On February 7, 2025, MediaTek held its Q4 2024 and full-year earnings conference, reporting better-than-expected results driven by strong Dimensity flagship chip sales and growing AI-driven ASIC demand. The company's 2024 Dimensity flagship chip revenue doubled to $2 billion, while Q1 2025 revenue is expected to grow by up to 10% quarter-over-quarter (QoQ), marking the best performance in ten quarters. Looking further ahead, MediaTek's ASIC business is projected to surpass $1 billion in revenue by 2026, fueled by AI adoption.

Dimensity Flagship Chips Drive $2 Billion in Revenue

In Q4 2024, MediaTek reported:

● Revenue: NT$138.04 billion (+4.7% QoQ, +6.5% YoY)

● Net Profit: NT$23.79 billion (-6.1% QoQ, -7.3% YoY)

● Earnings per Share (EPS): NT$14.95

For full-year 2024, MediaTek achieved:

● Revenue: NT$530.59 billion (+22.4% YoY)

● Net Profit: NT$106.39 billion (+38.2% YoY)

● EPS: NT$66.92 (third-highest in company history)

● Gross Margin: 49.6% (+1.8 percentage points YoY)

In USD terms, revenue grew 19% YoY, surpassing previous forecasts.

Dimensity 9300/9400 Sales Exceed Expectations

CEO Rick Tsai attributed Q4 revenue growth to strong sales of OPPO and vivo flagship smartphones, powered by the Dimensity 9400 chipset.

For full-year 2024, Dimensity flagship chip revenue more than doubled, exceeding the company's initial 70% growth projection and reaching $2 billion. Additionally, wireless and wired communication revenue grew 30% YoY.

Q1 2025 Revenue Expected to Grow Up to 10%

Looking ahead, MediaTek expects Q1 2025 revenue to reach between NT$140.8 billion and NT$151.8 billion, representing a 2%–10% QoQ increase and a 6%–14% YoY increase. Gross margin is projected to be 47% ±1.5 percentage points.

Key drivers for Q1 growth include:

● China's consumer stimulus policies, boosting smartphone demand

● Increased orders for smartphones, TVs, Wi-Fi, tablets, and Chromebooks, as clients adjust to global tariff uncertainties

● Steady growth in smart device platform revenue, supported by connectivity products and computing solutions

● Potential seasonal decline in power management chip revenue

Wi-Fi 7 Revenue Expected to Double in 2025

For full-year 2025, MediaTek expects:

● Global smartphone shipments to grow at a pace similar to 2024

● 5G penetration to increase from 65% to 67%–69%

● Smartphone chip revenue to see slight growth, with more Dimensity 9300 and 9400-powered models launching

● Wi-Fi 7 revenue to grow by over 100%, as adoption accelerates across broadband, laptops, and routers

In automotive, MediaTek expects sequential revenue growth in 2025, driven by intelligent cockpit and in-vehicle communication projects. The company's co-developed high-end smart cockpit solution with Nvidia has received positive customer feedback and will begin sampling this year.

ASIC Business Set to Exceed $1 Billion in 2026

Tsai emphasized MediaTek's commitment to AI, stating that AI-driven industry innovation will continue to drive revenue growth.

He highlighted recent advancements such as:

● DeepSeek R1 and Alibaba's Qwen 2.5 Max models, which leverage new AI training techniques for greater efficiency

● The continued pursuit of General AI and Super AI, requiring higher computing power—an area where MediaTek is well-positioned in both edge and cloud AI

In cloud AI, MediaTek will expand its enterprise ASIC strategy and develop AI accelerators for data centers. The company projects that its AI accelerator and ASIC business will generate over $1 billion in revenue starting in 2026.

For edge AI, MediaTek plans to collaborate with global partners to develop more AI-powered devices, driving growth in flagship smartphones, automotive solutions, Arm-based computing, and IoT. Some new projects will enter mass production by year-end.

Additionally, MediaTek is co-designing the GB10 Super Chip CPU for the world's first personal AI supercomputer, developed in partnership with Nvidia. The chip is set to be unveiled in May 2025.

To support AI-driven opportunities, MediaTek is investing in next-generation technologies, including:

● 2nm/3nm process nodes

● Advanced packaging

● 448G SerDes

● Co-packaged optics (CPO)

These investments will strengthen MediaTek's AI and semiconductor roadmap, ensuring continued innovation and competitiveness in the years ahead.