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MediaTek Expands AI Chip Ambitions as Global Demand Continues to Rise

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MediaTek is strengthening its position in the artificial intelligence industry as rising demand for AI technology creates new opportunities for semiconductor manufacturers.

The Taiwanese chip designer says demand for AI will continue growing, although the pace may vary. Its Chief Executive Officer, Rick Tsai, made this known during the company’s third-quarter earnings call on Friday, October 30.

As part of its expansion plans, MediaTek has started shipping its first AI accelerator chips, targeting $2.5 billion in revenue from the product in the fourth quarter of 2026.

The company is also preparing its second AI accelerator project, with high-volume production expected to begin in the first quarter of 2028.

MediaTek’s latest financial results show continued business growth. Revenue reached T$168.1 billion ($5.16 billion) in the third quarter, an 18.3 per cent increase from the previous year, while net income rose by 10.8 per cent to T$28.2 billion.

The company is gradually reducing its dependence on smartphone processors as it targets a larger share of the AI chip market, particularly among major cloud computing providers.

Its expansion has also attracted significant interest from technology giants. Nvidia invested $3.5 billion in MediaTek’s overseas convertible bond offering in August, while Alphabet also participated.

MediaTek continues to work with Taiwan Semiconductor Manufacturing Company (TSMC) on chip development and production.

With AI investment increasing worldwide, the company is positioning itself to benefit from the growing need for specialised processors that power advanced computing systems.

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