGR: 4% SM has large form factor and low density of up to 128 MB x. D will replace SM x. D v 1. 2 contains a controller as well as memory x. D available with capacity of up to 1 GB Note: SD includes mini. SD; MMC includes RS-MMC Source: IDC 11

Our Role in a Flash Memory Card Functions: ASP Item ~$50. 00 512 MB SD card ~$1. 25 Flash controller ~$30. 00 Flash memory (512 MB) n Controls data flow between host device and NAND flash Flash memory controller n Determines read/write speed NAND Flash memory Functions: NAND Flash Memory n Stores data World-class Flash Memory Controller Functionalities 12

Our Company Our Strategy Our Financials 13

Past and Future Growth Drivers Mobile Graphics Flash Controller (CF) Flash Controller (MMC and SD) USB 2. 0 Controller Portable Audio So. C Image Processor and Video Codec 01 02 03 04 05 06 – 07 14

Flash Memory Card and USB Flash Drive Controllers Flash Memory Card Controller(1) 8. 2% : 3 AGR C Silicon Motion Market Share (1) Assumes 1 controller per flash memory card; Source: IDC USB 2. 0 Flash Drive Controller(1) R: CAG % 39. 7 Silicon Motion Market Share (1) Assumes 1 controller per USB flash drive; Source: IDC 15

Portable Audio So. C and Embedded Graphics Portable Audio So. C Portable audio player controller (1) % 4. 8 R: 3 CAG Market participants (1) Assumes 1 controller portable audio player; Source: IDC Embedded Graphics Embedded graphics controller(1) CAGR : 8. 2% Market participants (1) Includes only car navigation and handheld computers; Assumes 1 controller per unit; Source: Gartner 16

Our Competitive Advantage in Flash and USB Flash Drive Controllers Learning curve HIGH Necessary Learning Curve LOW Pricing floor for captives Cost HIGH Structure Emerging Asian competition LOW Pricing ceiling for Asia competitors 17

Our Customer Base Mobile Storage Products Multimedia So. Cs 2004 Customer Concentration 1 H 05 Customer Concentration 18

Our Company Our Strategy Our Financials 19

Our Sales Trend 2 Q 05: +7% Sequentially +37% Year-Over-Year 20

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 portable audio So. Cs. 21

Unit Shipments Mobile Storage Products include flash card controllers and USB 2. 0 controllers. Multimedia System-on-Chip Products include multimedia display processors and portable audio So. Cs. 22

Our Margin Trend 23

Our Net Income Trend 2 Q 05: +21% Sequentially +3, 734% Year-Over-Year 24

Our Balance Sheet As of 12/31/04 (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 - - - 719 317 10. 0 1, 448 1, 658 52. 5 Total Debt Total Liabilities Shareholders’ Equity 25

Our Financial Ratios 1 Q 05 2 Q 05 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% 26

Investment Highlights ü üA leader in the NAND flash controller market üHighly defensible technology backed by patent protection üStrategically located to the Asia-based electronics supply chain üUS-styled gross margins and Asian operating expenses Provider of universally compatible, high performance, low power portable digital media devices One of a Kind Company with Ability to Deliver Superior Performance 27