MediaTek outlined ambitious plans to transform its custom chip business into a major growth driver, as the Taiwanese semiconductor company seeks new revenue streams beyond its core mobile processor market.
Chairman Tsai Ming-jie told shareholders at the company’s annual meeting that cloud data center applications-specific integrated circuits could become a significant growth engine from 2026 to 2028. The executive cited market research suggesting the global cloud ASIC market may reach $40 billion by 2028, though he provided few details about MediaTek’s current market position.
The company has positioned itself as an early adopter of Nvidia’s NVLink Fusion technology, which allows custom chips to integrate with Nvidia’s dominant GPU ecosystem. CEO Rick Tsai emphasized MediaTek’s design capabilities and supplier relationships as competitive advantages, though the company faces established rivals like Broadcom in the data center market.
MediaTek reported its flagship mobile chips contributed over $20 billion in revenue last year, driven by its Dimensity 9400 processor. However, the company’s heavy reliance on smartphone markets makes diversification critical as device replacement cycles lengthen.
While MediaTek touts its edge-to-cloud design experience, transitioning from consumer devices to enterprise data centers represents a significant strategic shift requiring substantial investment and unproven execution capabilities.
