MediaTek earlier announced its second-quarter financial results for fiscal year 2025, and also confirmed that the new processor, which was previously announced to be designed with a 2nm process and will enter the tape-out stage in September, will be designed for edge AI and cloud AI products, and the design is expected to be finalized in September of this year. The rumored flagship mobile phone chip Dimensity 9 will be officially launched in the third quarter of this year. As for the GB9 project in cooperation with NVIDIA, it will also enter mass production in the third quarter of this year, which will bring significant revenue contribution.
MediaTek noted that both its second-quarter revenue and gross profit margin reached the high end of its previously forecast targets, primarily due to robust demand growth for edge AI chips and high-speed connectivity products, as well as the pullback in demand driven by tariff uncertainty. The rapid expansion of AI applications has steadily driven demand for edge computing and high-speed communication solutions.
Entering the third quarter, MediaTek expects continued growth momentum from AI tablets and automotive chips. Meanwhile, the Dimensity 9500, a new flagship mobile phone chip developed in partnership with NVIDIA's GB10 project, will enter mass production and begin contributing to revenue. However, due to some market demand already reflected in the first half of the year and exchange rate fluctuations, MediaTek anticipates a Q7 revenue decline compared to the second quarter. In New Taiwan dollars, the decline is estimated to be between 13% and 6%, including a potential exchange rate impact of approximately 1%. In US dollars, the decline is a 8% to XNUMX% quarter-over-quarter decrease.
MediaTek believes that overall growth momentum will remain strong through 2025, with core businesses such as flagship smartphone chipsets, networking products, and computing solutions all maintaining strong growth. The newly launched Dimensity 9500 flagship chip, which will incorporate more powerful AI features and computing performance, is gaining adoption from a wider range of brands. MediaTek anticipates that flagship smartphone-related revenue will reach US$30 billion for the full year, representing an annual growth rate exceeding 40%.
In the field of connectivity and communications, MediaTek's Wi-Fi 7, 5G modem, and 10G GPON product lines continue to expand their market share and have widely entered the supply chains of major global telecom operators and consumer electronics brands. As a result, related revenue is expected to exceed US$30 billion this year.
AI-driven computing solutions also showed strong growth. MediaTek's GB10 project, tablet computers, and Chromebook solutions, developed in collaboration with NVIDIA, are expected to see annual revenue growth exceeding 80%, reaching nearly US$10 billion, becoming a key driver of the group's revenue growth.
Looking ahead, MediaTek emphasized its mid- to long-term commitment to high-growth sectors such as AI, data centers, and automotive. MediaTek also expects to finalize its 9nm process design by September of this year, becoming one of the industry's first leading manufacturers to deploy 2nm technology, laying a critical foundation for future AI and cloud application chips.
In addition, MediaTek is also actively expanding its enterprise-level customized chip business. It has currently invested more R&D resources to strengthen the design team, actively recruited key talents, and introduced advanced packaging and process technologies, including next-generation IP such as 448G SerDes and co-packaged optics (CPO) and other forward-looking specifications. At the same time, it has entered into cooperation discussions with several global cloud service providers and is expected to start contributing substantial revenue next year.
In the automotive market, MediaTek and NVIDIA jointly developed the high-end smart cockpit solution C-X1, targeting flagship car models. It will enter the sampling stage in the second half of this year and is planned to be officially introduced into mass production in 2026, further deepening its layout in the smart car market.
