SITIME Corp — Call Transcript 2026

All right, we'll go ahead and get started. Welcome, everybody. Thank you for joining us at the 28th Annual Needham Growth Conference. My name is Quinn Bolton. I'm the Semiconductor Analyst for Needham. My pleasure to host this fireside chat with SiTime. SiTime is a precision timing company whose semiconductor MEMS programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. The company has cumulatively shipped over 3.5 billion timing devices to date. Joining me from the company is CEO Rajesh Vashist. Rajesh, thank you for joining us. I'm very happy to be here. Before we start with my questions, the company has asked me to read the safe harbor language. So these discussions include forward-looking statements that involve risks, uncertainties, and assumptions, which are further described in SiTime's SEC filings, including SiTime's most recent Form 10-Q, and that actual results could differ materially and adversely from those anticipated or implied. SiTime assumes no obligation and does not intend to update any forward-looking statements. For more information, please visit SiTime's investor relations website at investor.sitime.com. With that, Rajesh, SiTime is a leader in precision timing. Can you start off and just sort of describe what is precision timing? Yeah, so first of all, what is timing? Timing is the heartbeat of any electronic system. Simply put, a signal from a CPU, a signal from wireless, a signal from anything needs to know when to go, when not to go. And the precision part of it comes in that there's a lot of performance issues, which Quartz Crystal, which is the incumbent technology, has managed for the last 70 years. But what SiTime brings with precision timing is all that performance, but under tough environmental conditions: temperature, shock, vibration, power, airflow, size. When you factor that in, our approach, which is semiconductor-based new technology vs non-semiconductor, quartz, we think wins. How large is the precision market, sorry, precision timing TAM? And how much of that opportunity do you address? Yeah, so the full timing TAM, which is made up of three different kinds of components, is around $10-11 billion. It grows at 5-7% a year. It's been doing that for the last 60-70 years. And so in a decade, it's probably going to be twice as much, so $20 billion in a decade. The SiTime SAM, which is a share of the market, is about $3 billion. And of course, our revenue is significantly less than that. What is your sort of strategy to increase your SAM within that total addressable market? Yeah, so quartz does a fantastic job of taking care of most of the existing use cases by definition. SiTime's job is to deliver a highly differentiated solution, which they can't do. So differentiated in terms of speeds and feeds, we can do better phase noise, we can do better jitter, we can do better stability. But also, we see ourselves as a solution set. We see ourselves as solving a tough timing problem, which includes having a resonator solution, having an oscillator solution, having a clock solution. There's no other company in the world that has said that, that is capable of that, and that is delivering that. So we are delivering solutions that are premium priced, high gross margin to us, but premium priced, which gives us a single source, 70%-80% of our business single source. So what's not to like about that? Right, right. Just went through some of the advantages of silicon MEMS timing devices vs quartz. Is there anywhere any metric where quartz is still competitive or where you are trying to catch up with quartz, or do you think you now have sort of performance leadership pretty much across the board relative to the incumbent technology? I think when we went public, we were still deficient in some areas. That was six years ago, 2019. But since then, I think it's true what you just said, which is by and large, SiTime, there may be still some isolated pockets where we are not as good. For example, in space, we haven't done the work for deep space and rad-hard, radiation hard. But you know that's a relatively small, maybe $100-$200 million market. Okay, but in terms of the metrics itself, jitter, temperature, stability, you feel like you have equal, or if not better, performance? That's right. Okay, perfect. If you look back at 2025, it was a record year for the company. Maybe talk about some of the biggest growth drivers that you saw last year. Yeah, for the first three quarters, which is what we have talked about, obviously, including our November call earnings, just reiterating that. Obviously, AI, no surprise, has been a huge growth. In November last year, we said that it was our sixth consecutive quarter of growing our what we call CED, which is Communications Enterprise Data Center, by triple digits, so 120%, 130%, 140% for six quarters in a row. So that was clearly the banner, the headline. But the other was a slow creep up on improving gross margins. Another was consolidating our Aura acquisition from 2023, December, and getting those products out, getting those design wins, showcasing that our viewpoint, which is clocking and oscillators selling together for certain markets, is very valuable. So those were three of the highlights that I can think of. Does anything change as you look into 2026 in terms of your priorities? I mean, you've shown strong growth. You've seen the margin expansion. Any other priority you would have as you look into this year? I think, as we've said before, we look to get to 60% gross margins and keep that. 60%-65% is our sweet spot for gross margins. I think we keep on getting into that part, that side. AI continues to grow for everybody, and one can't say where things go, but in general, we see AI growing. We kind of gave a sort of soft guidance in November, and for 2026, our base growth rate, base, meaning our is 25%-30%. And we have done that consistently, and then in years like 2024, we did 40, and 2025, we'll do whatever we think. As of the last quarter earnings, there's more than 40. So as long as we have a tailwind of some kind, we have 400 applications, about 5%-10% of that, they grow more than about 25%-30%. And we have just kind of begun, right? Our revenue is really still pretty small compared to our SAM and certainly compared to our TAM. Wanted to move now to the CED segment, which, as you said, is certainly led growth last year. Needham sort of estimates you're probably on track to grow about 130% year on year in 2025. Can you talk about applications within the data center and use cases that are sort of driving that growth? How broad-based are your timing devices within some of these data center applications? Yeah, as we have maintained in the past, we are in almost all aspects of the data center. But the part that we really seem to shine in a lot is in the networking and the communications piece. Because yes, we are next to the GPU and the CPU, but the switches, the accelerator cards, the optical piece, both scale up, scale out, all of those are great opportunities for us. And we continue to see that networking, we see the GPUs are underutilized many times. And part of it is because they're not able to get the data around the way they should. So clearly, networking is the bottleneck. If we want a better utilization of the GPUs, we need better networks. That's right. Better networks probably require higher precision time. That's right. Got it. Can you discuss sort of, you know, we're kind of moving in the data center from unit of compute from the server to sort of the unit of compute is now the rack? Right. Roughly, how much dollar content would SiTime have in a, say, NVIDIA rack of equipment? Is that $100s? And how do you see that trending over time? Yeah, so it depends, of course, on how the rack is configured and so on. But in general, we have said in the $100s for a Blackwell, for example, picking a number, $500-$600 per rack, fully configured. The previous generations would probably have been more close to $400. The future generations are probably going to go up. So yeah, it's an increasing SAM for SiTime. Okay, and you look at NVIDIA, obviously, a number of the hyperscalers have their own ASIC platforms. Is it generally similar dollar content opportunity in some of the ASIC platform racks? Yeah, I think NVIDIA is sort of the purest example of them. Others are not quite everywhere in the same way that NVIDIA is. So it necessarily is a little bit lower. But eventually, at scale, everyone will need that kind of timing, right? The most important thing to understand about timing is that in any use case, but let's talk about data center, is that the data throughput, the data, in other words, bits per second is critical. And so shoving more data around is critical. Low latency is critical. But the new thing that's coming up is the synchronization of data. Synchronization between GPUs, between CPUs, between GPUs and CPUs and TPUs, between racks, between stacks, between eventually data centers, right? The data must be coherent at all times. This notion of synchronization just doesn't stay in the data center, but goes into any kind of compute and AI, for example, in robotics, in humanoid robots, for example, in cars, where, again, everything must be synchronized. And you can achieve synchronization through some software, but that software sits on top of hardware. And that hardware is the oscillator, the clock, a combination of the oscillator and the clock. And the more instantiations of that, the more synchronization needed. Knowing that there's more synchronization needed, what's sort of the company's strategy to continue to increase its position in the data center market? You've talked about having resonators, oscillators, clocks. Is it a bundling strategy? Is it getting closer to your biggest customers? Just sort of thoughts on how do you continue to enhance your position in the data center? Yeah, so the beauty of semiconductors is you have to deliver the functionality, and then the rest comes with it. So the functionality that we're looking for is reducing latency. One of the ways you reduce latency is through the, you know, we've gone from picoseconds to femtoseconds, reducing the jitter, increasing the stability, making the phase noise better, making the size smaller at the same time while you're doing that so that there can be more of these populated in any use case. And then the strategy as far as the go-to-market customers is clearly connect with the semiconductor companies, clearly connect with GPU, TPU, the switch companies, people who do like Broadcom or Marvell. But also and follow that because they make reference designs, so they may use it and then work with the people in Taiwan who are putting that together or the CMs. So follow that. The second is talk directly to the hyperscalers because some of them are doing the same thing as some of the semiconductor guys, but they're also doing their own take on it. They have their own architectures. So work with them. We do that. And finally, the people who supply the networking, the Credos and optical modules and people who do the retiming, like an Astera, those people are kind of important to round it all out, a Molex, a Coherent, you know, delivering coherency. So all aspects of that. You talked about trying to reduce latency, picoseconds going to femtoseconds. To the extent SiTime can supply the entire timing tree, does that enable you at a system level to help customers, you know, deliver better value, or is it really, you know, you don't necessarily need to have everything under one roof to achieve some of those goals? Yeah, I think actually our strategy is to deliver the full in the data center, in the communications, enterprise business in particular, what we call CED, to deliver the full suite of solutions. Because previous to us, a customer had to go to the quartz crystal oscillator companies and get the oscillators. And then they had to go to the clocking companies such as a TI, a Skyworks, a Renesas, Microchip, and get the clocks. Because SiTime has the clocks as well. We've just started doing it, but we do have it. We can bring synergistic use case, sometimes virtually. In other words, the independent chips, they just work together better with each other. Sometimes physically, we put oscillators inside clocks to make a single solution possible. So yeah, it's very much based on that. Are there any areas within the data center where you feel the company is underpenetrated, whether it's major customers or major applications within timing? Yeah, I mean, you know, the good news is we have done very well. The bad news is we need to do more, or maybe that's good news. The point is that there are many, many semiconductor players in this space, and we haven't penetrated them to the same level that we should. We're doing that. We've created a semiconductor sales group inside the company. It's relatively small. It'll grow through the year. So that's going to be important. But the other is we need to call more exclusively on the hyperscalers as well. And that's very important. And again, we've done that a little bit, but we need to do more of it. We also need to do a little bit more outside of the U.S., which so far we have sort of stayed away. And also there are companies that are being formed in the AI space all the time. And you know, we need to pay attention to that. So it's an embarrassment of riches, as it were, but there's a lot of work to do. Your company has 800G optical modules. It has been a pretty strong area of growth for SiTime. Can you talk about your position in the 800G market? And I don't think you were as penetrated at 400G. And so maybe just talk about what changed as you went from 400-800 that enabled you to enhance your share position in those modules? Yeah, so we typically don't give out what % of the market we are, but suffice to say at the 400G, we were fairly low, and that was at the height of COVID, and there were so many other opportunities that we sort of didn't quite spot it the same way. We did get some