MediaTek Inc. posted a 14.9% year-over-year revenue increase for the first quarter of 2025, reflecting robust demand for its AI, 5G, and Wi-Fi 7 chipsets.
The Taiwanese semiconductor firm reported revenue of NT$153.3 billion (US$4.8 billion) in the January-March period. Net income reached NT$29.5 billion (US$921 million), up 23.3% from the previous quarter but down 6.7% year-over-year.
While the chipmaker’s gross margin fell to 48.1%, down 4.3 percentage points from a year earlier, operating income surged 40.4% quarter-over-quarter to NT$30.1 billion (US$939 million). The margin decline stemmed from product mix changes and comparison against a previous quarter that benefited from a one-time item.
The company continues to ramp up research and development, with R&D expenses rising to NT$35.8 billion (US$1.1 billion), representing 23.3% of revenue. This investment comes as MediaTek battles with Qualcomm for market share in next-generation mobile processors and expands into new sectors.
MediaTek’s improved performance aligns with the company’s recent push into high-end smartphone chips and diversification into automotive and satellite communications technologies. The company told investors its structural mix enhancements were driven by customers’ increased adoption of AI capabilities across product lines.
Cash and financial assets stood at NT$210.4 billion (US$6.6 billion) at quarter-end, accounting for 29.3% of the company’s total assets.
