Silicon Labs CEO Discusses IoT Wireless Growth, Market Outlook, and Product Innovation at Citi Global TMT Conf. 2025

Key Takeaways

TL;DR: SLAB continues to post above-mkt rev. growth, driven by share gains and strong design win momentum—not end-mkt recovery. Next-gen Series 3 and ongoing Series 2 success are key competitive levers, esp. in CGM, smart metering (notably India), and electronic shelf labeling. GP margins trending at high end of guide (56-58%), supported by stable foundry costs. Mgmt reiterated limited China exposure and a defensible, differentiated moat in edge wireless and embedded AI/ML, with a strict focus on these mkts. Tariff, trade, and macro uncertainty still cloud visibility, but short/medium-term drivers remain robust via product/market outperformance, not cyclical upturns. No major M&A/divestiture expected.

1. End-Mkt Demand & Visibility

• Low Visibility; Conservative Customer Behavior:
  • Customers ordering within lead times; visibility remains low due to trade/geopolitical uncertainty.
  • Uncertainty likely to persist for a few Qs.
• Stable Bookings & Inventories:
  • Bookings steady over last 6 Qs; inventory in line or slightly low.
• Growth from Share Gains, Not Broad Rebound:
  • Growth driven by new wins and ramps, not broad mkt recovery.

2. China & Competitive Landscape

• De-Emphasized China Exposure:
  • China biz cut to 15% from 35% of sales over cycle via allocation strategy.
  • China is opportunistic, not strategic; no R&D investment.
• No New Weakness; Competition is Internal:
  • No new China weakness; persistent softness by design.
  • Competition intensifying among local players.
• No Price-Based Competition:
  • Competes on differentiation, not price, in China.

3. Growth Drivers: Product Cycles & Design Wins

• Shift to Design Win Growth:
  • Inventory destocking done; 2025 drivers are secular design win ramps.
• Series 2 & 3 Platforms:
  • Series 2: Ongoing design win momentum and share gains.
  • Series 3: Industry-leading security (PSA L4), wireless perf., battery life, higher compute/AI.
• Design Win Funnel:
  • $10B+ in lifetime rev. design wins in last 3 yrs—more than all prior yrs combined.
  • Growing well above mkt on ramps/share gains.