design wins. At the 800G, we clearly came into our own, and we had the performance that was ready to match it, so that was a good spot. At 1.6 terabit in particular, we are in a very good shape. We have said that before, primarily because the trajectory of adoption of 1.6 has been a surprise to everybody in the industry. The volume, the speed at which it's been adopted, and the use case in terms of units being used. SiTime is one of the very, very few, perhaps the only one that can fully deliver all the capacity that's needed, can deliver the performance that's needed. That puts us in a very good spot in that. It's very early stages. The interesting thing about this market, I saw a third-party report which showed even out in 2028, 2029 that there were still 200G and 400G shipping. Everything is growing. As you know, data centers are being built outside the United States as well. There's this notion of sovereign data centers. People, countries, you know, middle-sized economies are also adding their own data centers for their own sovereignty, I suppose. Wanted to sort of shift from wire to wireless infrastructure. It seems like wireless infrastructure from the base stations to the radio nodes, you need a lot of synchronization. Seems like it's a content-rich opportunity for SiTime. Maybe start with where SiTime plays and just sort of thoughts about the opportunity to grow that business as we get to 5G Advanced and possibly 6G in the coming years. Yeah, so it elicits a chuckle whenever I talk about it because people are so focused on the AI that talking about communications and Ericsson and Nokia and such, like people go, "Really?" But it's happening, as you said. Not everywhere is 5G extant. Not everybody has 5G. And 6G is definitely on the horizon. We specifically play in the radio access network or node or RAN, where the cellular signal emits and the digital unit, the DU. In both of them, performance, size, environmental robustness, resilience is very critical. And we have done well with the customers. There's also this notion of fixed wireless access, FWA, which is happening in countries like India, where there's a large portion left of the population that doesn't have anything. There are some government mandates that require that they get access so that they can be connected to the economy in a good way. I think there are some great opportunities there. We see that. We never ignored that because part of the beauty of SiTime is out of the 400 applications, maybe five, seven, 10% are always growing more than 25, 30%. And the rest are growing at 10, 12, 15, 20%. By definition, we are always paying attention to the bright shining stars, but we are also feeding the rest of them because we never know when they're going to explode. That's what happened with AI. That's what happened with ADAS. That's what happened with, well, way back when and with crypto mining when that was a thing in 2016. Yeah. Shifting over to the auto industrial A&D part of the business, can you talk about just some of the biggest or fastest growing opportunities in that end market? Yeah, I mean, people are surprised when we talk about automotive as a growing opportunity, but it is. We expect it to be a $100 million business in fairly near term. The reason we grow is because, again, we're focused on the highly differentiated, the high-growth businesses like the automated driving ADAS business, or in fact, GPS-aware, or in fact, some kind of high-end infotainment inside the system. So ADAS, of course, you have Level 2, Level 3, Level 4. Level 4 is the pinnacle where we probably have north of $30 per car. Level 2 is the starter kit at pick a number, $5, $6, and everything else in between. So we have customers, particularly Chinese customers, other than the well-known ones in the United States. We're starting as well with the European guys as they become more and more clear on ADAS. The GPS one is interesting because it spans between military, aerospace, defense, industrial, and automotive, and I guess I suppose in humanoid robots. So it turns out that we used to accept GPS as a highly reliable, invariable way to tell where you were, but also as a source of atomic time, free atomic time. Well, it turns out with the war the Russians started that there is no way to depend upon GPS anymore. There's GPS being spoofed, GPS being corrupted, GPS being not available. So our chips have the timing set up so that when GPS is corrupted in some way or denied in some way, they can hold the time for eight hours, 12 hours, 24 hours to keep on going with that atomic time-based level. That's a huge thing. And we see ourselves in everything from drones to undersea exploration to, of course, military aerospace, the cars we talked about. And you know, you can think of, you know, a 135-pound humanoid robot that you don't want going berserk in the movies like we've seen. So yeah, timing, very important for all that. Your timing devices in a GPS-hindered or denied environment can keep local time until the system reverts back or reestablishes connection with the GPS satellite. And one day when we have atomic time, true atomic time, which we don't, we're far from it. But if we have atomic time and, you know, a 2.5-millimeter by 3-millimeter chip, we would not need any of that. We just have true atomic time. Anything else you want to highlight in the broad-based or the industrial A&D segment before moving? Yeah, I mean, that's our biggest segment by use case. Out of the 400, probably 300 are in that. It's the most exciting. It's high margin, actually. It's slow growth, except when it isn't. When something, you know, spikes, it really spikes. And it's sort of a mini SiTime in a sense that SiTime is a broad-based company. And we don't have one, you know, you'd ask somebody, you know, quick, tell me what is TI's number one use case. People go, we don't know. Because TI is such a broad player or an ADI is such a broad player. SiTime is in that same category, very small, with no TI. But we are playing on that same model. Great. Moving to mobile IoT consumer. Last March, you announced that you had secured two sockets on the internal modem for your largest customer. Do you expect to remain sole-sourced on these timing solutions going forward? Do you see competitors, you know, trying to develop solutions for that modem? Surely. I think that it's a big forcing function among competitors when they see a very clear, you know, revenue stream. It would certainly sort of focus their minds to coming into this market. So we certainly expect it. We know there are certain, you know, large Japanese companies that have been for years talking about doing this. There's at least one startup in Canada that recently secured funding that's quite capable. There may be others. At the end of the day, we have taken kind of an approach of predictive revenue along with high-growth revenue, along with high-margin revenue. And the predictive strategy tells us that we're fairly, we think we're pretty good for the coming couple of years. And just out of an abundance of caution, we don't know what happens after that. But let's not get away from the fact that timing is hard to do. MEMS-based timing is hard to do, and the package of performance and performance under tough environmental solutions is hard to do. Particularly if you have to ship 500 million units or 1 billion units, it's hard to do. It doesn't mean we won't have competition. I always take competition very seriously, but I think like any winning team, the winning team decides its strategy and always checks to see if its strategy is the right strategy, but then executes to that strategy, so that's what we do. We have an executing to a strategy we have while keeping an eye open for competition. I guess it kind of raises the question, you know, to the extent you have a socket, whether it's mobile, whether it's CED, and you lose that socket, do you think you would lose it back to quartz? Or do you think it really takes a MEMS-based or a silicon-based timing solution from a competitor? I mean, do the competitors to displace you really need to develop MEMS or silicon-based timing? It could be both. I'm not too caught up on the technology. The Japanese have been doing quartz-based solutions for 70 years. Every time I turn around, somebody tells me, "Oh, they're tapped out." Every time they deliver another surprise. That's because they're very good at it. They're very good. They understand what they're doing very well. Similarly, in MEMS, there are people who can do it. It's a question of focus. It's a question of drive. The question is, SiTime has 500 people with 350 engineers that are focused on one thing and one thing only, unique in this timing. That's all we do. Does anybody else have that capacity, that financial ability, or indeed the drive to declare that? It's certainly hard to do, but you know, it's all doable. Okay. Within the consumer IoT, you highlighted the Symphonic clock generator for some mobile applications. Maybe spend a minute. What does that product do? Where are you seeing deployments of Symphonic? Yeah, it's basically a clock. It's our own clock and it's a clock with a difference. It's a clock which has a resonator, or actually an oscillator built into it. That's what makes it unique and of course, its performance characteristics are amazingly good. We have a lot of headroom built into it in terms of phase noise and size and power. Right now, a modem use case is the main one, but we see a bigger use case coming in Internet of Things, in robotics, which need to be connected, sometimes to cellular, sometimes to something else, so we kind of think it's got a 10-15-year life going forward. We put a lot of money into it, but I think it's going to do very well for us. Excellent. And maybe a similar question. You've also introduced your Titan resonator platform. I think this is across multiple markets. You know, talk about the resonator opportunity. Where do you play within the resonator portion of the market? Right. So the resonator opportunity is one more product that exists in functionality, but doesn't exist in the form factor and qualitative ways that we bring to it. So it's a $4 billion market. As always, we're going for a small slice of it. $400 million is all we ask. We bring a dramatically smaller size, like one-fifth, one-seventh, one-tenth. We bring dramatically lower power, dramatically greater robustness and supply chain. And we can sell it directly to people who make PMIC or make Wi-Fi or make Bluetooth Low Energy and sit right next to it. That's one use case. The other, a higher bar, is to go to chip companies that do this and get it packaged inside their chip. It's a higher bar because now you're asking somebody who does an MCU to depend upon your product the same way they depend on theirs for quality, reliability, cost, availability. But once you get over those hurdles, and they're not small, but once you get over that, the benefits of integrating timing into an MCU, into a Wi-Fi, into a BLE are immense. So we see it's not immediate revenue. It won't show up much in 2026. It'll show up a little bit in 2027. But four years out, this could be a $100-$150-$200 million business at greater than average, corporate average gross margins. And the functionality of this thing has taken us 18 years to develop. So. What's the response been from some of the silicon partners you've approached? Very good. Very good. They're almost like, "Too good to be true. Let me check this out. Okay. Right? How can it be all these great things you say, and yeah, too good to be true, but let's check it out. We have design wins. We have launched some. More coming. Excellent. I wanted to ask just on the M&A front, you've been vocal about your interest in potential M&A. I know you're limited in what you can say, but can you, at a high level, talk about what types of assets would be of interest to the company? And then any sort of criteria? It's got to be accretive. It's got to be additive to growth. Probably has to be strategic. But just sort of thoughts, how you might approach a future M&A? Yeah, it's very simple. As you point out, we have a rather large amount of cash, $800 million. No debt. That's a good place to be. We are looking to scale up in timing. We're doing one thing, right? Just timing. We've got to scale up. I like a billion in revenue. I think that's a good number to get to be at the right scale to play in a lot of areas. So we want to scale. We want to scale in timing. We want to scale while still keeping growth at 25%, 30%. We want to scale while keeping our 60%+ gross margins. And we want to scale while keeping 25%-35% net profit. So it's kind of a tall order, but that's how we see it. I don't want to compromise our financial. I don't want to compromise our strategic direction. We just want to be a great timing company. Great. Well, I think we're getting close to the end of the session. I guess I just wanted to, you know, ask you a last question. Do you think, you know, we missed anything? Is there anything you'd like to share with the audience? No, I think just for scale, I've been in the Valley since 1984, so it's been 40+ years. This is the second time I've taken a company public. The first time when I started in 1999, in 2005, in 2006. What I learned was that one needs to go after existing large markets. So timing is an existing, when I come to it in 2007, is a $5 billion market. Today, it's an $11 billion market. A decade from now, it's going to be a $20 billion market. There isn't any other company that is solely dedicated to the task of delivering exceptional timing solutions on all timing solutions. That's what SiTime does. We've been doing this with me and the companies for about 18 years. It's in an amazing position to be at that, having formed such a company and done it while maintaining the financial template that we have. So I'm very happy, but I think the best years are still to come. Excellent. All right. Well, with that, Rajesh, we'll wrap. Thank you for joining us at the Needham Conference.

