[News] MediaTek Forecasts $1B in ASIC Sales for 2026, Custom AI Chips Set for 20% Revenue Share in 2027

As Google’s Tensor Processing Units (TPUs) gain traction, key ASIC partner MediaTek is turning increasingly bullish on the business. According to Commercial Times and Liberty Times, CEO Rick Tsai said the company expects ASIC revenue to surpass US$1 billion in 2026 and expand to a multi-billion-dollar scale the following year.

He added that MediaTek has already secured next-generation AI ASIC orders from major customers, with AI ASICs expected to account for up to 20% of total revenue as early as next year, Liberty Times reports.

The Economic Daily News, citing Tsai, adds that MediaTek is actively executing follow-on projects, which are slated to begin contributing revenue from 2028. As demand for ASICs continues to heat up, Tsai reportedly estimates the data center ASIC market could reach US$70 billion by 2028, up from a previous forecast of US$50 billion.

As reported by the Economic Daily News, market talk suggests Google is sharply ramping up TPU orders at MediaTek, with volumes more than doubling initial plans. MediaTek’s first Google-designed TPU, the v7e, is slated to enter risk production by the end of 1Q26, while the company has also secured orders for Google’s next-generation v8e TPU, the report said.

Short-term Headwinds, with Memory Cost Pressures

As noted by Commercial Times, MediaTek reported Q4 2025 consolidated revenue of NT$150.2 billion, hitting the top end of guidance, with a gross margin of 46.1% and EPS of NT$14.39. Full-year revenue reached a record NT$595.9 billion, with EPS of NT$66.16. For Q1 2026, the company expects revenue of NT$141.2–150.2 billion, flat to down 6% QoQ.

Notably, CEO Rick Tsai warned that global smartphone shipments in 2026 may face headwinds from rising memory and BOM costs. Still, MediaTek expects to keep gaining share in flagship SoCs, with higher silicon content and ASPs helping to stabilize its revenue mix despite the challenges, according to Commercial Times.

On margin outlook, CFO David Ku, cited by Commercial Times, said tight supply conditions across the value chain remain a challenge. MediaTek is carefully balancing capacity allocation, business growth, and profitability, while working with customers to address rising costs. The company is targeting a gross margin of around 46% this year, he added.

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(Photo credit: MediaTek)