MediaTek, a Taiwan-based chip designer, said its August revenue rose 44% year on year to NT$64.2 billion (US$2.04 billion).

The increase was supported by its new AI chip business ahead of plans to start mass production in the fourth quarter for a major US cloud service provider.

Analysts said they expected MediaTek’s sales this quarter to grow about 10% on average and said the unnamed customer was Google, though MediaTek has not identified the buyer.

The AI chip business could help offset a downturn in the Android smartphone market, where MediaTek competes with Qualcomm for mobile processor orders.

MediaTek has previously said AI chip sales could reach about US$2 billion this year.

MediaTek also received support from Nvidia and Alphabet in a recent bond sale, with Nvidia investing up to US$3.5 billion.

🔗 Source: Bloomberg

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