MediaTek’s board approved a $5 billion discretionary financing budget to accelerate its expansion into data-center artificial intelligence chips. This strategic move aims to reduce the company’s reliance on the slowing smartphone market. The flexible funding framework allows MediaTek to secure manufacturing capacity and support ongoing development.
The company expects its data-center AI chip business to generate more than $2 billion in revenue by 2026. Its first custom AI chip will enter production in the fourth quarter of this year. MediaTek plans to begin volume production of a second-generation chip in 2028.
MediaTek raised its 2027 market share target for custom AI accelerators to between 15% and 20%. This target applies to a total addressable market now estimated at $80 billion.