MediaTek's June revenue surpasses expectations, Q2 results exceed forecast

IC design leader MediaTek has announced strong financial results for June and the second quarter, exceeding market expectations. The company's consolidated revenue for June reached NT$58.012 billion, marking a 22.3% increase from May and a 2.8% rise compared to June of the previous year.

The second quarter also saw robust performance, with consolidated revenue hitting NT$152.182 billion. This figure represents a 2.03% increase from the first quarter and a 1.21% year-on-year growth, surpassing MediaTek's earlier projections. The company had initially forecast that second-quarter revenue might remain flat or decrease by up to 6% compared to the previous quarter, and decline by 1-7% year-on-year. For the first half of the year, MediaTek's consolidated revenue stood at NT$301.333 billion, a slight decrease of 0.77% year-on-year.

MediaTek had previously indicated during its earnings call that growth in its smart device platform business would help offset a decline in its smartphone business. The company also projected a stable gross profit margin. For the second quarter, with an exchange rate of 31.5 TWD to 1 USD, revenue was estimated between NT$140.2 billion and NT$149.2 billion, with a gross profit margin of 46% ±1.5%.

Looking ahead, MediaTek is optimistic about its second-half performance. The company plans to launch its first flagship mobile chip utilizing TSMC's 2nm process in the third quarter. Furthermore, its highly anticipated AI accelerator ASIC project is nearing mass production, with the company forecasting approximately $2 billion in revenue contribution from AI ASIC business in the fourth quarter.