Silicon Motion Technology's

We face competition from a number of competitors, including Marvell and Phison, our flash memory customers and small Chinese merchant controller suppliers. The markets for our products are intensely competitive, and are characterized by rapid technological change, evolving industry standards, frequent new product introductions and pricing pressures. Competition has intensified as a result of the increasing demand for higher levels of performance at competitive prices. We expect competition to intensify further as current competitors continue to strengthen the depth and breadth of their product offerings and additionally, our competitors in China are benefited from the government?s semiconductor localization policy. We believe that our ability to compete successfully in the rapidly evolving markets for our products depends on a number of factors, including, but not limited to:
the performance, features, quality and price of our products;
the timing and success of new product introductions by us, our customers and our competitors;
emergence, rate of adoption and acceptance of new industry standards;
our ability to obtain adequate foundry capacity at competitive prices; and
the number and nature of our competitors in specific market sub-segments.