MediaTek Approves $5 Billion Financing for AI Data-Center Chip Expansion
MediaTek, Taiwan's largest chip designer, has approved a discretionary financing budget of $5 billion to support its long-term growth strategy. A significant portion will be allocated toward expanding into the custom artificial intelligence (AI) chips market for data centers. The company aims to reduce reliance on smartphones and capture up to 20% of an estimated $80 billion AI chip market by 2027. MediaTek has already developed its first custom AI chip, with production set to begin in the fourth quarter of this year. A second model is expected for volume production in 2028. The company forecasts that its data-center AI chip business will generate over $2 billion in revenue by 2026. Meanwhile, MediaTek reported a 20% decline in mobile-chip revenue due to higher component costs and weaker smartphone demand. Global shipments fell 11%, the lowest since 2013, according to Counterpoint Research.