MediaTek Says AI Causes Supply Chain Tensions, Will Adjust Product Prices
Special Topic: Focus on US Stock Q4 2025 Financial Reports
Taiwan's leading chip design company MediaTek stated on Wednesday that the surge in demand for artificial intelligence applications is putting pressure on the supply chain and driving up costs. The company will adjust product prices to address this situation.
Benefiting from the AI industry boom, the businesses of MediaTek, TSMC—the world's largest semiconductor foundry—and other Taiwanese tech companies have all seen significant growth.
MediaTek President Rick Tsai said in the quarterly earnings call that the company is full of confidence about future prospects, but at the same time issued a warning regarding supply chain issues.
He stated: "AI has become a catalyst for industry expansion, driving a surge in demand. In 2026, the global supply chain will struggle to fully meet the rapidly growing needs, resulting in a comprehensive increase in costs across the entire supply chain."
Rick Tsai added: "We will also adjust product pricing to reflect the rising supply chain costs, and allocate supply for each product based on overall profitability." He did not elaborate further on the specific details of the adjustments.
He reiterated the company’s statement from the earnings call last October, that MediaTek expects its AI acceleration ASIC chips to generate billions of dollars in revenue by 2027.
Rick Tsai also mentioned that the current total addressable market (TAM) for data center ASIC chips is estimated at $50 billion to $70 billion, an increase of $20 billion compared to previous estimates.
MediaTek has partnered with Nvidia to co-design the GB10 Grace Blackwell superchip for Nvidia DGX Spark personal AI supercomputers, a product that has been available since last year.
Rick Tsai attended Nvidia CEO Jensen Huang’s high-end supplier dinner in Taipei last Saturday. He stated that market feedback for DGX Spark has been "very positive," and expects the company's revenue growth to accelerate further in 2026.
On Wednesday, MediaTek announced Q4 revenue of NT$150.2 billion (approximately $4.76 billion), an increase of 8.8% year-on-year; net profit was NT$23.1 billion, a decrease of 3.6% year-on-year.
MediaTek’s stock price has risen 26% so far this year, outperforming the market index’s 11.5% gain. Before the earnings release, the stock closed up 0.3% on Wednesday.
Last month, TSMC announced that its Q4 profit soared by 35% year-on-year, far exceeding market expectations and setting a new record high.
Editor: Guo Mingyu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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