[News] MediaTek Reportedly Doubles 2026 AI ASIC Revenue Target to $2B, Aims 10–15% Market Share

Custom silicon from hyperscalers continues to gain traction, with MediaTek emerging as a key beneficiary of the accelerating shift. According to Liberty Times, citing CEO Rick Tsai, the company now expects its AI ASIC revenue contribution to double from earlier projections, rising from USD 1 billion to USD 2 billion in 2026.

The report, citing Tsai, adds that the total addressable market (TAM) for AI ASICs could reach USD 70–80 billion by 2027, with MediaTek targeting a 10–15% share over the coming years. TechNews suggests that MediaTek’s first AI accelerator ASIC project for a major US hyperscaler is progressing smoothly, with about USD 2 billion in revenue expected in 4Q26 and potential to scale to several billion dollars by 2027.

Notably, TechNews reports that the Taiwanese chipmaker’s second AI accelerator program is under close customer collaboration, targeting mass production by end-2027, while additional data center ASIC opportunities are in final-stage discussions.

MediaTek is expected to gain stronger shipment share in Google’s TPU v8t large-scale training chips and expand opportunities into the v9 generation, with Google likely maintaining a dual-sourcing strategy with MediaTek and Broadcom into TPU v10, according to Commercial Times citing analysts.

The report also highlights MediaTek as a potential contender for OpenAI’s edge AI project, a deal seen as strategically significant regardless of volume, as it could open the door to broader ASIC collaboration opportunities.

Smartphone Segment Faces Headwinds as Shipments Decline

MediaTek reported its 1Q26 consolidated results on the 30th, with revenue of NT$149.151 billion, down 0.7% QoQ and 2.7% YoY. As noted by TechNews, the decline was mainly driven by weaker mobile business. EPS came in at NT$15.17, up from NT$14.39 in the prior quarter but below NT$18.43 a year earlier.

Against this backdrop, TechNews, citing Tsai, reports that intensified resource allocation toward data centers has driven up handset costs, prompting price increases and a shift toward premium devices, which in turn has dampened overall demand. The company now expects global smartphone shipments to decline by around 15% this year, the report adds.

In 1Q26, MediaTek’s mobile revenue fell 17% QoQ and 15% YoY, accounting for 49% of total revenue. TechNews reports that for 2Q, customers are expected to remain cautious in inventory management, with mobile revenue likely to decline further sequentially.

However, the report also notes that MediaTek’s first 2nm flagship smartphone SoC, featuring enhanced AI and computing capabilities, is expected to launch by late 3Q, which the company sees as a potential catalyst for a recovery in the second half.

Read more

• [News] MediaTek, Qualcomm Reportedly Cut 4nm Wafer Starts, Down ~15% YoY Amid Rising Memory Costs
• [News] MediaTek CEO Flags Memory as One of XPU Bottlenecks, Now Making Up 50% of Costs

(Photo credit: MediaTek)