Speaker 1: All right, we'll go ahead and get started. Welcome, everybody. Thank you for joining us at the 28th Annual Needham Growth Conference. My name is Quinn Bolton. I'm the Semiconductor Analyst for Needham. My pleasure to host this fireside chat with SiTime. SiTime is a precision timing company whose semiconductor MEMS programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. The company has cumulatively shipped over 3.5 billion timing devices to date. Joining me from the company is CEO Rajesh Vashist. Rajesh, thank you for joining us. All right, we'll go ahead and get started. all right we'll go ahead and get started Welcome, everybody. welcome everybody Thank you for joining us at the 28th Annual Needham Growth Conference. thank you for joining us at the 28th annual needham growth conference My name is Quinn Bolton. my name is quinn bolton I'm the Semiconductor Analyst for Needham. i'm the semiconductor analyst for needham My pleasure to host this fireside chat with SiTime. my pleasure to host this fireside chat with sitime SiTime is a precision timing company whose semiconductor MEMS programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. sitime is a precision timing company whose semiconductor mems programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance smaller size lower power and better reliability The company has cumulatively shipped over 3.5 billion timing devices to date. the company has cumulatively shipped over 3.5 billion timing devices to date Joining me from the company is CEO Rajesh Vashist. joining me from the company is ceo rajesh vashist Rajesh, thank you for joining us. rajesh thank you for joining us

Speaker 2: I'm very happy to be here. I'm very happy to be here. i'm very happy to be here

Speaker 1: Before we start with my questions, the company has asked me to read the safe harbor language. So these discussions include forward-looking statements that involve risks, uncertainties, and assumptions, which are further described in SiTime's SEC filings, including SiTime's most recent Form 10-Q, and that actual results could differ materially and adversely from those anticipated or implied. SiTime assumes no obligation and does not intend to update any forward-looking statements. For more information, please visit SiTime's investor relations website at investor.sitime.com. With that, Rajesh, SiTime is a leader in precision timing. Can you start off and just sort of describe what is precision timing? Before we start with my questions, the company has asked me to read the safe harbor language. before we start with my questions the company has asked me to read the safe harbor language So these discussions include forward-looking statements that involve risks, uncertainties, and assumptions, which are further described in SiTime's SEC filings, including SiTime's most recent Form 10-Q, and that actual results could differ materially and adversely from those anticipated or implied. so these discussions include forward-looking statements that involve risks uncertainties and assumptions which are further described in sitime's sec filings including sitime's most recent form 10-q and that actual results could differ materially and adversely from those anticipated or implied SiTime assumes no obligation and does not intend to update any forward-looking statements. sitime assumes no obligation and does not intend to update any forward-looking statements For more information, please visit SiTime's investor relations website at investor.sitime.com. for more information please visit sitime's investor relations website at investor.sitime.com With that, Rajesh, SiTime is a leader in precision timing. with that rajesh sitime is a leader in precision timing Can you start off and just sort of describe what is precision timing? can you start off and just sort of describe what is precision timing

Speaker 2: Yeah, so first of all, what is timing? Timing is the heartbeat of any electronic system. Simply put, a signal from a CPU, a signal from wireless, a signal from anything needs to know when to go, when not to go. And the precision part of it comes in that there's a lot of performance issues, which Quartz Crystal, which is the incumbent technology, has managed for the last 70 years. But what SiTime brings with precision timing is all that performance, but under tough environmental conditions: temperature, shock, vibration, power, airflow, size. When you factor that in, our approach, which is semiconductor-based new technology vs non-semiconductor, quartz, we think wins. Yeah, so first of all, what is timing? yeah so first of all what is timing Timing is the heartbeat of any electronic system. timing is the heartbeat of any electronic system Simply put, a signal from a CPU, a signal from wireless, a signal from anything needs to know when to go, when not to go. simply put a signal from a cpu a signal from wireless a signal from anything needs to know when to go when not to go And the precision part of it comes in that there's a lot of performance issues, which Quartz Crystal, which is the incumbent technology, has managed for the last 70 years. and the precision part of it comes in that there's a lot of performance issues which quartz crystal which is the incumbent technology has managed for the last 70 years But what SiTime brings with precision timing is all that performance, but under tough environmental conditions: temperature, shock, vibration, power, airflow, size. but what sitime brings with precision timing is all that performance but under tough environmental conditions temperature shock vibration power airflow size When you factor that in, our approach, which is semiconductor-based new technology vs non-semiconductor, quartz, we think wins. when you factor that in our approach which is semiconductor-based new technology vs non-semiconductor quartz we think wins

Speaker 1: How large is the precision market, sorry, precision timing TAM? And how much of that opportunity do you address? How large is the precision market, sorry, precision timing TAM? how large is the precision market sorry precision timing tam And how much of that opportunity do you address? and how much of that opportunity do you address

Speaker 2: Yeah, so the full timing TAM, which is made up of three different kinds of components, is around $10-11 billion. It grows at 5-7% a year. It's been doing that for the last 60-70 years. And so in a decade, it's probably going to be twice as much, so $20 billion in a decade. The SiTime SAM, which is a share of the market, is about $3 billion. And of course, our revenue is significantly less than that. Yeah, so the full timing TAM, which is made up of three different kinds of components, is around $10-11 billion. yeah so the full timing tam which is made up of three different kinds of components is around $10-11 billion It grows at 5-7% a year. it grows at 5-7% a year It's been doing that for the last 60-70 years. it's been doing that for the last 60-70 years And so in a decade, it's probably going to be twice as much, so $20 billion in a decade. and so in a decade it's probably going to be twice as much so $20 billion in a decade The SiTime SAM, which is a share of the market, is about $3 billion. the sitime sam which is a share of the market is about $3 billion And of course, our revenue is significantly less than that. and of course our revenue is significantly less than that

Speaker 1: What is your sort of strategy to increase your SAM within that total addressable market? What is your sort of strategy to increase your SAM within that total addressable market? what is your sort of strategy to increase your sam within that total addressable market

Speaker 2: Yeah, so quartz does a fantastic job of taking care of most of the existing use cases by definition. SiTime's job is to deliver a highly differentiated solution, which they can't do. So differentiated in terms of speeds and feeds, we can do better phase noise, we can do better jitter, we can do better stability. But also, we see ourselves as a solution set. We see ourselves as solving a tough timing problem, which includes having a resonator solution, having an oscillator solution, having a clock solution. There's no other company in the world that has said that, that is capable of that, and that is delivering that. So we are delivering solutions that are premium priced, high gross margin to us, but premium priced, which gives us a single source, 70%-80% of our business single source. So what's not to like about that? Yeah, so quartz does a fantastic job of taking care of most of the existing use cases by definition. yeah so quartz does a fantastic job of taking care of most of the existing use cases by definition SiTime's job is to deliver a highly differentiated solution, which they can't do. sitime's job is to deliver a highly differentiated solution which they can't do So differentiated in terms of speeds and feeds, we can do better phase noise, we can do better jitter, we can do better stability. so differentiated in terms of speeds and feeds we can do better phase noise we can do better jitter we can do better stability But also, we see ourselves as a solution set. but also we see ourselves as a solution set We see ourselves as solving a tough timing problem, which includes having a resonator solution, having an oscillator solution, having a clock solution. we see ourselves as solving a tough timing problem which includes having a resonator solution having an oscillator solution having a clock solution There's no other company in the world that has said that, that is capable of that, and that is delivering that. there's no other company in the world that has said that that is capable of that and that is delivering that So we are delivering solutions that are premium priced, high gross margin to us, but premium priced, which gives us a single source, 70%-80% of our business single source. so we are delivering solutions that are premium priced high gross margin to us but premium priced which gives us a single source 70%-80% of our business single source So what's not to like about that? so what's not to like about that

Speaker 1: Right, right. Just went through some of the advantages of silicon MEMS timing devices vs quartz. Is there anywhere any metric where quartz is still competitive or where you are trying to catch up with quartz, or do you think you now have sort of performance leadership pretty much across the board relative to the incumbent technology? Right, right. right right Just went through some of the advantages of silicon MEMS timing devices vs quartz. just went through some of the advantages of silicon mems timing devices vs quartz Is there anywhere any metric where quartz is still competitive or where you are trying to catch up with quartz, or do you think you now have sort of performance leadership pretty much across the board relative to the incumbent technology? is there anywhere any metric where quartz is still competitive or where you are trying to catch up with quartz or do you think you now have sort of performance leadership pretty much across the board relative to the incumbent technology

Speaker 2: I think when we went public, we were still deficient in some areas. That was six years ago, 2019. But since then, I think it's true what you just said, which is by and large, SiTime, there may be still some isolated pockets where we are not as good. For example, in space, we haven't done the work for deep space and rad-hard, radiation hard. But you know that's a relatively small, maybe $100-$200 million market. I think when we went public, we were still deficient in some areas. i think when we went public we were still deficient in some areas That was six years ago, 2019. that was six years ago 2019 But since then, I think it's true what you just said, which is by and large, SiTime, there may be still some isolated pockets where we are not as good. but since then i think it's true what you just said which is by and large sitime there may be still some isolated pockets where we are not as good For example, in space, we haven't done the work for deep space and rad- hard, radiation hard. for example in space we haven't done the work for deep space and rad- hard radiation hard But you know that's a relatively small, maybe $100-$200 million market. but you know that's a relatively small maybe $100-$200 million market

Speaker 1: Okay, but in terms of the metrics itself, jitter, temperature, stability, you feel like you have equal, or if not better, performance? Okay, but in terms of the metrics itself, jitter, temperature, stability, you feel like you have equal, or if not better, performance? okay but in terms of the metrics itself jitter temperature stability you feel like you have equal or if not better performance

Speaker 2: That's right. That's right. that's right

Speaker 1: Okay, perfect. If you look back at 2025, it was a record year for the company. Maybe talk about some of the biggest growth drivers that you saw last year. Okay, perfect. okay perfect If you look back at 2025, it was a record year for the company. if you look back at 2025 it was a record year for the company Maybe talk about some of the biggest growth drivers that you saw last year. maybe talk about some of the biggest growth drivers that you saw last year

