TAIPEI, Feb. 4 (GeokHub) — Taiwan’s leading chip design firm MediaTek said on Wednesday that surging demand for artificial intelligence applications is straining global supply chains, pushing up costs and forcing the company to adjust pricing across its product portfolio.
Speaking during a quarterly earnings call, Chief Executive Rick Tsai said the rapid expansion of AI workloads has created pressure throughout the semiconductor supply chain, particularly as manufacturers struggle to meet rising demand projected for 2026.
“With AI acting as a catalyst for industry expansion, global supply chains are facing challenges in fully meeting demand, resulting in higher costs across the ecosystem,” Tsai said. He added that MediaTek would revise pricing to reflect those cost increases and prioritize supply allocation based on overall profitability.
AI Boom Reshapes Semiconductor Economics
MediaTek is among a group of Taiwanese technology companies benefiting from the AI boom, alongside contract chipmaking giant TSMC. However, executives across the sector have warned that tight capacity, advanced manufacturing constraints and rising input costs are reshaping pricing dynamics.
Tsai reiterated that MediaTek expects to generate multi-billion-dollar revenue from AI accelerator ASIC chips by 2027, underscoring the company’s strategic focus on data-center and enterprise AI workloads.
He added that the total addressable market for data-center ASIC chips has expanded sharply, now estimated at $50 billion to $70 billion, roughly $20 billion higher than earlier projections.
Deepening Ties With Nvidia
MediaTek has partnered with Nvidia to co-design the GB10 Grace Blackwell Superchip, which powers Nvidia’s DGX Spark — a personal AI supercomputer launched last year.
Tsai said customer feedback for DGX Spark has been “very positive,” and that MediaTek expects revenue growth momentum to accelerate into 2026 as AI adoption broadens.
Financial Performance and Market Reaction
The company reported fourth-quarter revenue of T$150.2 billion, up 8.8% from a year earlier, driven by strong demand for advanced chips. Net income, however, slipped 3.6% to T$23.1 billion, reflecting higher costs and ongoing investment.
MediaTek shares have gained 26% so far this year, significantly outperforming Taiwan’s broader equity benchmark. The stock edged higher on Wednesday ahead of the earnings release.
