MediaTek, Taiwan’s largest chip designer, said on July 31 that its board had approved a discretionary US$5 billion financing budget to support long-term growth, including expanding into AI chips for data centers, as it works to reduce its reliance on smartphones.

Chief executive Rick Tsai said MediaTek had developed its first custom AI chip and would begin production in the fourth quarter, with a second chip on track for volume production in 2028. MediaTek has described data centers as a top priority.

The push comes as smartphones still drive the business.

MediaTek said its data-center application-specific integrated circuit effort is expanding and includes advanced packaging, memory, and interconnect capabilities for AI, hyperscale, data-center, and networking customers.

The company said mobile-chip revenue fell 20% in the second quarter from a year earlier. Total revenue rose 1.2% to T$152.18 billion (US$4.71 billion), while net income fell 12.3% to T$24.6 billion (US$761 million).

🔗 Source: Reuters