MediaTek lines up $5B war chest for AI datacenter push
Taiwanese silicon biz believes it can take up to 20% of $80B market with upcoming ASIC chips, but analysts are sceptical
By The Register
MediaTek has approved a $5 billion financing budget as it expands into AI data-centre chips, according to Reuters. The Taiwanese chip designer says it wants a bigger share of the custom AI chip market, which it now values at $80 billion in 2027.
Reuters reported from Taipei on July 31 that MediaTek’s board approved the discretionary funding to support long-term growth, including its push into AI chips for data centres. The company is targeting custom AI chips, also known as ASICs, for major cloud providers.
The report says MediaTek has raised its target share of that market to 15% to 20%, up from 10% to 15%. It also said the company’s first custom AI chip has been developed and is set to begin production in the fourth quarter, while a second chip remains on track for volume production in 2028.
MediaTek also expects its data-centre AI chip business to generate more than $2 billion in revenue in 2026. Reuters noted that analysts remain sceptical about how quickly the company can win meaningful business in the crowded AI infrastructure market.