AI AND ML<\/p>\n
Taiwanese silicon biz believes it can take up to 20% of $80B market with upcoming ASIC chips, but analysts are sceptical<\/p>\n
Taiwanese chipmaker MediaTek is lining up $5 billion in financing to expand into AI datacenter silicon, targeting a slice of a market it expects to be worth up to $80 billion next year.<\/p>\n
The fabless chip producer is perhaps best known for its Arm-based smartphone and Chromebook chipsets, plus wireless silicon for Wi-Fi products. But the firm is the latest to see a “compelling growth opportunity” in the market for compute to power AI and so-called agentic AI in particular.<\/p>\n
MediaTek is targeting application-specific integrated circuits (ASICs) rather than GPUs and reckons it can capture 15 to 20 percent of the market.<\/p>\n
The company’s board has also approved $5 billion in financing to secure supply chain capacity and fuel an expansion from AI ASIC chips to full-scale systems and platforms, MediaTek stated.<\/p>\n
Chief exec Dr Rick Tsai spelled it out during an analyst call for the company’s Q2 2026 earnings.<\/p>\n
“Recently, the release of increasingly capable frontier AI models, together with the rapid transition toward agentic AI, has become a key driver of compute demand across both cloud and edge AI,” he stated.<\/p>\n
“Agentic AI, which executes a series of actions, including planning, reasoning, execution, and self-correction, further increases workloads. This represents a compelling growth opportunity for MediaTek, as we are well-positioned to support both the scaling of AI datacenters and the proliferation of agentic AI experiences across a broad range of edge devices.”<\/p>\n
MediaTek says that its first ASIC family has been developed in “close partnership with major US cloud service provider customers,” and is scheduled to enter production in the fourth quarter of this year. A second AI accelerator design is also progressing well and aims to offer a step up in compute performance.<\/p>\n
The chip biz expects its AI datacenter ASIC revenue to exceed $2 billion in 2026, scaling substantially next year, primarily driven by increasing customer demand for its technology, which boasts optimized performance for TCO and performance per watt at scale, Tsai claims.<\/p>\n
“With close collaboration with our advanced packaging partner, the yield and reliability of the second ASIC are on track for high-volume production in 2028. We’re confident in capturing additional market share when this ASIC ramps up,” Tsai told analysts.<\/p>\n
But MediaTek will be facing competition from rivals such as Broadcom and Marvell, which already design ASICs for the AI market, and even Google, which announced plans<\/a> to start selling its custom tensor processing units (TPUs) to some customers earlier this year.<\/p>\n