MediaTek Begins Shipping First Data-Center AI Chip, Targets $16 Billion Revenue by 2027
MediaTek confirms its first custom AI accelerator began shipping in September, raising Q4 cloud ASIC revenue estimates to $2.5 billion and targeting $16 billion for 2027.
Taiwan-based semiconductor company MediaTek announced at its October 30 earnings call that its first customized AI accelerator (ASIC) for data centers began shipping initial orders to customers in September. This marks MediaTek's formal expansion from mobile chips into the high-growth AI infrastructure market.
Driven by customer demand, MediaTek revised its fourth-quarter cloud ASIC revenue estimate upward to $2.5 billion. For 2027, the company stated it aims to reach the upper end of its original target range—$16 billion—which would represent approximately 20% of the global AI ASIC market. Additionally, MediaTek confirmed securing a second cloud ASIC customer, with related projects expected to contribute revenue starting in 2028.
Despite the optimistic outlook, MediaTek CEO Rick Tsai noted that converting orders into actual revenue depends on whether the manufacturing supply chain can keep up with demand, particularly regarding substrate supply challenges. Therefore, the $16 billion figure remains a next-year revenue target rather than realized shipment performance. The company is working with suppliers to secure more capacity and advancing next-generation chip designs to improve compute efficiency per watt.