MediaTek is confident in the stability and resilience of its ASIC business between 2025 and 2028 and is committed to bolstering the ecosystems of related industries, according to the Taiwanese IC design house.
MediaTek is confident in the stability and resilience of its ASIC business between 2025 and 2028 and is committed to bolstering the ecosystems of related industries, according to the Taiwanese IC design house.
MediaTek also said it expects technology products for cloud AI development to begin contributing to revenue in the second half of 2025. MediaTek emphasized that the total addressable market (TAM) for cloud AI will only continue to grow over the next few years, allowing for more manufacturers in the ASIC market.
In addition to Google, Microsoft, Amazon Web Services (AWS), and Meta, more and more companies are building their own cloud data centers to provide AI-related services and train their own AI models. The most mainstream approach to achieving better cost-effectiveness is developing custom computing chips that work together with general-purpose chips. Architecture suppliers such as Arm are actively deploying technology platforms to facilitate customer use.
During MediaTek's previous efforts in the ASIC business, many were skeptical of its development, mainly because producing its own products and helping customers develop chips are two entirely different types of businesses.
Due to MediaTek's substantial technical expertise, ranging from CPU subsystems, NPUs, and SerDes, its understanding of advanced wafer processes and advanced packaging has been key to gradually earning customer trust. As a result, MediaTek is now recognized by its ASIC peers as a strong competitor in the cloud AI market.
The ASIC market has been dealing with intense price competition and demand adjustments. Still, industry players estimate that the mid-to-long-term growth trend remains very clear. Especially in the cloud AI sector, companies interested in developing their own AI chips are actively seeking assistance from ASIC manufacturers. Although customer willingness to develop independently is high, there is still a lot of uncertainty regarding the actual start of planning and production.
Industry players emphasized that the scope of ASICs is very broad, including advanced process products and mature process products. The technical direction and target markets of each company are also diverse, making the competitive situation of each product different.
If MediaTek is targeting the cloud AI chip market dominated by major manufacturers such as Broadcom and Marvell Technology, it may be difficult to catch up in the short term. However, it is possible MediaTek could gain a firm foothold in the market in 2026-2028.
MediaTek also pointed out that its business cooperation model is very flexible. Industry sources believe MediaTek's flexibility could be a key strategy in helping it win over customers.
Compared with the relatively limited solutions provided by leading manufacturers to maintain profit margins, MediaTek plans to provide comprehensive solutions, including working with other ecosystem partners to jointly provide services. This approach will make it easier to meet the diverse product considerations of customers, but only time will tell whether MediaTek can gain enough customer orders.