MediaTek recently released its Q3 2025 financial results. Benefiting from better-than-expected demand for its flagship mobile chip, the Dimensity 9500, Q3 revenue reached the upper limit of its operating target in US dollar terms. In New Taiwan dollars, due to the actual exchange rate (1 US dollar to 30 New Taiwan dollars) being better than the financial forecast assumption (1 US dollar to 29 New Taiwan dollars), the quarterly revenue performance exceeded the operating target.
During its earnings call, MediaTek emphasized that it is still in the very early stages of the AI wave, and the continuous innovation of agentic AI across various industries is driving computing demand. MediaTek will firmly seize this growth opportunity.
Cloud AI: First ASIC project progresses smoothly; $10 billion revenue target for 2026 remains unchanged.
In the cloud computing sector, MediaTek reiterated that custom ASICs are a key solution for improving the total cost of ownership (TCO) of data centers. Its first AI accelerator ASIC project is progressing smoothly, maintaining its target of $10 billion in cloud ASIC revenue by 2026 and reaching several billion dollars by 2027.
In addition, MediaTek also revealed that a successor project with higher design complexity is underway and is expected to contribute revenue starting in 2028. At the same time, it is also actively negotiating a new ASIC project with its second hyperscaler customer and is very confident in the development of this business.
Edge AI: Dimensity 9500 Dual-Core NPU Adopted by Customers, 2nm Chip to Launch in 2026
At the edge, MediaTek continues to drive AI innovation on devices, and recently launched the following two products:
• Dimensity 9500: It adopts a dual-core NPU architecture (high-performance NPU for processing complex instructions + high-efficiency NPU for running lightweight models), and customers have already used this architecture to improve the experience of photography, AI assistants and other functions.
• GB10 Project: GB10, co-designed with NVIDIA (for the NVIDIA DGX Spark project), has officially entered mass production and can perform inference on 2000 billion parameter models and fine-tune 700 billion parameter models locally.
• Advanced process: MediaTek completed the tape-out of its first chip using TSMC's 2nm process in the third quarter of this year, and the product is expected to be launched in 2026.
Review of the operating performance of the three major business segments in the third quarter
Mobile phone business (accounting for 53% of revenue):
• 4% decrease quarter-on-quarter, 4% increase year-on-year (NTD).
• The main driver of the year-on-year increase is the strong demand for the Dimensity 9500. The first batch of customers, such as vivo X300 and OPPO X9 series, have already launched in China, and will be launched in India, Southeast Asia and Europe before the end of the year.
Smart device platform business (accounting for 42% of revenue):
• 6% decrease quarter-on-quarter, 14% increase year-on-year (NTD).
• The year-on-year increase was mainly due to product mix optimization driven by the adoption of AI in tablets, as well as increased market share for network connectivity products. The quarter-on-quarter decrease was mainly due to some demand being met earlier in the first half of the year.
Power management IC business (accounting for 5% of revenue):
• Decrease of 10% quarterly, decrease of 4% year-on-year (NTD).
Outlook: Growth in mobile phones, GB10, and automotive applications will offset the seasonal decline in consumer electronics.
Looking ahead to the fourth quarter of 2025, MediaTek expects revenue from flagship smartphones (Dimensity 9500), GB10 projects, and automotive chips to grow compared to the previous quarter. These momentums are expected to offset the seasonal decline in consumer electronics products.
Based on the midpoint of its fourth-quarter revenue target, MediaTek expects its full-year revenue for 2025 to exceed US$190 billion. Looking ahead to 2026, MediaTek anticipates continued strong growth opportunities. Faced with tight production capacity, the company will strategically adjust prices and reallocate production capacity across its product lines to reflect rising manufacturing costs.
