MediaTek Chairman: AI Development Just Beginning, Sees Rapid Growth in ASIC Business

MediaTek Chairman Tsai Ming-kai believes the artificial intelligence era is only just beginning, signaling substantial growth prospects, particularly in the data center and AI ASIC (Application-Specific Integrated Circuit) sectors. Speaking at the company's shareholder meeting, Tsai highlighted MediaTek's strategic positioning in both edge and cloud AI applications.

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AI development has just begun, and we see significant growth opportunities.

The company has set an ambitious target of $2 billion for its ASIC business this year, with expectations to generate billions more in the following year. This growth is underpinned by a diversified market strategy that includes mobile phones, computing, wearables, automotive, data centers, and even satellite technology. Despite challenges in the mobile market, such as rising memory prices, MediaTek is expanding its automotive business with new clients and sees significant revenue contributions from data centers starting this year.

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AI ASIC business is growing rapidly, with this year's target at $2 billion and billions more next year.

MediaTek achieved record revenue of NT$596 billion last year, a 12.3% increase year-on-year, with a gross profit margin of 47.5% and an operating profit margin of 17.4%. The company maintained its global leadership in the smartphone market, with its latest Dimensity 9500 chip contributing over $3 billion in revenue. This chip integrates advanced CPUs, GPUs, and NPUs, supporting Agentic AI and high-end multimedia experiences.

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We are well-positioned in both edge and cloud computing for the ubiquitous AI trend and are working closely with global customers.

Looking ahead, MediaTek is actively involved in developing next-generation technologies, including 5G satellite communication for 6G, and has completed the design for its flagship system-on-chip using TSMC's 2nm process. The company is also seeing strong growth in its intelligent terminal device platform, driven by advancements in Wi-Fi 7, 5G, 10GPON, and Edge AI chips. Furthermore, MediaTek is collaborating with NVIDIA on the GB10 Grace Blackwell superchip for AI supercomputers.

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Last year, MediaTek's revenue reached a new high of NT$596 billion, a year-on-year increase of 12.3%.