MediaTek is reportedly set to enter the AI server processor market, aiming to develop CPU and GPU chips based on the Arm architecture. These chips will be produced using TSMC’s advanced 3nm process, with mass production slated for the second half of next year. The move targets orders from major cloud service providers (CSPs) such as Microsoft, Google, and Meta, focusing on mid-to-low-end AI server demands.
The AI server market is experiencing rapid growth, with high-end models typically dominated by NVIDIA and AMD’s high-speed computing (HPC) chips. However, HPC chips are often overpowered and consume significant energy for applications that do not require extensive AI inference. This has created a burgeoning demand for low-power, Arm-based processors in the mid-to-low-end AI server market.
MediaTek’s strategy includes completing the design of its new chips by the first half of next year, with small-volume shipments expected in the latter half and potential for increased volume by 2026. MediaTek’s collaboration with Arm’s Total Design platform and the Arm Neoverse computing subsystem further strengthens its position in the AI server market.
In a competitive landscape where Intel holds over 70% of the server processor market and AMD takes another 20%, MediaTek aims to secure a 5% share, injecting new momentum into its business operations.
This initiative aligns with MediaTek’s existing ventures in the AI server supply chain through its Serdes computing chips, positioning the company to potentially expand into both high-end and mid-to-low-end AI server markets.
