MediaTek, Taiwan's largest chip designer, approved a $5 billion discretionary financing budget to expand into artificial intelligence chips for data centers.
The company aims to reduce its reliance on the smartphone market by producing custom AI chips, or ASICs, for major cloud providers.
MediaTek raised its 2027 addressable market estimate for custom AI chips to $80 billion.
The chip designer targets a 15% to 20% share of this market.
Production for the company's first custom AI chip will begin in the fourth quarter of 2026.
The company expects data center revenues to exceed $2 billion this year.