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MediaTek secures vital materials in Japan, eyes strong growth with target price raised to NT$5,588

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • MediaTek is reportedly sending teams to Japan to secure supplies of T-Glass, a crucial material for ABF substrates used in advanced chips.
  • A US-based investment firm raised its price target for MediaTek to NT$5,588, citing strong growth potential and its role in Google's next-generation TPUs.
  • MediaTek is expected to see revenue grow by over 50% annually from 2025 to 2028, driven by its expanding role in AI chip supply chains.

Chipmaker MediaTek is reportedly taking proactive steps to secure vital materials, dispatching teams to Japan to procure T-Glass, a key component for ABF substrates essential for advanced semiconductors. This move comes amid concerns about shortages of the material, which could impact production capacity.

Due to severe shortages of upstream T-Glass materials for ABF substrates, the foreign investment community has heard that MediaTek (2454) has led a team to Japan to visit glass fiber material suppliers to ensure production capacity.

— Liberty TimesReporting on MediaTek's efforts to secure T-Glass material in Japan.

In response to MediaTek's strategic positioning and growth prospects, a US-based investment firm has significantly raised its price target for the company's stock to NT$5,588. The firm's optimism is fueled by MediaTek's projected strong compound annual growth rate (CAGR) exceeding 50% between 2025 and 2028. This forecast is underpinned by the company's expanding role in the supply chain for Google's next-generation Tensor Processing Units (TPUs), including the anticipated 2nm TriggerFish TPU.

With MediaTek's 2025 to 2028 revenue CAGR exceeding 50%, the current valuation remains highly attractive, with the target price raised from NT$5,088 to NT$5,588.

— US-based investment firm (as reported by Liberty Times)Justification for the increased stock price target for MediaTek.

MediaTek's involvement is extending from the 3nm ZebraFish TPU to the upcoming 2nm TriggerFish TPU. Analysts suggest that a second major cloud service provider (CSP) customer, potentially Meta or SpaceX, could further boost MediaTek's market share. The company's recent efforts to assist suppliers in securing T-Glass materials are expected to alleviate bottlenecks in the ABF substrate supply chain, potentially benefiting manufacturers like Zhen Ding Technology and Unimicron.

MediaTek's role in Google's TPU supply chain is extending from 3nm ZebraFish to 2nm TriggerFish, and a second major CSP customer could be Meta or SpaceX.

— US-based investment firm (as reported by Liberty Times)Analysis of MediaTek's expanding customer base and product pipeline.

Despite a recent dip in its stock price, down 3.75% to NT$4,365 as of mid-morning trading, MediaTek's long-term outlook remains robust. The company's ability to navigate supply chain challenges and secure critical materials, coupled with its increasing importance in the burgeoning AI chip market, positions it favorably for sustained growth and market leadership.

MediaTek's recent assistance to suppliers in obtaining T-Glass material supply is expected to alleviate the ABF substrate bottleneck.

— Liberty TimesCommentary on MediaTek's role in resolving supply chain issues.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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