Speaker 2: Yeah, for the first three quarters, which is what we have talked about, obviously, including our November call earnings, just reiterating that. Obviously, AI, no surprise, has been a huge growth. In November last year, we said that it was our sixth consecutive quarter of growing our what we call CED, which is Communications Enterprise Data Center, by triple digits, so 120%, 130%, 140% for six quarters in a row. So that was clearly the banner, the headline. But the other was a slow creep up on improving gross margins. Another was consolidating our Aura acquisition from 2023, December, and getting those products out, getting those design wins, showcasing that our viewpoint, which is clocking and oscillators selling together for certain markets, is very valuable. So those were three of the highlights that I can think of. Yeah, for the first three quarters, which is what we have talked about, obviously, including our November call earnings, just reiterating that. yeah for the first three quarters which is what we have talked about obviously including our november call earnings just reiterating that Obviously, AI, no surprise, has been a huge growth. obviously ai no surprise has been a huge growth In November last year, we said that it was our sixth consecutive quarter of growing our what we call CED, which is Communications Enterprise Data Center, by triple digits, so 120%, 130%, 140% for six quarters in a row. in november last year we said that it was our sixth consecutive quarter of growing our what we call ced which is communications enterprise data center by triple digits so 120% 130% 140% for six quarters in a row So that was clearly the banner, the headline. so that was clearly the banner the headline But the other was a slow creep up on improving gross margins. but the other was a slow creep up on improving gross margins Another was consolidating our Aura acquisition from 2023, December, and getting those products out, getting those design wins, showcasing that our viewpoint, which is clocking and oscillators selling together for certain markets, is very valuable. another was consolidating our aura acquisition from 2023 december and getting those products out getting those design wins showcasing that our viewpoint which is clocking and oscillators selling together for certain markets is very valuable So those were three of the highlights that I can think of. so those were three of the highlights that i can think of

Speaker 1: Does anything change as you look into 2026 in terms of your priorities? I mean, you've shown strong growth. You've seen the margin expansion. Any other priority you would have as you look into this year? Does anything change as you look into 2026 in terms of your priorities? does anything change as you look into 2026 in terms of your priorities I mean, you've shown strong growth. i mean you've shown strong growth You've seen the margin expansion. you've seen the margin expansion Any other priority you would have as you look into this year? any other priority you would have as you look into this year

Speaker 2: I think, as we've said before, we look to get to 60% gross margins and keep that. 60%-65% is our sweet spot for gross margins. I think we keep on getting into that part, that side. AI continues to grow for everybody, and one can't say where things go, but in general, we see AI growing. We kind of gave a sort of soft guidance in November, and for 2026, our base growth rate, base, meaning our is 25%-30%. And we have done that consistently, and then in years like 2024, we did 40, and 2025, we'll do whatever we think. As of the last quarter earnings, there's more than 40. So as long as we have a tailwind of some kind, we have 400 applications, about 5%-10% of that, they grow more than about 25%-30%. I think, as we've said before, we look to get to 60% gross margins and keep that. 60%-65% is our sweet spot for gross margins. i think as we've said before we look to get to 60% gross margins and keep that 60%-65% is our sweet spot for gross margins I think we keep on getting into that part, that side. i think we keep on getting into that part that side AI continues to grow for everybody, and one can't say where things go, but in general, we see AI growing. ai continues to grow for everybody and one can't say where things go but in general we see ai growing We kind of gave a sort of soft guidance in November, and for 2026, our base growth rate, base, meaning our is 25%-30%. we kind of gave a sort of soft guidance in november and for 2026 our base growth rate base meaning our is 25%-30% And we have done that consistently, and then in years like 2024, we did 40, and 2025, we'll do whatever we think. and we have done that consistently and then in years like 2024 we did 40 and 2025 we'll do whatever we think As of the last quarter earnings, there's more than 40. as of the last quarter earnings there's more than 40 So as long as we have a tailwind of some kind, we have 400 applications, about 5%-10% of that, they grow more than about 25%-30%. so as long as we have a tailwind of some kind we have 400 applications about 5%-10% of that they grow more than about 25%-30% And we have just kind of begun, right? Our revenue is really still pretty small compared to our SAM and certainly compared to our TAM. And we have just kind of begun, right? and we have just kind of begun right Our revenue is really still pretty small compared to our SAM and certainly compared to our TAM. our revenue is really still pretty small compared to our sam and certainly compared to our tam

Speaker 1: Wanted to move now to the CED segment, which, as you said, is certainly led growth last year. Needham sort of estimates you're probably on track to grow about 130% year on year in 2025. Can you talk about applications within the data center and use cases that are sort of driving that growth? How broad-based are your timing devices within some of these data center applications? Wanted to move now to the CED segment, which, as you said, is certainly led growth last year. wanted to move now to the ced segment which as you said is certainly led growth last year Needham sort of estimates you're probably on track to grow about 130% year on year in 2025. needham sort of estimates you're probably on track to grow about 130% year on year in 2025 Can you talk about applications within the data center and use cases that are sort of driving that growth? can you talk about applications within the data center and use cases that are sort of driving that growth How broad-based are your timing devices within some of these data center applications? how broad-based are your timing devices within some of these data center applications

Speaker 2: Yeah, as we have maintained in the past, we are in almost all aspects of the data center. But the part that we really seem to shine in a lot is in the networking and the communications piece. Because yes, we are next to the GPU and the CPU, but the switches, the accelerator cards, the optical piece, both scale up, scale out, all of those are great opportunities for us. And we continue to see that networking, we see the GPUs are underutilized many times. And part of it is because they're not able to get the data around the way they should. So clearly, networking is the bottleneck. Yeah, as we have maintained in the past, we are in almost all aspects of the data center. yeah as we have maintained in the past we are in almost all aspects of the data center But the part that we really seem to shine in a lot is in the networking and the communications piece. but the part that we really seem to shine in a lot is in the networking and the communications piece Because yes, we are next to the GPU and the CPU, but the switches, the accelerator cards, the optical piece, both scale up, scale out, all of those are great opportunities for us. because yes we are next to the gpu and the cpu but the switches the accelerator cards the optical piece both scale up scale out all of those are great opportunities for us And we continue to see that networking, we see the GPUs are underutilized many times. and we continue to see that networking we see the gpus are underutilized many times And part of it is because they're not able to get the data around the way they should. and part of it is because they're not able to get the data around the way they should So clearly, networking is the bottleneck. so clearly networking is the bottleneck

Speaker 1: If we want a better utilization of the GPUs, we need better networks. If we want a better utilization of the GPUs, we need better networks. if we want a better utilization of the gpus we need better networks

Speaker 2: That's right. That's right. that's right

Speaker 1: Better networks probably require higher precision time. Better networks probably require higher precision time. better networks probably require higher precision time

Speaker 2: That's right. That's right. that's right

Speaker 1: Got it. Can you discuss sort of, you know, we're kind of moving in the data center from unit of compute from the server to sort of the unit of compute is now the rack? Got it. got it Can you discuss sort of, you know, we're kind of moving in the data center from unit of compute from the server to sort of the unit of compute is now the rack? can you discuss sort of you know we're kind of moving in the data center from unit of compute from the server to sort of the unit of compute is now the rack

Speaker 2: Right. Right. right

Speaker 1: Roughly, how much dollar content would SiTime have in a, say, NVIDIA rack of equipment? Is that $100s? And how do you see that trending over time? Roughly, how much dollar content would SiTime have in a, say, NVIDIA rack of equipment? roughly how much dollar content would sitime have in a say nvidia rack of equipment Is that $100s ? is that $100s And how do you see that trending over time? and how do you see that trending over time

Speaker 2: Yeah, so it depends, of course, on how the rack is configured and so on. But in general, we have said in the $100s for a Blackwell, for example, picking a number, $500-$600 per rack, fully configured. The previous generations would probably have been more close to $400. The future generations are probably going to go up. So yeah, it's an increasing SAM for SiTime. Yeah, so it depends, of course, on how the rack is configured and so on. yeah so it depends of course on how the rack is configured and so on But in general, we have said in the $100s for a Blackwell, for example, picking a number, $500-$600 per rack, fully configured. but in general we have said in the $100s for a blackwell for example picking a number $500-$600 per rack fully configured The previous generations would probably have been more close to $400. the previous generations would probably have been more close to $400 The future generations are probably going to go up. the future generations are probably going to go up So yeah, it's an increasing SAM for SiTime. so yeah it's an increasing sam for sitime

Speaker 1: Okay, and you look at NVIDIA, obviously, a number of the hyperscalers have their own ASIC platforms. Is it generally similar dollar content opportunity in some of the ASIC platform racks? Okay, and you look at NVIDIA, obviously, a number of the hyperscalers have their own ASIC platforms. okay and you look at nvidia obviously a number of the hyperscalers have their own asic platforms Is it generally similar dollar content opportunity in some of the ASIC platform racks? is it generally similar dollar content opportunity in some of the asic platform racks

Speaker 2: Yeah, I think NVIDIA is sort of the purest example of them. Others are not quite everywhere in the same way that NVIDIA is. So it necessarily is a little bit lower. But eventually, at scale, everyone will need that kind of timing, right? The most important thing to understand about timing is that in any use case, but let's talk about data center, is that the data throughput, the data, in other words, bits per second is critical. And so shoving more data around is critical. Low latency is critical. But the new thing that's coming up is the synchronization of data. Synchronization between GPUs, between CPUs, between GPUs and CPUs and TPUs, between racks, between stacks, between eventually data centers, right? The data must be coherent at all times. Yeah, I think NVIDIA is sort of the purest example of them. yeah i think nvidia is sort of the purest example of them Others are not quite everywhere in the same way that NVIDIA is. others are not quite everywhere in the same way that nvidia is So it necessarily is a little bit lower. so it necessarily is a little bit lower But eventually, at scale, everyone will need that kind of timing, right? but eventually at scale everyone will need that kind of timing right The most important thing to understand about timing is that in any use case, but let's talk about data center, is that the data throughput, the data, in other words, bits per second is critical. the most important thing to understand about timing is that in any use case but let's talk about data center is that the data throughput the data in other words bits per second is critical And so shoving more data around is critical. and so shoving more data around is critical Low latency is critical. low latency is critical But the new thing that's coming up is the synchronization of data. but the new thing that's coming up is the synchronization of data Synchronization between GPUs, between CPUs, between GPUs and CPUs and TPUs, between racks, between stacks, between eventually data centers, right? synchronization between gpus between cpus between gpus and cpus and tpus between racks between stacks between eventually data centers right The data must be coherent at all times. the data must be coherent at all times This notion of synchronization just doesn't stay in the data center, but goes into any kind of compute and AI, for example, in robotics, in humanoid robots, for example, in cars, where, again, everything must be synchronized. And you can achieve synchronization through some software, but that software sits on top of hardware. And that hardware is the oscillator, the clock, a combination of the oscillator and the clock. And the more instantiations of that, the more synchronization needed. This notion of synchronization just doesn't stay in the data center, but goes into any kind of compute and AI, for example, in robotics, in humanoid robots, for example, in cars, where, again, everything must be synchronized. this notion of synchronization just doesn't stay in the data center but goes into any kind of compute and ai for example in robotics in humanoid robots for example in cars where again everything must be synchronized And you can achieve synchronization through some software, but that software sits on top of hardware. and you can achieve synchronization through some software but that software sits on top of hardware And that hardware is the oscillator, the clock, a combination of the oscillator and the clock. and that hardware is the oscillator the clock a combination of the oscillator and the clock And the more instantiations of that, the more synchronization needed. and the more instantiations of that the more synchronization needed

