MediaTek Raises Cloud ASIC Revenue Outlook as AI Accelerator Demand Grows

Highlights

MediaTek CEO Rick Tsai said the company began shipping initial orders of its first AI accelerator ASIC in September. Strong customer demand has led MediaTek to raise its fourth-quarter cloud ASIC revenue outlook to 25億美元. For 2027, revenue from the project could reach the high end of its target range, about 160億美元, representing approximately 20% of the overall AI accelerator ASIC market. The second ASIC project is progressing as planned, while a second cloud ASIC customer has been confirmed, with revenue expected to begin in 2028. MediaTek is also expanding beyond chips into connectivity, packaging, and rack-level solutions.

Sentiment Analysis

• Overall tone: Positive, with measured caution. The article emphasizes stronger-than-expected demand for MediaTek’s first AI accelerator ASIC and an upward revision to its fourth-quarter cloud ASIC revenue outlook. The 2027 projection, which reaches the high end of the target range, adds to the favorable outlook.


• Growth drivers: Initial shipments began in September, a second cloud ASIC customer has been confirmed, and a further project is expected to contribute revenue from 2028. The article also describes ongoing development in advanced packaging, SerDes, and optical interconnects.


• Reservations: Substrate supply remains a challenge, and supply-chain uncertainty prevents the company from offering specific 2028 revenue guidance. A larger and more complex chip is expected to take approximately 2至3週 longer to complete tape-out than other dies.


• Assessment: The source presents management’s claims and forecasts rather than independently verified outcomes. Its sentiment is optimistic overall, tempered by capacity constraints, development schedules, and uncertainty about future supply.

Article Text

MediaTek (聯發科, 2454-TW), a major chip-design company, is stepping up its AI accelerator business as demand for cloud computing products increases. At an investor conference on the 30th, CEO Rick Tsai said that the company’s first AI accelerator application-specific integrated circuit (ASIC) began shipping initial orders in September. Based on strong customer demand, MediaTek now expects cloud ASIC revenue in the fourth quarter to reach 25億美元.

The company’s outlook for 2027 is also stronger than its original baseline. Tsai said revenue from the project could reach the high end of the previously established target range, at about 160億美元. That amount would represent approximately 20% of the overall AI accelerator ASIC market, according to the company’s estimate. These figures are forecasts, and the source describes them as expectations rather than completed results.

MediaTek attributed the increase in its fourth-quarter forecast primarily to customer demand. The company is working with supply-chain partners to secure additional production capacity as it seeks to meet orders. Substrates are currently among the more challenging components to source. Tsai said the team has coordinated suppliers across several areas and is confident in the supply outlook, while continuing efforts to expand capacity. The need to secure components and production capability remains an important qualification to the company’s growth expectations.

The second AI accelerator ASIC project is progressing in line with its development plan. Some dies have completed tape-out, while the larger and more complex dies are expected to complete tape-out on schedule. Because those dies are larger and more complicated, their schedule is approximately 2至3週 longer than that of other dies. Tsai said the next-generation chips are expected to improve performance and performance per watt substantially. They are also designed to reduce customers’ total cost of ownership (TCO). Management expressed confidence in both the project’s progress and its competitiveness.

Looking further ahead, Tsai described 2028 as a year that could bring another strong period of demand-led growth. He did not provide specific revenue guidance for that year, explaining that numerous supply-chain variables remain. MediaTek has also confirmed a second cloud ASIC customer. Work on the new project is beginning in stages, and the company expects it to start contributing revenue in 2028. The announcement adds another potential source of future business, although the article does not provide a separate revenue estimate for that customer.

MediaTek is developing technologies intended to support the broader data-center market as well as its ASIC products. These include 448G SerDes, 3.5D advanced packaging, and co-packaged optics (CPO). The company is also participating in the NVLink Fusion partner program through its collaboration with NVIDIA. The initiative is intended to connect customer ASICs to the NVLink ecosystem, while MediaTek also supports rack architectures based on UALink Ethernet.

This work reflects an effort to extend the company’s offering from individual chips toward systems and racks. Such an approach combines ASIC design with high-speed connections and packaging technologies, potentially allowing MediaTek to address more parts of data-center infrastructure. The central business signal is the combination of strong early demand, additional customer opportunities, and a wider technology portfolio, balanced against supply constraints and execution risks.

Overall, the source presents a positive but conditional outlook. The first ASIC project is entering commercial shipments, and management has raised its near-term revenue expectation while targeting a substantial contribution in 2027. A second project and another cloud customer broaden the pipeline, with revenue from the new customer expected in 2028. At the same time, substrate availability, broader supply-chain uncertainty, and the complexity of chip development remain relevant factors for assessing whether the forecasts can be achieved.

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