MediaTek Inc (聯發科) expects revenue to grow as much as 19 percent annually over the next five years, outpacing the semiconductor industry’s overall expansion, the company said yesterday.
“Growth momentum will be sturdy in the next five years,” MediaTek vice chairman and CEO Rick Tsai (蔡力行) told a media briefing in Taipei. “For MediaTek, mid-to-high-teens percentage growth should be accessible.”
Growth would come from across the board, as the company has diverse product lines that include Internet of Things applications, and smart home and power management chips, he said.
Photo: Vanessa Cho, Taipei Times
MediaTek expects revenue to skyrocket 60 percent to US$17 billion this year, greatly surpassing an estimated annual growth of 25 percent for the global chip industry.
The milestone of reaching US$20 billion in revenue is just around the corner, the company said.
The Hsinchu-based chip designer attributed this year’s strong growth to market share gains in 5G mobile phone chips.
MediaTek has invested more than NT$100 billion (US$3.59 billion) in 5G development in the past four to five years, thanks to which it seized about 40 percent of the global market share in 5G smartphone chips, it said.
Two in five 5G smartphones sold worldwide are powered by MediaTek’s Dimensity chips, the company added.
The company expects its mobile phone chips business to grow 113 percent annually this year, the quickest growth among its four major business segments, it said.
The segment would make up about 56 percent of overall revenue this year, MediaTek said.
However, the company still faces challenges, as the COVID-19 pandemic has upended the semiconductor supply chain and caused chip supply bottlenecks, it said.
MediaTek said it has been in advanced discussions with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), and its chip packaging and testing partners over chip supply for next three to four years.
“The supply from our vendors is mostly done for next year,” Tsai said. “No matter how good the technology you develop, it will be in vain if you do not have chip supply.”
Due to a shortage of chip subcomponents, Qualcomm Inc struggled to keep up with the demand for its smartphone chips earlier this year.
Smartphones powered by MediaTek’s first flagship 5G chip, the Dimensity 9000, would hit the stores in the second quarter of next year, the company said.
The new chip only supports sub-6-gigahertz frequencies, rather than high-band millimeter-wave frequencies.
The company’s competitors have said that MediaTek’s technology is therefore inferior.
MediaTek president Joe Chen (陳冠洲) said that the dispute over frequencies did not stop its clients from adopting the new chip, adding that the firm has been in discussions with clients throughout the design process.
The sub-6-gigahertz spectrum remains the most popular 5G band, Chen said.
The company expects its first 5G chip supporting the millimeter-wave spectrum to hit the market next year, as it has passed the qualification for a potential customer, a telecom in the US, Chen said.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
‘FAILED EXPORT CONTROLS’: Jensen Huang said that Washington should maximize the speed of AI diffusion, because not doing so would give competitors an advantage Nvidia Corp cofounder and chief executive officer Jensen Huang (黃仁勳) yesterday criticized the US government’s restrictions on exports of artificial intelligence (AI) chips to China, saying that the policy was a failure and would only spur China to accelerate AI development. The export controls gave China the spirit, motivation and government support to accelerate AI development, Huang told reporters at the Computex trade show in Taipei. The competition in China is already intense, given its strong software capabilities, extensive technology ecosystems and work efficiency, he said. “All in all, the export controls were a failure. The facts would suggest it,” he said. “The US
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
French President Emmanuel Macron has expressed gratitude to Hon Hai Precision Industry Co (鴻海精密) for its plan to invest approximately 250 million euros (US$278 million) in a joint venture in France focused on the semiconductor and space industries. On his official X account on Tuesday, Macron thanked Hon Hai, also known globally as Foxconn Technology Group (富士康科技集團), for its investment projects announced at Choose France, a flagship economic summit held on Monday to attract foreign investment. In the post, Macron included a GIF displaying the national flag of the Republic of China (Taiwan), as he did for other foreign investors, including China-based
RSS