MediaTek Reports 44% Sales Growth Driven by AI Chip Momentum
Taiwanese chipmaker MediaTek Inc. reported a significant increase in monthly sales, rising 44% year-over-year to NT$64.2 billion ($2 billion), driven largely by its growing AI chip business. The company is preparing for mass production of its first custom AI chip tailored for a major U.S. cloud service provider—widely believed to be Google—in the fourth quarter. MediaTek's AI initiatives are helping offset declining demand in the Android smartphone market, where it competes with Qualcomm Inc. (QCOM). The company has also secured financial backing from both Nvidia Corp. (NVDA) and Alphabet Inc., including a $3.5 billion investment by Nvidia through convertible bonds to support its expansion into AI application-specific integrated circuits (ASICs). Analysts note that the partnership with Nvidia provides MediaTek access to advanced technologies like NVLink Fusion, enhancing integration of custom chips in data centers but potentially limiting appeal among hyperscalers seeking independence from NVIDIA's ecosystem.
Topics: AI chip Alphabet collaboration Nvidia partnership sales growth