MediaTek Inc. posted a slight decline in third-quarter profit as the Taiwanese chipmaker ramped up research spending to stay competitive in the mobile chip market.
Net income fell 1.4% to NT$25.6 billion ($800 million) from the previous quarter, while revenue rose 3.6% to NT$131.8 billion. The company maintained its gross margin at 48.8%, reflecting stable pricing power for its mobile and smart edge platforms.
The Hsinchu-based firm increased research and development expenditure by 8% quarter-on-quarter to NT$33.3 billion, focusing on next-generation mobile processors and AI capabilities. This pushed total operating expenses to 30.7% of revenue, up from 29.2% in the previous quarter.
MediaTek’s inventory levels crept up slightly, with turnover reaching 74 days compared to 72 days in the second quarter. However, this marks an improvement from 90 days a year earlier, suggesting better supply chain management.
The company’s accounts receivable turnover improved to 32 days, down from 36 days in the previous quarter, indicating stronger collection efficiency. Cash and financial assets stood at NT$198 billion at quarter-end, representing 29.3% of total assets.