Speaker 1: Knowing that there's more synchronization needed, what's sort of the company's strategy to continue to increase its position in the data center market? You've talked about having resonators, oscillators, clocks. Is it a bundling strategy? Is it getting closer to your biggest customers? Just sort of thoughts on how do you continue to enhance your position in the data center? Knowing that there's more synchronization needed, what's sort of the company's strategy to continue to increase its position in the data center market? knowing that there's more synchronization needed what's sort of the company's strategy to continue to increase its position in the data center market You've talked about having resonators, oscillators, clocks. you've talked about having resonators oscillators clocks Is it a bundling strategy? is it a bundling strategy Is it getting closer to your biggest customers? is it getting closer to your biggest customers Just sort of thoughts on how do you continue to enhance your position in the data center? just sort of thoughts on how do you continue to enhance your position in the data center

Speaker 2: Yeah, so the beauty of semiconductors is you have to deliver the functionality, and then the rest comes with it. So the functionality that we're looking for is reducing latency. One of the ways you reduce latency is through the, you know, we've gone from picoseconds to femtoseconds, reducing the jitter, increasing the stability, making the phase noise better, making the size smaller at the same time while you're doing that so that there can be more of these populated in any use case. And then the strategy as far as the go-to-market customers is clearly connect with the semiconductor companies, clearly connect with GPU, TPU, the switch companies, people who do like Broadcom or Marvell. But also and follow that because they make reference designs, so they may use it and then work with the people in Taiwan who are putting that together or the CMs. So follow that. Yeah, so the beauty of semiconductors is you have to deliver the functionality, and then the rest comes with it. yeah so the beauty of semiconductors is you have to deliver the functionality and then the rest comes with it So the functionality that we're looking for is reducing latency. so the functionality that we're looking for is reducing latency One of the ways you reduce latency is through the, you know, we've gone from picoseconds to femtoseconds, reducing the jitter, increasing the stability, making the phase noise better, making the size smaller at the same time while you're doing that so that there can be more of these populated in any use case. one of the ways you reduce latency is through the you know we've gone from picoseconds to femtoseconds reducing the jitter increasing the stability making the phase noise better making the size smaller at the same time while you're doing that so that there can be more of these populated in any use case And then the strategy as far as the go-to-market customers is clearly connect with the semiconductor companies, clearly connect with GPU, TPU, the switch companies, people who do like Broadcom or Marvell. and then the strategy as far as the go-to-market customers is clearly connect with the semiconductor companies clearly connect with gpu tpu the switch companies people who do like broadcom or marvell But also and follow that because they make reference designs, so they may use it and then work with the people in Taiwan who are putting that together or the CMs. but also and follow that because they make reference designs so they may use it and then work with the people in taiwan who are putting that together or the cms So follow that. so follow that The second is talk directly to the hyperscalers because some of them are doing the same thing as some of the semiconductor guys, but they're also doing their own take on it. They have their own architectures. So work with them. We do that. And finally, the people who supply the networking, the Credos and optical modules and people who do the retiming, like an Astera, those people are kind of important to round it all out, a Molex, a Coherent, you know, delivering coherency. So all aspects of that. The second is talk directly to the hyperscalers because some of them are doing the same thing as some of the semiconductor guys, but they're also doing their own take on it. the second is talk directly to the hyperscalers because some of them are doing the same thing as some of the semiconductor guys but they're also doing their own take on it They have their own architectures. they have their own architectures So work with them. so work with them We do that. we do that And finally, the people who supply the networking, the Credos and optical modules and people who do the retiming, like an Astera, those people are kind of important to round it all out, a Molex, a Coherent, you know, delivering coherency. and finally the people who supply the networking the credos and optical modules and people who do the retiming like an astera those people are kind of important to round it all out a molex a coherent you know delivering coherency So all aspects of that. so all aspects of that

Speaker 1: You talked about trying to reduce latency, picoseconds going to femtoseconds. To the extent SiTime can supply the entire timing tree, does that enable you at a system level to help customers, you know, deliver better value, or is it really, you know, you don't necessarily need to have everything under one roof to achieve some of those goals? You talked about trying to reduce latency, picoseconds going to femtoseconds. you talked about trying to reduce latency picoseconds going to femtoseconds To the extent SiTime can supply the entire timing tree, does that enable you at a system level to help customers, you know, deliver better value, or is it really, you know, you don't necessarily need to have everything under one roof to achieve some of those goals? to the extent sitime can supply the entire timing tree does that enable you at a system level to help customers you know deliver better value or is it really you know you don't necessarily need to have everything under one roof to achieve some of those goals

Speaker 2: Yeah, I think actually our strategy is to deliver the full in the data center, in the communications, enterprise business in particular, what we call CED, to deliver the full suite of solutions. Because previous to us, a customer had to go to the quartz crystal oscillator companies and get the oscillators. And then they had to go to the clocking companies such as a TI, a Skyworks, a Renesas, Microchip, and get the clocks. Because SiTime has the clocks as well. We've just started doing it, but we do have it. We can bring synergistic use case, sometimes virtually. In other words, the independent chips, they just work together better with each other. Sometimes physically, we put oscillators inside clocks to make a single solution possible. So yeah, it's very much based on that. Yeah, I think actually our strategy is to deliver the full in the data center, in the communications, enterprise business in particular, what we call CED, to deliver the full suite of solutions. yeah i think actually our strategy is to deliver the full in the data center in the communications enterprise business in particular what we call ced to deliver the full suite of solutions Because previous to us, a customer had to go to the quartz crystal oscillator companies and get the oscillators. because previous to us a customer had to go to the quartz crystal oscillator companies and get the oscillators And then they had to go to the clocking companies such as a TI, a Skyworks, a Renesas, Microchip, and get the clocks. and then they had to go to the clocking companies such as a ti a skyworks a renesas microchip and get the clocks Because SiTime has the clocks as well. because sitime has the clocks as well We've just started doing it, but we do have it. we've just started doing it but we do have it We can bring synergistic use case, sometimes virtually. we can bring synergistic use case sometimes virtually In other words, the independent chips, they just work together better with each other. in other words the independent chips they just work together better with each other Sometimes physically, we put oscillators inside clocks to make a single solution possible. sometimes physically we put oscillators inside clocks to make a single solution possible So yeah, it's very much based on that. so yeah it's very much based on that

Speaker 1: Are there any areas within the data center where you feel the company is underpenetrated, whether it's major customers or major applications within timing? Are there any areas within the data center where you feel the company is underpenetrated, whether it's major customers or major applications within timing? are there any areas within the data center where you feel the company is underpenetrated whether it's major customers or major applications within timing

Speaker 2: Yeah, I mean, you know, the good news is we have done very well. The bad news is we need to do more, or maybe that's good news. The point is that there are many, many semiconductor players in this space, and we haven't penetrated them to the same level that we should. We're doing that. We've created a semiconductor sales group inside the company. It's relatively small. It'll grow through the year. So that's going to be important. But the other is we need to call more exclusively on the hyperscalers as well. And that's very important. And again, we've done that a little bit, but we need to do more of it. We also need to do a little bit more outside of the U.S., which so far we have sort of stayed away. Yeah, I mean, you know, the good news is we have done very well. yeah i mean you know the good news is we have done very well The bad news is we need to do more, or maybe that's good news. the bad news is we need to do more or maybe that's good news The point is that there are many, many semiconductor players in this space, and we haven't penetrated them to the same level that we should. the point is that there are many many semiconductor players in this space and we haven't penetrated them to the same level that we should We're doing that. we're doing that We've created a semiconductor sales group inside the company. we've created a semiconductor sales group inside the company It's relatively small. it's relatively small It'll grow through the year. it'll grow through the year So that's going to be important. so that's going to be important But the other is we need to call more exclusively on the hyperscalers as well. but the other is we need to call more exclusively on the hyperscalers as well And that's very important. and that's very important And again, we've done that a little bit, but we need to do more of it. and again we've done that a little bit but we need to do more of it We also need to do a little bit more outside of the U.S., which so far we have sort of stayed away. we also need to do a little bit more outside of the u.s which so far we have sort of stayed away And also there are companies that are being formed in the AI space all the time. And you know, we need to pay attention to that. So it's an embarrassment of riches, as it were, but there's a lot of work to do. And also there are companies that are being formed in the AI space all the time. and also there are companies that are being formed in the ai space all the time And you know, we need to pay attention to that. and you know we need to pay attention to that So it's an embarrassment of riches, as it were, but there's a lot of work to do. so it's an embarrassment of riches as it were but there's a lot of work to do

Speaker 1: Your company has 800G optical modules. It has been a pretty strong area of growth for SiTime. Can you talk about your position in the 800G market? And I don't think you were as penetrated at 400G. And so maybe just talk about what changed as you went from 400-800 that enabled you to enhance your share position in those modules? Your company has 800G optical modules. your company has 800g optical modules It has been a pretty strong area of growth for SiTime. it has been a pretty strong area of growth for sitime Can you talk about your position in the 800G market? can you talk about your position in the 800g market And I don't think you were as penetrated at 400G . and i don't think you were as penetrated at 400g And so maybe just talk about what changed as you went from 400- 800 that enabled you to enhance your share position in those modules? and so maybe just talk about what changed as you went from 400- 800 that enabled you to enhance your share position in those modules

