MediaTek’s AI ASICs growth to offset smartphone weakness

Taiwanese chipmaker MediaTek Inc. (TWSE: 2454) is stepping up its push into the AI data-center market, targeting as much as 20% of the serviceable available market for customized AI accelerators by 2027. The company raised its target from 10%-15% as hyperscalers increasingly turn to application-specific integrated circuits (ASICs) to improve performance and total cost of ownership.

Visible Alpha consensus points to a sharp expansion in MediaTek’s AI exposure. AI ASIC revenue is forecast to rise from an estimated NT$69.9 billion in 2026 to NT$535 billion in 2027 and NT$1.4 trillion by 2028, making AI ASICs the dominant contributor to the company’s Growth segment and an increasingly important source of group revenue. The trajectory reflects MediaTek’s broader effort to diversify beyond its smartphone-centric business; the company expects its first custom AI accelerator to enter production in the fourth quarter of 2026, with a second-generation product planned for 2028.

The AI ramp is expected to drive an acceleration in MediaTek’s overall revenue growth over the forecast period. In the near term, however, the company faces a sharp drag from its Mobile business, with Visible Alpha consensus showing analysts expect a 11% decline to NT$302 billion in 2026. The weakness comes as a global memory shortage, fueled by memory suppliers prioritizing AI data-center demand, weighs on smartphone production and raises component costs.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.