CORRECTION / TAIWAN-TECHNOLOGY
MediaTek is accelerating its expansion in the AI data center chip market, expecting its AI accelerator ASIC-related revenue to reach $16 billion by 2027. The image shows a schematic of MediaTek's related chips or data centers.

MediaTek is bullish on continued expansion in the artificial intelligence (AI) data center market, forecasting that its AI accelerator application-specific integrated circuits (ASICs) will generate about US$16 billion in revenue in 2027 and capture roughly 20% of the global market for related applications. The growth would further strengthen Taiwan’s semiconductor industry’s influence in the global AI supply chain.

According to a Central News Agency report, MediaTek CEO Rick Tsai said at an investor conference on Oct. 30 that the company began shipping its first AI accelerator ASIC in September and expects the product to generate about US$2.5 billion in revenue in the fourth quarter. As cloud service providers continue investing in data centers worldwide, demand for customized AI chips is also gradually increasing.

Tsai said MediaTek expects revenue from the related chips to reach US$16 billion in 2027, at the high end of the company’s previous forecast range. The company is also expected to capture about 20% of the global AI accelerator ASIC market. MediaTek’s next-generation AI infrastructure chip is scheduled to enter commercial mass production in the first quarter of 2028.

MediaTek also forecasts consolidated revenue of NT$210.1 billion to NT$221.8 billion for the fourth quarter, representing quarter-on-quarter growth of 25% to 32%. Gross margin is expected to range from 43.5% to 46.5%. The company said shipments of AI chips and demand for chips used in smart devices would be key drivers of operating growth.

The boom in AI data center construction is fueling competition across the global semiconductor industry. In addition to GPUs, cloud service providers are actively adopting customized ASICs to improve computing performance and energy efficiency while lowering overall costs. MediaTek’s efforts to expand in the AI data center market reflect the Taiwan IC design industry’s shift beyond smartphone chips into high-performance computing and cloud infrastructure.

However, the revenue and market-share figures remain company projections. Actual performance will depend on customer demand, the pace of product mass production and changes in global AI capital spending.