Speaker 2: Yeah, so we typically don't give out what % of the market we are, but suffice to say at the 400G, we were fairly low, and that was at the height of COVID, and there were so many other opportunities that we sort of didn't quite spot it the same way. We did get some design wins. At the 800G, we clearly came into our own, and we had the performance that was ready to match it, so that was a good spot. At 1.6 terabit in particular, we are in a very good shape. We have said that before, primarily because the trajectory of adoption of 1.6 has been a surprise to everybody in the industry. The volume, the speed at which it's been adopted, and the use case in terms of units being used. Yeah, so we typically don't give out what % of the market we are, but suffice to say at the 400G , we were fairly low, and that was at the height of COVID, and there were so many other opportunities that we sort of didn't quite spot it the same way. yeah so we typically don't give out what % of the market we are but suffice to say at the 400g we were fairly low and that was at the height of covid and there were so many other opportunities that we sort of didn't quite spot it the same way We did get some design wins. we did get some design wins At the 800G , we clearly came into our own, and we had the performance that was ready to match it, so that was a good spot. at the 800g we clearly came into our own and we had the performance that was ready to match it so that was a good spot At 1.6 terabit in particular, we are in a very good shape. at 1.6 terabit in particular we are in a very good shape We have said that before, primarily because the trajectory of adoption of 1.6 has been a surprise to everybody in the industry. we have said that before primarily because the trajectory of adoption of 1.6 has been a surprise to everybody in the industry The volume, the speed at which it's been adopted, and the use case in terms of units being used. the volume the speed at which it's been adopted and the use case in terms of units being used SiTime is one of the very, very few, perhaps the only one that can fully deliver all the capacity that's needed, can deliver the performance that's needed. That puts us in a very good spot in that. It's very early stages. The interesting thing about this market, I saw a third-party report which showed even out in 2028, 2029 that there were still 200G and 400G shipping. Everything is growing. As you know, data centers are being built outside the United States as well. There's this notion of sovereign data centers. People, countries, you know, middle-sized economies are also adding their own data centers for their own sovereignty, I suppose. SiTime is one of the very, very few, perhaps the only one that can fully deliver all the capacity that's needed, can deliver the performance that's needed. sitime is one of the very very few perhaps the only one that can fully deliver all the capacity that's needed can deliver the performance that's needed That puts us in a very good spot in that. that puts us in a very good spot in that It's very early stages. it's very early stages The interesting thing about this market, I saw a third-party report which showed even out in 2028, 2029 that there were still 200G and 400G shipping. the interesting thing about this market i saw a third-party report which showed even out in 2028 2029 that there were still 200g and 400g shipping Everything is growing. everything is growing As you know, data centers are being built outside the United States as well. as you know data centers are being built outside the united states as well There's this notion of sovereign data centers. there's this notion of sovereign data centers People, countries, you know, middle-sized economies are also adding their own data centers for their own sovereignty, I suppose. people countries you know middle-sized economies are also adding their own data centers for their own sovereignty i suppose

Speaker 1: Wanted to sort of shift from wire to wireless infrastructure. It seems like wireless infrastructure from the base stations to the radio nodes, you need a lot of synchronization. Seems like it's a content-rich opportunity for SiTime. Maybe start with where SiTime plays and just sort of thoughts about the opportunity to grow that business as we get to 5G Advanced and possibly 6G in the coming years. Wanted to sort of shift from wire to wireless infrastructure. wanted to sort of shift from wire to wireless infrastructure It seems like wireless infrastructure from the base stations to the radio nodes, you need a lot of synchronization. it seems like wireless infrastructure from the base stations to the radio nodes you need a lot of synchronization Seems like it's a content-rich opportunity for SiTime. seems like it's a content-rich opportunity for sitime Maybe start with where SiTime plays and just sort of thoughts about the opportunity to grow that business as we get to 5G Advanced and possibly 6G in the coming years. maybe start with where sitime plays and just sort of thoughts about the opportunity to grow that business as we get to 5g advanced and possibly 6g in the coming years

Speaker 2: Yeah, so it elicits a chuckle whenever I talk about it because people are so focused on the AI that talking about communications and Ericsson and Nokia and such, like people go, "Really?" But it's happening, as you said. Not everywhere is 5G extant. Not everybody has 5G. And 6G is definitely on the horizon. We specifically play in the radio access network or node or RAN, where the cellular signal emits and the digital unit, the DU. In both of them, performance, size, environmental robustness, resilience is very critical. And we have done well with the customers. There's also this notion of fixed wireless access, FWA, which is happening in countries like India, where there's a large portion left of the population that doesn't have anything. Yeah, so it elicits a chuckle whenever I talk about it because people are so focused on the AI that talking about communications and Ericsson and Nokia and such, like people go, "Really?" But it's happening, as you said. yeah so it elicits a chuckle whenever i talk about it because people are so focused on the ai that talking about communications and ericsson and nokia and such like people go "really?" but it's happening as you said Not everywhere is 5G extant. not everywhere is 5g extant Not everybody has 5G. not everybody has 5g And 6G is definitely on the horizon. and 6g is definitely on the horizon We specifically play in the radio access network or node or RAN, where the cellular signal emits and the digital unit, the DU. we specifically play in the radio access network or node or ran where the cellular signal emits and the digital unit the du In both of them, performance, size, environmental robustness, resilience is very critical. in both of them performance size environmental robustness resilience is very critical And we have done well with the customers. and we have done well with the customers There's also this notion of fixed wireless access, FWA, which is happening in countries like India, where there's a large portion left of the population that doesn't have anything. there's also this notion of fixed wireless access fwa which is happening in countries like india where there's a large portion left of the population that doesn't have anything There are some government mandates that require that they get access so that they can be connected to the economy in a good way. I think there are some great opportunities there. We see that. We never ignored that because part of the beauty of SiTime is out of the 400 applications, maybe five, seven, 10% are always growing more than 25, 30%. And the rest are growing at 10, 12, 15, 20%. By definition, we are always paying attention to the bright shining stars, but we are also feeding the rest of them because we never know when they're going to explode. That's what happened with AI. That's what happened with ADAS. That's what happened with, well, way back when and with crypto mining when that was a thing in 2016. Yeah. There are some government mandates that require that they get access so that they can be connected to the economy in a good way. there are some government mandates that require that they get access so that they can be connected to the economy in a good way I think there are some great opportunities there. i think there are some great opportunities there We see that. we see that We never ignored that because part of the beauty of SiTime is out of the 400 applications, maybe five, seven, 10% are always growing more than 25, 30%. we never ignored that because part of the beauty of sitime is out of the 400 applications maybe five seven 10% are always growing more than 25 30% And the rest are growing at 10, 12, 15, 20%. and the rest are growing at 10 12 15 20% By definition, we are always paying attention to the bright shining stars, but we are also feeding the rest of them because we never know when they're going to explode. by definition we are always paying attention to the bright shining stars but we are also feeding the rest of them because we never know when they're going to explode That's what happened with AI. that's what happened with ai That's what happened with ADAS. that's what happened with adas That's what happened with, well, way back when and with crypto mining when that was a thing in 2016. that's what happened with well way back when and with crypto mining when that was a thing in 2016 Yeah. yeah

Speaker 1: Shifting over to the auto industrial A&D part of the business, can you talk about just some of the biggest or fastest growing opportunities in that end market? Shifting over to the auto industrial A&D part of the business, can you talk about just some of the biggest or fastest growing opportunities in that end market? shifting over to the auto industrial a&d part of the business can you talk about just some of the biggest or fastest growing opportunities in that end market

Speaker 2: Yeah, I mean, people are surprised when we talk about automotive as a growing opportunity, but it is. We expect it to be a $100 million business in fairly near term. The reason we grow is because, again, we're focused on the highly differentiated, the high-growth businesses like the automated driving ADAS business, or in fact, GPS-aware, or in fact, some kind of high-end infotainment inside the system. So ADAS, of course, you have Level 2, Level 3, Level 4. Level 4 is the pinnacle where we probably have north of $30 per car. Level 2 is the starter kit at pick a number, $5, $6, and everything else in between. So we have customers, particularly Chinese customers, other than the well-known ones in the United States. We're starting as well with the European guys as they become more and more clear on ADAS. Yeah, I mean, people are surprised when we talk about automotive as a growing opportunity, but it is. yeah i mean people are surprised when we talk about automotive as a growing opportunity but it is We expect it to be a $100 million business in fairly near term. we expect it to be a $100 million business in fairly near term The reason we grow is because, again, we're focused on the highly differentiated, the high-growth businesses like the automated driving ADAS business, or in fact, GPS-aware, or in fact, some kind of high-end infotainment inside the system. the reason we grow is because again we're focused on the highly differentiated the high-growth businesses like the automated driving adas business or in fact gps-aware or in fact some kind of high-end infotainment inside the system So ADAS, of course, you have Level 2, Level 3, Level 4. so adas of course you have level 2 level 3 level 4 Level 4 is the pinnacle where we probably have north of $30 per car. level 4 is the pinnacle where we probably have north of $30 per car Level 2 is the starter kit at pick a number, $5, $6, and everything else in between. level 2 is the starter kit at pick a number $5 $6 and everything else in between So we have customers, particularly Chinese customers, other than the well-known ones in the United States. so we have customers particularly chinese customers other than the well-known ones in the united states We're starting as well with the European guys as they become more and more clear on ADAS. we're starting as well with the european guys as they become more and more clear on adas The GPS one is interesting because it spans between military, aerospace, defense, industrial, and automotive, and I guess I suppose in humanoid robots. So it turns out that we used to accept GPS as a highly reliable, invariable way to tell where you were, but also as a source of atomic time, free atomic time. Well, it turns out with the war the Russians started that there is no way to depend upon GPS anymore. There's GPS being spoofed, GPS being corrupted, GPS being not available. So our chips have the timing set up so that when GPS is corrupted in some way or denied in some way, they can hold the time for eight hours, 12 hours, 24 hours to keep on going with that atomic time-based level. That's a huge thing. The GPS one is interesting because it spans between military, aerospace, defense, industrial, and automotive, and I guess I suppose in humanoid robots. the gps one is interesting because it spans between military aerospace defense industrial and automotive and i guess i suppose in humanoid robots So it turns out that we used to accept GPS as a highly reliable, invariable way to tell where you were, but also as a source of atomic time, free atomic time. so it turns out that we used to accept gps as a highly reliable invariable way to tell where you were but also as a source of atomic time free atomic time Well, it turns out with the war the Russians started that there is no way to depend upon GPS anymore. well it turns out with the war the russians started that there is no way to depend upon gps anymore There's GPS being spoofed, GPS being corrupted, GPS being not available. there's gps being spoofed gps being corrupted gps being not available So our chips have the timing set up so that when GPS is corrupted in some way or denied in some way, they can hold the time for eight hours, 12 hours, 24 hours to keep on going with that atomic time-based level. so our chips have the timing set up so that when gps is corrupted in some way or denied in some way they can hold the time for eight hours 12 hours 24 hours to keep on going with that atomic time-based level That's a huge thing. that's a huge thing And we see ourselves in everything from drones to undersea exploration to, of course, military aerospace, the cars we talked about. And you know, you can think of, you know, a 135-pound humanoid robot that you don't want going berserk in the movies like we've seen. So yeah, timing, very important for all that. And we see ourselves in everything from drones to undersea exploration to, of course, military aerospace, the cars we talked about. and we see ourselves in everything from drones to undersea exploration to of course military aerospace the cars we talked about And you know, you can think of, you know, a 135-pound humanoid robot that you don't want going berserk in the movies like we've seen. and you know you can think of you know a 135-pound humanoid robot that you don't want going berserk in the movies like we've seen So yeah, timing, very important for all that. so yeah timing very important for all that

