MediaTek expected to grow chips for smartphones and routers

The world’s largest Smartphone chips supplier in the person of MediaTek announced that in the current quarter the company’s revenue could grow by 10 %. This is facilitated by the program to stimulate the economy in China, as well as an increase in the volume of customer orders against the backdrop of fears about the speedy introduction of export duties by the United States.

Image source: MediaTek

Typically, the first quarter for MediaTek is a lull season, but this year the company expects a moderate increase in income in two main business segments-smartphone chips and intellectual platforms, such as Wi-Fi router chips. According to the forecast of the vendor, in the first quarter, which will end for MediaTek on March 31, a consistent increase in revenue by 2-10 % to about 140.8-151.8 billion Taiwann dollars (from $ 4.3 billion to $ 4.6 billion) is expected.

«In general, in the first quarter of 2025, we are observing steady demand for smartphones thanks to the stimulation program in China, as well as a slight increase in demand for products such as TVs, Wi-Fi routers, tablets and Chromebook, due to uncertainty against global tariffs of such In the way, we expect the revenue in the first quarter will grow consistently higher than usual, seasonal pace, ”said MediaTek Rick Tsai, during a recent meeting with investors.

MediaTek is largely focused on the Chinese smartphone market. The active promotion of the Oppo and Vivo smartphones with support for technology based on artificial intelligence helped to more than double the revenue from the sale of chips for flagship smartphones last year. At the same time, MediaTek noted that the prospects for the next quarter are not too large, mainly due to the global trade war that provoked the new US government.

MediaTek is sure that the trend for artificial intelligence will not go anywhere in the foreseeable future. According to the head of the company, the recent launch of the DeepSeek Ai-Algorithm makes an increasingly optimistic forecast regarding the level of implementation of and technologies, since applications based on neural networks become more accessible to ordinary consumers. He believes that this is a good sign not only for an increase in the number of devices with support for AI, but also to increase the number of cloud data centers.

As for financial results, the MediaTek net profit in the last quarter decreased by 6.9 % in annual calculus and amounted to 23.94 billion Taiwan dollars. Regarding the previous quarter, the company’s profit decreased by 6.4 %. In general, over the past year, MediaTek’s profit increased by 38.8 % to 107.14 billion Taiwanese dollars. A year earlier, this indicator was equal to 77.19 billion Taiwanese dollars.