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MediaTek Plans US$5B Expansion Into AI Data Center Chips

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By TaiwanPlus

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MediaTek Inc. is expanding into AI chips for data centers as Taiwan’s largest chip designer looks to become a major supplier to cloud providers. The company has approved a US$5 billion budget to support long-term growth. The move comes as MediaTek works to reduce its reliance on smartphones.

MediaTek Expands into AI Data Center Market

 

REPORTER:  

Taiwan’s largest chip designer MediaTek is planning a major expansion into AI chips for data centers.

 

The company says it has approved a 5 billion US dollar budget to support long-term growth, including its expansion into AI chips for data centers.

 

MediaTek says its first custom AI chip will begin production in the fourth quarter, as it looks to become a significant supplier of AI chips to major cloud providers.

 

The move comes as MediaTek tries to reduce its reliance on orders for smartphones. MediaTek says mobile chip revenue fell 20% in the second quarter from a year prior.