Speaker 1: Your timing devices in a GPS-hindered or denied environment can keep local time until the system reverts back or reestablishes connection with the GPS satellite. Your timing devices in a GPS-hindered or denied environment can keep local time until the system reverts back or reestablishes connection with the GPS satellite. your timing devices in a gps-hindered or denied environment can keep local time until the system reverts back or reestablishes connection with the gps satellite

Speaker 2: And one day when we have atomic time, true atomic time, which we don't, we're far from it. But if we have atomic time and, you know, a 2.5-millimeter by 3-millimeter chip, we would not need any of that. We just have true atomic time. And one day when we have atomic time, true atomic time, which we don't, we're far from it. and one day when we have atomic time true atomic time which we don't we're far from it But if we have atomic time and, you know, a 2.5-millimeter by 3-millimeter chip, we would not need any of that. but if we have atomic time and you know a 2.5-millimeter by 3-millimeter chip we would not need any of that We just have true atomic time. we just have true atomic time

Speaker 1: Anything else you want to highlight in the broad-based or the industrial A&D segment before moving? Anything else you want to highlight in the broad-based or the industrial A&D segment before moving? anything else you want to highlight in the broad-based or the industrial a&d segment before moving

Speaker 2: Yeah, I mean, that's our biggest segment by use case. Out of the 400, probably 300 are in that. It's the most exciting. It's high margin, actually. It's slow growth, except when it isn't. When something, you know, spikes, it really spikes. And it's sort of a mini SiTime in a sense that SiTime is a broad-based company. And we don't have one, you know, you'd ask somebody, you know, quick, tell me what is TI's number one use case. People go, we don't know. Because TI is such a broad player or an ADI is such a broad player. SiTime is in that same category, very small, with no TI. But we are playing on that same model. Yeah, I mean, that's our biggest segment by use case. yeah i mean that's our biggest segment by use case Out of the 400, probably 300 are in that. out of the 400 probably 300 are in that It's the most exciting. it's the most exciting It's high margin, actually. it's high margin actually It's slow growth, except when it isn't. it's slow growth except when it isn't When something, you know, spikes, it really spikes. when something you know spikes it really spikes And it's sort of a mini SiTime in a sense that SiTime is a broad-based company. and it's sort of a mini sitime in a sense that sitime is a broad-based company And we don't have one, you know, you'd ask somebody, you know, quick, tell me what is TI's number one use case. and we don't have one you know you'd ask somebody you know quick tell me what is ti's number one use case People go, we don't know. people go we don't know Because TI is such a broad player or an ADI is such a broad player. because ti is such a broad player or an adi is such a broad player SiTime is in that same category, very small, with no TI. sitime is in that same category very small with no ti But we are playing on that same model. but we are playing on that same model

Speaker 1: Great. Moving to mobile IoT consumer. Last March, you announced that you had secured two sockets on the internal modem for your largest customer. Do you expect to remain sole-sourced on these timing solutions going forward? Do you see competitors, you know, trying to develop solutions for that modem? Great. great Moving to mobile IoT consumer. moving to mobile iot consumer Last March, you announced that you had secured two sockets on the internal modem for your largest customer. last march you announced that you had secured two sockets on the internal modem for your largest customer Do you expect to remain sole-sourced on these timing solutions going forward? do you expect to remain sole-sourced on these timing solutions going forward Do you see competitors, you know, trying to develop solutions for that modem? do you see competitors you know trying to develop solutions for that modem

Speaker 2: Surely. I think that it's a big forcing function among competitors when they see a very clear, you know, revenue stream. It would certainly sort of focus their minds to coming into this market. So we certainly expect it. We know there are certain, you know, large Japanese companies that have been for years talking about doing this. There's at least one startup in Canada that recently secured funding that's quite capable. There may be others. At the end of the day, we have taken kind of an approach of predictive revenue along with high-growth revenue, along with high-margin revenue. And the predictive strategy tells us that we're fairly, we think we're pretty good for the coming couple of years. And just out of an abundance of caution, we don't know what happens after that. But let's not get away from the fact that timing is hard to do. Surely. surely I think that it's a big forcing function among competitors when they see a very clear, you know, revenue stream. i think that it's a big forcing function among competitors when they see a very clear you know revenue stream It would certainly sort of focus their minds to coming into this market. it would certainly sort of focus their minds to coming into this market So we certainly expect it. so we certainly expect it We know there are certain, you know, large Japanese companies that have been for years talking about doing this. we know there are certain you know large japanese companies that have been for years talking about doing this There's at least one startup in Canada that recently secured funding that's quite capable. there's at least one startup in canada that recently secured funding that's quite capable There may be others. there may be others At the end of the day, we have taken kind of an approach of predictive revenue along with high-growth revenue, along with high-margin revenue. at the end of the day we have taken kind of an approach of predictive revenue along with high-growth revenue along with high-margin revenue And the predictive strategy tells us that we're fairly, we think we're pretty good for the coming couple of years. and the predictive strategy tells us that we're fairly we think we're pretty good for the coming couple of years And just out of an abundance of caution, we don't know what happens after that. and just out of an abundance of caution we don't know what happens after that But let's not get away from the fact that timing is hard to do. but let's not get away from the fact that timing is hard to do MEMS-based timing is hard to do, and the package of performance and performance under tough environmental solutions is hard to do. Particularly if you have to ship 500 million units or 1 billion units, it's hard to do. It doesn't mean we won't have competition. I always take competition very seriously, but I think like any winning team, the winning team decides its strategy and always checks to see if its strategy is the right strategy, but then executes to that strategy, so that's what we do. We have an executing to a strategy we have while keeping an eye open for competition. MEMS-based timing is hard to do, and the package of performance and performance under tough environmental solutions is hard to do. mems-based timing is hard to do and the package of performance and performance under tough environmental solutions is hard to do Particularly if you have to ship 500 million units or 1 billion units, it's hard to do. particularly if you have to ship 500 million units or 1 billion units it's hard to do It doesn't mean we won't have competition. it doesn't mean we won't have competition I always take competition very seriously, but I think like any winning team, the winning team decides its strategy and always checks to see if its strategy is the right strategy, but then executes to that strategy, so that's what we do. i always take competition very seriously but i think like any winning team the winning team decides its strategy and always checks to see if its strategy is the right strategy but then executes to that strategy so that's what we do We have an executing to a strategy we have while keeping an eye open for competition. we have an executing to a strategy we have while keeping an eye open for competition

Speaker 1: I guess it kind of raises the question, you know, to the extent you have a socket, whether it's mobile, whether it's CED, and you lose that socket, do you think you would lose it back to quartz? Or do you think it really takes a MEMS-based or a silicon-based timing solution from a competitor? I mean, do the competitors to displace you really need to develop MEMS or silicon-based timing? I guess it kind of raises the question, you know, to the extent you have a socket, whether it's mobile, whether it's CED, and you lose that socket, do you think you would lose it back to quartz? i guess it kind of raises the question you know to the extent you have a socket whether it's mobile whether it's ced and you lose that socket do you think you would lose it back to quartz Or do you think it really takes a MEMS-based or a silicon-based timing solution from a competitor? or do you think it really takes a mems-based or a silicon-based timing solution from a competitor I mean, do the competitors to displace you really need to develop MEMS or silicon-based timing? i mean do the competitors to displace you really need to develop mems or silicon-based timing

Speaker 2: It could be both. I'm not too caught up on the technology. The Japanese have been doing quartz-based solutions for 70 years. Every time I turn around, somebody tells me, "Oh, they're tapped out." Every time they deliver another surprise. That's because they're very good at it. They're very good. They understand what they're doing very well. Similarly, in MEMS, there are people who can do it. It's a question of focus. It's a question of drive. The question is, SiTime has 500 people with 350 engineers that are focused on one thing and one thing only, unique in this timing. That's all we do. Does anybody else have that capacity, that financial ability, or indeed the drive to declare that? It's certainly hard to do, but you know, it's all doable. It could be both. it could be both I'm not too caught up on the technology. i'm not too caught up on the technology The Japanese have been doing quartz-based solutions for 70 years. the japanese have been doing quartz-based solutions for 70 years Every time I turn around, somebody tells me, "Oh, they're tapped out." Every time they deliver another surprise. every time i turn around somebody tells me "oh they're tapped out." every time they deliver another surprise That's because they're very good at it. that's because they're very good at it They're very good. they're very good They understand what they're doing very well. they understand what they're doing very well Similarly, in MEMS, there are people who can do it. similarly in mems there are people who can do it It's a question of focus. it's a question of focus It's a question of drive. it's a question of drive The question is, SiTime has 500 people with 350 engineers that are focused on one thing and one thing only, unique in this timing. the question is sitime has 500 people with 350 engineers that are focused on one thing and one thing only unique in this timing That's all we do. that's all we do Does anybody else have that capacity, that financial ability, or indeed the drive to declare that? does anybody else have that capacity that financial ability or indeed the drive to declare that It's certainly hard to do, but you know, it's all doable. it's certainly hard to do but you know it's all doable

Speaker 1: Okay. Within the consumer IoT, you highlighted the Symphonic clock generator for some mobile applications. Maybe spend a minute. What does that product do? Where are you seeing deployments of Symphonic? Okay. okay Within the consumer IoT, you highlighted the Symphonic clock generator for some mobile applications. within the consumer iot you highlighted the symphonic clock generator for some mobile applications Maybe spend a minute. maybe spend a minute What does that product do? what does that product do Where are you seeing deployments of Symphonic? where are you seeing deployments of symphonic

Speaker 2: Yeah, it's basically a clock. It's our own clock and it's a clock with a difference. It's a clock which has a resonator, or actually an oscillator built into it. That's what makes it unique and of course, its performance characteristics are amazingly good. We have a lot of headroom built into it in terms of phase noise and size and power. Right now, a modem use case is the main one, but we see a bigger use case coming in Internet of Things, in robotics, which need to be connected, sometimes to cellular, sometimes to something else, so we kind of think it's got a 10-15-year life going forward. We put a lot of money into it, but I think it's going to do very well for us. Yeah, it's basically a clock. yeah it's basically a clock It's our own clock and it's a clock with a difference. it's our own clock and it's a clock with a difference It's a clock which has a resonator, or actually an oscillator built into it. it's a clock which has a resonator or actually an oscillator built into it That's what makes it unique and of course, its performance characteristics are amazingly good. that's what makes it unique and of course its performance characteristics are amazingly good We have a lot of headroom built into it in terms of phase noise and size and power. we have a lot of headroom built into it in terms of phase noise and size and power Right now, a modem use case is the main one, but we see a bigger use case coming in Internet of Things, in robotics, which need to be connected, sometimes to cellular, sometimes to something else, so we kind of think it's got a 10-15-year life going forward. right now a modem use case is the main one but we see a bigger use case coming in internet of things in robotics which need to be connected sometimes to cellular sometimes to something else so we kind of think it's got a 10-15-year life going forward We put a lot of money into it, but I think it's going to do very well for us. we put a lot of money into it but i think it's going to do very well for us

