MediaTek just dropped a record quarter while phone shipments are falling 15%. The math only works because of one thing: data-center chips.
September revenue came in at NT$55.4B, down 13.6% month-over-month but up 1.9% year-over-year. Q3 totaled NT$168B — above guidance at NT$159.8B — up 10.4% quarter-over-quarter and 18.2% year-over-year. That's a quarterly record. Nine-month revenue hit NT$469.4B, up 5.3%.
On the phone side, MediaTek launched two flagships at once. The Dimensity 9600 Pro runs on TSMC's 2nm process. The 9600M is on 3nm. First devices using them ship soon. MediaTek has led global phone processors for six years. The Pro is its most powerful AI phone chip. The M targets the cheaper flagship tier.
Global phone shipments are still expected down roughly 15% this year. The market is bifurcating: premium flagships with clear differentiation versus low-cost entry devices.
The real story is custom AI chips. MediaTek is working with a large U.S. cloud provider. The first AI accelerator enters volume production this quarter. Data-center revenue this year is expected to top $2B. Management sees that business accelerating in 2027, targeting a served market of $80B. The market share goal was raised from 10–15% to 15–20%.
A second accelerator is on track — better compute, lower operating cost. Yield and reliability are meeting targets. Volume production still aimed at 2028. MediaTek is also pursuing additional cloud design wins.
So if phone shipments are down 15% and the quarter still set a record, does the $2B data-center line already matter — or does the 2028 chip have to land before the share target becomes real?
September revenue came in at NT$55.4B, down 13.6% month-over-month but up 1.9% year-over-year. Q3 totaled NT$168B — above guidance at NT$159.8B — up 10.4% quarter-over-quarter and 18.2% year-over-year. That's a quarterly record. Nine-month revenue hit NT$469.4B, up 5.3%.
On the phone side, MediaTek launched two flagships at once. The Dimensity 9600 Pro runs on TSMC's 2nm process. The 9600M is on 3nm. First devices using them ship soon. MediaTek has led global phone processors for six years. The Pro is its most powerful AI phone chip. The M targets the cheaper flagship tier.
Global phone shipments are still expected down roughly 15% this year. The market is bifurcating: premium flagships with clear differentiation versus low-cost entry devices.
The real story is custom AI chips. MediaTek is working with a large U.S. cloud provider. The first AI accelerator enters volume production this quarter. Data-center revenue this year is expected to top $2B. Management sees that business accelerating in 2027, targeting a served market of $80B. The market share goal was raised from 10–15% to 15–20%.
A second accelerator is on track — better compute, lower operating cost. Yield and reliability are meeting targets. Volume production still aimed at 2028. MediaTek is also pursuing additional cloud design wins.
So if phone shipments are down 15% and the quarter still set a record, does the $2B data-center line already matter — or does the 2028 chip have to land before the share target becomes real?