Smartphone chip designer MediaTek Inc (聯發科) yesterday said it estimates that revenue would expand at an annual rate of about 15 percent this year, as a proliferation of generative artificial intelligence (AI) applications for premium smartphones are fueling demand for its flagship smartphone chips.
It expects its smartphone chip revenue to outgrow the company’s average growth rate this year, benefiting primarily from the higher average selling price of its flagship smartphone chips and market share gains.
The flagship chip revenue is to soar 50 percent year-on-year this year, MediaTek told an investor conference yesterday.
Photo: CNA
As a whole, this year’s gross margin is expected to be between 46 percent and 49 percent, compared with 47.8 percent last year, MediaTek said.
“We think mid-teens percentage growth is a very achievable number,” MediaTek CEO Rick Tsai (蔡力行) said during the conference, referring to the company’s revenue growth target for this year.
“The driving force really is the move toward high-end phones — flagship or premium phones. The trend provides the driving force for us to expand our total addressable market,” he added.
In China, MediaTek aims to seize a 30 percent share of the premium smartphones running on Android this year, Tsai said, referring to the company’s strong product portfolio.
The global top three smartphones ranked by AI performance are all powered by Mediatek’s new flagship smartphone chip, Dimensity 9300, he said.
The company expects more smartphones powered by Dimensity 9300 and Dimensity 8300 chips to hit the market later this quarter, MediaTek said.
Its next-generation flagship chip, Dimensity 9400, is on track to launch in the second half of this year, MediaTek added.
MediaTek yesterday also showed its ambition to build a presence in the market of rapidly growing AI accelerators used in data centers.
It would be reasonable for the company to vie for a 10 percent share of the market valued at US$40 billion by 2028, as it intends to be a major player, MediaTek said.
The total addressable market for AI accelerators used in data centers would total US$12 billion this year, it added.
As the smartphone chip restocking cycle is drawing to an end this quarter, MediaTek expects revenue this quarter to be flat or to decline by 9 percent sequentially to NT$121.4 billion to NT$133.5 billion (US$3.73 billion to US$4.10 billion), compared with NT$133.46 billion in the first quarter.
Smartphone chips are the biggest revenue contributor to MediaTek, accounting for 61 percent last quarter.
Gross margin this quarter is expected to be in the range of 45.5 percent to 48.5 percent, from 47.9 percent last quarter, excluding a one-time item, the company said.
MediaTek yesterday reported quarterly net profit of NT$31.6 billion during the January-to-March period, surging 87.4 percent year-on-year from NT$16.89 billion. On a quarterly basis, net profit jumped 23.1 percent from NT$25.71 billion.
Earnings per share rose to NT$19.85 last quarter from NT$10.64 in the first quarter of last year and NT$16.15 in the fourth quarter last year.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary
RSS