Speaker 1: Excellent. And maybe a similar question. You've also introduced your Titan resonator platform. I think this is across multiple markets. You know, talk about the resonator opportunity. Where do you play within the resonator portion of the market? Excellent. excellent And maybe a similar question. and maybe a similar question You've also introduced your Titan resonator platform. you've also introduced your titan resonator platform I think this is across multiple markets. i think this is across multiple markets You know, talk about the resonator opportunity. you know talk about the resonator opportunity Where do you play within the resonator portion of the market? where do you play within the resonator portion of the market

Speaker 2: Right. So the resonator opportunity is one more product that exists in functionality, but doesn't exist in the form factor and qualitative ways that we bring to it. So it's a $4 billion market. As always, we're going for a small slice of it. $400 million is all we ask. We bring a dramatically smaller size, like one-fifth, one-seventh, one-tenth. We bring dramatically lower power, dramatically greater robustness and supply chain. And we can sell it directly to people who make PMIC or make Wi-Fi or make Bluetooth Low Energy and sit right next to it. That's one use case. The other, a higher bar, is to go to chip companies that do this and get it packaged inside their chip. Right. right So the resonator opportunity is one more product that exists in functionality, but doesn't exist in the form factor and qualitative ways that we bring to it. so the resonator opportunity is one more product that exists in functionality but doesn't exist in the form factor and qualitative ways that we bring to it So it's a $4 billion market. so it's a $4 billion market As always, we're going for a small slice of it. $400 million is all we ask. as always we're going for a small slice of it $400 million is all we ask We bring a dramatically smaller size, like one-fifth, one-seventh, one-tenth. we bring a dramatically smaller size like one-fifth one-seventh one-tenth We bring dramatically lower power, dramatically greater robustness and supply chain. we bring dramatically lower power dramatically greater robustness and supply chain And we can sell it directly to people who make PMIC or make Wi-Fi or make Bluetooth Low Energy and sit right next to it. and we can sell it directly to people who make pmic or make wi-fi or make bluetooth low energy and sit right next to it That's one use case. that's one use case The other, a higher bar, is to go to chip companies that do this and get it packaged inside their chip. the other a higher bar is to go to chip companies that do this and get it packaged inside their chip It's a higher bar because now you're asking somebody who does an MCU to depend upon your product the same way they depend on theirs for quality, reliability, cost, availability. But once you get over those hurdles, and they're not small, but once you get over that, the benefits of integrating timing into an MCU, into a Wi-Fi, into a BLE are immense. So we see it's not immediate revenue. It won't show up much in 2026. It'll show up a little bit in 2027. But four years out, this could be a $100-$150-$200 million business at greater than average, corporate average gross margins. And the functionality of this thing has taken us 18 years to develop. So. It's a higher bar because now you're asking somebody who does an MCU to depend upon your product the same way they depend on theirs for quality, reliability, cost, availability. it's a higher bar because now you're asking somebody who does an mcu to depend upon your product the same way they depend on theirs for quality reliability cost availability But once you get over those hurdles, and they're not small, but once you get over that, the benefits of integrating timing into an MCU, into a Wi-Fi, into a BLE are immense. but once you get over those hurdles and they're not small but once you get over that the benefits of integrating timing into an mcu into a wi-fi into a ble are immense So we see it's not immediate revenue. so we see it's not immediate revenue It won't show up much in 2026. it won't show up much in 2026 It'll show up a little bit in 2027. it'll show up a little bit in 2027 But four years out, this could be a $100-$150-$200 million business at greater than average, corporate average gross margins. but four years out this could be a $100-$150-$200 million business at greater than average corporate average gross margins And the functionality of this thing has taken us 18 years to develop. and the functionality of this thing has taken us 18 years to develop So. so

Speaker 1: What's the response been from some of the silicon partners you've approached? What's the response been from some of the silicon partners you've approached? what's the response been from some of the silicon partners you've approached

Speaker 2: Very good. Very good. They're almost like, "Too good to be true. Let me check this out. Very good. very good Very good. very good They're almost like, "Too good to be true. they're almost like "too good to be true Let me check this out. let me check this out

Speaker 1: Okay. Okay. okay

Speaker 2: Right? How can it be all these great things you say, and yeah, too good to be true, but let's check it out. We have design wins. We have launched some. More coming. Right? right How can it be all these great things you say, and yeah, too good to be true, but let's check it out. how can it be all these great things you say and yeah too good to be true but let's check it out We have design wins. we have design wins We have launched some. we have launched some More coming. more coming

Speaker 1: Excellent. I wanted to ask just on the M&A front, you've been vocal about your interest in potential M&A. I know you're limited in what you can say, but can you, at a high level, talk about what types of assets would be of interest to the company? And then any sort of criteria? It's got to be accretive. It's got to be additive to growth. Probably has to be strategic. But just sort of thoughts, how you might approach a future M&A? Excellent. excellent I wanted to ask just on the M&A front, you've been vocal about your interest in potential M&A. i wanted to ask just on the m&a front you've been vocal about your interest in potential m&a I know you're limited in what you can say, but can you, at a high level, talk about what types of assets would be of interest to the company? i know you're limited in what you can say but can you at a high level talk about what types of assets would be of interest to the company And then any sort of criteria? and then any sort of criteria It's got to be accretive. it's got to be accretive It's got to be additive to growth. it's got to be additive to growth Probably has to be strategic. probably has to be strategic But just sort of thoughts, how you might approach a future M&A? but just sort of thoughts how you might approach a future m&a

Speaker 2: Yeah, it's very simple. As you point out, we have a rather large amount of cash, $800 million. No debt. That's a good place to be. We are looking to scale up in timing. We're doing one thing, right? Just timing. We've got to scale up. I like a billion in revenue. I think that's a good number to get to be at the right scale to play in a lot of areas. So we want to scale. We want to scale in timing. We want to scale while still keeping growth at 25%, 30%. We want to scale while keeping our 60%+ gross margins. And we want to scale while keeping 25%-35% net profit. So it's kind of a tall order, but that's how we see it. I don't want to compromise our financial. I don't want to compromise our strategic direction. Yeah, it's very simple. yeah it's very simple As you point out, we have a rather large amount of cash, $800 million. as you point out we have a rather large amount of cash $800 million No debt. no debt That's a good place to be. that's a good place to be We are looking to scale up in timing. we are looking to scale up in timing We're doing one thing, right? we're doing one thing right Just timing. just timing We've got to scale up. we've got to scale up I like a billion in revenue. i like a billion in revenue I think that's a good number to get to be at the right scale to play in a lot of areas. i think that's a good number to get to be at the right scale to play in a lot of areas So we want to scale. so we want to scale We want to scale in timing. we want to scale in timing We want to scale while still keeping growth at 25%, 30%. we want to scale while still keeping growth at 25% 30% We want to scale while keeping our 60%+ gross margins. we want to scale while keeping our 60%+ gross margins And we want to scale while keeping 25%-35% net profit. and we want to scale while keeping 25%-35% net profit So it's kind of a tall order, but that's how we see it. so it's kind of a tall order but that's how we see it I don't want to compromise our financial. i don't want to compromise our financial I don't want to compromise our strategic direction. i don't want to compromise our strategic direction We just want to be a great timing company. We just want to be a great timing company. we just want to be a great timing company

Speaker 1: Great. Well, I think we're getting close to the end of the session. I guess I just wanted to, you know, ask you a last question. Do you think, you know, we missed anything? Is there anything you'd like to share with the audience? Great. great Well, I think we're getting close to the end of the session. well i think we're getting close to the end of the session I guess I just wanted to, you know, ask you a last question. i guess i just wanted to you know ask you a last question Do you think, you know, we missed anything? do you think you know we missed anything Is there anything you'd like to share with the audience? is there anything you'd like to share with the audience

Speaker 2: No, I think just for scale, I've been in the Valley since 1984, so it's been 40+ years. This is the second time I've taken a company public. The first time when I started in 1999, in 2005, in 2006. What I learned was that one needs to go after existing large markets. So timing is an existing, when I come to it in 2007, is a $5 billion market. Today, it's an $11 billion market. A decade from now, it's going to be a $20 billion market. There isn't any other company that is solely dedicated to the task of delivering exceptional timing solutions on all timing solutions. That's what SiTime does. We've been doing this with me and the companies for about 18 years. No, I think just for scale, I've been in the Valley since 1984, so it's been 40+ years. no i think just for scale i've been in the valley since 1984 so it's been 40+ years This is the second time I've taken a company public. this is the second time i've taken a company public The first time when I started in 1999, in 2005, in 2006. the first time when i started in 1999 in 2005 in 2006 What I learned was that one needs to go after existing large markets. what i learned was that one needs to go after existing large markets So timing is an existing, when I come to it in 2007, is a $5 billion market. so timing is an existing when i come to it in 2007 is a $5 billion market Today, it's an $11 billion market. today it's an $11 billion market A decade from now, it's going to be a $20 billion market. a decade from now it's going to be a $20 billion market There isn't any other company that is solely dedicated to the task of delivering exceptional timing solutions on all timing solutions. there isn't any other company that is solely dedicated to the task of delivering exceptional timing solutions on all timing solutions That's what SiTime does. that's what sitime does We've been doing this with me and the companies for about 18 years. we've been doing this with me and the companies for about 18 years It's in an amazing position to be at that, having formed such a company and done it while maintaining the financial template that we have. So I'm very happy, but I think the best years are still to come. It's in an amazing position to be at that, having formed such a company and done it while maintaining the financial template that we have. it's in an amazing position to be at that having formed such a company and done it while maintaining the financial template that we have So I'm very happy, but I think the best years are still to come. so i'm very happy but i think the best years are still to come

Speaker 1: Excellent. All right. Well, with that, Rajesh, we'll wrap. Thank you for joining us at the Needham Conference. Excellent. excellent All right. all right Well, with that, Rajesh, we'll wrap. well with that rajesh we'll wrap Thank you for joining us at the Needham Conference. thank you for joining us at the needham conference