MediaTek Inc (聯發科), the world’s biggest mobile phone chip supplier, yesterday said application-specific integrated circuits (ASIC) for artificial intelligence (AI)-enabled data centers and auto chips would be its dual revenue growth engines in next decade.
The Hsinchu-based chip designer made the remarks in response to a shareholder’s question about the company’s next growth drivers, given that the smartphone market is reaching a plateau.
“5G, AI and automotive are the areas with potential growth in next 10 years. AI covers a wide range of applications, from cloud to edge devices,” company chairman Tsai Ming-kai (蔡明介) said during an annual general meeting yesterday.
Photo: Liao Hsueh-ju, Taipei Times
“MediaTek has been developing products for mobile phones and various applications mostly for edge devices,” Tsai said.
It would be natural for the firm to shift to AI-powered cloud computing devices and automotive applications, given its rich intellectual property portfolios, he said.
“The revenue contribution is still small. We are making smooth progress,” Tsai said.
Mobile phone chips were the biggest revenue contributor in the last quarter, making up 60 percent of the company’s total revenue.
MediaTek earlier this year introduced its first automotive chip portfolio, dubbed Dimensity Auto Cockpit, which runs large language models, allowing vehicles to support chatbots, rich content delivery to multiple displays, driver alertness detection, and other AI-based safety and entertainment applications.
The Dimensity Auto Cockpit chipsets integrate a state-of-the-art Armv9-A system, Nvidia’s next-generation deep learning accelerator with generative AI capabilities, as well as Nvidia RTX graphics, MediaTek said.
Aside from the automotive segment, MediaTek has been heavily investing in the development of ASIC and Arm computing, company CEO Rick Tsai (蔡力行) told shareholders.
They have “high confidence” that those new technologies would yield plenty of growth in the next three to five years, he said.
The company also said it wanted to tap into the rapidly-growing market of AI ASIC accelerators for data centers, which is estimated to grow from US$12 billion this year to US$40 billion by 2028.
MediaTek is vying for a 10 percent market share, it told investors last month.
It also aims to continue growing revenue at an annual pace of 15 percent this year, on the back of a recovery from an inventory correction cycle post-COVID-19 pandemic and strong uptake of its flagship smartphone chips.
Customers started rebuilding smartphone chip inventory early this year, after reducing inventory to a very low level at the end of last year, Tsai said.
However, customers’ restocking demand has come to an end this quarter, he said, adding that their inventory has reached a “balance.”
MediaTek’s shareholders yesterday approved the distribution of a cash dividend of NT$26.4 per share, based on the first half of last year’s earnings of NT$20.71 per share, and another cash dividend of NT$30.4 a share for the second half, based on its EPS of NT$27.79.
Shareholders also approved the board director nominations of Tsai Ming-kai, Rick Tsai and chief operating officer Joe Chen (陳冠州).
A majority of the nominees are existing directors, except Chang Yao-wen (張耀文), dean of the College of Electrical Engineering and Computer Science at National Taiwan University.
Chang replaced Tang Ming-je (湯明哲) as an independent director.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in